Money Matters

 Hi guys, welcome!

How do you do?

Today, I decided to write on a topic that affects us all…

Irrespective of gender differences, 

...differences in age, culture, race, nationality, or tribe.

I'm talking about money, good old money!

Money matters matter and it matters to all. 

Money affects you in ways you cannot deny. Your best bet is to master it. 

So yes, I bring you greetings from my bank statement and account officer…

Money...

Ego

Owo

Kudi

(Insert your language…)

Dollars

Pounds

Euro…

Money matters matter. It affects the quality of life you lead and the choices you make…

From daily needs to wants...

From what you buy to what you don't buy...

Money is necessary.

If you're in this country, you know that by now.

So what about money sef?

First, lemme let you in on how this topic became one of my interests. 

It was the COVID 19 lockdown and I was looking out for books to read. I just wanted to read. Had started reading more, thanks to the lockdown. I was enjoying it and wanted to read more.

Then I discovered I had a huge knowledge gap as regards finances. I knew just little about this topic and went in search of knowledge…

The first book I decided to read to close that gap was Multiple Streams of Income by Richard Walsh and boy, that book blew my mind. 

I didn't read it till the end, but the part I read and jotted down was enough for me at the point.

I encourage you to read that book if you can lay your hands on it. You'll thank me later. 

I read that book and learned a whole lot. Saw my money mistakes and knew how to correct them. And I've gone ahead to read a lot more on the topic. I even subscribed to a financial email list and watched a few videos and sermons…

So there are three M's of money, no wonder it begins with the letter 'M'

There's making money, managing money, and multiplying money.

The first M is not a big deal to most people. They make money on a regular, but does it make them rich? Find out as you read. 

The second M differentiates people very well. Some are micro-managers, while others are lavish spenders. Where do you belong? Can you guess where I belong?

Mastering the art of managing money properly still doesn't make you wealthy, especially in this economy. 

This is because there are areas of the economy that are totally out of your control. Meaning there are expenses you just have to spend money on. E.g fuel scarcity isn't your fault but you must transport yourself and/or fuel your car(s).

Also, the consistent increase in the cost of goods is not your fault. Today you buy something at x price and 2.5 seconds later it's #100 more. Very annoying. 

You also do not have control over the cost of certain commodities. And you must buy them because most of them are necessary, e.g food, water, toiletries, etc etc.

So managing money will still not make you wealthy, sorry to break your heart. Wealth begins when you master the third M of money. Which is multiplying money. Yeah, you read that right. 

Multiplying money is how you become wealthy, which is the same as investing.

There's saving and there's a type of saving. Saving with intent. Have a goal in mind before you even save your first dime. 

It's more difficult to save when you have no purpose for the money. That's when the temptation to buy 'asoebi' for that 'owambe' overcomes you. 

That's also when your taste buds begin to crave orishirishi. Now, don't get me wrong. I'm not saying you shouldn't spend on things you like and want. By all means, enjoy your money, but do so on a budget, after securing your future. There's bread and seed in every income. Eat the bread but ensure you plant the seed or else you'll have no bread tomorrow.

Budget well and stick to your budget. Be disciplined enough to say no to stuff or delay gratification as the case may be.

A budget is simply a breakdown of how you'll spend a certain amount of money. The allocation of each item and their costs, especially according to their scale of preference.

You'll agree with me that it is easier to spend extravagantly when you shop without a list. Yes or yes? Plan your spending and plan it well. Give room for price increase too.

You can go with this formula for your budgeting: 

10% - tithe

10% - savings

15% - transport

30% - feeding

5% - gifts

30% - others

This formula isn't cast in stone. Twerk it to fit your financial reality and responsibility per season. 

Someone said you should spend what's left after saving and not save what's left after spending. Yep, very correct, because chances that nothing will be left to save after spending are high. That's why you have savings right before expenses. 

I do so well with lists and financial records. I enjoy writing market lists and wish lists. And I realized the best time to draw up my list is when I'm still expecting the money. 

At that time I can write precisely what I need. My scale of preference is accurate and needs rank higher than wants.

The moment I have it in hand, I can start to consider buying all sorts of things, whether needs or not. 

So back to the right way to save, don't just save because you want to or because I said so. Save with an intent. Have a goal and let it be SMART. Meaning let it be Specific, Measurable, Achievable, Realistic, and Time-bound. 

Saying 'I save 10k monthly' is ok, but it isn't smart enough. 

'I'm saving 10k monthly for 2 years to buy a plot of land at Ijebu ode'. Now, that's smart. Or 'I'm saving 30k weekly for 2 years to buy a White Venza'. 

Even if the money you saved at the end of the day isn't up to the price of the land, you can make a down payment or deposit and save more. Or invest in something else. That will even motivate you to save more cos you know there's a high ROI on your investment in the long run. 

When you're tempted to buy asoebi for another owambe, or the latest bag, you're reminded that you'll be using one of the tyres of your White Venza to do so. That should stop you, except you don't care about buying the White Venza after all.

There's a rule to saving. Don't save your bread and then go hungry, please. Financial coaches say we should save at least 10% of our income. Of course, you can adjust according to your financial reality and responsibilities per season. 

You can either save more or less, but 10% is your measurement. Also, depending on your goal and its urgency, you can choose to save more or less. But, in all your choices, choose to save. 

In case you didn't get the koko of this post, all I said, in essence, is that saving is good. But saving for investment is the absolute best. 

Now, money doesn't grow on trees, but money still grows and that's where investment comes in.

Inflation can very well affect your savings. Imagine you save in dollars and the exchange rate drops tomorrow, what would that mean to you? Save and invest.

Finally, brethren, I'd have you know that nobody is incapable of investing.  We all invest one way or another. Just that some investments don't bring in any ROI at all. A general rule of thumb when approaching this subject is to invest in things that will appreciate and not depreciate with time. A.k.a assets and not liabilities. 

Now, I know they exaggerated a lot in this picture lol. But you get the point, don't you?

Precautions for investing; avoid frauds and scams. Please. There's hardly anyone that would give you 100k when you give them 20k. Is he Father Christmas? And are we in the season of Christmas? Shine your eyes, biko.

Investing is just one way to multiply money and attain financial freedom. Another way is to create multiple streams of income. I once read about someone who had 11 income streams at 28 years old. Yep, you read that right, 11 as in eleven. Now, will she be bothered about late salary? Hell no!

Forget your management skills, one stream of income is barely enough for anyone that wants to be financially free and thrive, especially in this present economy.

Financial Freedom is a state where your income is significantly higher than your expenses, and you can meet your needs and satisfy your wants comfortably without acquiring debts.

So that you don't keep waiting for salary or alawee,  (hello, corpers!) create other income streams. What can you sell to make money? What services can you offer to make money? Which of your skills can you monetize to make money? Think on these things. 

The sweetest stream of income is passive income. And that's the level we should all target, making money while you sleep, 'cos truth be told, you spend money even in your sleep. You don't agree? Well, while men slept, electricity bills kept reading, except you're using a prepaid meter and you turn off everything. House rent kept reading, except you're a landlord..etc

So why not make money while you sleep?

Finally, finally, There's something you can do at whatever financial level you find yourself. Just be committed and disciplined enough.

Cheers to your wealth.

Love and Light, 

Nancita✨

Ps: Ego, Owo, and Kudi refer to money in Igbo, Yoruba, and Hausa languages respectively.