Tag: business opportunity

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Business

Profitable Businesses in Ghana that Require Small Capital

small scale business in ghana

Looking for businesses to invest in? Here are a few to consider when investing in Ghana. The list of areas to invest in has been carefully analyzed based on profitability, risks and sustainability. The list is in no specific order. Businesses requiring capital beyond $1million were not considered in the list.

1. FMCGs (distributors, wholesalers and retailers)
Ghana’s population of over 25 million makes fast-moving consumer goods a profitable venture. Selling products like milk, sugar, salt, biscuits, drinks, groceries, sachet and bottled water, and similar items can be a very profitable business. Manufacturers, distributors, wholesalers and retailers and other players along the value chain of FCMGs are making good money if their businesses are well-organized. Margins on these products range between 1 and 10 percent with products turned at least once a week.

2. Real Estates
Ghana’s housing deficit was estimated at about 1.7 million in 2014 and expected to grow to 2 million by 2018. This would require about 200,000 units to be built each year for the next 10 years. The deficit has forced prices upwards, leading to high margins in the sector. Outright sale of residential houses in Ghana yield an average of 100% returns on amount invested in building it. Depending on the location, investors could earn almost 3 times amount invested. Rental properties have 5 years payback period on average, and again it depends on the location and the type of property (residential or commercial).

3. Catering services
Catering services and food vendors in Accra and other major cities in Ghana have three elements in the price of the food they sell. 33 percent of the price is direct cost of preparing the food (ingredients mostly). Another 33 percent for overheads and the remaining 33 percent for profit. Catering services have very short trade cycles. Most of them sell virtually everything in a day, making about 33 percent margin in the process. A minimum of 15% margin is expected on sales. How much you earn is directly based on how often you sell and the volumes.

4. Education
Quality education is highly sought after at all levels. From pre-school to post-graduate education, there are deficits in educational facilities. Parents are willing to pay high premium for quality education of their wards. Graduates are also willing to pay considerable amounts of money to upgrade their educational credentials to remain or become very employable and also for career advancement. Educational institutions charge exorbitant fees to provide education. Investors would be expected to reap returns of about 80% or more after recouping capital expenditure.
5. Farming
One of the ignored businesses in our days. Farming, if done right, can be very profitable. Crops like cassava, maize, mango, plantain, cashew, palm fruits, and vegetables have high profit potential. Learn the right farming practices to achieve a bumper harvest. I’ve looked at these farming businesses and many are making about 80% in returns. It is however a comparably risky business if you are not an expert. Some crops like palm fruits, mango and cashew have longer gestation periods, but once they bear the first fruits, you are surely in-the-money.
6. Agro-processing
Agro-processing is not a big bet in Ghana. There are several reasons cited for this, one of them is inadequate raw materials. A careful analysis of the industry will however reveal that if the right product is chosen, good money can be made. The business also requires appropriate marketing and investors will need comparatively bigger capital to start. Profit margins range between 40 and 80 percent.

7. Digital photography

It is a growing industry whose profit margins keep attracting many entrepreneurs and creating several jobs along the chain. Digital photography still has room for milking profits. However, the traditional conception must be combined with graphic design skills to make it a useful venture. Once the cost of camera and other accompanying equipments is recouped (usually in less than a year), the potential is enormous. Returns hover around 75 percent.

8. Health Services
Staying healthy is every man’s concern. Whether we are conscious of this or not, we do everything possible to keep our health and be alive. Provision of quality healthcare is not adequate in the country. Investors can look at any of the businesses in health and fitness industry of Ghana. Pharmacies, health insurance, chemical stores, herbal medicine, fitness centers, hospitals and related services are all services Ghanaians patronize.

9. Transportation
Though capital intensive, road transport business is a lucrative one in Ghana. Taxi and mini-buses in the cities and those that ply intercity highways are very good businesses. Payback periods are usually 1 year after which profits are expected in the range of 50 to 100 percent per annum. It is also quite risky but with the right information and risk minimization strategies including comprehensive insurance, you’re sure of constant cashflow and sustainable business. Many have failed in this business by not giving it the required attention.

It is a business that requires constant monitoring and maintenance of fleet.

Categories
Insights

Fast Moving Businesses in Ghana that Require Small Capital

fast moving businesses

One of the most profitable investments to put your money in is a business engaged in fast moving stocks. Such businesses sell their stock and replenish them at least once a week. This means that you make 52 times the profit in a single year.

FMCGs

Selling consumer goods like milk, sugar, salt, which are consumed on daily basis is a solid path to riches. My friend earns GHc11,000 a month after starting his drinks retail business two years ago with GHc25,000. That’s how fast your money grows when you sell fast moving consumer goods in a populated city like Accra. Lagos, Nairobi and other populous cities offer similar opportunities.

Related: 6 Supply Businesses in Ghana that require small capital

Block factory

This one probably didn’t come to mind. Accra is a fast growing city and the real estate sector is growing faster. Real estate companies are building everywhere; within and outskirts of Accra. Individuals are also putting up structures everywhere. Block factories are one of the major gainers of this real estate growth. A concrete block sells for GHc3 in Accra. Manufacturers make at least 50 pesewas (GHc0.50) per block. If you are located in a developing neighbourhood and offer transportation as a bonus service (like many do) then you are in to make good money. Depending on your production efficiency and volumes, and control of other indirect costs, your margins could be GHc1 per block. It’s a volume business and you can make GHc10,000 gross profit in a month on a small-scale.

Equipment and Machinery Rentals

Renting building equipment and machinery like mixers and canopies, ceremony items like chairs, tables and tents, vans and cars for transport, and sound/audio systems (PA systems) are also fast moving businesses. At least once every week there’s business for you if you market yourself well. It usually takes less than 12 months to recoup original investment and the profits begin to pour in that point onwwards. Profit margins are about 60 percent per annum.

Related: Profitable businesses in Ghana that require small capital

Teaching as a Business

If you are a trained or certified teacher, then your season of riches just begun. Working parents are gradually getting used to home-tuition. This practice has been around for years but in recent times, the quest to seek high quality education for our children is growing. Private schools are always on the look-out for well-trained and experienced teachers. Come together with fellow teachers and form a group or association and actively search for opportunities to teach on private basis or in private schools in Accra, referring each other in the process for subjects where one has knowledge and expertise than the other. Teaching is lucrative, if you find yourself at the right place –  even on part-time basis. It’s fast moving and its profitable.

Bakery

Most Ghanaians eat bread or another bakery product at least once a week. That’s big for a country with over 25million population. Bread and bakery products are fast moving if you’re properly located or have a good distribution network. Margin in the bakery business is about 20 percent and the more you sell, the more money you make. Small-scale bakery business does not require more than GHc10,000 to start and operate. Pick your days, a reliable distribution network and appropriate price, and you’re sure to be in business for a long time, making money.

Related: A simple 6-step process to starting a small business

Food endors

Ghana and Nigeria have many food vendors busily selling local staples by the roadside in small structures or on tabletops. Whenever you see one, never underestimate the cash they make on daily basis. Margins can be as high as 33% on daily basis. You can start a similar business in your neighborhood, if you can cook well. If you cannot, you could consider investing in one, but with a solid binding agreement. Passion matters in this business and you’ll need it.

Many more businesses in Ghana would be covered in other articles on this blog. Share this with your friends.

 

Categories
Finance

Essential Tips on how Startups can Manage Cashflow

Cashflow management is not a function for only big corporations. It is very essential for all startups. According to Dunn & Bradstreet, 90% of small-business failures are caused by poor cash flow.

To avoid becoming part of the 90 percent, you need to maintain a certain respect for cash. Cash is king. Cash is king when it comes to financial management. Always remember cash is king. And in other words, it is not the part of your business that would accommodate shortcuts and sloppy practices. Cash problems have knocked out many companies out of business, big and small.

Here are a few tips to sharpen your cash flow management

In simple terms good cash flow management means identifying all your inflows and outflow of cash and never taking your eyes off this function. So your first task is to list all the sources and outflows of cash to your business.

Document Cash Flows

You must document all your cash flows to be able to track them properly. Do a list or a spreadsheet of all your income lines and your expenses on either side. For example, if you are a blogger, you may have income lines such as adsense ads, promotional articles and ads, email marketing, and expenses like hosting, internet, electricity, wages. Every business has income lines and expenses. Identifying and tracking them is the beginning of your cash flow management.

Collect your Cash Fast

Small businesses try to give extended credit periods to customers with the hope of attracting and maintain customers. This practice can equally kill your business if you don’t pull the brakes on your credit terms. Ideally, it is not even necessary for small businesses to be extending credit to individuals. You can consider giving very short credit periods to big businesses that buy from you. And remember to collect the cash when time is due. Learn the best credit practices and implement them effectively, so you don’t lose cash.

Delay Payments

Rather than rushing to pay your creditors, you should buy time, if this is possible. As long as this would not jeopardize the relationship between you and suppliers or providers of services, delay payments to them. This gives you room to be able to turn your money around buy quickly buying and selling or producing and selling (if you have a short cycle), making profits in the process before paying your suppliers and vendors.

Limit Unplanned Cash Outlays

People tend to go beyond their plans for the year. Buying things that you have not budgeted for, simply because there’s an opportunity to buy something cheap can run your business into the ditch. You must resist the temptation to spend spontaneously and impulsively.

Limit Fixed Asset Investments

In one of my articles on why microfinance companies fail in Ghana, I identified heavy fixed investments as one of the major factors. Small entities are paying huge sums to acquire properties in expensive suburbs to run their businesses. This puts pressure on your cash flow, leaving you with very small cash to invest in working capital. And this means your profits would be proportionately small. Remember fixed assets are not earning assets; they don’t generate immediate cash for the business. Limit your investment in them, when you can.

Invest Unused Cash

Be quick to invest all funds you don’t have immediate use for. You can open a call account for this purpose. Call accounts allow you to earn interest whilst giving you the opportunity to withdraw funds when you need it. Idle cash means you are forgoing interest on it and it also tempts you to spend impulsively.

Emergencies

What you do in times of emergencies is not to take a bank loan. Your unused cash in your call account can be used in times of emergencies. You must be careful to distinguish between what is an emergency for your business and what is shire

Season Sales Fluctuations

Fluctuating sales means more inventory is required to cover the ups and downs. Every dollar in inventory is a dollar less in cash available or maybe even two dollars less if your gross margin is 50 percent. Trying to vary the number of employees to match seasonal fluctuations only costs even more cash for hiring and firing.

Managing cash positions is probably not your primary goal for going into entrepreneurship but it’s a crucial part of running a business. At the end of the day, no business can sustain itself without cash.

Categories
HR

Six simple ways to get jobs in Ghana easily

There are many unemployed men and women out there looking for the same jobs you’re chasing. And there are many who are already in employment looking for that same job. On the other side, are frustrated HR officers and managers hurriedly flipping through hundreds of CVs and applications and browsing several online pages in an attempt to recruit a suitable candidate.

Here is what you can do

Brand yourself well on social media

Social media has become a part of life – and a part of corporate life as well. It is important to keep a certain decent image on social media, at least the kind of image that suits the jobs you’re applying for. It goes beyond just signing up. You must be seen to be actively engaged in discussions related to your chosen field, belonging to professional groups on linkedin and facebook to mention a few, to enhance your online reputation. You may need a professional – an online image expert if you want to draw attention of employers to yourself.

Get a good CV

A good CV is what will catch the attention of your prospective employer. You need an impressive CV to get a job. Some job applicants have not even had the opportunity of being invited for an interview. In some cases, the applicant is not suitable for the job but also in most cases, the CV is brushed over in a matter of 3 seconds. Learn how to write an impressive CV that gets you a good job. And once you have a well written CV, be sure the calls will start coming. Prepare well for an interview afterwards. You may need to read a couple of guidelines for interviews.

Related: How to write a good cv that gets you the job

Use online job portals

Several online portals for jobs are now available in Ghana. Look for them and sign up. Upload a CV or complete their CV forms and constantly apply for jobs. Jobberman.com.gh is one of the leading portals in Ghana. Employers use it often and you increase your chance by at least 10x if you sign up and use it often to apply for jobs. You have to join linkedin as well and make yourself visible there too. Again, if you don’t know how, learn from your friends or contact a digital media expert to help you out. It is worth your time, trust me!

Make friends who are employed

Although they are not aggressively looking for jobs like you are, your friends who are employed will be on the lookout for you, sniffing around their respective HR offices for opportunities that fit your profile. Once they do, be sure they’ll do their best to convince the human resource manager to give you a consideration – if you keep reminding them. Internal endorsement of job applicants is very powerful and effective. Don’t let this chance pass you by if you need a job.

Recruitment agencies

Recruitment agencies in Ghana usually have a large portfolio of clients they recruit for. Their relationship with their clients is very professional – but personal as well. Contact these recruitment agencies, seek their professional opinion, pay for some of their services and be sure that you’ll be considered in their next round of recruitment. Importantly, you must keep reminding them that you’re here and ready to work, albeit in a professional manner.

Do not miss an opportunity to impress

Everyday in our lives we come across people, old friends and new faces. We hardly embrace the opportunity to let them know we are looking for a job, and neither do we act and speak in a manner that would get them thinking that we would make good additions to their workforce. Since you may not know who has the power to trigger a conversation that would eventually lead to your employment, I suggest you make an effort to impress when you meet people who are in a position to offer you a job – no matter the place and time.

 

It is important you realize that it is not the most qualified person for the job who gets the job. So do not spend too much time trying to obtain degrees and certificates with the sole reason of making yourself more employable. The people working in these large and small organizations are only as good as you are when they were recruited – perhaps, less or more. My hope is that you may be able to apply these recommendations and leave a comment here when you get a job.

 

Categories
Life

Smart ways Couples can Become Rich

Four couples admit strangers pay them to have sex over webcams… with one pair raking in a six figure salary. This was a Daily Mail post on 28 Sept 2015. This may seem quite farfetched, but there are several ways couples can become rich. Here are seven of them.

  1. Tutoring

If you and your partner share the same skills or passions about a subject, you can consider teaching them to others and charging for your services. If you play an instrument, speak another language, cook certain meals, writing or pottery, you can consider teaching others – physically or online- for fees.

  1. Renting

If you and your partner have an extra room or house you don’t use, you can rent it out for some cash. You can consider building one together, if you don’t have already, and later renting it out. This would provide you with steady cashflows over your lifetime.

  1. Produce and Sell

Sometimes, one partner has a skill and the other is a sales gem. Combine these skills and make a happy living whilst making money. One can bake and the other can sell, one can weave hair and anything and the other can sell the service, one can paint and the other can sell the painting, and many more. Work together and make money producing and selling something of value.

  1. Cleaning Business

Set up a cleaning business and start with a few clients. People always need things cleaned and it can be a good way of making money in your spare time if you have flexible working hours, or can give up weekends. This can grow into a full-time business where you can become the bosses, if you work hard and professionally.

  1. Bed and Breakfast

If you live in a popular area and have lots of spare rooms, you can consider the idea of bed and breakfast. It’s not a popular concept in Ghana and other parts of Africa but if you have the right setting in place, and love meeting new people, this can surely provide great income on regular basis. Be sure to have impregnable security at home.

  1. Petting

Again, this may sound foreign but if you live in the major African cities, this shouldn’t be unbelievable. If you’re an animal loving couple, you can look after people’s pets while they are away from home. You can do this in the pet owner’s home, and get paid!

  1. Make Money Online

As a couple, there’s something about you that a lot of people would be interested in. You can stream one hour in your day, everyday. You can be sharing bits of yourselves online that would interest people. Either through a blog or social media page, you can build a good following and later monetize it. This is simple and cheap.

Go ahead and make your relationship fun and exciting whilst you make money on the side. And contact us and  share your success stories. Share this article with your friends who are in a relationship.

Categories
News

United Arab Emirates is making it rain by building artificial mountains

United Arab Emirates artificial mountains
United Arab Emirates artificial mountains

The United Arab Emirates is building a mountain in an attempt to cause rainfall in one of the driest parts of the earth, reports suggest.

Mountains have been cited as a factor that determines rainfall and rainfall patterns. It is seen as being able to cause clouds which latter result in rains. Theoretically, a mountain can be used to trap rainfall in certain regions of the planet. But how much is it costing the UAE to build a mountain to bring the rains. This is quite innovative and visionary. It is a move seen by many as proactive but of course quite expensive

According to Dubai-based publication Arabian Business, experts from the US-based University Corporation for Atmospheric Research (UCAR), which manages the National Center for Atmospheric Research (NCAR), are currently in the “detailed modelling study” phase of the project.

The building of the mountain has been necessitated by water security. Water security has long been a pressing concern in the Gulf region where rising populations and growing economies continue to put strain on limited natural resources, IBT reported. It continued to mention that the average UAE resident uses an estimated 550 litres of water daily compared to the international average of 170 to 300 litres a day, according to the Federal Water and Electricity Authority.

According to a report by the Al Jazeera Centre for Studies, water demand in the region has risen by a whopping 140% where resources are “already diminishing due to droughts, low rainfall and the prevalent climate.”

In 2015, about $558,000 was spent on 186 cloud seeding missions across the UAE in an attempt to create more rainfall which did seem to create higher levels of rainfall than predicted, IBT added. However, the process could prove to be unsuitable and unsustainable for frequent use in the long run.

In March, a record rainfall that was partially attributed to cloud seeding created chaos in the country, with over 11 inches falling in less than 24 hours. Other possible solutions include desalination plants to create fresh water from seawater, icebergs floated down from the Arctic and an underground pipeline from Pakistan.

One thing is certain, building a mountain is not a simple thing. Let’s see in the coming months and years how this pans out, perhaps other countries could learn a thing or two from the UAE project.

 

 

Categories
Stories

Engineering Graduate Taking Giant Steps in Ghana’s Fashion Industry; the Passionate Story of Wear Nation.

The fashion industry in Ghana is very big and competitive. You need to work hard to get to the top and even harder to stay there. We have seen very popular brands like Mkogh and Pkog in the past that made huge impacts across the country and beyond. There are many more fashion brands in the country and here’s a spectacular one you’d love to hear about, and wear.

http://wearnation.com/images/img-20151203-wa0019-u4834-fr.jpg

How it begun

The inspiration for his fashion business stems from his days as a student of Kwame Nkrumah University of Science and Technology. While on the fashion-craze campus, Nana Kyei Abankwah created eye-catching designs on his T-shirts, which immediately caught the attention of fellow students who found themselves in sight. He was often approached by student groups and individual students to create designs for them so they can also stand out and look great. He complied in most cases, creating beautifully youthful designs which kept them coming and coming. He had not commercialized his passion at the time. Nana Kyei was a geological engineering student, admitting his weakness in the field of business, but also took steps to educate himself about business and entrepreneurship.

Wear Nation

http://wearnation.com/images/img-20160325-wa0021.jpg

Wear Nation is an urban clothing line started by Nana Kyei Abankwah 18months ago from his base in Tamale, in Northern Ghana, almost two years after his graduation. He started the business with a small capital of GHc500 and has since managed it into a sizeable business with customers from all over the country. He creates designs, and with the help of his four employees, transfers his artistic glamour on T-shirts by cutting and sewing or printing. His designs are ingrained in a pan-African sense of fashion while maintaining an urban touch.

Growing into a household brand

The small business has grown into a fashion powerhouse with customers all over the country. A greater number of its customers are in Accra, Kumasi and Takoradi, but Wear Nation has had to quickly respond to demand in other parts of the country by expanding, establishing distribution agents in Sunyani, Bolga and Wa as well. The traditional urban clothes can be shipped to your doorstep within 2 to 5 days. You could receive your order within the same day depending on your location.http://wearnation.com/images/_mg_0785.jpg

The trendy and durable casual wear is made from traditional African fabrics such as kente and fugu on high quality T-shirts. The finishing is exquisite and will leave you buying more and recommending it to your friends and family. This has been the fuel for his fast growth. Nana Kyei believes in giving customers good products, no matter the kind of product you’re offering. His focus is on quality and style.

Distribution and marketing

Wholesalers from different parts of the country contact him often for orders, directly or through his agents. He also has a website where anyone can visit to view available shirts before placing an order. He has a facebook page and an instagram page to augment his marketing efforts.

Challenges and the future

Like all other businesses in Ghana and elsewhere, Wear Nation has its challenges. Misuse of his images by some people on social media, growing overheads, and replication of his designs by other fashion businesses are some of its challenges. However, these have not been able to pin down the business in the past, and he does not see them pinning it down in the future, keeping a close eye on them and intelligently finding solutions to them as they arise. “Being original” is what has kept him in business this far.http://wearnation.com/images/photo%20aug%2030%2c%205%2024%2039%20pm.jpg

His dream is to see every African wear his product, at least once every year. He plans to work towards this assiduously, day after day, believing that little steps would gradually get him to this vision, and hopefully beyond it.

He designs for the youth and the young-at-heart. These are his primary target, but since starting the business, he has realized that everyone is interested in his clothes. And you should check out his trendy and traditional urban tops.

 

Categories
Marketing

Most Hotels in Accra do not have active websites

A study conducted by GN Research in Ghana’s capital city, Accra has revealed 81 percent of hotels do not have a website or up-to- date one as well as an active facebook account for review by both domestic and foreign travelers.

The research conducted over a period of almost two (2) months revealed that, out of a total of almost 500 hotels located in the Greater Accra region, only 93 have functional websites, of which 51 hotels regularly update them. 84 hotels also have facebook accounts but more  than 50% are dormant.

Only 20 out of a total of 284 budget hotels also have websites but more than half do not update them. Only 20 of these also have facebook accounts, of which 11 are dormant.

The situation for guest houses is no different as just a little above 20% of the 54 engaged have websites but about 80 percent regularly update them. About 28% have facebook accounts, of which over 50% are however dormant.

With 1-star hotels, only 27% out a total of 84 have websites but less than 10% regularly update them. Only 18% in this category also have facebook accounts with less than 5% keeping them active.

Nevertheless, almost all 3 to five 5-star hotels in Accra have regularly updated websites and Facebook accounts. This includes Kempinski, Labadi Beach, Mövenpick Ambassador, Fiesta Royale, La Palm Royal, Novotel, Alisa, M Plaza, Oak Plaza, the African Regent and the Royal Richester Hotels.

Some 57% of 2-star hotels located in Greater Accra region have websites but only 36% regularly update them to meet the needs of travelers. 47% of hotels in this category have facebook accounts, of which more than 60% actively engage prospective clients on their page.

These also include Coconut Grove Regency, African Royal Beach, Airport View, Airport West and Maxlot Hotels.

The hotels without websites (generally Ghanaian-owned) site the excuse of being interested in only domestic clients and/or their facilities remotely cited from the airport and therefore unnecessary to run a website.

Only a few renowned hotels (predominantly with international partners) are thus currently benefiting from the increase in international tourist arrivals in the country. In 2014, Ghana recorded the highest growth in traveler numbers – 37% from neighboring Cote d’Ivoire, 30% from Italy and 29% from the Scandinavian countries.

In an interview with JOY BUSINESS, the Head of GN Research, Samuel Kofi Ampah explained the current situation where most hotels have no website could therefore affect the potential growth of Ghana’s tourism and hospitality industry as well as investor confidence in the economy.

“The advent of internet technology has proved useful in the hospitality industry across the world. Consumers have increasingly been using the Internet to search for accommodation-related information on hotel websites,” Mr. Ampah said.

“An investor might come in with a budget and if he/she is unable to have first-hand access to relevant information on hotel accommodation and location to help him decide how many days he could spend in the country, it does not promote whatever growth agenda for the industry and the country at large. It is against this backdrop, GN Research sought to understand the importance of establishing a content-rich and user-friendly websites by Ghanaian hotel industry players with this study” he added.

Online reputation is currently regarded a major driver for hotel performance in many advanced and emerging economies. Most travelers use online sources to take decisions on hotels they may want to lodge in rather than the usual recommendations from friends and work colleagues which later turn out to be a wrong choice.

A vibrant hospitality industry is generally said to impact directly on the development of any economy, by creating jobs and generating foreign exchange and tax revenue for the government.

According to Mr. Ampah, the Ghana Tourism Authority must thus as a matter of urgency move to ensure that hotel facilities in the country necessarily establish websites and regularly update them on their operations.

“We have done this research to show the Tourism Authority that we still have a long way to go if we want to promote tourism in the country. The authority’s mandate is to promote tourism which requires making checks easier for tourists and investors. It therefore only needs to engage the hospitality industry players to impress on them the need to incorporate this international best practice in their operations for maximum benefits to their operations and the economy as a whole,” he concluded

Categories
HR

Is Your Employer Making You Rich or Poor?

Is your employer making you rich

Employers pay wages and salaries at the end of the working period. Daily, weekly, monthly, employees receive cheques for work done. A practice that is expected to make employees wealthy over time. Is your employer making you richer or poorer?

Depending on the country you find yourself and how much you’re paid, your employer could be making you poorer in reality.

Related: Standing Out Among Other Job Seekers

How much makes you rich

There is no specific amount but there are basic indicators of how much you can survive on within an economy and how much makes you rich. Inasmuch as a lot depends on your individual spending and saving habits, the size of your paycheck also counts. In every economy, there is a minimum wage expected to be paid to workers. Nothing to write home about in some cases. The real deal is how much you earn to be able to afford the necessities of life. Necessities like decent accommodation, food, water, clothing and now electricity, internet and calls and sustainable relationships. These are needed to survive in 2016 and beyond. You’re not rich if your salary can afford these. Your salary should cover your needs and cater for your wants – not flamboyance though. Then, you should be able to save the rest.

Related: 29 Best Paid Jobs in the UK

How much to save?

If you can’t save parts of your salary because there’s nothing left after paying for your basic needs and ‘normals’ of living in an economy then your salary isn’t making you rich. Lavishness isn’t part of the consideration here. Of course you can’t save anything if you live lavishly, no matter how much you’re paid at end of the working period. And you don’t have to be extremely frugal to save part of your income.

Related: Dangers of Changing Jobs Often and How it Affects Your Career

It’s all about salary increment

Prices in an economy change over time. They affect the cost of living. The basket of commodities and services you can afford today could become unaffordable next year if your salary remains the same whilst inflation is non-zero. For instance in Ghana, GHc1,000 in 2015 is not worth the same in 2016 because inflation over the period is more than 15%. In effect, your purchasing power has been lessened by the inflation rate. To survive – not become rich- your salary should increase proportionately to compensate you for the increase in general prices. And to be rich, your salary must increase more than the increase in general prices of goods and services – inflation.

Related: Bonuses and Promotions are Most Important to Job Seekers

You can use these indicators to determine how your salary is doing in comparison to the economy you find yourself. I have used salary here to mean all earnings from your employer.

Related: Passive Job Seekers Have an Advantage Over Active Job Seekers

Drop a comment here if you did not understand something well. And share this with your friends if you got it right.

Categories
Life

3 Things You Should Never Carry in Your Wallet

Remember these three words when deciding what to carry in your wallet.

Because whatever you’re carrying in your wallet, chances are it’s probably too much.

Unless you’ve already taken the time to weed out all the junk recently, odds are that you’ve got some useless cards or old receipts floating around in there.

You need to ruthlessly clean house!

In the world of wallets, less is more.

What’s the big deal about keeping the wallet slim?  Like a lot of good grooming/menswear habits, it’s all about the neatness of your overall presentation.  A bulging George Costanza-style wallet is hurting your image every time you stick it in your pocket:

  • A thick wallet makes an asymmetrical bulge under your clothes.  It looks like some sort of tumor.  Not stylish.
  • A heavy wallet in one jacket pocket makes the whole thing sit slightly lopsided.  Your shoulders will look uneven and a little hunched.
  • Using the same thick wallet day in and day out will eventually create faded creases in whatever pocket you use, in the shape of the wallet, shortening your clothes’ lifespans.
  • If it’s really overfilled you look bad when you pull it out, too.  There should never be fringes of tattered paper or badly-bent plastic cards sticking out when you produce your wallet in public.

So before we get into what a man should be carrying in his wallet, let’s be clear:  he shouldn’t be carrying anything that isn’t regularly needed and vital to have on the person at all times.

If you can’t think of a situation where going back to the house to grab it later would be a big deal, you probably don’t need it in your wallet.

The Gentleman’s Wallet Essentials

So what all should go in the wallet?  At all times, we feel comfortable saying that everyone’s going to have use for these often enough to warrant carrying them daily:

Overstuffed-Wallet-man

  • Cash — Yes, you have credit cards, and yes, you may even be able to buy things with a click of your smartphone now.  But not everyone can process those payments, so have some cash on hand to tip your taxi driver with, slip to the busboy (who doesn’t always get a share of the actual waiters’ tips), or just to pay for something in a way that’s fast, convenient, and doesn’t cost an establishment that you like the extra credit card fees.
  • I.D. — A state-issued driver’s license or state I.D. card is your gold standard of I.D.  No one’s going to hassle you about those.  If you need a second I.D. specific to your profession — a security card or student I.D., say — have that as well.  But leave behind all the tertiary I.D. cards like your country club membership or Wines of the World discount card unless you know you’re going somewhere that requires them.  Nine days out of ten that’s wasted space.
  • Credit Cards — Two is the maximum here.  Anything else just makes you look like an irritating coupon-clipper as you rummage for just the right one to get your maximum mileage points or whatever.  A debit card and a credit card is a nice combination.  If you’re really dedicated to saving space try and find one of the newer cards that have perfectly flat numbers — just be aware that there are still a few places (especially temporary stands like farmers’ market stalls) where you’ll have to wait for them to copy the information off the card rather than using a hand-held machine to stamp a carbon copy from the texture.
  • Business Cards — Doesn’t matter if you own a business or not.  Have a few cards with a very simple design that just gives your name, phone number, and e-mail address.  You can get these made very cheaply at most copy shops or print shops, and if you’re part of (or own) a business with its own logo and information you can grab a few cards for it as well.  Three or four of your personal cards and three or four more from your employer/business is usually plenty, unless you’re heading to some sort of meet-and-greet where you know you’ll be giving them out.
  • Your Contact Information — It sounds simple, but you’d be amazed how many men don’t think to have their name, address, and phone number somewhere visible when the wallet flips open.  A business card works for this, obviously, as do some forms of I.D., but the point is to give anyone who finds your misplaced wallet a quick and easy way to get in contact with you.  It’s no guarantee that they will, of course…but not having it there is a guarantee that they won’t!
  • Your Most Commonly-Used Discount Cards — If you’re someone who likes “Frequent Buyer” or rewards types of cards, more power to you.  There’s nothing wrong with getting a good deal.  But exercise some restraint.  Carry the one or two that you use all the time and leave the rest at home.  If you only go to the mall once or twice a month (or less, in my case), it’s a significant enough errand that you’re going to think “oh, better grab my mall discount cards.”  Leave them in a drawer the rest of the time.

If you’re carrying a lot more than this you’ve probably got room to trim a few things.

I know I’m not going to sell everyone on getting rid of their photos (although more and more people are keeping those on the phone instead, these days), and there are arguments for some membership cards (I know a couple of guys who swear by their Eagle Scout cards as great speeding-ticket outs), but try to think long and hard about the benefit you’re getting versus the size you’re adding to wherever you keep your wallet.

This article was originally published on abcnews