Afrikan Goddess (AG) Online

Written By: N. Amma Twum-Baah 

In the old days, an African woman’s investment was her children. This meant that if a woman was barren, she was condemned to a life of abject poverty because there was no one to take care of her in her old age. That was then – so long ago – and this is now. Today, African women are innovating and freeing themselves from total dependency on others. Most profitable businesses are owned by women, and women make up a good portion of today’s workforce, both at home and abroad. While this is a positive sign of independence on their part, it is also important that African women continue to progress by actively and diligently investing in their future. Investing, for a long time, was something solely attributed to men, but women today need to get involved to ensure that their future, and that of their children, is secure.

Africans are known to be communal people. This can often make individual saving a little difficult, if not almost impossible. Successful Africans, or Africans who are considered better off, are expected to share the little they have with everyone from immediate family members down the line to reach extended family members and the community at large. This usually means not much is left for saving. But, even under the concept of communism, it is important to first pay yourself, and then pay others – especially as women; and no, it is not considered selfish to do so. It is actually the smart thing to do. 

Considering the fact that women usually are left out of inheritances (if there are male children) and the majority relies on men for their day-to-day living, a woman who does not invest in herself is usually left wanting at the end of the day, after her source of sustenance is gone. Movies and theatre usually depict the general concepts and way of life of the society they feature. It may be fictional (and sometimes, even exaggerated), but it’s usually inspired by real life events. Watch any African movie and see what happens when there is a misunderstanding between a man and his wife, or when a man dies and leaves behind a widow and children: the woman and her children are usually the ones to end up on the streets or back at her parents’ house. The reality is that most of these incidents would not happen if African women learned to sustain themselves and live independent financial lives – money in the bank, a job or trade, investment options and savings accounts.

African women living abroad are protected by the laws of the foreign countries in which they reside; and most of these cultures protect women from unfair treatment by men, and society in general. There are tremendous financial opportunities available in terms of savings and investment options to women living abroad that can mean a secure financial future if they start now. There are 401k plans offered by employers to their eligible employees, IRA accounts and mutual fund options. Consider looking into these and make the decision to start saving for your future - now.

Women living back home in Africa can look into the options available to them in their various individual countries. There are non-profits organizations that encourage women to learn a trade, invest and save. Some African countries have investment and savings options solely targeted at women investors. If no options are available, it’s the end of the world. Save part of your earnings for the future, start a profitable trade or business, invest in a sound education, specialize in something you’re good at and that brings in profit.

While all these options are great ideas for investing in your future, remember that the greatest investment you will ever make is to invest in yourself. People disappoint and life happens but when you depend on you, you always have your feet planted on solid ground.

Written By: N. Amma Twum-Baah

I will be the first one to admit I’m no financial guru. Matter of fact, I am the last person you want to come to about money matters. But, even the most financially challenged person can pick up a few tid-bits every now and then through past experiences and discerning what works and doesn’t work when it comes to managing your personal finances. Running a business makes you even more attentive to your spending habits. And in these trying economic times, it is even more essential now than ever to know how to stretch a dollar to its limit.

It is much easier to swipe your plastic cards – whether it’s a credit card or a debit card – for the purchase of goods and services, and be on your merry way; of course until the bill shows up. No one wants to be that person in line slowing everybody down by pulling out a check book or counting out cash and then having to wait for change. It’s a whole lot easier to whip out a credit card, sign (some merchants don’t even require that you do this anymore) and be on your way. Unfortunately, millions of Americans have swiped their way deeper and deeper into debt. The temptation to purchase something now with the honest attempt to pay it off when the bill arrives happens to the best of us. The down-side to this, however, is that we cannot predict the future; the bill gets in but you do not have the funds available to pay it off.

Here are some habits I have tried to develop and which have so far proven successful:

Pay yourself an allowance in the form of cash: You work hard for your money and deserve a cut of your earnings for your own enjoyment. Pay yourself a reasonable allowance out of every paycheck - to go towards grocery, gas, clothing, entertainment and other activities you might want to engage in – and stick with it. This will cause you to think twice before you make any purchase. Once your allowance runs out, that’s it! Don’t go borrowing from your credit cards or savings or any other stash you may have set aside.

If you really must use your credit or debit card*: in the event of an emergency, (because life as we know it is so unpredictable and “comes at you fast,”) use your bank card if the funds are available. If the funds are not available, and you must turn to your credit cards for rescue, make sure you pay the money back to your card as soon as you can. What I do, in those sparse moments when unexpected bills show up or the amount I expected to pay has increased by a couple of extra dollars, is to borrow from my credit card, then schedule a payment right away to be taken out exactly on the date I anticipate a paycheck. This way, you do not incur finance charges on the amount you charged, and you are not piling on new debt. Of course, you want to check your credit card’s finance policy as each one tends to be different depending on their terms of agreement.

*(I keep including debit cards in the credit category because some debit cards allow you to overspend the limit of cash available in your account, and then charge you excessive over withdrawal fees)

Schedule your credit card payments in advance of the due date: There’s nothing more aggravating than to go over your spending limit and incur an overdraft fee, or to forget to make a payment and get charged a late fee and possibly an over limit fee (if the late fee causes you to exceed your credit limit). If you know you’re in the habit of forgetting to make payments, one thing that has helped me is to schedule payments in advance of their due date. Most credit cards let you do this online at no charge or inconvenience to you. Just select the date you wish the payment to be withheld and the amount comes out (not sooner and not later) on that date before you even know it. Some only allow you to schedule one payment at a time. Others allow you to schedule multiple payments spread out over the month. Check with your credit card’s online banking for their terms of use regarding scheduling payments. You can even delete or edit payments at a later date, if you change your mind but, you have to do that well in advance of the date the payment is scheduled to post.

Know your credit or debit limit and how much money you have in the bank. If you don’t have it, then don’t spend it. It’s as simple as that. It will cost you dearly in the end. Developing a habit of good financial and spending practices takes time and patience. Study what works and doesn’t work for you and don’t beat yourself up if every once in a while you find yourself falling short. It happens to the best of us. Pick yourself up and dust yourself off to financial independence and responsibility.

By Funmi A. Adeyele, Contributing AG Columnist

A friend recently stated, “Having a bachelor’s degree these days is like having a high school diploma. Everyone has one in something. To get ahead in your career, you’re going to need something more than a bachelor’s degree.” So, the new trend is to get a master’s/advanced degree to get a step ahead of the game. The problem is that, now, everyone is getting a master’s degree in something. It is no wonder such assessments are being made about the once treasured undergraduate degree - that first educational hurdle that put you ahead of the pack. As I've advanced in my career I’ve noticed a few shocking realities. An advanced degree isn’t really necessary if you’re not in professional fields such as medicine and law.

Africans are known to place a lot of emphasis on specific careers, those we deem prestigious, honorable and come with what we measure as success and ‘big’ money. Stella Gbame admits that she's the most over-educated 30 year-old she knows. With two master’s degrees, she is currently working on a Ph.D. in International/Comparative Politics. Stella explains that because she plans to teach and research, there's no avoiding her education for her field of choice. Doctors, lawyers and a few other professionals have no choice either. It is how the system is set up. Stella is overwhelmed by the amount of debt she has managed to rack up over the years and is beginning to wonder if she will ever be able to pay it all in time to kick back and relax. “It’s one thing getting an advanced degree in Africa, where you have your parents footing the bill, and it’s another situation abroad where education is funded mostly through student loans. You have to be smart about these things.” Stella marvels at the number of women she knows who, five years and more after having acquired their fancy graduate degrees, “just because they wanted to be able to brag at social gatherings that they too have a master’s degree or Ph.D. in something,” are still overwhelmed by the debt they’ve amassed over the years.

There are several career paths that don't require an advanced degree (sales, advertising, media, business, fashion, and just about every other industry under the sun), and don't require extensive accumulation of debt to take your career to the next level. African women seem to bask in the glory of an education to a fault. Those with higher degrees look down on those who don’t without taking into consideration their accomplishments. “It doesn’t matter if you’re the director of communications at your company. What they want to know is your educational level and what school you attended,” says Yekemi Adamson who is the only African female executive at her Washington, D.C. office. ‘You know sometimes the interesting thing is they don’t even care how much money you’re making. It’s all about the title that goes after your title, M.D., J.D., C.P.A and such.”

 Master's degrees seem like a great idea—two little letters that add big value to your cultural cachet—but back in the real world of vague attempts at student loan payments left over from undergrad and late night take-out, the general 30-something year-old career woman needs cheaper, less time consuming options to spice up her job prospects. Do you really need to invest another $30K to take your career to the next level?

The solution lies in taking a holistic view of education, understanding that it is not just about a degree, but a journey of self-discovery that might sharpen up one’s resume to boot.

Communication is an essential component of an educated mind. Being able to articulate and get a point across an unequal playing field will take you places in any given career. Some edifying community learning experiences that are sure to transform your professional trajectory, and hopefully your body and soul, without the burden of acquiring extra debt:

Take a creative writing class – In today’s advanced technological world, writing is a major skill that can boost a dwindling career. Self-expression through blogs, writing columns, memoirs or short essays not only help to build your communication skills, but can also be a source of extra income. Taking a creative writing class can also help boost your resume, as almost every career today requires some level of writing competence. Most cities have community colleges that offer affordable creative writing classes that won’t break the bank. A quick online search can help you locate these resources.

Learn a new language – Some career paths seek to invest in people with diverse cultural influences such as the ability to speak a second language. Traveling to other countries is a sure way of acquiring such a skill. The two – travelling and learning a new language – do not necessarily go hand in hand, but it doesn’t hurt if you can afford it. Plus, you'll not only be enhancing your resume and earning potential in our multilingual society, but you’ll also be getting a vacation out of it! If you can’t afford to travel, you can learn a new language right here at home. Again, your local community college is a good place to start. There are other inexpensive ways, such as audio tapes and “teach your-self a new language” software. 

Volunteer – This is so far the most inexpensive and most innovative way to brush up your resume. Serve on a board, take on leadership roles on committees and engage in other interactive learning experiences while volunteering your time and expertise/experience. It not only helps boost your resume, but your communication skills as well. Beyond the self-serving reasons of how good service looks on a resume, learning to think collaboratively, and act as a team player and a leader, shapes the kinds of workplaces that empower workers.  Moreover, acting in service to others is important, plain and simple.

Take an interest in politics and public policy – At its center, education is about formulating identity. Studying politics means working to understand who we are in the context of our national, cultural, ethnic, and linguistic selves; who our neighbors are; and how we can continue to shape the kind of society we cohabit. Being politically and policy competent has a more direct benefit of offering you the ability to intelligently discuss current events with prospective and current employers. Lots of Africans shun American politics with the excuse of not having a vote. Well, if not for your vote, at least be well-versed for the sake of your career. No matter what your industry, an informed, critical-thinking mind is a major asset.

We, as a people need to understand that education isn’t just about degrees. I have met some really stupid engineers and doctors. We need to understand that education is all about learning not just in the classroom, but outside the classroom as well. Education is just as much about learning as it is about experience. Learning helps us to draw out what we didn’t know we had inside, to lead ourselves and others out into other ways of conceptualizing the world. This sounds much more exciting than writing a thesis.  So, who needs an expensive master's degree when education is about fun, travelling, keeping up with current events and learning new languages for a fraction of the cost? Now there’s an advanced degree called life experience.

By N. Amma Twum-Baah 

Accumulating massive amounts of debt is a sure way of digging a financial grave for yourself. In a country where accumulating debt is not only the financial culture, but encouraged as a way to build a successful financial future, it is very easy to get carried away. It starts off as trying to “build your credit” and before you know it you are in so deep, you begin to wonder how you got there in the first place.

There are various reasons why you might find yourself in debt. Unchecked spending and excessive use of credit top the list for most people who find themselves in financial trouble. Just keep in mind that no matter how deep you find yourself, it is not too late to start working towards building your financial future. There are several ways to control what you spend and how you spend. Below are a few solutions:

Dispose of credit cards
The key to getting out of debt is to stop accumulating new debt. One sure way to stop accumulating new debt is to dispose of all credit cards you own. The only plastic card you have an excuse to keep is your debit card. If you absolutely have to have a credit card, it must be for emergency purposes only, and limit it to one card, if you can.

Adopt a cash-only spending policy
It is very difficult and almost impossible to spend money you don’t have. Adopting a cash-only approach to spending also encourages budgeting. According to Janet Paskin, writer for Money Magazine, “carrying around a set amount of cash to use each week helps one make better purchasing decisions.” Having a preset amount of money limits your purchasing power and causes you to stop and think what you really need and what can wait.

Pay off smaller balances first
Paying off smaller balances before moving on to the cards with bigger balances adds to the thrill of getting out of debt because you begin to see your sacrifices pay off sooner than if you try to pay off those cards with higher interest rates. As you pay off one card after another, be sure to reward yourself – but, keep the spending limit at no more than $50. Treat yourself to that pizza you sacrificed for months, or order that movie you never got to see but really wanted to. Going on a $100 (or more) shopping spree to reward yourself will put you right back where you do not want to be – in debt. The key is to stay on track.

Negotiate to cut unnecessary spending
This could prove to be a challenge for those who find it hard to live without some of these “unnecessary” luxuries. But, to start on the journey to financial freedom you have to be willing to sacrifice some of life’s unnecessary pleasures that are difficult on the purse strings.

Gym memberships – if you are paying a monthly fee for gym membership but can’t seem to find time for the Pilates or yoga classes you are paying for then it’s time to think about canceling the membership. If you “absolutely” have to work out, try taking brisk walks or jogs around the neighborhood. It’s another good way to show off the new gym cloths you purchased when you signed up for the gym, but never got to wear and it’s free.

Cable TV - If you ‘absolutely” need to have cable TV then opt for the more basic packages that cost less. Most likely there may be some channels included in the premium package you are paying for, that you never watch. Negotiate with your cable company to see if there is a basic package that suites your needs for less the money you’re paying now.

Telephone – telephone services such as caller ID, call waiting and voicemail are most certainly some of the few features you can bear to live without. There are some pleasures and conveniences that are not worth paying for, especially, if you are not sure how you are going to afford next month’s rent. Answering machines perform the same function as the voicemail system, provided by phone companies, at a much cheaper rate. Answering machines require a one-time purchase and can be obtained at your local Wal-Mart at a minimal price.

Internet service, in this computer age, is a necessity - no doubt about that. That, however, does not mean having to pay a fortune for internet service. Get a basic plan that meets your needs and ask yourself whether it is absolutely necessary that you be able to carry your laptop with you from the kitchen to the bathroom. Wireless internet and basic DSL probably get the job done just the same, so you might want to consider switching to what you can afford and save yourself the extra dollars. 

Establish an emergency fund
Not only is it smart to have an emergency fund, it is a sure way to obtain the peace of mind in knowing that should something happen unexpectedly you wouldn’t have to go borrowing money from relatives and friends or from your bank. Some experts have advised having a safety net of $500. For some of us, that might be asking too much, so how about $200 for starters and then slowly work on building that up? Keep in mind, however, that maintaining an emergency fund is soothing after you have minimized your debt. It is senseless to have $500 sitting in your savings account “waiting for a rainy day” when your cable bill has not been paid for the last two months or you have already missed two consecutive payments on your credit cards.

You can build up your emergency fund by sacrificing a day at the nail salon, by sacrificing a few nights out and doing something at home that doesn’t cost much and putting that extra money towards your emergency fund, while keeping up with your other monthly payments.

Money is about emotion and psychology, and in a society where spending is widely encouraged, sometimes the emotion and psychology can get the better part of even the most financially responsible person. Make sure your monetary emotion and psychology are geared toward thinking long into the future. Your older self will one day be grateful for the sacrifices you made when you were thirty and everyone, but you, had the latest Dooney & Burke handbag or the latest plasma TV. It is never too late to start, but don’t wait till tomorrow – Start Now.