₦airaland Forum

7 Cures for a Lean Purse culled from The Richest Man in Babylon

These are 7 VITAL things to do to change your financial situation and achieve financial stability.

1) Start fattening your purse: you do this by saving consistently, every time you receive income. At least 1/10th or 10% of every inflow you receive should be saved.

2) Control your expenses: you’ll never run out of needs and wants. If you don’t adequately plan for your expenses by drawing up and using a budget, then your expenses will always be more than your income.

3) Multiply your gold: invest your savings wisely so that it can yield even more money for you. When you earn interest or yield on your investment, reinvest it, so that you have even more money working for you.

4) Guard your treasures from loss: be wise about where you invest your money. Secure small amounts and learn to protect them before investing more. Do your due diligence and constantly get more knowledge before investing your money anywhere.

5) Make your home a profitable investment: owning your own home will greatly reduce your cost of living, work towards it.

6) Insure a future income: it will get to a point where you can no longer work. How will you take care of yourself and your family? Provide in advance for your retirement and the protection of your family.

7) Increase your ability to earn: the more knowledge, skills and competencies you have, the higher your chances of earning more. Constantly improve and update yourself so that you can create multiple streams of income.

The path to wealth becomes easier when you have the right knowledge!

These are the 7 cures for a lean purse, what do you think? How many are you already applying?

Cost of Living

What is your cost of living?

It is the total amount of money it takes for you to survive and live comfortably over a set period of time.

If your income does not exceed the cost of living, you’ll either go into debt or face other financial challenges.

Your cost of living is determined by such things as your rent, food expenses, utilities, transportation, etc.

If you live in places where the cost of living is low and you earn a high salary or business income, then you’ll be able to save and invest more. The reverse is also the case.

Major urban places like Lagos, Abuja, Port Harcourt, etc. have higher costs of living than their less developed and popular counterparts.

Do you know that transportation costs in Uyo, Akwa Ibom state are waaay much cheaper than transportation costs in Port Harcourt? How about rent costs? Food costs?

These are some of the factors that determine the cost of living in whatever location you reside in. If you're thinking about moving to a different state, city, village,etc., you should absolutely calculate your cost of living in your current location and compare it with that of the new place you are considering!


On a scale of 1-10 where 1 is super cheap and 10 is extremely expensive, how would you rate your cost of living in your current city/state?

If you haven't already done your Christmas shopping, you'd better start now!!! If you think prices of goods and services are high at the moment, just wait till late November. Your village people are planning to sell 1 live chicken for #15,000

Prices of everything will skyrocket in December….
Don’t wait till then before you start your Christmas shopping.

You can take little amounts out of your income and start buying the necessities that won’t go bad now, like rice, cooking oil, etc.

If you’ve been saving throughout the year, then you’ll be able to buy even more things ahead of time. Plan what you’re going to use during the festive season now and make those purchases now.

This doesn’t apply to only food items. Are you giving out any gifts? Are you buying new clothes? Are you getting a Christmas tree? Properly plan for and make a cost estimate of what you’ll need during the holidays and start purchasing them now while they’re still pocket friendly.

Go through your list and strike out things that you can do without. Ask yourself if you really need new shoes, or if the ones in your closet that you haven’t even worn will suffice.

Remember that January is one of the longest months in the year, so ensure that you don’t overspend and plan properly for the new year too.

There is infinite knowledge out there, don’t allow yourself to get comfortable in one place for too long.

Slow progress is still progress!!! Just keep moving forward.

It doesn't matter how 'little' your steps seem, as long as you're moving towards your goal!

3 Types of people that come into wealth

1) The ones who spend it all: these are the ones we call never see come see, LOL. They immediately buy 24 cars, 200 fancy shoes and start hopping from club to club buying drinks for everybody.

Few months after receiving such a large amount of money, they’re back to square one. Broke, with zero savings or investments, scrambling to sell off all their belongings so that they can buy food to eat.

2) The hoarders: these ones are scared that they’ll lose their money and go back to being poor so they dig a hole in their backyard and hide their money so no one can take it from them.

These set of people never enjoy their money, neither do they try to grow it. They are so scared of losing it all that they don’t even want to touch it,

3) The farmers: I call these set of people farmers because they try to grow their money. They know that there might be losses here and there but they try to reduce their risks and are more content with long-term growth.

They add to the money they received and ensure their future is financially stable while enjoying their newfound wealth.

The key to being among the 3rd set of people is knowing how money works and how to utilize it efficiently, to achieve your financial goals.

If you suddenly received an inheritance or gift of #50,000,000, what will you do with it?

Happy New Month!

Secured VS Unsecured loans

Secured loans are loans that are backed up or supported by collateral, i.e., something of value that can be claimed by the lender if the borrower defaults on the loan.
Examples of collateral can be land, a car, etc.

Unsecured loans on the other hand are loans that are guaranteed only by the borrower’s promise to repay the amount borrowed plus interest. Usually, unsecured loans charge higher interests than secured loans.

secured loans are harder to get and involve more checks than unsecured loans but they offer significantly lower interest rates than unsecured loans.

Speed Darlington my man.... when is the next nonsense banger dropping?

Kennyking1234:
08125865992 just 18 learning the theory behind stocks. I need some advice...

I'll send you a WhatsApp message.

LOL
The fact that nobody believes him, is very telling of his character.

The interest you'll earn from legitimate investments will be very tiny. #2000 invested in a fintech platform at 8% per annum will give you about 13% per month. You can still invest it but keep saving and adding to it so you can earn more interest on your investments.

What are LIABILITIES?

We've discussed what ASSETS are, now let's talk about liabilities.

Liabilities are simply debts. What you owe and have to pay back at some time in the future.

That #2500 you owe you your customer at the junction is a liability. The #600 airtime you borrowed from MTN is a liability, that wig you collected from your friend with the promise to pay back at the end of the month, is a liability.

One of your major financial goals should be to get out of debt and have 0 liabilities. So that everything you own is yours to keep.

Now that we know what assets and liabilities are we can move on to the next step which anyone interested in making the best use of his/her finances should take.


How to calculate your NET WORTH

Your net worth is the difference between your ASSETS and your LIABILITIES.

Let’s say I have an emergency fund of #200,000 and my investments are currently worth #70,000. If all my furniture, appliances, jewellery and other belongings are worth #250,000 then the sum of all my assets is #520,000 (200k + 70k + 250k).

But I owe a balance of #1,500,000 on my house mortgage. This is the only debt (liability) I have.

My net worth will be my assets (#520,000) minus my liabilities (#1,500,000). My net worth will be a negative figure of -#980,000. This lets me know where I stand financially at a glance.

It’s important to know your net worth every step of the way as it will help you make better financial decisions in other to get better financial results.

What does it mean to COSIGN a loan?

When you cosign a loan, you assume the same level of liability and responsibility as the borrower!

This means that you guarantee the repayment of the loan on behalf of the borrower, so in the event that the borrower defaults, you are obligated by law to make the payments for the loan.

Even if you’re not the one using the principal or loan amount given, you have an equal responsibility to pay off the loan. If the borrower is unable or unwilling to pay, or if the person disappears or dies, the loan is yours to repay, no questions asked.

So before you sign that loan document as a cosigner, ensure that you’re willing to assume full responsibility in the event of a default by the borrower.

Have you ever cosigned a loan? Did it end in praise or tears?

I have never done this and I don't think I ever will. Not even for a loved one.

It's not the money I'm after, it's the freedom. My goal is to live life on my own terms.

Money is very important but it's not the end goal. Money makes it possible for one to have options. Money gives you the freedom to choose how to live your life. And that's what I'm after. I have big dreams...really big dreams and I'm doing what I can right now to ensure that achieving them is possible.

Don't wait till you have 500k before you start putting your finances in order. A few years ago, I was saving #500. A few days ago, I increased my investment capital by 100k without flinching. Start from where you are and you will grow to heights you didn't think possible.

How do you plan for Tuition Payments?

This one is for the daddies and mummies in the house.

At the end of every year, Mr Mike and Mrs Jane Adebayo take out a few days to plan their finances for the new year.

The couple is blessed with 3 children, all in primary school. Each child’s fees per session is #45,000, this means they have to pay #45,000 * 3 = #135,000 every session for their kids. They know that fee payments are due every January, May and September, so they have 3-month breaks between each payment.

The Adebayos have done their calculations and know that they have to separate #45,000 from their income every month in other to have the #135,000 fee payment at the beginning of each school session. School fee payments don’t come as a sudden need for them because they have planned for it, as every parent should.

Looking at our case study above, we can clearly see that it is possible and necessary to plan for all yearly expenses at the frequency they occur.

When you plan ahead of time, you’ll be able to see if your income can take care of all your needs or if you’ll have to adjust your expenses. Adjusting your expenses, in this case, might be switching to a cheaper school, getting your kids homeschooled, etc.

As a parent, do you plan ahead of time for your children’s school fees?

School fee payments are not due every month, so they’re meant to be easier to plan for and pay. If you have a child or children, your monthly budget MUST reflect allocations for the payment of their school fees. When this is done properly, you won’t be ‘surprised’ when it’s time to pay as you would have already planned for the payments.

Chidexthebest:
Nice thread. I just finished reading smart money woman, although I am a guy, most of the things there are helpful in management of money. There are also align with most of the things you wrote here. Keep it up

Thank you! I certainly will. There's a lot of wisdom in that book.

legitwayz:
Wow, you nailed it. So, where can I invest in Dollars to prevent the inflation?

Investing in dollars protects you from currency devaluation problems.

I can only recommend few platforms please do your due diligence:

1) PiggyVest flex dollar: you save in dollars, earn interest in dollars at 6% per annum (year)

2)RiseVest: their Eurobond offering gives you 3% for 3 months, 6% for 6 months and 12% for 12 months.

3) Ladda Afrinvest fund: 7% per annum, minimum holding period is 6 months.

All of these are dollar based and are regulated by SEC, also they are owned by well known finance personalities.
I'm sure there are others but these ones I can vouch for.

legitwayz:
I need a legit program to invest in. I don't want to lose my money please

Check out low risk investments from asset management firms.

AXA Mansard (globally recognized) - Money market fund 4-6% per annum (not per month oh).

Fintechs like Piggyvest, carbon, etc give you slightly higher rates of around 7-10% per annum. You can invest in dollars to protect your money from currency risk (further devaluation of the naira)

The problem is: the inflation rate in Nigeria is over 13% now. So if you invest in anything that's not giving you interest to at least match the inflation rate, your money will lose value over time.

onlyhope:
Wow! I'm learning....Keep it up and keep 'em coming.

Thank you for the feedback! I'm glad you're learning. I have a lot more coming up!

Kennyking1234:
Do you have shares?

Yes I do

Entrepreneurrr:
Its a state scholarship and so many people were sponsor via that scholarship and they finished the program

That's nice. What I'm worried about is this:

If for some reason the government stops funding the scholarship, what will happen to you? You can go ahead since if you get it you'll have the chance to further your education for free but please don't stop that business you're doing. You need to ensure that you're still earning so that if you have a negative outcome, you won't start from zero.

waywardpikin:
Lol

This is really funny.

Y'all so triggered you had to comment twice.

Is the guy generally stingy? @ OP

ROTFLMAO What is this picture?

LMAO. If he's still breathing then he's alive right? LOL. Is this Nigeria's first zombie?

Ensure you do enough market research and don't just start a business because it appears it's lucrative. Consider all the factors such as your location, suppliers, competitors, etc. And ensure you jump in with enough knowledge. While you're waiting to decide on and start a business, you can put your money in an easily accessible, LEGIT investment like a mutual fund managed by a recognized company or all these Fintechs (Piggyvest, Risevest, etc) so that your money is increasing small small. Good luck!

Jack005:
You are beautiful.

Thank you.

Entrepreneurrr:
Good evening.
Depression is taking over me, as am having disturbances from every angle from family and friends.

I finish HND and i am kinda jobless, but i have a business that i am running and I can say I am okay with the small money i am making because I don’t depend on anyone.

I came with a decision to further my study on scholarship and met my guardians with it, but they didn’t show any support of it, rather they told me to get employment.

I did my things now in secret, and i am making progressive effort.

I took that decision because time is going and its not by my side.

Please how should i convince them when i got the admission finally?

Thanks in advance

What kind of scholarship are we talking about? Because that will determine the kind of advice I can give you.

Sorry for this bad experience. If this is true, I hope it has thought you to focus on yourself. Let your goals and where you want to be in the future be your drive. Save up as much as you can from any allowances or income you get and stop looking for quick money solutions, you'll lose money in the process. Hope your heart heals soon.

Kennyking1234:
invest in stocks

This is actually a good time. The market is red. But please anyone investing in stocks should do due diligence first oh, don't just go and buy without any knowledge.

LMAO. Na wa. We need to round up all our politicians and beat them up with koboko.

I haven't heard about them but there are certain questions you should ask before putting your money in any investment:

1) What does the company do?: You need to know what the company you're planning to invest with makes money, Are they selling goods? Rendering a service? If there's no solid answer, RUN.

2) Is the interest rate logical?: 25% in 90 days is 8.3% monthly and 99.6% in a year....How will the company make enough profit to pay me back that interest rate? The interest rate is high so the risk involved with the investment is definitely high! When you compare the interest rate they're offering to those of trusted investments such as Treasury bills, Eurobonds, mutual funds of various types, etc you'll know that you have to tread carefully.

3) Who owns and runs the company?: Anybody can make a flyer on canvas and put it out on the internet. Who is behind this company? Who can you hold accountable for your funds? Is the company registered and regulated as an investment firm?

These are just few questions you should always ask and if the answers aren't convincing, please put your money in your pocket.