Ensure your money works for you – Prof Adei
Story: Benedicta Godknows KWASHIE
Economist and former Rector of the Ghana Institute of Management and Public Administration (GIMPA), Professor Stephen Adei has issued a compelling call for Ghanaians to take charge of their personal finances by ensuring that their money works for them, rather than for others.
Prof Adei stressed the importance of strategic investment as a pathway to wealth creation and financial independence.
In recent years, economic challenges such as rising inflation, high borrowing costs, and fluctuating exchange rates have placed many individuals under considerable financial strain. The impact of inflation has been particularly noticeable, as the cost of everyday goods and services has steadily increased, eroding the purchasing power of households.
As the cost of living continues to rise and the financial environment becomes more challenging, there is an increasing need for individuals to take a proactive approach to managing their finances.
Professor Adei explained that traditional savings accounts typically yield low interest rates, ranging from 2% to 5%, while borrowing from the same banks often comes at an exorbitant cost of up to 35%. Speaking to Zed News, the former Rector of GIMPA highlighted that even within the banking system, time deposit accounts offer significantly higher returns compared to regular savings accounts.
He further underscored the importance of mutual funds, describing them as an ideal investment vehicle for individuals with modest means. “There are collective investment schemes called mutual funds. That is where people should put their money,” he urged, emphasizing that mutual funds provide a safer and more accessible option for those looking to grow their wealth over time.
Drawing from the book12 keys to financial success, Professor Adei outlined critical principles for personal wealth creation including having a personal financial vision, setting time-bound financial goals, and adopting saving and investing as a lifestyle. He stressed that individuals must recognize that wealth creation and personal finances are largely within their own hands. By shifting from a dependency and corruption mindset to one focused on productivity, achieving financial freedom becomes much more attainable. Professor Adei paid tribute to financial pioneers such as Togbe Afede XIV, Kenneth Nana Yaw Ofori-Atta, and Keli Gadzekpo, who championed the mutual funds movement in Ghana over three decades ago, laying the foundation for modern investment strategies in the country.
