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Are you looking for signs that predict that you’re about to get into debt?

‘Insufficient balance’ ‘Payment declined.’

These are some phrases that no one would like to see. After all, who enjoys being broke? However, it can happen when you are not careful with your spending or other factors.

Understandably, one cannot do without getting debit alerts while navigating life. One minute you have to pay for something, and the next minute, you’re still paying for another thing. It is one of the reasons why people say they do not want to grow up, as adulting is expensive.

Some people even lament how they would not want to leave their rooms if possible, as stepping outside is all about debit alerts. All these are not false as it is part of life. Thus, we always advise people to try their best to manage their funds.



We’ve also noticed that people engage in some harmful practices that make them broke even when they are not supposed to be. So we will share some things you shouldn’t do if you do not want to get into debt.

Yes, you can avoid getting indebted by being conscious of preventing these practices.

10 Things That Can Get You Indebted

In no particular order, below are some things you do that can get you indebted:

1. Impulse spending: Are you the type of person who doesn’t have control over their spending? Do you love shopping? Are you the type to buy anything that catches their interest? If yes, it wouldn’t be surprising that you’ve gotten into debt, as impulse spending would help you finish your money.
Some people feel they can always buy anything they want because they have the money. However, if you are not careful with your spending, the money will finish in a blink, and you will become broke.
Understandably, you would be uncomfortable when you are broke. Thus, the following line of action would be borrowing money from people and becoming indebted. Is this the type of life you want to be living?
People say being indebted is stressful as you wouldn’t have peace of mind, and we agree. It could be that your creditors are always disturbing you for their money. There would be a nagging in your heart when you know you owe someone.
To avoid this stress, you need to cut down on impulse buying. Before you get anything, you should check if you can afford it and if you would still have money to take care of yourself after the purchase. If not, you can put that purchase on hold until some other time.

2. Money finishing before salary time: Do you need someone to tell you that you’re about to get indebted if your money finishes before salary time? For example, you work in a place where they pay salaries on the 25th of every month. However, by the 10th of the month, your salary is already gone, and you are barely surviving. It would be almost impossible for you not to look for a place or someone to borrow money and get into debt.
No matter how hard it may seem, you must try to ensure that you stop the habit of your money finishing before salary time. If it happens once, we can say that it is a mistake. But when it happens repeatedly, it has become a habit and needs to be stopped.
As you get your salary, you need to plan your life so that the money stays until you get your next paycheck. Else, how would you survive?
If some things consume your money that does not count as pressing needs, you need to cut down on them. Your goal should be ensuring that your cash comfortably takes you through the month. Else, it would defeat your reason for working.

3. Difficulty paying bills: One minute, it seems like you have money, and the next minute you find it hard to sort your bills. Of course, many people can relate to this analogy as it happens to even the best of us. However, the fact that it happens doesn’t mean that it should be the norm. Once you realize that you’re finding it difficult to pay your bills, you need to reevaluate your spending, or you will get into debt.
Imagine using your money for other things and the money finishes before you can pay your bills. Of course, you would feel sad when such happens. To avoid such embarrassment, you may get caught up in the web of borrowing money from others.
We need you to understand that you cannot run away from sorting bills as an adult. It could be your electricity bills, buying gas, sorting repairs, etc. All these are essential for you to have an enjoyable life. You would become sad and depressed when you find it hard to pay your bills; we do not want that to happen.
It would be best to always have money aside for sorting bills to avoid embarrassing situations.

4. Living without a budget: You may find it hard to believe that some people live without a budget. Sadly, that is the reality, and there are more people than you may imagine doing this. Many of them argue and ask why there is a need to live within a budget.
The concept of having a budget is to ensure that you do not spend above your means. Therefore, when creating a budget, you are sure to structure it in a way that would be within your income. Consequently, it can serve as a guide to your way of living.
Aside from having a budget, you must also have self-control. It is one thing to have a budget and another to stick to the budget. Yes, drafting up a budget is nice, but it wouldn’t make any sense to have one if you are not going to stick to it.
The only time and reason you should live without a budget is if you are aiming for financial disaster. You are sure to act more responsibly if you work with your budget, and you may even have money still in your account when it’s time for the next salary. So if you have been living without a budget, it’s time to draft one!

5. Living above your income: We have also noticed that some people live above their means. Sadly, we see that they try to compete with their friends, which leads to them spending more than they earn and eventually getting indebted.
You need to understand that you do not need to be in any competition with anyone in life. Everyone is running their races, and you do not need to impress anyone. So, once you notice that your friend group is making you spend above your income, it may be time to reevaluate that friend group.
There is no reason why you should be living above your means. But how do you expect to keep surviving? Of course, some people may say that they would borrow. But do you always want to be known as a debtor?
It is highly unreasonable to borrow money because you want to sustain a particular lifestyle that isn’t your actual reality. If you have been living above your income, it isn’t too late to rethink and retrace your steps. You should remember that life is best enjoyed when you are not indebted. Therefore, you should do everything to ensure you do not get into debt, including not living above your income.


6. Having the mindset that debt is part of life: We have come across people who firmly believe that getting into debt is a part of life. They say that one can’t live without borrowing them. Thus, they use this mindset in navigating life, leaving them indebted.
Now, we are not saying that their point of view is wrong. Yes, there are times when you might need to borrow money to sort things out urgently. However, it would be best if you did not think that borrowing or getting indebted is part of life. Once you begin to live with such a mindset, it makes you lazy, and you fall into the debt hole.
The goal isn’t to live your life for debt repayment alone. Instead, you should try your best to ensure you stay away from debts. But once you begin to live with that mindset, you are setting a trap for yourself as you would start to navigate towards debts and owing people, knowingly or unknowingly.
Anyone who wants you to stick with such a mindset doesn’t wish for your growth. If you continue having this mindset, you will remain stagnant, and your only goal will be to keep repaying loans. If you’ve always had such a mindset, it’s time to finetune it.


7. You don’t track your spending /finances: Did you know that some people do not like to check their account balances? It isn’t that they earn so much or are so rich. However, such people believe in spending without their account balance.
In an encounter with one of such persons, she said that checking her account balance leaves her tensed as she would always be calculating how much she has. Therefore, she prefers to live life on the edge without knowing. We further asked her what happens if she goes somewhere one day and tries to pay for something and her card declines due to insufficient funds. She shrugged, saying she would find a way to navigate it if she ever got to such a point.
Allow us to tell you that it is risky to live life this way. If you have a habit of not tracking your spending, you are sure to get into debt. You must reach out to people and borrow money if you ever get stranded. However, you could have avoided it if you had known your account balance and planned accordingly. You would know how to plan and budget your life within your means by tracking your spending and finances.

8. You have unrealistic goals: It is one thing to be ambitious, but it is another to have unrealistic goals. In the name of being ambitious, some people set high standards for themselves, leaving them indebted.
For example, imagine someone who earns 70,000 naira monthly aiming to get a car of 3 million naira in the next three months. How would that be possible? Of course, such a goal is unrealistic. Such a person would put themselves under unnecessary pressure. And in a bid to prove a point, the person then borrows money and would be in the hole of having to repay their debt.
Another example is someone who earns 100,000 monthly but has a goal of saving 80,000. That isn’t even feasible in the present economy. How would that person survive on only 20,000 naira in that month? The person would have to budget for feeding, transportation, electricity, and phone bills. All these would exceed 20,000 naira, making it difficult for the person to survive. Therefore, the person has to use other means like borrowing to push through the month.
Setting unrealistic goals is sure to get you into debt. Thus, it is best to ensure that your goals are realistic.


9. You love to be the center of attention: People who love to be the center of attention do bizzare things to keep up with their lifestyle. Once you meet someone who loves to be the center of attention, you will notice that they are set on living what can be termed a fake life. Thus, it should not be surprising when you see that they borrow money to buy things they may typically not be able to afford.
The goal is for people always to ask them questions as they love to be in the spotlight. Therefore, you would notice that such people love to get expensive things. It could even be that they change their gadgets and wardrobe almost every month, all because they want the attention to be on them.
Living life this way is dangerous as it can get you into a pit of debt that you would be refinancing for a long time. It may not seem like it initially, as the flashy life seems nice. But slowly, it becomes addictive, and you would enter into its loops and have difficulty getting out of it.
Your goal in life shouldn’t always be attention-seeking. Recall that you shouldn’t see life as a competition with others. Instead, live life for yourself.


10. You can’t differentiate between your wants and needs: Every human needs to know and understand their wants and needs. Your needs are the pressing issues in your life at the moment. It would be almost impossible for you to live without a solution to your needs. For example, every human needs to feed to stay alive. Therefore, spending money on food can be a need.
On the other hand, your wants are things you desire but are not urgent. Therefore, you will keep surviving even if you do not have solutions to your needs. For example, you love the latest iPhone released and wish to own one. That can be what you want. However, you do not have the money to get it. But you can keep surviving life as you have a functional phone that allows you to do anything you desire.
Sadly, one of the reasons why people get into debt is that they cannot separate their wants from their needs. So instead, they begin to spend unnecessarily, trying to satisfy their desires, and it becomes an issue for them. Soon, it becomes a case of borrowing to sort out your needs because you’ve spent all your money satisfying your wants.
If you are trying to stay without getting into debt, you should be able to differentiate your wants and needs.

There is no reason why you would want to live a life of debt and sacrifice your peace of mind. Thus, watch out for these signs before it becomes too late!

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Rand Merchant Bank (RMB) works with World Bank in closing first to market MIGA guaranteed short-term sovereign loan



Rand Merchant Bank (RMB) works with World Bank in closing first to market MIGA guaranteed short-term sovereign loan

Through collaboration with MIGA and the Minister of Economy and Finance for Côte d’Ivoire, RMB facilitated a short-term loan to support crucial trade related initiatives

Rand Merchant Bank (RMB) (, a division of FirstRand Bank Limited, has achieved a significant milestone in Africa by partnering with the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank, to extend short-term funding support on a trade-backed facility for the Republic of Côte d’Ivoire.

Through collaboration with  MIGA and the Minister of Economy and Finance for Côte d’Ivoire, RMB facilitated a short-term loan to support crucial trade related initiatives.

Said Ben Bechet from RMB’s Trade and Working Capital, Structured Solutions team: “While RMB has a proud history of supporting sovereigns on the continent with their funding and capital markets requirements, this is a first of its kind facility for an African sovereign. This transaction will pave the way for further MIGA guaranteed short-term facilities across the continent to assist with developmental initiatives, critical projects and the importation of crucial goods such as food, fertilizer and medicines alongside other resources.”

Clarine Stenfert, Global Trade Finance Head and Head of UK for MIGA, said: “Through deep collaboration with RMB and MIGA, the teams were able to successfully structure and execute a process we hope to scale and introduce to other African countries. MIGA’s Trade Finance Guarantee Framework seeks to support sovereigns or sub-sovereigns across emerging markets with their trade financing requirements, alleviating the current liquidity constraints imposed by the current high inflationary environment and the retreat from markets by private sector players.”

MIGA provides political risk insurance guarantees to private sectors and investors in a broad range of sectors in developing  economies. MIGA promotes foreign direct investment into developing countries to support economic growth, reduce poverty, and improve people’s lives. MIGA fulfills this mandate by offering political risk insurance guarantees and credit enhancement to private sector investors and lenders.

“RMB’s strategy entails forging partnerships with insurance, guarantee and export credit agency providers to extend meaningful funding support to our clients across Africa. Collaboration with development financial institutions and multilaterals remains key to truly unlocking new opportunities to support our clients, concluded Bechet.”

Distributed by APO Group on behalf of Rand Merchant Bank.

About RMB:
Rand Merchant Bank (RMB) is a leading African corporate and investment bank (CIB) and part of the largest financial services group (by market capitalisation) in Africa – FirstRand Bank Limited (which is wholly owned by FirstRand Limited). We offer our clients innovative, value-added advisory, funding, trading, corporate banking, and principal investing solutions.
With a presence in 10 African countries, we have a significant footprint on the continent. We also have access to a network of retail banks, representative offices and branches across Africa, the UK, India and the US.

At RMB we are passionate about solving problems for our clients by asking the hard questions. We challenge accepted thinking. We analyse and seek solutions beyond the obvious. We are innovative in our thinking and turn challenges into opportunities, while delivering on Traditional values. Innovative ideas. Our ability to think differently, our collaborative spirit, our client-centric solutions and our belief that great minds don’t always have to think alike, is what sets us apart.

For more information visit:

About MIGA:
MIGA was created in 1988 as a member of the World Bank to promote foreign direct investment in emerging economies by helping to mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war and civil disturbance; and offering credit enhancement to private investors and lenders. Since its creation, MIGA has issued over $76 billion in guarantees across 123 developing countries, supporting more than 1,000 projects. Over the past decade, MIGA’s guarantees have generated more than 156,000 jobs in developing countries.

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Equatorial Guinea and Ghana Accede to the Establishment Agreement for Afreximbank’s Fund for Export Development in Africa (FEDA)



The Fund for Export Development in Africa (FEDA), the development impact-focused subsidiary of the African Export-Import Bank (Afreximbank) (, has announced that the Republic of Equatorial Guinea and the Republic of Ghana have recently signed the FEDA Establishment Agreement.

This important milestone is the result of several months of cooperation between Afreximbank, FEDA and government officials in Equatorial Guinea and Ghana.

As Afreximbank member states, Equatorial Guinea and Ghana have taken another step towards closer collaborations with FEDA by signing the FEDA Establishment Agreement. This milestone marks the countries’ support for Afreximbank’s efforts to extend FEDA’s impact investing objectives across the continent.

New memberships are crucial to broaden the scope of FEDA’s interventions and its mission of delivering long-term capital to African economies with a focus on industrialization, intra-African trade and value-added exports.

Professor Benedict Oramah, President of Afreximbank and Chairman of the Boards of both Afreximbank and FEDA, said: “We heartily welcome the signing of the FEDA Establishment Agreement by the Republic of Equatorial Guinea and the Republic of Ghana. The signing of the FEDA Establishment Agreement lays the groundwork for an enhanced and more effective cooperation with better access to the full range of interventions offered by Afreximbank and FEDA. This milestone builds on the solid partnership already established with both Equatorial Guinea and Ghana. The aim is to support transformative investments in these countries in the near future.”

About FEDA:
The Fund for Export Development in Africa (“FEDA”) is the impact investment subsidiary of Afreximbank set up to provide equity, quasi-equity, and debt capital to finance the multi-billion-dollar funding gap (particularly in equity) needed to transform the Trade sector in Africa. FEDA pursues a multi-sector investment strategy along the intra-African trade, value-added export development, and manufacturing value chain which includes financial services, technology, consumer and retail goods, manufacturing, transport & logistics, agribusiness, as well as ancillary trade enabling infrastructure such as industrial parks.

About Afreximbank:
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries to effectively participate in the AfCFTA. At the end of September 2023, Afreximbank’s total assets and guarantees stood at over US$33.4 billion, and its shareholder funds amounted to US$5.8 billion. The Bank disbursed more than US$104 billion between 2016 and 2023. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure, (together, “the Group”). The Bank is headquartered in Cairo, Egypt.

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Financial Analysis: A Comprehensive Study of The Well-Being of A Country 




Financial Analysis: A Comprehensive Study of The Well-Being of A Country

Understanding the financial stability of a country requires a thorough understanding of financial analysis. In order to offer insights into the overall financial stability and overall wellness of the country, it entails evaluating a range of economic indicators, financial performance, and market movements.

In this article, we will delve into the fundamentals and importance of financial analysis in evaluating a country’s economic situation.


Ancient Beginnings:

The roots of financial analysis can be traced back thousands of years. The ancient Mesopotamians, Egyptians, and Greeks were among the pioneers of documenting financial transactions, creating basic records of assets and liabilities. These early attempts laid the groundwork for the concept of financial analysis through the study of financial statements and ledgers.

Medieval Europe:

During the Middle Ages, Europe witnessed the rise of merchant guilds and the emergence of double-entry bookkeeping. Italian mathematician and Franciscan friar, Luca Pacioli, is often credited with formalizing double-entry bookkeeping, publishing his seminal work “Summa de arithmetica, geometria, proportioni et proportionalita” in 1494. The concept of balancing debits and credits within financial records formed the basis for modern financial analysis techniques.

Industrial Revolution:

The Industrial Revolution in the 18th and 19th centuries revolutionized business and the need for financial analysis grew rapidly. As companies expanded and diversified, investors began demanding more comprehensive financial reports to assess the potential risks and returns of their investments. The birth of limited liability companies further accelerated the need for financial analysis, as shareholders sought transparency in the performance of their investments.

Modern Era:

The 20th century witnessed significant advancements in financial analysis techniques. The advent of electronic computing in the mid-1900s enabled the processing and analysis of vast amounts of financial data, leading to the development of sophisticated financial models and ratios.

The Great Depression of the 1930s laid the groundwork for modern financial analysis as regulators sought effective ways to prevent future economic crises. The establishment of the U.S. Securities and Exchange Commission (SEC) in 1934 brought about standardized reporting requirements, including the filing of audited financial statements. This increased transparency and standardized financial reporting provided analysts with a more accurate and consistent basis for their analysis.

The Rise of Quantitative Analysis:

In the latter half of the 20th century, the growth of computing power and the availability of large data sets propelled financial analysis into new territory. Quantitative analysis, utilizing statistical models and mathematical algorithms, started gaining prominence. Financial analysts began incorporating complex mathematical methods to assess investment opportunities, risk management, and portfolio optimization.

Modern Financial Tools:

With the advent of the internet and the digital age, financial analysis has become even more accessible and data-driven. Sophisticated software programs, data analytics tools, and artificial intelligence have revolutionized the way financial data is analyzed and interpreted. In recent years, technologies like machine learning have been leveraged to develop predictive models that can assess future trends and make accurate financial forecasts.


Financial analysis is the process of evaluating businesses, projects, budgets, and other finance-related transactions to determine their performance and suitability. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to warrant a monetary investment.

Financial analysis is a fundamental tool that allows organizations and individuals to assess the past, present, and future financial health of a business or investment. Through a systematic examination and interpretation of financial statements, ratios, and other key indicators, financial analysis helps in making informed decisions, optimizing resources, and improving overall financial performance. In this article, we will delve into the meaning of financial analysis, its prominent components, and its significance across various sectors.

Financial analysis involves scrutinizing financial data to evaluate the performance and profitability of an entity. It assists in quantifying the effectiveness of financial decisions, identifying trends, predicting future outcomes, and benchmarking against industry standards. By analyzing financial statements, investors, analysts, and other stakeholders gain valuable insights into the financial position, liquidity, solvency, and operational efficiency of an organization.


  1. Gross Domestic Product (GDP): GDP is a primary indicator used to gauge the economic performance of a nation. Financial analysts analyze GDP growth rates and its components, such as consumer spending, government expenditure, investments, and net exports. This analysis helps in determining the overall strength of the economy and identifying areas of potential growth.
  2. Trade and Balance of Payments: Trade analysis focuses on a country’s imports, exports, and balance of payments. Evaluating trade patterns helps identify sectors driving the country’s economic growth, trade imbalances, and potential risks to the economy from external factors such as changes in global demand or disruptions in supply chains.
  3. Inflation and Interest Rates: Analyzing inflation rates and interest rates provides insights into the stability of a country’s economy. High inflation erodes purchasing power, while high-interest rates can impact borrowing costs, affect consumer spending, and investment behavior. Financial analysts assess the impact of inflation and interest rates on an economy’s overall competitiveness and economic growth potential.
  4. Government Debt and Fiscal Policy: Analyzing a country’s government debt levels and fiscal policy is crucial in understanding its financial sustainability. A high level of government debt may lead to increased borrowing costs, reduced investor confidence, and potential risks to economic stability. Evaluating fiscal policies helps determine whether a country is managing its finances effectively and implementing sustainable economic growth strategies.
  5. Stock Market Performance: The stock market reflects investor sentiment and provides valuable insights into a country’s economic outlook. Analysts evaluate key stock market indices, such as the country’s primary exchange, sector-specific indices, and market capitalization trends. Monitoring stock market performance allows for an understanding of investor confidence, economic growth expectations, and potential risks to the financial system.
  6. Banking Sector and Financial Institutions: A robust banking sector is essential for economic stability. Financial analysts assess the health of the banking system by evaluating indicators such as non-performing loans, capital adequacy ratios, and the overall stability and soundness of financial institutions. Understanding the well-being of financial institutions helps gauge the potential risks to the overall economy, including credit availability, liquidity, and financial contagion.
  7. Regulatory Environment and Governance: The regulatory environment and governance play a critical role in attracting investment and fostering economic growth. Financial analysts assess the effectiveness of regulatory frameworks, transparency in financial transactions, and the overall credibility and efficiency of institutions responsible for enforcing regulations. Evaluating the regulatory environment aids in understanding potential risks and opportunities for sustainable economic development.


Financial analysis plays a vital role across various sectors, serving the following purposes:

  1. Evaluating Financial Performance: By conducting a comprehensive financial analysis, companies can assess their performance, profitability, and financial stability. This, in turn, helps in identifying areas for improvement, developing strategic plans, and making sound financial decisions.
  2. Assessing Investment Viability: Investors rely on financial analysis to evaluate the profitability and risks associated with potential investments. Through detailed scrutiny of financial data, investors can determine the financial health and growth prospects of a company, aiding in making informed investment decisions.
  3. Facilitating Lending Decisions: Financial institutions utilize financial analysis to assess the creditworthiness of loan applicants. By analyzing financial statements, evaluating ratios, and assessing the risk profile, lenders can ascertain the borrower’s ability to repay loans and make sound lending decisions.
  4. Supporting Strategic Decision-Making: Financial analysis aids in strategic decision-making, such as expansion, diversification, or mergers and acquisitions. Understanding a company’s financial position and performance provides a foundation for evaluating the feasibility and potential outcomes of such decisions.


Conducting a comprehensive financial analysis provides valuable insights into the economic landscape of a country. By evaluating indicators such as GDP, trade patterns, inflation rates, government debt, stock market performance, banking sector health, and regulatory environment, financial analysts can gauge the overall financial health, identify potential risks, and recommend strategies for sustainable economic growth. Accurate and timely financial analysis acts as a compass, guiding policymakers, investors, and businesses to make informed decisions and contribute to the overall prosperity of the nation.

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