Old Mutual Malawi Limited has emphasized the need for newly wedded couples to build strong financial foundations in order for them to achieve their social and economic aspirations.
The company’s Financial Education Manager, Bernard Chiluzi, made the sentiments recently during a gathering organized to celebrate a bridal shower for Lywell and Nollah.
Apparently, Old Mutual Malawi Limited has embarked on an initiative designed to equip new couples with skills and knowledge to plan and execute programmes that would enable them to achieve their social and economic dreams.
During the bridal shower for the said Lywell and Nollah, Chiluzi stressed the importance of open and honest communication as the cornerstone of a successful financial journey.
He encouraged the couple to openly discuss their financial goals, priorities, and spending habits, adding that creating a joint budget that aligns with their shared aspirations is a powerful step towards financial unity.
On emergency fund, Chiluzi said there is a need for couples to recognize life’s unpredictability. He underscored the significance of building an emergency fund to cover three to six months’ worth of living expenses, acting as a vital financial safety net during challenging times.
He also advised newly wedded couples to live below their means and avoid the temptation of lifestyle inflation.
“I wish to advise the new couple and the audience to resist the urge to overspend. This is critical in ensuring financial security and creating opportunities for saving and investment,” he said.
He also encouraged the couple to establish both short-term and long-term financial goals, including acquiring a home, starting a family, or planning for early retirement, clear objectives to help maintain focus and motivation.
Chiluzi further highlighted the burden of high-interest debt whilst urging the couple to develop a repayment plan and avoid accumulating new debt.
He stressed the importance of involving one’s partner when considering borrowing money and ensuring that borrowed funds are directed toward investments rather than consumption.
Chiluzi also reminded the audience of the inevitability of retirement. He suggested opening separate investments to serve as parallel savings plans and maximizing savings potential by increasing individual contributions when offered by an employer.
On insurance, he emphasized the importance of protecting one’s family while recommending securing comprehensive insurance coverage, including funeral, life, health, and general insurance.
The Financial Education Manager also drew the participants to draw inspiration from the lion’s secret, which calls for simplifying savings routines by setting up automatic transfers to savings and investment accounts.
This “pay yourself first” approach ensures saving before spending.
“To mitigate risk, we recommend diversifying investments across various asset classes such as savings policies, unit trusts, shares, and real estate, among others. This strategy helps protect financial portfolios from market fluctuations. We also urge couples to review and adjust financial plans and make necessary adjustments to accommodate changing circumstances and evolving goals,” he said.
Chiluzi also recommended seeking personalized guidance from financial advisors, tailoring expertise to individual financial situations.
In conclusion, Chiluzi advised couples and the audience to acknowledge and celebrate financial achievements together whether it is paying off debt, reaching a savings milestone, or achieving an investment goal, recognizing progress reinforces the positivity of the financial journey.
Chiluzi reminded everyone that financial stability is a journey, not a destination.
“By adhering to these principles and working together, newlywed couples can build a solid financial foundation that supports their dreams and aspirations. With a bright financial future ahead, they can achieve their goals and establish lasting financial security,” he said.