A key aspect of money management is planning. Prioritizing a rainy day fund and having savings buckets, as advised by our smart money woman Arese Ugwu requires determined effort and planning. Not only does the unexpected happen, but life evolves and new priorities can create deep holes in our pockets, if we haven’t planned for them upfront. We had a look at some websites, discussed with a few friends and came up with this list of 8 key expenses women should actively plan towards. Check on it!
- Being unemployed
Economies are volatile. People get fired or made redundant, companies go under, sell off or merge with other companies, and situations can change in a period of only a few months. If you were suddenly without a job, could you survive for a period of 6 months?
- Parental Care and extended family contributions
In Africa sending a monthly stipend or its equivalent to your parents is an accepted norm. Whether it’s taking care of younger siblings, paying health bills for a sick parent or helping a family member get back on their feet, financial contributions to extended family members, depending on your particular family dynamics is something that, where feasible, should be planned for
- Getting married
The other day a friend told me the cost for wedding hall rental on a Saturday and I almost resolved to get married in my father’s sitting room. Wedding prices are sky rocketing everyday, and if you are planning on getting hitched soon, it might be a good idea to start a savings account for that purpose.
- Loss/divorce from a partner or change in husband circumstances
Although no one ever prays for this, Nigerian women are particularly vulnerable in situations where a partner dies or a marriage comes to an end. If you are married, it is important for you to understand your family finances, even in cases where your husband earns enough to foot all the bills. Do you have enough saved as a family? What would happen if your husband suddenly lost his job, had to take a pay cut or, God forbid, died? Would you suddenly be thrown on the street or have to ask friends for money?
- Having kids
Pregnancy is expensive. From pre to ante natal care, getting effective medical care must be planned for. Whether you intend to give birth within or outside Nigeria, you must understand the exact costs and plan towards it. Also plan for exigencies i.e. emergency caesarean operations, etc. Even the costs of getting pregnant i.e. IVF can be quite paralysing. So it pays to think ahead.
Child care and all its associated costs clothes, nanny, day care, nappies, health care, school fees……baby’s are natural money siphons so if you are planning to have a child soon, don’t think only about baby names, start thinking about the associated costs and save towards it.
- Car issues
Cars are the only things that work fine from Monday-Thursday and then suddenly stop you enroute to work on Friday morning. The last time my car played a fast one on me and my mechanic gave me the bill for his services, I almost cried. I actually believe my car chooses to break down anytime I am broke. I advice every woman to set aside an emergency fund for car fixing and other sudden type expenses. It really is a life saver.
- Health care
It makes absolutely no sense to plan to buy a car if you don’t have plans for medical expenses. How will you drive the car if you are ill? If your office doesn’t offer a health plan as part of your contract, look into getting one for yourself. It will be money well spent!
- Holiday
Because life is also about fun, going away on holiday should also form part of your financial planning cycle. Think about everything, from where you’d like to stay, ticket, shopping, feeding, transportation etc. Going on holiday shouldn’t make you bankrupt, but that only happens when you’ve planned for it.
*Certain portions of this article have been curated for local context. The original version of this article can be found here
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