Five Things My Parents Could Not Tell Me About Money

3 min read

I’m from a society where I repeatedly heard the proverb; “Train up a child in the way he should go…” It is every parent’s responsibilities to train their child. Of a truth, my parents taught me a lot of things – how to cook, politeness, humility, great communication, and human relations. Even before I knew the institution called “School”, they had drilled me to be the amazing kid they wanted.

But as I grew up, I realized there was one thing I just didn’t get right. And I wouldn’t want you to blame me. Neither did my father who is the breadwinner of the family nor my mother who is the home manager made mention of it. In fact, it was like a taboo if I discussed such topic with them. 

You know how awkward it gets when you ask someone about their sex life, right? That was the exact feel whenever I discussed topics about money with my parents; most especially how much they earn and save. I was literally clueless on money matters.

Ignorance stopped being a bliss for me when I gained admission into the higher institution and had to live by myself. “Pocket money” was never enough, neither did I know how to account for my spending.

When it dawned on me that I have mastered many life’s issues from my parents except money, which is also essential, I sought knowledge. 

And here is what I found out:

Money is beautiful but it doesn’t grow simply by admiring it

I had the habit of keeping money when I was younger. I would wrap it up in my closet so that no one would touch it nor rumple it. 

I must have picked this habit from my mother who also kept her money in a knot at the edge of her wrapper, so it wouldn’t get lost. She could keep the money for as long as a month or two, or a year. What she didn’t know was that she could keep the money in a bank for it to accrue interests or invest it, which would bring returns (ROI). She did not know hwo to plant money, to make more money for her. So, she could not teach me, neither did my father.

Money multiplies by investments, just like how seeds multiply by planting. It is not meant to be kept on the table and admired like a meal. This, my parents did not tell me.

Money alone does not bring happiness

Money afforded me all I wanted as a kid – both the necessities and unimportant things of life. I could get all the chocolate, biscuit, sweet, and toys that I craved. So, it was a difficult thing for me to accept that “money doesn’t bring happiness”. 

I thought all I needed to be happy in life, is MONEY. Yes, Money also brings its own share of happiness. With money, you can acquire many good things, live the life of your dreams, and do so much that will make you very happy. However, money alone does not bring happiness. This, my parents could not teach me.

Plan how you want to spend your money – Budgeting

I grew up asking for, receiving and spending money. Little did I know that mindless spending makes one short of money. I spent as I earned and even spent more than I earned, thus I wallowed in debts. I wish my parents had cautioned me when I was younger.

A friend of mine had a journal for recording her income and expenses. She would write all her expenses for the month ahead before she spent any of her money. She as a preference list which she followed religiously. This helped her to effectively monitor, and regulate her spending. This also saved her from reckless spending and debts.

Money Management

Money worries are not meant for adults alone. No child is too small to learn about money; how it is earned with hard work, and most importantly, how to manage and multiply it. 

I shouldn’t have had to become an adult before I know all things are not meant to be bought. If I had been refused several unnecessary things I spent money on when I was a kid, I would have learned to differentiate between needs and wants.

Avoid debts like a plague

Unfortunately, we cannot all avoid debts. Debts can be good, and also unpalatable. Hence, we must tread with caution around it.

Earn more than you borrow so you don’t become saddled with a cliff of debt that is hard to pay off.

In conclusion…

Money respects those who understand it. I learnt this the hard way.

What about you? What were the things your parents did not teach you about money?

Please share them in the comments section below.

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Five Money Mindset Strategies You Need To Master

3 min readMoney is a subject that is widely taught right from the home to school and even at the religious centres, we have received huge information about money. Information plays an important role in how many people relate to money.

One important thing left out is the ‘Mindset’—because money isn’t the currency in your hands or the cash saved in the bank. Mind you, the world is not having “Mono-Currency”. 

Cultivating a strong and positive mindset about money will impact your life greatly.

 

MONEY MINDSET

A money mindset is an overriding attitude that you have about your finances. This attitude is the core belief you have built over the years from the information you received. 

As the old saying goes, “As a man thinks in his heart, so is he”. Have you ever wondered about the reasons behind your financial decisions?

A money mindset is a catalyst that influences how you make significant financial decisions every day. 

When you have the right and positive money mindset, you tend to make better and wise choices even in the face of obstacles. That’s the power of positive thinking, and it matters most if you want to achieve your financial goals in life.

Your understanding of money will determine how much money you make, how hard you toil for it and how long it takes. Perspectives are important and this has to do with your mindset.

 

NEGATIVE MONEY MINDSET

No one makes a decision without initial thoughts. The actions we take reveal the thought process behind the scene—so also is the money mindset. Poor mindset leads to poor action and meaningful progress will not be achieved. 

You are either free or imprisoned by your mindset.

Your actions show your thoughts. 

A negative money mindset is not what you were born with but those beliefs that you have cultivated over time. The negative mindsets are:

  •       Fear—unknown, fear of failure, fear of taking (calculated) risks.
  •       Procrastinations.
  •       Past failures.
  •       Intimidation.
  •       The struggle of overcoming past defeats.
  •       Wrong beliefs.

You aren’t defeated because you failed but rather because of your mindset. 

The obstacles before us are the ones our mindset put there. 

You are what you believe and will act accordingly. 

As long as you keep the negative mindset concerning money, you will work hard but earn little because your mindset is yet to SHIFT to the position that attracts, keeps and multiplies money.

People who have a negative mindset remain poor, not for the lack of opportunities or resources but the blindness of their minds. A blind mind will never see opportunities and will always be ignorant of making money.

MIND SHIFT SURGERY

You can’t become financially free with wrong beliefs—that’s impossible. Everyone struggling with a negative mindset needs surgery—MINDSHIFT. A mind shift is the ability to change one’s thoughts and beliefs.

Changing your mindset will move you from lack, struggles, and poverty into abundance—this is not magic but a deliberate sequence of decisions and actions.

FIVE MONEY MIND SHIFT STRATEGIES YOU NEED TO MASTER

Embracing a positive mindset will help with your financial goals. It will help you overcome many obstacles (debts, and Imprudence) in life. When your mind is so rich it will reflect in your life—decisions, and actions.

Most billionaires aren’t wealthy because they inherited wealth or won the jackpot but trained themselves mentally and physically.

These five mind shift strategies about money:

  1. Learn to train your mind to see opportunities instead of focusing on obstacles.
  2. Recognize that most unpleasant financial situations are temporary and are fixable.
  3. Learn to ask for help. Asking isn’t the sign of your weakness but clarity.
  4. Set your financial goals but learn to take it step-by-step and don’t be ashamed of small progress.
  5. Cultivate the habit of investing.

Keep your mind under strong monitoring as you apply these money principles. 

Image by Steve Buissinne on pixabay.com

Seven (7) Unproductive Money Habits, The One Way Out!

3 min read

The lives of the rich and famous are often tempting and glamorous. Irresistible; the flashy cars, luxurious life, and expensive outfits that the famous stars often wear. The poor might end up cursing the day they were born but sometimes, the rich are often caught up in the success-web.

Success is the desire of most people (most people hate failure) but not everyone knows how to move on and chase (more) success. Most times, many people are trapped in the cell of success, and their passion and zeal surrender to the most recent success without vision and hunger for more.

Many people were half baked for the success they achieved early in their lives, the fame, and the money was bigger than what they could handle.

As good as success might be, it can also be a huge burden that crushes people if not handled properly. 

Some of the celebrities and athletes that we know went from grace to grass not as a result of laziness but for some untamed habits that shot them down. While some were able to bounce back, others never did.

You must learn to differentiate your seeds from your harvest—seeds produce harvest. 

SEVEN UNPRODUCTIVE MONEY HABITS

Have you seen a successful businessman/woman? Study their habits; perhaps you have seen a poor man, check his habits. Habits are everything—it either makes or mars a person.

The rich do the things that make them rich, while the poor have habits that keep them poor. Below are the seven (7) money habits that make a man poor:

1. Wrong company.

 When a man keeps a company of his sense mates, it may be difficult to make meaningful progress in life. You need a mentor, someone with experience and can provide hindsight & foresight where career and wealth creation is concerned.

2. Inability to invest.

The poor work for money while the rich have money work for them. The rich spend their time looking for the best places/business, to invest their money in a bid to multiply it as time goes on, but the poor hardly save much less invest.

The concept of investing can be best explained from a farmer’s perspective, a farmer will invest (sow the seed) into the earth and get a harvest in return. Lastly, saving doesn’t make you wealthy, investing does.

3. Focus on survival.

The poor are perpetually in “Survival mode”. They acknowledge their needs but they consistently deny themselves by the inability to delay gratification. Moreover, they wallow in self-pity. They hide under escapists’ theories like “all is vanity”. Survive, but more importantly – thrive!

4. Poor money management.

One of the attributes of humans is the ability to manage resources and situations — time, money, problems, success, failures, and.

The poor lack money management skills and will often spend money on wants. The poor are most times unable to differentiate between asset and liability, so they spend more on liabilities than on assets.

5. The poor expect money miracles.

Poor people pray the most, that’s not saying the rich don’t have time for prayers. The expectation of the poor is that miraculous money will drop in their account. Whereas miracles do happen, they are not the foundation upon which wealth creation is built.  Refusal to seek for financial knowledge because one is waiting for miracles is detrimental.

6. Lack of money-making ideas.

One way to make money is “idea”. An idea that solves a problem will make you money and if you are financially intelligent enough- wealthy. You are truly poor only when you lack ideas. Facebook is an idea of Mark; Coca-cola is someone’s idea, Honda automobile is someone’s idea. Great, innovating ideas get you into money.

7. Lack of financial knowledge.

You are only enslaved by what you don’t know. The poor lack the basic knowledge of how to make money and how to make money work for them; thus remaining in poverty. If you know what you don’t know – that is a call to seek knowledge and knowledge is only power when it is applied.

WHAT IS THE WAY OUT?

Discipline.

It may sound simplistic but if something seems simple – it will often require a great deal of attention. Very few people on planet earth are disciplined in their commitment to learning and earning.

Are you disciplined enough to keep working with the principles of wealth creation?

Yes, this is one of the virtues that the rich possess that keeps them on top of their game.

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The Service-Wealth Proportion as a Principle for making Money.

5 min read

I am sure you would like to know the odds of if you’d end up wealthy or if… you know, end up otherwise, who wouldn’t like to know? There are several combinations of ways to know but the most objective and visible way to know is the service-wealth proportion and it is a proven principle for making money.

The ultimate goal for most people is to be financially free – to continually make more money, to live a desired and comfortable life. No one can deny the sense of fulfilment and deep satisfaction derived when bills get paid without anxiety, agitation or pressure from the service providers or creditors. 

Having money sounds good, but making enough of it is a hurdle for a lot of people. 

Make no mistake, wealth creation is not as easy as ABC but it is definitely not rocket science.

The problem most people have in their quest of becoming wealthy is their foundation—parents and school value proposition that has constituted their fundamental belief about wealth. 

Parents invest money to train their children in schools but the schools only teach the functions of money and hardly “How to make money”, so the best they become are employees—salary dependent.

When you look at the billionaires, you become curious about how they made it and keep multiplying their money. 

There is no special secret under the sun. Most of the millionaires and billionaires that you know (or not) followed principles, principles that became their foundation in accumulating great wealth over the years. 

There are a number of “money laws”, but my focus will be on the law of service in this write-up.

Where money is concerned, service is a system set up to meet the specific needs of people over a period of time with the goal of making profit in the end. For instance, car hire is a service set up to solve the problem of people who need mobility but don’t have a car or can’t use their car at that moment. This service runs for a period of time, yet the goal is to make profit in the end. 

Any service you render that only benefits the receiver is called “Charity”.

When your service solves people’s problem, it will increase your income level (it does not necessarily solve your expenditure problem – see how to do that here – Solving the problem of recurrent expenses and giant expenditures).

Every billionaire (excluding inherited wealth) renders some sort of service or sell product(s), and these services make them rich(er) and grow their net worth yearly.

No wealthy person accumulates wealth without solving specific needs in society, they are known with a specific product/service that benefits people. Services can be tangible or intangible as is the case with Microsoft or Google.

In Nigeria for example, the following billionaires are household names with their services:

  1. Aliko Dangote  –          Sugar, flour, cement.
  2. Mike Adenuga  –         Telecommunication, petroleum
  3. Folorunsho Alakija –  Fashion industry, oil.
  4. Femi Otedola  –    Petroleum.

The services they render are known, reaches and benefit a lot of people and enrich their lives. Notice that these services are still relevant. 

As long as your service(s) make lives better, you will make (more) money from it. Therefore, when you fail to create a sustainable system that offers quality and functional service, you may have failed at your chance of becoming wealthy. 

Service is proportional to wealth creation. The more people you serve, the more money you are likely to make.

To put it into perspective, a tailor who sews clothes by himself will serve a limited number of clients, because he is limited first in his mind and consequently by the system he uses to deliver service; in contrast with another tailor who employs hands to sow and supervises, yet their income will pale when compared with an entrepreneur who builds a website/app that links tailors to “anyone” who needs such services (an on-demand model similar to Uber or Taxify). You get the point! 

THE SIGNIFICANCE OF SERVICE

Your net worth is directly proportional to the service that you provide, how valuable the service is and more importantly how many people use your service(s). 

Imagine a world without Facebook, Twitter, Instagram, WhatsApp, Telegram, Fiverr and others. You can relate with Facebook connecting several hundreds, thousands, millions and billions of people. These social media platform made it easy for you to reach anywhere in the world right from where you are. 

Mark Zuckerberg became a billionaire (he became the world’s youngest self-made billionaire in 2007, at age 23,) by solving a specific need and optimizing the services provided per time. Facebook has over 2.6 billion active users in the first quarter of 2020 according to an article published by J. Clement in April 2020.

Imagine the number of homes using Dangote’s products in Nigeria – cooking oil, salt, sugar, pasta, cement and flour. With an estimated population of over two hundred (200) million, if about a hundred (100) million people in Nigeria use his products daily – it is not hard to imagine the outcome.

To make money to the point where you are financially free is difficult without providing service on a large scale – reaching a lot of people. A system that delivers value consistently and constantly will increase your income and consequently make you wealthy. 

THE SECRET TO EFFECTIVE SERVICE

Billionaire secrets are hardly secrets, they are only principles to which they have constantly devoted themselves, this is why they are ahead of others and these secrets are the foundation upon which their beliefs concerning wealth creation stand.

The following are the principles for effective service to multiply your income:

1.  The law of need

Jack Ma was at a point in his life, a young Chinese man who had never come across the internet. After a series of failures in his life, he studied the opportunity of creating E-commerce for the local market in China. He was able to persuade seventeen (17) other people to start the Alibaba that we know today. Alibaba became the channel for local marketer’s to access China products all over the world.

The service that will generate money must identify specific needs or gaps to be filled.  Jack Ma and Jeff Bezos (founder of Amazon) built a service delivery system riding the wave of internet and created a whole new way of shopping that doesn’t need you to move physically.

    2. The law of control

You must be in charge of the system or be able to control the service to deliver promised value consistently. Jeff Bezos started by making books accessible online; more like an online library, and after serving several thousands of people at the early stage, he built the system to include all categories of merchandise and goods. As Amazon grew, the system enlarged to take charge of other retailers and became a huge system with sub-systems of value. 

When you lose control over your service, you lose your money.

Finally, the meaningful and value-full service that you render to people will greatly multiply your income. Ensure that your service is adding value to their lives continuously and in the end, you will have more money in your pocket.