Dear Woman,
Red flags are not peculiar only to men and romantic relationships. They could also be financial mistakes.  Financial independence is key to long-term security, yet you face challenges that can hinder your ability to build wealth.

From not prioritizing your investments to avoiding critical financial decisions, certain financial red flags can put you at risk of instability. And no, ignoring your finances and hoping for a miracle alert is not a strategy unless your village people have decided to turn your enemies into benefactors.

Below are a list of red flags or common financial mistakes you have been making, and actionable steps to avoid them.

Red Flag 1: Not Having a Financial Plan

The Problem

You focus on daily expenses but lack a long-term financial strategy. My dear, without a clear financial plan, it’s easy to lose track of income, expenses, and savings goals. One minute, you have money, the next minute, you are borrowing transport fare with “God go bless you” as collateral.

The Fix

Create a financial plan that includes budgeting, saving, investing, and retirement goals. There are a lot of budgeting apps that can keep track of your financial goals. And if you want to do that on a large scale, this is why you have us. We can step in as your financial advisor to keep track of your finances.

Red Flag 2: Delaying Investing

The Problem

Why do you prioritize saving over investing? You are afraid of taking risks right?  However, did you know that savings alone will not build the type of wealth you are looking for because inflation is not smiling! Oya, ask yourself, if you had saved ₦100,000 in 2015, what can that money buy now? The money would have even reduced in value! Exactly.

The Fix

Start small but start early. Consider low-risk investments like mutual funds ,real estate or stocks. The earlier you invest, the more time your money has to grow. It is called the power of compounding. Remember, money kept under your mattress or in a savings account,  doesn’t multiply. It just collects dust.

Red Flag 3: Not Having an Emergency Fund

The Problem

Unexpected expenses, such as medical bills or job loss, can derail financial stability. Many women rely on credit cards or loans during emergencies, leading to debt. And let’s be honest, borrowing from your bestie every time is not an investment strategy.

The Fix

Set aside at least 3-6 months’ worth of expenses in your investment account. Automate your investments to ensure consistency. Think of it as your “rainy day” fund because in Nigeria, rain doesn’t fall small, it falls like it has personal beef with your plans.

Red Flag 4: Ignoring Estate Planning

The Problem

Some women assume estate planning is only for the wealthy, and another group assume it is only for men. The thing is, without a will or trust, your assets may not be distributed according to your wishes. And let’s not forget the legendary family members who don’t care about you, but will not fail to appear out of nowhere when there’s money to share. Think about this. 

The Fix

Draft a will and establish power of attorney. If you have children, ensure you have a guardian plan in place. Consult ARM Trustees for guidance. Because if you don’t, that one uncle you haven’t seen in 20 years will suddenly remember you were his favorite niece.

Red Flag 5: Depending Solely on  Your Partner’s Finances

The Problem

Some women rely entirely on their partner’s income. Husband, boyfriend, etc. This leaves them financially vulnerable in the case of “breakfast”, divorce, separation, or death. Of course, love is sweet, but you see financial security? It is sweeter.

The Fix

Maintain financial independence by having your own money, investment account, building credit, and staying involved in financial decisions. Your partner can be your provider, but you should also be your own financial backbone.

Red Flag 6: Neglecting Retirement Planning

The Problem

Women tend to live longer than men, yet many women don’t prioritize retirement savings. This can lead to financial struggles in old age. And let’s be real, do you want to be calling your children every month saying, “Have you sent what I asked for?” That’s a burden you can avoid if you start now.

The Fix

Open an investment account and start contributing as much as you can daily, weekly, or monthly. It doesn’t matter if it’s just 5,000 naira. Little drops of water they say, makes a great ocean. So, start small and increase contributions as your income grows. Future you will thank present you for not turning into that auntie who always has one “urgent 2k” request.

Red Flag 7: Overlooking Insurance Needs

The Problem

Many women underestimate the importance of life, health, and disability insurance, leaving them financially exposed in times of crisis. Because, let’s be honest, nobody plans to fall sick, but sickness does not need an invitation.

The Fix

Review your insurance policies to ensure adequate coverage. Life insurance can protect dependents, while health and disability insurance safeguard against medical emergencies. If you can insure your phone against screen cracks, why not insure yourself against life’s wahala?

In a nutshell…

Money doesn’t respect vibes, it respects planning. Financial literacy and proactive planning are crucial for long-term security. By recognizing these red flags and taking steps to address them, you as a woman can achieve financial independence and build generational wealth. Start today because your financial future depends on the actions you take now.