Home - Fidelity Bank

Mortgage

2022-07-04T07:52:49+00:00

Let’s Talk Loans, Shall We?

2018-04-23T03:09:31+00:00

Who does not want “free” money? Certainly, that won’t be me. Money, clean money is a good thing, anytime… any day. Most of us are drawn to loans mainly because they give us the liquidity we need to get something done quickly, while we relax and pay them off later. But we must be strategic in the way we access loans because the reality is that loans are not free money. It is a financial liability you take up upon yourself, and the reason why you take on such liability should be worth it.

In this article, we will discuss what a loan is and how you can use a loan to grow your wealth.

What is a loan?

A loan is a debt provided by an organization or individual to another entity at an interest rate and evidenced by a promissory note which specifies, among other things, the principal amount of money borrowed, the interest rate the lender is charging, and date of repayment (Source: Wikipedia). A loan should thus only be taken as a matter of necessity. For instance, I would rather stay in my home on a holiday rather than borrow money just to join a group of friends to the party. A loan should not fund luxury. Luxury should be earned through hard work. There’s no need to force luxury when you cannot comfortably afford it. Rule of thumb is to never take a loan when you have no idea “how” to repay it.

When taken strategically, however, a loan can help you manage your wealth and in some cases even fuel growth, which brings us to the next sub-topic on how to grow your wealth with loans.

Growing your wealth with loans

So how best do you use a loan to flatter your finances?

1. To prevent you from touching your investments: Sometimes, in order not to liquidate your investment prematurely, it is advisable to get a quick loan to provide short-term liquidity. Liquidating your investment prematurely will cause you to lose the interest due you upon maturity. A loan could give you that quick fix while you reap the returns on your investments at the right time. Example of such loans is the Fidelity Fast and Easy Loan, which is usually processed within 24hours.

2. To serves as capital: Loans are also very useful when used to fund your little side business. With the right management, your loan could efficiently boost your business in a way that repayment is easy and business income is increased.

3. To enable you acquire cost-saving assets: For example: In certain rare instances, some people spend more money accessing public transport on a day-to-day for themselves and their families, compared to if they had their own car. A person who finds him/herself dealing with such an issue may want to get a vehicle loan to get a little car that serves the purpose just to be able to make some savings. It is always advisable however to ensure that the loan can be comfortably repaid.

While the list above may not be exhaustive, it goes on to say that loans must be taken as strategically as possible, to ensure that they are more of assets than liabilities. Fidelity Bank has a wide range of personal loans for all customers. Call 3355 for whatever details you may require or send a Direct Mail with your questions and you will be attended to.

Dealing With Debt

2018-04-30T03:54:05+00:00

Debt… So you wake up one day and realized you owed more than you could afford to pay within set time periods… And you have probably had to miss a few calls because every now and then that person you bought those things from keeps calling and texting. Now what?

No situation is permanent. Or at least no situation should be permanent if you do not want it to be. There are answers and solutions to work your way out of the stranglehold of debt. This will not be a quick fix, nor will it be easy, but there is life beyond debt! And the pathway to that life is marked out in the article below:

The mindset

Mike Todd, an American film producer, once said, “I’ve never been poor, only broke. Being poor is a frame of mind. Being broke is only a temporary position.” Your mind is your strongest tool when it comes to dealing with the debt crisis. Instead of blaming your debt on the witches and wizards in your Father’s hometown, you have to try to understand how it happened and also realize that it has happened to a lot of people – even countries!

Economic and financial figures reveal that Ghana’s total debt stock (as at December, 2017) stands at GHc142.5 billion, representing 70% of our Gross Domestic Product (Source: BOG). So if it makes you feel any better, you are not the only one in debt. Make up your mind to come out of debt and work towards it. The results will amaze you.

Calculate your total debt volume

It is one thing feeling discomfort because you owe Eto, Dede, Messi and Yaa Manu all in one heap at the back of your mind. And it is a completely different thing putting pen to paper to see the horrific figures that plague your thoughts. Sometimes, you realize it is not even that bad and you get to sleep much better than you did before. Other times, you only rather realize how daunting your debt load is and that pushes you to work faster towards recovery. Whichever ways, you are better of knowing your exact debt load than walking the streets with shadows of undefined debt hovering over your head. It should not be a good feeling and we do not want that for you.

Start by listing out the names that immediately pop up. Then think deeper and try to remember all the people, banks and other institutions that you owe. After that, list out the corresponding figures and put them all together. Now you have something to work with. As and when you remember other debts, you add them to the list.

Adopt Positive steps for change

Now let’s move ahead to the solutions to your debt crisis. Here are some simple points to getting out of debt and achieving financial security:

Stop borrowing and buying on credit: It is a very wise thing to spend within your means. Resist the temptation to spend beyond your cash in hand. When one is serious about getting out of debt, any spending will be focused on needs, not wants and desires. The temptations—“Why wait when you can have it right now!” and “It’s yours for only three easy payments of …”—must be resisted. You must have the discipline and character to not spend beyond your means. President Calvin Coolidge once said, “There is no dignity quite so impressive, and no independence quite so important, as living within your means.”

Set a workable budget: If you are going to work your way out of debt, a written budget is a “must have”. If you are married, sit down with your spouse and build your budget together. You both need to know where your money is going (every pesewa). In drawing your budget, focus on needs: food, shelter, utilities and transportation. Consciously curtail expenditure such as eating out and buying at impulse. It is difficult, but you have to tell yourself it is only a phase.

Work. Consider doing a side job that allows you to make an alternative income. If you have any talents, this would be a good time to put it to use: sewing, braiding, selling, makeup works, event planning etc. It will mean some hard work and sacrifice, but if you’re serious about getting out of debt, that could help. Again, this need only be a temporary situation.

Renegotiate your debts. Once your recovery plan is all done. Renegotiate your outstanding debts and work towards promised dates. Try to make the timelines as realistic as possible. Nothing is as painful as being promised an amount of money due you and being disappointed. Debt is the last thing that you want to separate you from the people you once called friends or allies.

Do not be engulfed in stress and despair. Work towards recovery and debt will be a thing of the past. Fidelity Bank is here to give you all the support you need to achieve financial freedom.

Lessons from the Monopoly Game

2018-05-07T18:17:08+00:00

Monopoly is a real estate trading game, in which players get to pretend to be real estate tycoons, making investment decisions on the go. You are probably wondering what kind of connection a game could possibly have with something as serious as your personal finance. But if you've ever played Monopoly, you will realize that the game offers a lot of financial lessons, which are applicable to real life situations.

The three financial tips below were picked from playing monopoly.

Your decisions define your future

At the beginning of the game, each player is given the same amount of money. However, by the end of the game, some have more while others would have gone bankrupt. The difference lies in the decisions you make. Your investment decision can make or unmake you. How you invest your money, your time, your effort and every other resource you have to go a long way to define what you achieve at the end of the day.

Always keep cash on hand

When it comes to investing effectively, the keyword is ‘balance.’ Sometimes, we get over ambitious and give little importance to keeping cash on hand. In the case of Monopoly, a player may resort to buying every property they chance on just because they still have cash. This is not advisable as you may be forced to eventually liquidate your investments prematurely, making losses in the process. It is important to invest consistently, but also keep a reasonable amount of cash to take care of your short-term financial obligations.

Keep your calm, life offers its own gifts

Throwing a dice in a game is all about chances. You never know what you get. The outcome of your dice roll determines your next big move. The key is to prepare to take advantage of whatever opportunities the dice roll brings. The same way, you have to keep your eyes fixed on your objectives and prepare yourself for when an opportunity comes. They say, “Luck is when preparedness meets opportunity.” Take the course, raise some capital, read more and prepare yourself in wait for your next big move.

In the conclusion, though Monopoly is just a game, it offers a lot of valuable lessons that become almost inherent as you keep soaking them in. Fidelity, your bank, has invested in the Accra Edition of the Monopoly board game. Now the properties are relatable to the Ghanaian player and the game is more enjoyable.