The Art Of Annualising Everything

Why you’ve been reading your money all wrong

REACH
REACH
Jul 25, 2017 · 3 min read

You read right! If you haven’t heard of the art of annualizing everything, my dear friend, then all we can say is ignorance is bliss. But if you’re aware of this, and you haven’t begun practicing it, please why are you refusing to be great?

Annualising means taking up figures and calculating them to cover one full year’s period. In Nigerian terms, it means “timesing” what you spend in one day by 365 days. For instance, if you buy chicken and chips three times a week, every week in the year, then it means for one year, you spend: NGN1200 x 3(times) x 4(weeks) x 12(months) = NGN172,800.

On chicken and chips!

Now that we have your attention, this, is the art of annualising everything:

1. You Will Know Your 5 Largest Expenses By Heart

Seriously! A whole bag of chips is 1,500. Annualising everything, will reveal what you thought to be chicken change, to be huge lumps of money, that you’re pumping into “things”.

To know your 5 largest expenses from 2018, check here.

Yep! That’s all you.

2. You Will Make Sure That For Every Naira Spent, A Naira Comes Back
Especially for we entrepreneurs, this should be your goal: for every NGN1 in business expenses you incur, your revenue should simultaneously increase by NGN1 (or more). If you can train your brain to get into this habit of thinking, then your business expenses will start to pay for themselves.

To start getting your money back, click here to invest on REACH.

50 year old you, will thank you for it.

3. You Will Think: “Do I Really Need This”
If you become fond of annualising your “little” expenses, you will begin to ask yourself questions: like whether this 15k pair of shoes is important enough to want to starve for 2 weeks.

To take control of your spending, click here to set a budget for next month.

4. You Will Stop Overcomplicating Things
95
% of our expenses can be grouped into 7 major categories: Food, transport, entertainment, bills, clothes, health and faith. Simple! Now you can be accountable for where your money goes each year.

5. You Will See That Personal Finance is not Rocket Science: Literally
You will get more comfortable towards the end of each month, you will discover that you never really needed a bunch of new stuff and you can finally save for the big moments in your life.

Wisdom, my friend, wisdom.

And that’s why we designed the REACH app, to function as an expense tracker that allows you to see exactly where your money goes, week on week, monthly and even annually. The REACH app is set to help it’s users plug those little leaks that sink a whole ship.

The REACH Chronicles

Thoughts, insights, and stories on the journey of building REΛCH, a tool that helps you track your spending, set weekly budgets and receive insights to better manage your money.

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