As March 6 reminds us, independence is worth fighting for and that is exactly what financial independence also means, freedom. There are many ways one can attain financial freedom and here are some tried and tested ways to be finically free as explained by Managing Director of EDC, Paul Mantey.
Parkinson’s Law is one of the best known and the most important laws of money and wealth accumulation. This law says that no matter how much money people earn, they tend to spend the entire amount and a little bit more besides, with their expenses rise in lockstep with their incomes.
Using this law, Paul Mantey indicated that one will never invest if they wait to earn enough and rather advised workers to put 20 percent on their salaries into investments. According to him, a consistent investment over a long term period can go a long way to help one attain the financial independence they seek. “It is easy to achieve this with a standing order on your account.”
Advising workers against being in competition with others, he charged them to plan for their future, watch spending habits and avoid impulse buying. “Always go to the market with a shopping list and send your children to schools you can afford,” he shared with Samuel Eshun on the Happy Morning Show.
In reducing household waste, the financial planner cautioned against the wastage of food and utilities. “Wasting leftovers is a waste of money and you must also control your electricity bills. There are homes with lights and televisions on as at 8am. I have never met a wasteful rich man as they are particular of every cedi. Watch your spending habit and cut down as much as you can,” he counseled.
Ecobank Development Corporation (EDC) Ghana is the securities, wealth and asset management subsidiary of the Ecobank Group in Ghana.
EDC’s flagship fixed income fund is the biggest fund in Ghana and has grown to over Gh₵2.7 billion ever since its inception in 2012. With over 80 percent of the fund invested in government and quasi government securities, investors are assured of the security of their funds.
One can join the EDC family by walking into any branch of Ecobank and needs a minimum of Gh₵50 to subscribe to a preferred policy.
