Arese Ugwu’s ‘‘The Smart Money Woman” is an intriguing book that open our minds to financial literacy; a complex concept rarely spoken about in a typical African home and speficifally, among women. Here, Arese gives an African perspective on money management.
The Smart Money Woman explores the life of a group of friends who had different ideas about finances. Zuri, the main character, despite earning above the average salary for her position, was in a lot of debt. Her friends: Tami, the fashion designer, Lara, an oil and gas executive, Adesuwa, the lawyer and Ladun, the fabulous housewife were in different financial situations and were struggling to resolve.
The first chapter begins with an exclamation, “I can’t believe this is happening to me!” Sometimes, we find ourselves asking this question when we are broke. This chapter is about Zuri’s financial awakening. She realises she has made poor financial decisions and tries to come up with ideas to remedy her situation.
In the next chapters, we are taken on a detailed journey with Zuri to financial freedom. She conquers her money fears, deals with debt, learns the importance of building an emergency fund, develops a sustainable financial budget and finds love!
Arese’s writing style will have you anticipating the next chapter. It tells you about the lives of the different characters in relatable ways. The book mirrors the typical lives of middle-class Nigerians.
At the end of each chapter, the author explains a new financial term and gives an exercise that brings the reader a step closer to financial freedom. Arese’s Smart Money Woman is very interactive and practical.
I would recommend the Smart Money Woman to every woman, within any age group, who seeks financial independence. While the book embodies our regular spending habits and make us realize that our story shared by a large number of women, it also offers sound financial advice to resolve these financial problems.
You may wish to peruse and digest these nuggets from the book:
- It is important to have money dates with yourself. Use this time to go through your bank statements. Understand your cash inflow and outflow;
- Have an separate emergency account;
- Do not invest in anything you do not understand;
- Establish an investment goal and devise a strategy that matches your goals;
- Maximize your earning potential by focusing on finding your purpose;
- Divide your money in three parts: savings, bills and lifestyle;
- Breakdown your money goals into long term ( minimum of 20% representing a proportion that is set aside towards improving your networth. Eg land , property etc); short term ( proportion of your income set aside for treats. Eg; phones, bags, holiday ); Living expenses (this comprises 70% of your income; your bills!!);
- Harness your network and learn how to convert that network into opportunities; and
- Put your own oxygen mask before you can help others because money in your account does not always mean you can afford to give.
- Reach out to financial advisors to provide adequate guidance and professional financial advice.
It is important to know your asset classes and types of investment; stocks, real estate, money markets, bonds, mutual funds, etc.
Happy reading WIG.ng
