Financial World

During one of our classes in Corporate Financial Accounting, we delved into past events and had several questions on financial decision making. One area that garnered significant attention was the use of credit facilities to boost credit ratings in developed countries. It was fascinating to learn that the approach is quite different in Nigeria.

In developed countries, real estate investment is relatively easy through mortgage, which ultimately leads to property ownership. However, the same process is not so straightforward in Nigeria due to the increased rate of poverty in the country. Unlike in the past when our parents completed their houses between the ages of thirty-five to forty, the situation has changed. Many people dip their hands into illegitimate things or make misplaced priorities like sacrificing quality education for their children at the expense of amassing wealth when pressurized to get a property. It is crucial to embrace proper financial planning to set our priorities right.

Understanding the Statement of Financial Position helps us understand finance and financial analysis better. It opened our eyes to proper planning and budgeting, which is an essential aspect of financial planning. For small business owners, this knowledge is particularly useful, especially those that find it challenging to separate family needs from business needs. We studied Oando as a case study and learned that building a business on transparency rather than lies is critical to long-term success.

We also studied the Union bank case, which seemed impossible to understand at first. Still, through class discussion, we were able to gain a better understanding. It is never advisable to obtain a loan for personal use without a consistent source of income. Some individuals take loans for weddings, rent, and other expenses, and if they acquire too much debt, they may need to recycle loans from loan sharks, leading to a never-ending cycle of debt.

Individual income can be well utilized for proper planning and investment. It is essential to grow your wealth portfolio and invest in it rather than making use of loans to purchase consumables. Corporate Financial Planning, as a course, teaches us to be better human beings and enhances the way we allocate resources.

The faculty ensured that we understood everything being taught and could utilize it when needed. It is also crucial to have a financial records plan, which is an effective way of tracking and managing our finances. This knowledge is useful not just for individuals but also for businesses to have a solid financial foundation that will enhance their growth and success.

In conclusion, corporate financial planning is an essential aspect of finance that requires proper planning and budgeting to make effective financial decisions. We must embrace proper financial planning to set our priorities right and avoid making misplaced priorities that will only lead to short-term gains. It is vital to have a financial records plan, grow our wealth portfolio, and invest in it rather than making use of loans to purchase consumables. Reading a lot of resource materials also made us to understand a lot of Financial terms.

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