At the School of Law seminar held on October 18, 2019, VP of Finance & Administration (VPFA), Olanipekun Olanrewaju, marshaled why everyone, especially lawyers, needs to be business savvy in their dealings.
His presentation on ‘Building a Strong and Secure Financial Future as a Legal Practitioner,' explored essential financial concepts that all lawyers should know to properly guide clients as well as to secure their economic future.
Lawyers need to acquire the basic ability to analyze financial statements, he said, for example.
He advised an open mind to have a robust knowledge of how businesses run to give optimal business advice to their clients.
"You must know the value chain of your client's business to advise them."
The financial expert also said there is a need for everyone to be savvy in financial planning. Using the pension fund as an example, he advised that it should not be left alone for the finance department personnel to be fully in charge.
"It is important that you monitor it as well by ensuring that you reach out to your custodian and ask for your statement if it is not being sent to you. In addition, when you are financially savvy, it will help you to compare the various custodians who are managing pension funds to see which one is giving the highest returns."
The three elements of financial planning that he gave include optimizing priorities, expenditure profile, and cash flow projection.
He maintained that record keeping can help in controlling one's expenses and to some extent the lifestyle since it can give the expenditure pattern of a person.
"You can only control what you can monitor and you can only monitor what you document. Monthly bank statements can be of help here."
Besides his examples of software applications that can help in planning expenses, he also stressed the importance of taking a comprehensive insurance policy.
He went on to advise the audience on savings and investment using tips from the world-renowned investor, Warren Buffet. He advised that people plan their expenses before they receive their income. The most important tip which the audience can take away is 'save before spending'.
"Do not save what is left after spending but spend what is left after saving."
When it comes to responding to issues of finance, he warned that everyone should exhibit caution. "Don't make a decision when you are angry and don't make a promise when you are happy."
Among the top management at the event were President Dekle, AVP Nourah Bamalli of HR & Planning, and AVP Lionel von Federick Rawlins, who had invited his senior officers.
Dr. Rawlins urged them to spread the knowledge they have gained to other officers.
Reported by Omorogbe Omorogiuwa