Good Morning 😃
How are you doing?Â
Friday letters are usually dedicated to taking questions from our community. Do you have a question for us? Please feel free to send an e-mail to info@themoneyafrica.com or a DM to any of our social media channels.
Question
Which would you advise me to do first in the new year, pay off my debts or start an emergency fund?
Answer
The two goals are key and can be executed at the same time. Â
What you should consider doing is to devise a plan that allows you to pay your debt in a structured way while building your emergency fund. This will give room for financial flexibility.Â
If the debt has a high annual interest rate, say, 20% and above, a greater proportion of your funds can go towards paying it off. You can also consider asking for a longer repayment period, with smaller monthly payments.Â
If you are having similar issues and can’t seem to find a way of structuring the two financial goals, kindly reach out to us and book a session.Â
Question
Is it advisable to invest $1,000 in Ethereum in the long run or should I diversify it across other coins?
Answer
A lot of projects in the cryptocurrency space are based on the Ethereum platform, hence the buzz around it.Â
Diversification is a good strategy, but it is also important to know the coins you’ll be diversifying the funds into. You can decide to cost-average, that is, buy a set sum on a periodic basis.Â
The cryptocurrency market is known for its high levels of volatility. Past performance is not an indicator of future performance. Do your research as regards any coin in which you wish to invest in.
We wish you a merry Christmas in advance.Â
Please take the time to rest and catch up with family and friendsÂ
At MoneyAfrica, our goal is to simplify all the difficult financial concepts and make it easy for you to start your investment journey. We believe that financial literacy is the key to wealth.
Did you find this newsletter useful? Please feel free to share it. You can read previous newsletters here
Don’t forget to:
Join our community, if you are interested in smashing your 2021 financial goals. Yes, 2021 may almost be over, but it takes at least 30 days to build great habits that will last you a lifetime. So why not start now? There is a lot you can achieve between now and the end of the year.
Watch our video on the 7 MONEY MISTAKES YOU DO NOT WANT TO MAKE on Youtube.Â
Get a budget sheet to track your monthly expenses. Click here
Get an investment tracker to be on top of all your investment. Click here
Hi. your mails are educative but you don't respond to questions sent to your e-mails. I want a session on this topic - restructure loan and emergency fund. i hope i get a response. My emial is iconbrand2002@uahoo.co.uk. Thanks.