“It wasn’t raining when Noah built the ark”- Howard Ruff.

Do you know why some people can seize the day and you haven’t been able to? It’s because they have paid the price for that freedom. Have you?

An emergency fund is simply money you set aside to bail you out on the rainy days. it needs to be built, preferably customised to your specific needs. It goes beyond just dividing your inflows and putting it somewhere, anywhere.

Noah didn’t build the ark when it started raining so it matters more what you do to prepare yourself than when it has already happened. It might be too late. What are the three things you should know to build your emergency fund.

1. If you lost your income suddenly, how long will what’s left last you with your spending needs?

At REACH, we call this your Sustenance Score. It is a calculation that factors in your income and amount you spend monthly to give you the total amount of time in months that you can stay afloat without income. During this time, you are typically looking for a new job or finding other ways to increase your cash flow. You can increase your score by reducing and optimising your expenses during this period - It’s called stretching because as we like to say, money is elastic.

Do you want to get the calculations done automatically? Go here.

2. How much risk are you willing to stomach to use what’s left to make more money?

Another way to increase your score, is to increase your liquid assets. Liquid assets include cash in the bank, money market funds, T-bills, and anything that constitutes readily available cash. What this does is that it almost immediately increases your liquid net worth, allowing you to have more cash to spend in the future.

With what’s available to you in case of emergency, you can find low-risk investments to help you earn an interest on your emergency fund. Remember, low risk investments don’t have the highest interest rates. Nonetheless, they can help you make money passively.

To start your Emergency Fund, we recommend Money Market Funds because this way, you can make good interest on what you save, and liquidate it in 24 hours. To start your emergency fund, create a goal here.

3. How much should be enough for an emergency fund?

The team at REACH spent over a year, building Smart Budgets. What this tool does is that it gives you a recommended budget for each type of spending that you typically have. It mirrors your budget to your income and your lifestyle so that yours is unique to you.

Every month, Smart Budgets will tell you how much you should save toward a specific category so that no matter how small you think your income is, you still have your emergency fund. Find out how much you should set aside here.

All the links listed in the article lead to different tools in the REACH app. The REACH app is a personal finance service that people use to master their finances. Download and explore it here

There are no hacks or shortcuts to emergency planning. It takes real work, diligence and focus. Get rich quick schemes are engineered systems. Chances are you will be unlucky more times than you win. Don’t leave things to chance.

How to Start An Emergency Fund was originally published in The REACH Chronicles on Medium, where people are continuing the conversation by highlighting and responding to this story.

Ramadan is a time when muslims are obligated to fast and avoid indulgence in immoral acts, from dawn till sunset. This month-long observance is more than just a duty to the muslim faith. Rather, it is an important time for thought, action and transformation for over 1.9 billion people worldwide.

Piety, discipline and self-control are valuable lessons we all can learn from Ramadan that will help us improve our financial lives, irregardless of religion or faith.

So, religious or not, these are the four things that Holy Month is teaching me about money.

1. Discipline

The world we live in is an increasingly materialistic one. Every activity is over-commercialised, no sparing Ramadan. There are tons of tempting discounts and promotions daily, causing the urge to spend to become a near insurmountable challenge.

Nonetheless, the admirable self-discipline that Muslims practice by avoiding eating, drinking or indulging in immoral activity is much from which we can learn. If we adopt this same practice of self-control when it comes to our money, what can stop us from accomplishing those financial goals we set out to achieve?

Managing money should be liberating, and not an overwhelming feeling. Practising discipline allows you to prioritise important life moments like the car, your health, the emergency, or the house you’re hoping to buy one day.
Now this doesn’t mean that you cannot treat yourself, just remember that moderation is key. No holiday or observance should have the unanimous power to make you go broke.

2. Charity

No one has ever gone poor, solely from giving. You see, the effects of the virus have rocked the world this 2020 that unemployment rate in Nigeria alone is set to hit 33.5% from its current 23.1% according to NECA. This means that a potential 20 million Nigerians will be out of employment as a result of the pandemic.

All this is to say that, alms giving and charity are core parts of Ramadan. Muslims are encouraged to donate a percentage of their earnings to help people and you don’t have to be muslim to learn from its teachings to be humble and compassionate.

The opportunity to help those around you has presented itself. Be it essential workers who need masks or the unemployed who need food, there is something you can do no matter how small. Simply learn to share your wealth.

3. Reflection

Another ideal of the Holy Month is self-reflection. Asking what promises where made during the last Ramadan, evaluating your progress and looking forward to where you plan to be in the future.

This kind of self-reflection can apply to your finances by making it a point to stop and think on your financial situation. Tick the boxes on your checklists and plan for where you want to be along your journey to accomplishing your financial goals.

In fact, practising this ideal can help you know when a goal isn’t working. Yes, I said that… plans can fail. So by evaluating regularly, you can detect quickly that a plan will go awry no matter what you do. What with being encouraged to remain at home for safety reasons, we are but left with our thoughts, forced to face facts and renew or set fresh goals.

4. You are Not Alone

And finally, everyone has money problems, dilemmas if you will. The sooner you realise it, the better. So don’t for one second think that you alone have all the financial problems on your shoulders.

Muslims practice abstinence to learn not to give in to hunger and push through the day positively, for the promise of higher reward. Financially, there’s lessons to be learned from this practice.

a. Your problems are temporary
b. Your problems have a solution
c. Taking a step back gives you a chance to plan
d. There is a greater reward which is for those problems to slowly fade away

With perseverance, steadfastness and a solid plan, we know you will overcome those challenges.

As we enter the last few days of Ramadan, we just want to encourage our Muslim friends to keep in high spirits and hope you emerge stronger and better than you did when you started.

If you’re reading this, Happy Eid friend! We hope that this season brings nothing but joy, peace and clarity to you and your family- Love Niki.

This article was written by Niki, for REACH HQ. REACH is a personal finance tool that’s helped thousands of Africans master their finances. Download REACH for android here.

Track your expenses, set budgets, save and invest with REACH.

Four Things The Holy Month is Teaching Me About Money was originally published in The REACH Chronicles on Medium, where people are continuing the conversation by highlighting and responding to this story.

Yesterday on our social media, we announced that we had a surprise for you. We know what it’s been like the past few weeks in Nigeria, waking up not knowing what the day might bring. We’re scared, uncertain and have only our hope on which to cling.

We would be remiss if we could not do anything about the financial implications of the outbreak on our users. So, we pondered over this until we completely trusted that our decision was the right one to take…

REACH would like to help you pay back your loan

Since 2018, REACH has provided responsible borrowers, access to small loans of up to N30,000 to help improve their quality of life and credit potential. We have no doubt that this small measure will be of immense help to someone out there.

Here’s what you need to do…

Simply pay back your active REACH loan within the next 30 days, from today, April 23 to May 23, 2020 and you will do so with ZERO INTEREST! This gives you a chance to save up to 15% on your late repayments.

How To Repay Your Active REACH Loan

1. Go to the REACH app
2. Select Sub 30
3. Select Pay Now
4. Pay only the amount you obtained in your loan, minus interest
5. Send an email to info@reach.africa with your Loan ID and your proof of your repayment
6. Your loan will be closed after confirmation.

(offer valid only if you repay your loan from April 23 to May 23, 2020)

That’s it!

We just want you to know that you are not alone in these trying times. And please remember to tell a friend, starting from your REACH community. You never know who needs this right now.

Take care,
With love from Niki, Abuoma, Boye, Isaac, Jide, JR, Ross and Tunde. i.e all of us at REACH.

Covid-19: We Want To Pay Back Your Loan was originally published in The REACH Chronicles on Medium, where people are continuing the conversation by highlighting and responding to this story.

Did you know that Easter is actually the oldest christian holiday, celebrated by many orthodox and protestant christians worldwide? Every year, 40 days after ash Wednesday, this holiday is known for its many activities from community Easter egg hunts, to the Easter bunny to big family gatherings; all traditions that are typically enjoyed when you can go outside.

But for many people this year, this holiday is going to be very different. There’s not going to be any church gatherings, egg hunts or Easter bunnies. We have read reports that is is especially important to stay at home over this period, because it is predicted that the outbreak might peak over this time. This means typical celebration styles will have to take a backseat for now.

Nonetheless, this is a chance to set new traditions that still uphold the reason for the season, and are unique to you and your family. We want to be able to look back and simply be grateful for what we have.

1. Plan to cook and eat together

For many families, the highlight of the Easter weekend is the big Sunday lunch or dinner after the church service. Not being able to do that if you’re on lockdown, away from family can be a bummer.

What if you took time out to cook, and eat together, virtually? Take a vote on a recipe ahead of time so everyone checks that they have ingredients for the meal and set up a video call while preparing the food. Actually get each other to dress up and set a time for dining to begin. After all, you don’t have to be right next to someone to be together with someone.

2. Watch a movie together

Dinner and a movie are a thing. You could plan to watch a movie with your family after your meal.

Netflix Party, allows you to sit and watch Netflix movies together. Simply download the extension on Google Chrome, invite your friends or family to watch a movie with you and you’re all set.

3. Organize an Easter craft competition

Who doesn’t love a good game, especially one with a prize attached? Easter egg hunts are a popular tradition in the Western World. But, we can turn it into a thing here in Africa too.

Try this: Using only craft material available in your homes, ask each member of your party to make their best Easter egg. You can come up with a list of acceptable craft material such as paper, tape, staplers, and so on. When it’s time, you all get on a video call, assess what each person’s working with and begin. The person with the best egg get’s a virtual gift card. Simple!

One wonderful thing about these suggestions is that they’re inexpensive. If you do get around to trying any of these suggestions, let us know.

Have a wonderful Easter, with love from Abuoma, Boyewa, Isaac, Jide, JR, Ross, Tunde and Niki. i.e. All of us at REACH.

How to Enjoy Easter, Whether or Not You Can Go Outside was originally published in The REACH Chronicles on Medium, where people are continuing the conversation by highlighting and responding to this story.

The Current Crisis Might Be Your Open Door

Every time we turn on the news these days, it’s just one bit of the good news and then a lot of the bad and ugly. Last week, we talked about coronavirus and the three things you need to know about your finances to survive this crisis. Today, we’re going to talk about how you’ll thrive its midst.

You might have already wondered what to do with all the savings you’ve grown so far. You’re thinking, everything is already expensive and scarce all at the same time, so what’s the point? But we got in on a little secret about one huge thing that is ridiculously cheap around this time…

Stocks

February 27, 2020, the first coronavirus case was recorded in Nigeria. Barely 24 hours after the news broke, the Nigerian stocks hit its lowest level in the year, with 41 losers and only two gainers. In fact, a good friend of ours joked about a Tier one Nigerian bank (let’s call it Bank A), saying “Bank A closed at N10.85 per share? If you literally had N340 billion, you could actually buy the whole bank!”

By March, the oil market followed suit. This happened after Saudi Arabia and Russia agreed to increase production this month, because a previous agreement between OPEC and non-OPEC members, to lower output expired at the end of March. Both countries have refused to cut production as recommended by OPEC, to resuscitate oil prices that were already badly damaged by the event of coronavirus.

Its impact on Nigeria, meant that our National Budget, which leaned on oil prices, took a big hit. And so did the stock market, the global economy and the value of the Naira.

What is its impact on you and I?

Long-term investing is not something we address often at REACH. We learned that a sizeable chunk of our users were early-stage investors who just wanted to keep money liquid while it grows some interest. And that is not a bad thing.

However, when we see an opportunity present itself, it is only right to share it with you. Stock Markets reward long-term patient investors and this could be you.

This is how some top companies listed on the Nigerian Stock Exchange performed as at March 10. Among major decliners were, Stanbic IBTC Holdings Plc, MTN Nigeria Communications Plc, Fidelity Bank Nigeria, and Dangote Sugar Refinery Plc all fell by the maximum-allowed 10%. Guaranty Trust Bank, Nigerian Breweries Plc and Union Bank Nigeria Plc were among stocks to close 9.9% lower.

This should not deter you. Owning stocks over the long-term is a fantastic start on your journey to financial success. In about 5–10 years from now, our all-share index drop to 25,306.22 will probably look like a mere 1–2% drop. Stocks can bounce back and we know that in the long run, when things are under control, markets will recover and the same businesses will be fairly priced again.

For instance, no matter the slowdown, we won’t stop having use for consumer goods like soap or cooking oil. This is exactly where companies like Unilever and Nestlé come into the picture since they will continue to create wealth as they have in the past.

We definitely don’t know if this panic is going to get worse, but if we were to take a leap of faith, looking at how China has recovered, we do know that it is extremely unlikely. Nearly all panics wind up being minuscule looking back, and they also turn out to be timely buying opportunities.

All factors considered, we think that you should take advantage of the month of April, as a good time to consider investing in stocks.

Advice

• Buying stocks is not like buying money market funds which are very liquid. For instance, you should be thinking 2–3 years and not 2–3 months.
• When you’re ready, don’t just buy stocks because they were beaten down. Consider more, to buy shares from quality businesses that will stand the test of time, not those that might not exist in the next 5–10 years.
• Don’t put all your eggs in one basket. A diversified portfolio is a solid portfolio.

One fantastic thing about investing, is that it might only take one investment in a profitable entity, to change the course of your family’s history forever. This is how the rich keep getting richer. See Warren Buffett’s most recent purchase.

Something worth thinking about.

REACH- Anyone can live their best life, no matter their income

Want to Become A Stock Market Investor? was originally published in The REACH Chronicles on Medium, where people are continuing the conversation by highlighting and responding to this story.

There is nothing to fear but fear itself- Franklin D. Roosevelt.

In a statement released at 7pm yesterday, President Muhammadu Buhari announced a lockdown in two states in Nigeria- Lagos and Ogun states, and The Federal Capital Territory, Abuja.

The fear of coronavirus dare I say, is the beginning of wisdom. But at least the government is doing something right? And it looks as though with the help of private and religious institutions, we might just be alright after all.

But what about you and I, the people of everyday? Among us are shop owners and shop keepers, be it for a tech startup or the stall at Mile 2, selling pepper, our stomachs are affected nonetheless.

And you might ask, what will happen to my money in all of this? For the sake of yourself and your dependants, you must know these three things about your finances to get through the pandemic.

1. Your Liquid Net Worth
2. Your Sustenance Score
3. Your Contingency Plan

Your Liquid Net Worth

This is a sum of all your cash in the bank, short-term investments, or any assets that you can quickly convert into cash.

How do I know my liquid net worth?

If you have an android phone, go to Google Play and download *REACH expense tracker and money manager*. Scroll to Plan & Invest, and finish your setup. Your Liquid Net Worth will be calculated in under 30 seconds.

How does this help me?

Learning your liquid net worth is an eye-opener. It can spell doom or hope for you.

It forces you to re-evaluate your expenses vs your income and ask the tough questions about what you’re really doing with your life and career.

If you had to liquidate your entire estate because of one emergency, your liquid net worth is all that matters.

Your Sustenance Score™

Reports of the coronavirus outbreak currently does not show the curve flattening. Who knows for how long this will last. But at least, you can know how long your current cash in the bank can last you if things go awry.

Your Sustenance score is the number of months your liquid net worth will last you considering your typical monthly spend, with no income.

How do I know my Sustenance Score?

If you have learned your liquid net worth from the app, your Sustenance Score will be computed using that figure. On the net worth page in the REACH app, scroll to see how many months your pocket will last you.

Tap me to download REACH.

How does this help me?

No one wants to become a burden to others, especially when you know they have their own s#*t to go through.

If you earn 60,000 Naira monthly but your lifestyle sees you spending 75,000 Naira monthly, you can bet that your sustenance score is in the negative. It means that if you lose your job as a result of the lockdown, you will have nothing to sustain you. But, we bring a message of hope to you.

You are undeniably going to have to make some adjustments. The goal is simple- divide and conquer. Adopt a budget based on an amount you know can take care of your basic needs in these times. Do this, to make your money last longer, and your sustenance score go higher, before they call you to say grandma has swallowed razor.

Your Contingency Plan

Is there truly a foolproof plan? We’d love to see that 8th wonder of the world. Three days ago, President Donald Trump signed the historic $2 trillion coronavirus relief bill after congress passed the bill. That’s a pure example of a Plan B.

A contingency plan can be referred to as “Plan B,” because it can be also used as an alternative for action if expected results fail to materialise.

How do I come up with a contingency plan?

So you don’t have one 2 trillion dollars that you’re not using somewhere. What do you do?

Each plan is unique to each person’s situation. Do you have dependants, obligations, kids? Is it a one income household? All these factors come to play in coming up with your contingency plan. However, we can all start from the little things and customise as we go along…

1. Do you know the kind of emergencies that can destabilise your life if they happen? Job loss, illness, death?
2. Do you know what glass to break in case of emergency? Emergency funds, liquid assets?
3. How can you earn more money for your household in case of emergency?
4. Who is in your support system?

…And so on and so forth. If you have little ones, it becomes all the more important to have a Plan B. With all your findings, create a table and enter all the things you’ve considered and written down. It isn’t one-off either. Your income level can experience an upturn or downturn, so keep your plan in periodic review.

Tap me for some further help.

How does this help me?

It is pretty simple actually.

…A personal contingency plan will reduce panic, stress, and confusion while putting you ahead of the curve, of those who leave their finances to chance.

In the business of keeping spirits up, keep watch for a new helpful article in a couple of days… “What to do with your savings in times of uncertainty”.

Stay informed, only from the right sources. It does not help to spread false information -use the NCDC official site or Worldometer tracker to know first hand, what’s happening in the world.

Stay safe and thanks for reading.

REACH- Anyone can live their best life, no matter their income.

Coronavirus and The Three Things You Must Know About Your Finances was originally published in The REACH Chronicles on Medium, where people are continuing the conversation by highlighting and responding to this story.

1. New Website

It’s all about you. The website carries a new face that focuses on how your life should change after embarking on the journey to financial freedom, with steps. Preview..

2. Trends Redesigned

With the new Trends, we finally say goodbye to our bar charts and hello to line graphs.

The new Trends shows you all your expenses over time in a single view, in a way that’s easy on the eyes and allows you to make instant weekly, monthly and annual comparisons.

3. Categories

Want to see everything you spent over different time periods for any category? Tap your category of choice and view its transactions over any time period.

4. Shortcuts

Take a short cut to some of your favourite features of the REACH app by tapping any quick action circle at the top of your dashboard to take you right into the feature.

To learn more, visit our website on www.reach.africa or download REACH for android from the Playstore.

New REACH Updates We Know You’ll Love was originally published in The REACH Chronicles on Medium, where people are continuing the conversation by highlighting and responding to this story.

We care about your wellbeing. In light of the current global pandemic, we urge you to please take care of yourself and your loved ones.

Here’s what we’re doing at REACH HQ to help prevent the spread of coronavirus in our communities and we’d like it if you practised these precautions as well.

Stay safe, stay informed, stay positive.

Help Prevent the Spread of Coronavirus in Your Community was originally published in The REACH Chronicles on Medium, where people are continuing the conversation by highlighting and responding to this story.

If you’re reading this, thank you for repaying your REACH loan. We hope that the financial obligation for which you took it, is sorted.

Note: There is only one way to repay your REACH Loan (also known as the Sub30 loan) and that is to repay by card, from within the REACH app. Please avoid paying via bank transfer to avoid your payment getting lost in the system.

Let’s get started…

1. Open the REACH app on your mobile phone;

2. On the dashboard, scroll to and tap the Sub 30 Loans card;

3. Tap Active Loans;

4. Review your loan repayment breakdown, tap Make Payment and complete your payment;

5. Your Sub30 Loan repayment is now complete.

For further loan enquiries, please contact the team via email to info@reach.africa.

REACH- Your best life is within reach.

How to Repay Your REACH Loan was originally published in The REACH Chronicles on Medium, where people are continuing the conversation by highlighting and responding to this story.

We are excited to share news on what we’ve been working on the past few weeks. Your REACH experience is now simpler and more intuitive, allowing you to truly live your best life. Announcing the release of the all new Paystack integration, Savings Goals and Liquid Net Worth.

Paystack Payments Integration

No more loan repayments by bank transfer. Now, you can repay your loan using your card via Paystack.

In the past, we saw the pain that came with having to make bank transfers, to repay your loans. We paid attention and saw an opportunity to simplify the process and ensure you have as seamless an experience, as possible.

Savings Goals

Now you can plan, save and invest for specific goals.

For a lot of us, saving has really only been about putting money away until the next emergency comes. What a precarious way to live. With the new Savings Goals on REACH, you can choose to either put your money into a blanket savings like before, or try out putting money away for specific categories: Save for rent, save for vacation, save for emergencies, tuition, and much more. And this update doesn’t mean you stop earning an interest on these accounts. Your savings will continue to be invested into Money Market Funds for you, so you earn top interest on your principal. Who said saving money was boring?

Liquid Net Worth

Find out how much you’re worth.

Before trying to grow and improve your finances, we encourage that you assess where you are currently. One way we’ve done this is to ask you to calculate your liquid net worth first. The amount you obtain usually gives a fair understanding of your current financial status. Are you happy with it? Do you know what areas to improve upon? If you are asking these questions already, you’re on the right path.

With the new Liquid Net Worth feature, you can learn about how much you’re worth as often as daily. When you see the changes that happen as frequently as this, you’re able to quickly spot the loopholes in your finances. To top it off, you will also receive suggestions that will help you improve that figure and a sustenance score that shows you how long your net worth can last you if anything were to happen to your income.

Go ahead and try these and many more to come, to make your December way more interesting. Update your app here.

Remember to follow us on Twitter @findreach to catch up with minor bug fixes and general updates.

Paystack Integration, Goals and Liquid Net Worth was originally published in The REACH Chronicles on Medium, where people are continuing the conversation by highlighting and responding to this story.