RealEzee:
Thanks a billion for this write up, I'll look up the book u suggested 'the richest man In babylon'

megastarkels:
MORE Pls!!!!

GOD Bless you @PFM Babe

Johnxyz:
Wow, good read! Sane people with educative posts are surfacing on Nairaland. I'm already following you, please keep it up.

PFMBabe:
Possible Causes of a Financial Crisis

A lot of times, financial crises are caused because the victims are low income earners…..but there are so many other reasons or causes of financial crisis:

1) Poor financial planning: when you spend your income without making any plans for the future, any problem that may arise, no matter how small, could form a huge crisis for you.

2) Debt: poor debt management can lead to financial crisis. Always pay back the debts with the higher interest rates first.

3) Poor investment decisions: failure to understand the risks involved with various investments before jumping into them can cause you to lose your entire life’s savings and cause a financial crisis.

4) Living beyond your means: if you’re on this table, just quietly come down. We all want to live lives of luxury, but if your income is not high enough to ensure you’re financially stable and still enjoy those luxuries, then you need to stop living beyond your means.

These are just a few reasons or causes of financial crisis. Have you ever had one before? What did you learn from it?

PFMBabe:
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?

PFMBabe:
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.