If you had to choose a single account that when opened, it will be free of the hassles of making money and guarantee your future, what account will it be?
I remembered the good feeling of opening my first bank account. I thought it was a ladder to wealth.
But as days turned to months and months turned to years, all rolled by and my bank account was still much empty, I had no choice but to rethink what owning a bank account really means and how to best fill them up with funds.
And so this inspired me to write this blog post. The accounts listed and explained below are accounts that will help you in all areas of your financial life.
Choose wisely as these accounts that can help you save, invest, build wealth, protect your wealth, and retire gracefully.
They are accounts that will ensure that you are financially secure in every period of your life.
If you ask me, I recommend you own them all.
- Savings Account
I believe a savings account is essential because that is where the quest for financial freedom really starts.
The truth is that the internet has rendered the traditional savings account totally useless. I mean “what is the need to save when you can spend it anytime you want?”
In fact, I am of the strong opinion that banks should change that name and find something else. Maybe, they should consider naming it “internet account”. And create another product called savings account. Real savings account this time.
You need to find secure ways to save your money. It must not be the traditional savings account but something or somewhere where you are assured that your money is safe and readily available for you.
At least that of a lot of microfinance banks is not yet corrupted. And there exists many insurance products that can serve as a good saving account. The core and most important thing is that you are saving money.
I know you might resist, especially the idea of saving in a microfinance bank. But the truth is that it serves the purpose, it lets you save and you are also helping your local business to grow which in turn will help your community.
- Current Account
Most people do not usually opt for this kind of account especially with the way the economy of the country has been lately. But it is here for the simple reason that you must one day outgrow your savings account and own a current account (business account).
That is, you must one day run and own your business. A business that conducts thousands and millions of transactions per day. A current account allows you to do that.
- Brokerage Account
This type of account allows you to buy and sell securities on the stock market.
When you have been able to save a good amount of money for your business, it begins to make passive income for you. The next move prompts you to begin to seek new investment opportunities.
Here is where the stock market comes in.
The Nigerian Stock Exchange has not really recovered from the credit crunch of 2008. As a result, more people have left the market. The more people leave the market, the more prices of stock decline. This has inspired a lot of people to think research and believe that the stock market is not the place to be when it comes to making investments.
But I know that it is one of the best places to invest. It is the most important account to have when it comes to investments and wealth creation.
If you want to be the next billionaire in your country, there is no way you can be that wealthy without dealing with the stock market. It is either you are going to the market to raise money through equity financing (the sale of shares) or you are going to do Bonds (borrow long term loan).
Nevertheless, your business will one day outgrow the money in your pocket, that of your family members and then that of your friends so that the only option you will then be left with is to raise more money away from people you know.
I will not discuss now the importance of investing in the stock market. But I will tell you this: never venture into the stock market to double or triple your investments within weeks or months but have a mindset that you are going there to own a good business investment that will continue to make you profits for years or decades.
Investing in the stock market first and foremost entails owning a good business. Nothing more, nothing less.
- Insurance Account
An insurance account is an account that helps you protect yourself, your loved ones and properties from all forms of risks (although the coverage depends on the kind of insurance purchased). This you do by transferring those risks (accidents, death, damage etc.) to Insurance companies that if anything happens, they will compensate you.
I know what is going on in your mind right now. Why the hell is this added to this list?
Simple! It is here because it is very important.
Tell an average Nigerian that there might be an accident one day with his car. The person will go in that night and ask God to destroy every of his enemies, anywhere they might be.
But accidents occur to people every day. People die daily. As each moment passes, people are left incapacitated and unable to work for the rest of their lives.
Yet, we still curse insurance agents who are only trying to help us to protect our loved ones from the unforeseen circumstances of life.
One single incident can destroy years and years of hard work.
We are talking about financial freedom. When you don’t protect yourself and something happens that could cause you to start all over or leave you in lifetime penury. You see that you are not financially protected.
If you don’t want to do it for yourself, do it for the sake of your loved ones. That is what insurance is all about: protecting the ones you love.
Buying insurance is very important. Instead of carrying all the risk yourself, try and share with insurance companies. They will protect you against any possible or total loss.
- Pension Account
A pension account is an account where a specific amount of money is set aside every month, to be spent after retirement.
Being financially free also means not lacking a dime even in your old age. You certainly don’t want to earn a good income at the peak of your career, and then when you retire, you won’t be able to finance your daily needs. Your fate for the rest of your life will be determined by your children or any other person who cares about you.
Then they begin dragging you all over the place, telling you where to live and where not to and can even go as far as telling you how to live your own life.
Some people don’t really think about this because they are young and believe that old age is still far off.
Old age is coming, and retirement is fast approaching; you might not know when it finally arrives.
Start now, have a pension account and start preparing for later.
You need to understand that-True financial freedom cuts through all stages of life.