Start with future naira
A goal priced in today's money will always be missed. If school fees are N3 million a year now and rise 15% a year, they are about N6 million in five years. Write the future figure down. It is uncomfortable, and it is the most useful number you will see.
Match money to dates
Money needed within three years should not sit in shares, however tempting the headlines. Treasury bills and money market funds may trail inflation a little, but they will be there when the fees are due. Money for goals ten years away can take more risk for a better chance of staying ahead.
The goal is not to beat inflation every year. It is to be ready on the day the money is needed.
Do not chase the highest rate
High advertised rates usually come with high risk, sometimes hidden. If an offer promises a fixed high return with no risk, walk away. Our planner uses example rates of 12%, 16% and 20% a year only to show the trade-offs.
Raise savings with income
The most powerful habit is simple: when your income rises, raise your monthly saving by the same percentage. It keeps the plan in step with prices without you feeling poorer.
Review, do not react
Once a quarter, look at progress against each goal. Once a year, re-run the numbers with fresh assumptions. In between, ignore the noise.
In short
- Start with future naira
- Match money to dates
- Do not chase the highest rate
- Raise savings with income
- Review, do not react
General information, not personal advice. Example rates for illustration only. They are not promised returns: investments can fall as well as rise, and past performance is not a guide to the future.