₦airaland Forum

Whereas all our scientist are waiting for the outside world to provide a solution. Everyone finds a way to blame government.

I don't think this guy is health Serve. Health Serve is full of grammar, this one is just forceful in his opinion.

ositadima1:
Lol

You have a very strong point. If you even invest such. Money in the stock market on good stocks, the ROI from dividends may even be more.
Do you also do stock market matter?

zamirikpo:
yo, but u see, personally I don't see house for rent as a good investment, not because it isn't lucrative but becos of the returns in my area , I have soo much I could do with the same amount. 4flats of 3bedroom could cost 20m to build , cost of land between 10-15m in a standard environment. total 35m. this 35m I can invest to make roughly 500k monthly instead of the usual 2m annually in areas around asaba.

Sir, we are saying the same thing. He said he built in an area where people not with like minds stay leading to such envy. So I am saying houses in places like that should be built to be rented out. I hope I am clearer now

emmanuelewumi:
He is not talking about his own house, but the caliber of people on his street and area. An area that has a high population density, jobless youths, jealous next door neighbours etc

My proposed solution to this kind of problem for people who have not not built a house because I do not think it can be useful to you again since your house is built already.

For lands like that, it is better to build a set of 1 bedroom or two bedroom flats. I know of about 5 or 6 units of 1 bedroom flats in a half plot. As one Tenant is leaving another is moving in.

You can then use that money and sometimes some extra sef to rent in a more befitting place.


This craze to brag of being a landlord, I discovered recently leads one to make emotional investment decision. 10 to 5 yrs ago I would have considered this advice to be stupid though.

Akin3891:
Kinda hard to buy a plot of land worth 12 mills in lagos mainland and not dwell among the riff raff or poor people. That has been my concern lately , having just acquired a new whip then I started to feel unease, when I drive by, I see people pointing at me or looking at me in a way that make me feel unsafe, my neighbour's also told me how he also feels all eyes are on him because he's got a lovely house n cars too. Note, I've been in this area for 12 years now with my small cars and nobody notice me. Mind you, this my car in question is a toy that people won't look twice in porsh areas. Of course I'm planning to sell off n move. If you live among your likes, you kinda have peace of mind and less worries about jealous neighbours

For a single person, his target should be 30%, so that when he marries, he can now drop to around 10%

emmanuelewumi:
Minimum of 10%,

I think you do offer a very different perspective and view sometimes. Even that statement you made had some sense it, but the problem in my opinion is that you consider discussions to be confrontations.
My takeaway from your point was that sometimes you stay in a neighborhood because of other things like children upbringing, security and social class, not necessarily because of showoff. But that great perspective got lost in the near insult and confrontation you added.

Theconglomerate:
There was no motive in the post I quoted,rather ridicule with no basis.
Someone talking about shifted curtains and empty living rooms,just to prove that he that lives somewhere else is smarter than the person living in a highbrow area,not even knowing the person's financial capability(else,how do someone judge wealth from living rooms and who switches on AC?).
That I call rubbish and very close to madness.
Anyways the level of delusions and fable-like tales seem to be the norm in this thread so indulge the group to carry on,we are just watching from the sidelines.

If at 35, you have other investments and can afford a duplex then by all means. Even at 45, the kids can enjoy it with you. I only feel it's a little awkward for people around 60 to 70 who happen to come upon wealth that period to build such, especially as you know, arthritis is common during that period so that climbing stairs becomes extremely difficult as the years increase.
I see many young people out of love and appreciation of their parents build them such big houses. The intention usually is very noble and please I have nothing against it but it is important to be aware of the safety hazards of bath tubs, constant climbing of stairs at that age poses to their parent. I hope people don't misconstrue this my opinion Sha.

zamirikpo:
if u can build a duplex at 35yrs and u have two kids(2 and 4yrs), and planning for the 3rd, am sure u''ll have ample time to spend with ur family in the duplex. plus it also depends on how ur family is set up. some guyz live with extended family, personally my dad is late and my mom lives with me and madam and my kids, for madam not to complain ,the house needs to be big ooh. ....enough space for everyone.

Exactly

ukay2:
Exactly Sir.

That is why we must hussle well out of the Rat Race.....but not at the expense of our blood pressure

We are still hussling to be out of Rat Race to enjoy financial independent

Very true. But abeg put a caveat. I know my people. Those who have been looking for excuse to be lazy can simply latch on to this statement as an excuse to sleep early and wake up late.
Just for clarity, the people who have achieved financial independence did all the hard work while their mates were sleeping or involved in unproductive ventures so that they can in future be resting and earning the reward of those hardwork when those mates are still in their rat race.
Their only prayer usually is that those people will allow them enjoy their money in peace, security wise. Another problem.

ukay2:
The Rat Race Kills Silently -Stress, Aging fast, Poor Sleep, Elevated Blood Pressure, Possibly Stroke , Depression and Death.

Slow and Steady Investments Win Always.

You are reading a very good book. Nice one. It also takes about the family life of the people interviewed.
The people that I find funny the most are those who shout poverty mentality, my preliminary findings on them is that they are usually wanabe rick folks with large amount of dream money in their account.

Ajet001:
Half way into the book titled "The Millionaire Next Door" and the recent really eye-opening posts on this thread has prompted me to make this post and I do hope it get the much needed engagement.

Wealth Accumulation in Nigeria
In the book, I learnt that the majority of the American Millionaires who were interviewed made their fortune not only by being frugal but also remained frugal after building their NetWorth.
They spend little on consumptions but save and invest a huge percentage of their income.
I can say, they literally save and invest to the point that their NetWorth can last them decades without working.Financial independence


On the contrary, what I have noticed in Nigeria is that people spend fortune on luxuries to appear rich, I mean if I were to choose btw someone who own a latest Mercedes Benz and someone using an old model, without thinking twice I would choose the guy with the latest model as the richest.(well, that was prior to reading the book).

I feel, high status, appearing rich, the extravagant lifestyle protraying people as truely rich is the norm in Nigeria.
Little or no attention is paid to NetWorth but the material things.

From the Undergraduate student using the latest iPhone (he/she will snap in front of mirror to show the brand of the phone)
The Banker using the latest model of vehicles
The ones who go on vacations (e.g Nigerian celebrities)
The ones with luxurious wristwatches et clothings, are most of the time on one mission; appearing rich.

I learnt from the book that nothing has been done wrong owning these properties only if they cost a very little percentage of your NetWorth.
But sadly, that's not the case in Nigeria. I feel people own luxurious properties with low NetWorth.

One of the Millionaires interviewed in the book, said the pride of owning a new car compared to used car is not worth paying additional $20,000.

In Nigeria once the high income stop coming, some might find it hard to maintain the expensive lifestyle.


One can also assume the principle of being frugal, Saving and investment might not be applicable in Nigeria to build wealth.


It lead me to my question how do one accumulate wealth in Nigeria?

This same our people? They will rather stay there and be miserable.

emmanuelewumi:
You can sell when the children are out of home, buy smaller accommodation and invest the leftover fund

Ah he got a second chance, not everyone gets that. Plus he had the courage to step back and take a bold decision not minding what people will say.
Some of them go just enter depression. He tried. You also tried for him by opening his eyes.

I don't know if it is just me, but I struggle to see the real rationale behind duplexes. Before you know it your children have left the house to uni or boarding house in secondary school and then the house looks empty. People do not realize the stay time of kids with their parents is an average of 19yrs per child, a very short time.

ahiboilandgas:
he told me that i didnt observe the carpet grass and palm trees are all dead and paints peeling off cos he was now on this 100k govt salary...so he sold he house for 38m after 10 years of zero renovating but another land for 8m and build 2 floors of 3 bedrooms ..at 16m now collecting 1.5 as rent and staying in one ....he bought a shop for the wife and some tipper .....he now enterprising and living well

So Dangote industries will rent the private jet from Dangote aviation? Meanwhile, Daniel Amokachi went and bought private jet those days. I non know who swear for many Africans, this is not just government failure at all.

ahiboilandgas:
the dangote jet is registered under his aviation firm in London so the jets is been paid for by under hire by dangote industries limited ...it not for pleasure..it generate income , pay it pilots look for customers and make a profit....

I don't understand the confrontation at all, you and Emma are saying the exact same thing. No difference at all. Abi I non Sabi read again?

Theconglomerate:
The owner of the property did not build his residence to profit off it rather to enjoy it and have his family in comfort.
Now tell me,why should it matter if it actually dropped in value?
It should only be a problem unless the owner bought it for speculative purposes.
It's like me buying a 2020 S class and start complaining after 10 years that it has lost value?
Isn't the value gained from the $120k car the number of heads it could turn throughout that period and the number of free girls it gave you plus the comfort the owner rides in?
That is what the buyer paid for,same as a residence.

Bros, I think it you yourself who said about 95% of our people do not have an investment mentality.
Many other people in your situation in that two years would have increase their clubbing lifestyle, increased their number of girl friends, go on expensive vacations, take loans to buy cars, take on responsibility that they are not yet ready to handle and many other innovative ventures that do not add value to their future.
My thinking is that once you pass a certain age, investment mentality becomes difficult to teach. In situations like that, your salary may be in millions, without an investment mentality, within 6 months of job loss, the person's standard of living drops so drastically that you begin to wonder if it is the same person.

My other thinking is that one reason many people steal when in positions of authority is because they do not know how to be initially frugal and invest in the future. If they come marry spouse when worse pass them, they will in turn produce non productive and consumer offsprings. It's just a cycle.

emmanuelewumi:
He can put a reasonable value on what he saved by not paying house rent

When I started working and I had free accommodation for 2 years. I made sure my housing allowance was deducted and invested in addition to 30% of my salary that I used to save.

I think you are right. Owning a home looks like sound economics but it is usually more of an emotional decision.

Theconglomerate:
People build residential properties for comfort,not rental income or some economic whatever.
A person can build a residence for 1 billion naira whose rental income won't yield 1 million a year.
It has nothing to do with economics.

Direct conversion into other currencies is not exactly as straight forward like that especially if the originating currency wasn't in USD.

Pascopele:
The most heart breaking story I heard this week. Someone shared how he bought a house in Lekki for roughly 60M in 2014.

The house is realistically worth maybe 30M naira today.

So he bought it for $390,000 in 2014. And it's worth about $70,000 today.

VALUE INCINERATION.

I don't know why I have this feeling that there is more to these philosophical questions, often it is as a result of something that triggers a great emotional trauma. I hope am wrong though.

Barrytone:
Who doesn't lack?
Who lacks?

Thank you. You explained it superbly.

Phraences:
Very correct. Wealth preservation sef is not even that difficult. And financial freedom does not mean you have to be as rich as Dangote or Bill Gates. Those are the people sef that are under the most pressure. You don't have to be rich enough to buy private jet before you can be called financially independent.

I think at least for the middle aged man, he will be sort of concerned with ensuring he is still able to achieve his life style and his mission work even if not by working.
He then has to mentor or try to guide his grandchildren. It's hard to explain Sha. It's a much better life I agree though than the rat race.

emmanuelewumi:
It exists, I know a middle age man who plays golf on Mondays, goes to watch his grandchildren play basketball in school, very active in his church and went on a missionary journey to East African journey for a year


Another Investment Bank resigned to pick up a lecturing job which paid him less than 20% of his Investment banking salary

The best freedom is to have freedom over how you spend your time and not working for money. Even if you are paid you can afford to say the money should be paid to a charity, because you have gone beyond working for money, but doing what you love doing

Does this freedom exist in reality? I doubt it. What usually will happen is that people you will now be stressed with wealth preservation or begin to provide support to your offsprings. The myth does not exist in my opinion.

Phraences:
Sigh! The best kind of life. Freedom from bulls**t.

Lol. Thanks for coming to the rescue.

ositadima1:
He is saying that he like trading with borrowed money, like in the forex market, $100 fit they control $10000. Our local stockbrokers don't lend such leverage.

Oga, this grammar you wrote here, assuming I want to explain it to my grandma, what do I say. Those terminologies are confusing.
Am asking for a friend.

meshpips:
You need to understand that I am an autodidact finance personnel. Mr Rasheed on the other hand is a chartered stockbroker.

When it is my time, others will recommend me. Also remember that I have mentioned time and again that I do not trade equities as non - leveraged market instruments are not attractive in my sight.

Lol... I think moderation is key in the pursuit of wealth.
Another compound definition: Maybe a healthy man contended to be capable of having the good things of life he can afford.

But bros, wertin happen? I would like to believe that definition 2 fits you.

Barrytone:
1. Dangote is not rich
2. Abba kyari wasn't rich
3. All our politicians sick of convid 19 are not rich.

Why on earth should I die in the course of being rich

One definition: A rich man is a man who is contented with what he has and owns.
Another definition: A rich man is a man of means who can afford the good things of life. Another definition: A rich man is a man who is healthy.
Which of the definition you like?

Barrytone:
Who is a RICH man?
Who is a POOR man?

Thanks.

Location and cost?

I think some people are taking Nairaland ban too personal, they should know that Nairaland has some bot that automatically bans people albeit wrongly sometimes especially if you post a link. The bot is inconsistent so you are never sure when you offend it. It happens in this group and many others. All that is usually needed to draw the attention of the admin to manually reinstate the person rather than all these bad blood.

Okay. Okay. Point noted.

onegentleguy:
I get ur point.
But the truth is; there is no way a strain in globalization will not affect them.
...China is the industrial and production hub of the world.

Again, there is reason why the Gov't/leaders will want to focus more from within to grow their economies.
The concerns around covid-19 means that there'll be serious disruptions in global supply chain, so job markets accross the globe will come under a lot of pressure.
As a result, most countries will want to protect their own by creating the needed environment and allowing for more produce back home(backward integration/import substitution). ...that way, they can cushion job loses.
Japan, Germany and the US have already started out with these measures.

This goes beyond wanting to just pick a quarrel or even a fight with China.

That country will likely not remain the same post covid-19. ...especially in the short to mid-term.

Regards

Hmmm. I hope you realize that China has used this opportunity to build Bridges and make friends. When the EU abandoned Italy and many other countries, it was China that came to their aid.
The trade war with US started before the covid19 saga so they would have already compensated for that in their permutations. Industrially, China will still be strong if you ask me.

onegentleguy:
They may end up as the "sacrificial lamb" in the quest to bring back normalcy across the globe. ...while it might not be justifiable, it might be "ok" for them(key world powers) to "get the ball rolling"
Bro u no go understand.

However, on the part about strain in globalization, it is the reasonable thing to do at this time. ...China will even feel more heat from that. ...they will lose a lot of market share on industrial production and there might be serious job loses. Am predicting a sharp drop in the Chinese market post covid-19.
The Gov't in most countries will look to protect and grow their economies from within.

Selah

China is also a victim of the Corona virus, why should anyone seek to punish them for something that also affected them simply because they were the first victims.

onegentleguy:
My Pleasure dear !!
...and I agree with u on the part in bold.
It'll will be hot on China post covid-19.
Am thinking that this might be the beginning of the end of GLOBALIZATION as we know it.
...the signs are there.
It will be difficult for things to return to initial statuesque on economic connection and integration. But then again, I also do NOT expect a sharp deviation from the norm. ..."the world will have have sit somewhere in between", especially in the short to mid-term.

Regards

What's your take on this argument to print more money rather than borrow. I suggest you read the submission below before commenting, it's an interesting perspective.

frica's Position in the Global Economic System

by Mavis Enyan March 31, 2020

Does Africa have the need to continuously borrow Money for her today’s survival while creating debt-burden the next generations?
The simplest answer that can be given is “it depends”, -but on what?

In conventional economic theories, we are told that when a government prints money, it exposes itself to inflation because there will be more money in the system to chase fewer goods, causing the money to lose its value.

However, if we can think beyond these theories, and accept the fact that these theories were developed by humans; individuals with brain capacities same as ours and we also have the capacity to device alternative models to solve our own problems, then, we can start to ask questions like: How can there be fewer goods in the system if the money printed is used as an incentive for innovation and production rather than serving as an object for demanding goods and services?; what is the central duty of a sovereign government when it prints paper and calls it money? What are the fundamental differences between monies printed into an economy and those borrowed into the same economy? Questions of these kinds can help us probe deeper to understand the system that controls us better.

To a very large extent, when a government borrows money, it shows the lack of ability and understanding of that government to an effective management of the economy. Unfortunately, the idea of going to another sovereign country to borrow paper (fiat money) instead of using our sovereign status to print money and manage this printed money to support our developmental projects and programs has become the normal and easy way for almost all African countries since attaining independence status.


Why should someone print paper and hand it over to you as money and let you pay back not with the same paper (paper as used here means what one has the right to print, in this case, if America prints dollar for us to support our economy, we should be able to print our own currencies to pay back after our economy has become stronger and not to pay back with dollar which we do not have the right to print and as such, it becomes a value for us), instead, we are required to pay back these paper loans in values, resources, and efforts? I know it is not as simple as I am putting it in this piece, but the truth it is that, it is also not as impossible as they make it looks to us.

Before going further, it is important to point out that in an extreme distressed circumstance, a country may borrow money in a 1 or 2 cases (this happened to continental Europe, wherein, after the Second World War when America has to print and loan out money to Europe under the Marshall Plan to help them recover from the total breakdown). However, it is so not normal for a sovereign nation to resort to borrowing of paper money as a way of life. In fact, no one has borrowed her way into freedom or development.

At this stage, I want to point out, first and foremost that every sovereign state, no matter how small it may be, has the right and authority to print and manage its own money.

Second, I want to state categorically that the act of printing money does NOT result in inflation (that concept is a hoax at least). Rather, it is the mode of management of the printed money that causes inflation or deflation.

For example, if the government of Ghana (inset here the name of any African country of your choice) realises that a region/state needs a road and it estimates the cost of constructing the road to be 50 Billion Ghana Cedis (inset here the currency of your selected African country). If the government goes on to print 50 Billion Ghana Cedis for the purpose of this project, and then calls on a Chinese or an European construction agency to construct this road on a condition that 20% of the capital cost is giving to the government or the political party in power as a kick-back, the following is what will happen:

1.The Chinese or the European company will demand that the payment is made in Chinese Yuan or European Euro. This means, the government of Ghana has to place the local currency it has printed on the international financial market to demand for Yuan or Euro. When this happens, there will be more Cedi (than it should be) on the market and if there are not equally more customers on the market demanding for Cedi, then this automatically reduce the value or relevance of Cedi, hence drastic or continuous exchange rate depreciation of the Cedi.

2.Once, the company pays the 20% of the capital cost to the government or party in power, it immunes itself of any system of control that is meant to regulate and manage the economy of the said African countries. In this case, the foreign construction company will construct a road with a quality far below what the money it has received should normally construct, it will under-pay local labour if it ever employs one, and it will invade taxes and all other statutory payments. The compositions of these negative actions will weaken the economic management regime of the said country.

Additionally, it is important to consider that the 20% (paid in kickback) which has gone in the hands of the ruling gangs as a mere paper because they have received that without working, or exchanging any value for it. The effect from this is no different from the damage the economy will suffer when a criminal sits in his or her room and print counterfeit and release them in the economy. Yet this money will be cheerful release in our economy through unproductive and abusive channels such as paying for sex of, and rent for ‘slay queens’ and ‘Bleep boys’; sponsoring of political hooliganism to destroy lives and properties in our countries; and embarking on expensive holiday trips abroad and showing offs at public gathering and events.

In the end of all the above scenarios, what will happen is that Ghana has used it sovereign status to print 50 billion in cash/paper but that 50 billion paper has not been properly managed to translate into /create actual wealth in equivalence of 50 billion. This, among many other negative economic consequences will result in inflation (more money in the system chasing fewer goods) because the focus of the money printed was to serve as object for demand rather than being an incentive to induce production and innovation. It will also result in exchange rate depreciation and damaging of the country’s economic sovereign worth because no one can trust a system managing by ineffective heads.

On the other hand, if the government prints 50 billion of the local currency for the purpose of constructing a road and this government ensures that the capacity of local construction companies are strengthened to execute the project, it will have no need to put such huge amount of the local currency on the global financial market for foreign exchange (because local companies are paid in local currency) to damage the exchange rate value of the local currency. Ethiopia has been able to developed strong local Construction, Banking, and Telecommunication system to champion the country’s development internally. Other African countries can learn from the Ethiopian system.

In the event that 50 Billion is printed to embark on road construction, all that the governments has to do to avoid inflation is to internally manage this printed money to ensure that:

1.It is fairly and widely distributed
2.It translates into multiples of actual values and wealth in the economy

Why is Fair and Widely Distribution of Printed Money Important?

First of all, every member of a society has some potential(s) or value in them which when is encouraged and tapped, will contribute to national development. However, this value cannot just be tapped unless regimes of rewards and recognition are instituted as a modality of exchange for these inherent values in the citizens.

After printing money, the government has a management duty to ensure that the money does not get concentrated in the hands of a few people; rather it must be wisely and widely distributed with an objective to use it as a bait to attract and uncover hidden potentials in citizens for national development.

How can this be done?

Whereas the main objectives of businesses owners will be to maximize profit, the government who has a duty to provide social good must at all times aim at maximizing quality and ensure that standards are strictly adhered to. When this is done, contractors are expected to spend the money received fairly on ‘all’ sectors of the economy to ensure widely and fairly distribution of the money.

For example, by insisting on quality and adherence to standards, the construction of a single road can lead to: increase demand for general logistics; available capital for trading and operations of the banking sector; higher employment and welfare for citizens; and capital returns for government to embark on other project generated through efficient and transparent tax system and many other benefits to the economy.

When the printed money is efficiently managed to inject the above benefits in the economy, the beneficiaries, will subsequently use and reuse the money/the benefits to create multiples of values (far higher than the original value of 50 billion) in the economy, thereby, promoting steady and long-term development of the country.

Will Printing of Money rather than Borrowing be an Easy thing to do by any African Country?

Certainly not, no single African country will find it easy to adopt this strategy; it even seems impossible because, lending to keeping Africa and her future in debt is a big business that helps those who want to keep Africans in an unending slavery use in controlling both the labour and human capital, and natural resources on the continent. By this any country/leader that makes such an attempt will face strong sabotage, sanction, and likely power instability from the controllers of the system.

Nonetheless, Africa will certainly win, when all or most African countries come together in unity and make this a continental policy. Without, doing this in unity, we must consider it that we are ready to bring our next generation into a new mode of slavery.