Building Wealth
I remember the days when financial struggles were my constant companion, shadowing me like an unshakeable curse. I was a young man, full of dreams and ambitions, yet perpetually trapped in a cycle of frustration and disappointment. My quest to build wealth felt like a never-ending uphill battle. I invested in schemes that promised quick riches, only to watch my hard-earned money vanish into thin air. I juggled multiple jobs, burning the candle at both ends, but my bank account remained stubbornly stagnant. I sought advice from everyone I knew, devoured books on financial success, and attended countless seminars, yet nothing seemed to work. Each failure chipped away at my spirit, leaving me exhausted and disillusioned. One fateful day, utterly drained and on the brink of giving up, I stared at my reflection and declared, ‘ENOUGH IS ENOUGH.’ I knew there had to be a better way to build wealth without the constant struggle. Determined to find the answer, I embarked on a journey that would transform my life forever. One of the most common misconceptions about wealth is confusing it with money. They are not the same thing, and understanding this difference is crucial for anyone serious about building lasting wealth. In a 2004 essay entitled “How to Make Wealth,” entrepreneur Paul Graham explains this distinction succinctly: “Wealth is the fundamental thing. Wealth is stuff we want: food, clothes, houses, cars, gadgets, travel to interesting places, and so on. You can have wealth without having money. If you had a magic machine that could on command make you a car or cook you dinner or do your laundry, or do anything else you wanted, you wouldn’t need money. Whereas if you were in the middle of Antarctica, where there is nothing to buy, it wouldn’t matter how much money you had. Wealth is what you want, not money. But if wealth is the important thing, why does everyone talk about making money? It is a kind of shorthand: money is a way of moving wealth, and in practice they are usually interchangeable. But they are not the same thing, and unless you plan to get rich by counterfeiting, talking about making money can make it harder to understand how to make money.” Graham’s insight is profound because it shifts our focus from merely accumulating money to actually creating wealth. Money is simply a medium, a tool we use to access the things we truly value. True wealth is about having those things, whether or not money is involved. READ ALSO: Building Wealth In A Very Challenging Economy A fundamental building block of wealth that many people overlook is the concept that wealth is generated from within. If you can’t see it inside, you can’t attract it to yourself. We are meant to live inside-out rather than outside-in. This means that the wealth we desire must first be cultivated in our minds and hearts before it can manifest in our external world. The journey to wealth begins with a vision, a clear and vivid picture of what you want to achieve. This vision fuels your actions and guides your decisions. When you truly believe in your ability to create wealth, you start to see opportunities where others see obstacles. You develop the resilience to overcome setbacks and the wisdom to make sound financial choices. This internal shift is the foundation upon which all external wealth is built. It’s about aligning your mindset with your goals and having an unshakeable belief in your ability to achieve them. This isn’t just about positive thinking; it’s about creating a mental framework that supports and drives your financial decisions. Understanding that wealth is generated from within leads us to the importance of capacity building in wealth creation. Imagine yourself as a living magnet. Whatever you see around you is what you have attracted to yourself. In order to attract bigger and better things, you need to increase the quality, potency, and capacity of your magnet. This means continually developing your skills, expanding your knowledge, and nurturing a positive mindset. The more you grow internally, the more you can achieve externally. Just like a magnet’s strength is determined by its internal structure, your ability to attract wealth is determined by your inner qualities. Invest in yourself, seek out opportunities for growth, and surround yourself with people who inspire and challenge you. This continual process of self-improvement will enhance your ability to create and sustain wealth. Picture it like this: a small, weak magnet can only attract small, insignificant items. But a large, powerful magnet can draw in substantial, valuable objects. Similarly, as you build your capacity, you become capable of attracting greater wealth and opportunities. In conclusion, building wealth is a journey that starts from within. It requires a clear understanding that money and wealth are not the same and that true wealth is generated from within. By developing a vision, believing in your ability to achieve it, and continually increasing your capacity, you can attract the wealth you desire. Remember, you are like a living magnet. The quality, potency, and capacity of your magnet determine the wealth you attract. Invest in yourself, grow from the inside out, and watch as your external world transforms. Stay tuned for our next article, where we will delve deeper into practical strategies for enhancing your magnet’s strength.
What To Do When You’re Under FINANCIAL PRESSURE
Mike and Adaora, a Nigerian couple married for four years with a lively three-year-old son, Chidi, are emblematic of many middle-class blue-collar professionals grappling with relentless financial pressure. Despite their combined monthly income of ₦300,000 from Mike’s job as an auto mechanic and Adaora’s role as a primary school teacher, their expenses far exceed their earnings. Their annual rent of ₦1,200,000, car repairs costing ₦60,000 monthly, Chidi’s school fees of ₦50,000 per term, and other essential bills leave them perpetually short. Monthly loan repayments of ₦30,000, transportation costs of ₦20,000, and soaring prices due to inflation further erode their purchasing power. Groceries, once ₦10,000, now cost ₦15,000, and essential items like cooking gas have doubled in price. This financial strain affects every aspect of their lives, causing sleepless nights, strained relationships, and a pervasive sense of entrapment in a cycle of debt and worry. Their story, marked by hard work and dedication, is a poignant reminder of the untold pains faced by many Nigerians under similar economic pressures, highlighting the urgent need for practical solutions to alleviate their burden. In 2024, the financial pressure many Nigerians and Africans face has hit unprecedented levels. You might be feeling the pinch too—rising costs, stagnant wages, and inflation making it harder to afford essentials. It’s a struggle shared by many, with families across the continent feeling the weight of economic instability. But remember, every crisis brings opportunities. Amidst the financial strain, there are countless chances for innovation and growth. You might consider starting a small business, learning new skills, or exploring alternative income sources. These challenging times can become a catalyst for personal and financial transformation. Don’t let the current financial pressure overwhelm you. Instead, look for and seize the opportunities that this crisis presents. Your resilience and resourcefulness can turn these tough times into a stepping stone for a brighter future. So what do you do in practical terms to overcome the financial pressure you may currently be experiencing? 1). Monetize Your Everyday Activities Consider what you already do daily and find ways to monetize it. For instance, if you’re a great cook, explore the possibility of selling homemade meals to busy neighbors or through local community groups. This can not only earn you extra income but also allow you to showcase your culinary skills and build a reputation. Similarly, if you enjoy driving, signing up for a ride-sharing service during your commute can effectively transform your daily travel into a profitable venture, providing flexibility to earn without significantly altering your routine. 2). Optimize Your Living Space If you have a spare room, think about renting it out on platforms like Airbnb or local rental listings. Even occasional rentals, such as hosting visitors for weekends or events, can bring in significant extra income throughout the year. Additionally, consider renting out storage space in your home or garage to individuals or businesses in need of secure storage solutions. These opportunities can provide a steady stream of passive income with minimal effort on your part. 3). Learn to Love the Second-Hand Market Becoming proficient in navigating second-hand markets, whether online through platforms like Jiji or physically at thrift stores, opens up avenues for both savings and earnings. You can find affordable, high-quality items for personal use at a fraction of their retail cost. Moreover, by sourcing items strategically, you can resell those no longer needed or wanted, turning clutter into cash. This approach not only promotes financial prudence but also contributes to environmental sustainability by extending the lifecycle of goods. SEE ALSO: How To Make The Best of 2024 In Your Finances 4). Community-Supported Agriculture (CSA) Participating in a local CSA program offers several financial benefits beyond access to fresh produce. By subscribing to a CSA, you typically receive a regular supply of seasonal fruits, vegetables, and sometimes other farm products directly from local growers. This arrangement often costs less than purchasing similar items from grocery stores, providing savings on your food budget while supporting sustainable farming practices in your community. 5). Cut Digital Costs Conduct a thorough audit of your digital subscriptions and streaming services. Identify and eliminate subscriptions that you no longer use or need. Consolidate your entertainment and informational needs into one or two essential services, such as a preferred streaming platform and access to digital books through your local library. This approach not only reduces monthly expenses but also helps you appreciate and make the most of the services you value most. 6). Group Buying and Bulk Purchases Collaborate with friends, family, or neighbors to leverage collective purchasing power for essential items. By buying in bulk, you can significantly reduce costs per unit on items like pantry staples, household supplies, and personal care products. This cooperative buying approach allows everyone involved to benefit from lower prices while ensuring that each member gets the quantity they need at a reduced cost. 7). Embrace Minimalism Transitioning to a minimalist lifestyle involves more than decluttering physical spaces—it’s about intentionally prioritizing what adds value to your life. Start by assessing your possessions and identifying items that no longer serve a purpose or bring joy. Sell or donate these items to not only clear physical space but also generate extra income or contribute to charitable causes. Adopting a minimalist mindset encourages mindful consumption, reduces unnecessary expenses, and fosters a simpler, more fulfilling lifestyle. 8). Participate in Skill Swaps Engage in skill exchanges with friends, neighbors, or community members to meet mutual needs without spending money. Offer your expertise in areas such as tutoring, home repairs, or gardening in exchange for services you require, such as childcare, IT support, or car maintenance. This reciprocal arrangement not only saves costs but also builds relationships and strengthens community ties through shared skills and resources. Wrapping up What To Do When You’re Under FINANCIAL PRESSURE These practical strategies not only help alleviate financial pressures but also encourage creativity and resourcefulness in managing your finances. By integrating these approaches into your daily life, you can uncover hidden opportunities to
How To Make The Best of 2024 In Your Finances
Seven years ago, I came to a critical juncture in my finances. Before that time, I had been hustling ceaselessly- marketing, training, recruitment, sales, and so on; if it would put some money in my pocket, you would find me there. I was taking two steps forward and four steps backward. Strangely, the more I hustled, the less satisfied and fulfilled I became. It was as though I were working like the proverbial elephant, and eating like an ant. One thing is for sure when you work unendingly: BURNOUT! Suddenly, I hit rock bottom. If you would ask me though, I had it coming. I became depressed, stressed, and completely tired of life. If you have ever experienced such before, you would understand what I am talking about. I came to the critical juncture where I had to make a choice between two vital options: Continue with the status quo or Make a 360-degree change; something simply had to give. It was a very tough call, but I chose to go with the second option. This required a complete overhaul of my life. I shut down my businesses and went to learn. I needed to know how things really worked so that I wouldn’t be struggling unnecessarily. 2023 was quite a year of adjustments for most of us globally. Anywhere you went, be it the United Kingdom, the United States of America, or Australia, just to mention a few; most people had to make adjustments in the face of the rising cost of living, energy crisis, inflation; and most importantly because of the war in Ukraine. In my interactions with most of my clients during the year, I noticed that they were dealing with different shades of financial issues. The critical question you need to ask yourself now is; “how do I make the best of 2024?” First, accept that 2024 is a critical juncture. By way of a simple definition, a critical juncture is a valley of decision, where the steps you take now will determine your success or failure in the coming years. What this means is that you need to be very strategic in your financial decisions this year. Don’t make decisions based on emotions or hearsay; investigate things for yourself, ask questions, and if you are not satisfied; don’t do it. This reminds me of a friend (someone I truly respect and honour); who recently asked me to make an investment in a business deal. I appreciated the gesture, but I still went ahead to ask him vital due diligence questions; he did his best to answer, but I wasn’t really sold. Hence, I politely declined the offer. The events that happened subsequently, confirmed my suspicion. Second, build an emergency fund now; if you don’t already have one. An emergency fund simply put, is a special savings scheme where you build up three (3) to six (6) months of your monthly income. Let’s suppose you earn $1,000 monthly, to build an emergency fund, you will need to save up $3,000 – $6,000. This is imperative in that 2024 will be filled with financial headwinds, and one must be prepared. I recently had a session with a client of mine, and he told me that he has built up a two (2) year worth of emergency fund. This is very commendable. Lastly, keep investing in your earning ability. This is very crucial in such a time as this, especially concerning the opportunities that would be opening up. I know, there are quite several negative forecasts for 2024; but we must not allow ourselves to be blindsided. This New Year has opportunities, and we must continually prepare ourselves for them. Keep building capacity through relevant courses, certifications, knowledge acquisition, and engaging coaches in key areas of your life. In conclusion, you need to understand that 2024 is not a year of hustles; but a year of strategic financial moves. Take the proactive steps highlighted above to make the best of 2023. I love and appreciate you.
Building Wealth In A Very Challenging Economy
A few years ago, I was at a forum where Dr. Gabriel Ogbechie, GMD/CEO, Rainoil Ltd. – one of the foremost downstream oil and gas companies in Nigeria; shared the fascinating story of how tough it was for him to raise $1000 to start the business. Here is what he said: “Back in 1995, I set out to raise $1000 for my business. I didn’t have the money. I wrote several proposals. I went to those who I knew had the money. I was sure it was going to work. Sadly, all I heard from them was come here today, come here tomorrow. Nothing but Stories! It was a very frustrating experience. “I learned my first lesson: People rarely give money to those who don’t have it. My office where I was in paid employment was in Isolo, Ire Akari Estate Road – a suburb in Lagos, Nigeria. And I had a stockbroker who was on Bank Anthony Way in Ikeja – a commercial centre in Lagos, Nigeria. With as little as $7 in my pocket, I would drive from Isolo to Ikeja, meet my stockbroker, and say, buy me 1000 units of First Bank. When I had $5, I would drive again to Ikeja and tell him to buy me 800 units of Nigerian Breweries. This went on for an extended period of time. “By 1996, I was very frustrated. I still couldn’t raise the $1000. But one evening, I brought out my capital market file and I started itemizing all the stocks I had bought one by one: 1000 units of 7UP at 5 cents per share; and 2000 units of First Bank at 12 cents per share. I itemized the stocks. It went into 2 pages. When I summed it up, I was surprised, it came to $1656.67. I was shocked. I gathered the share certificates and took them back to the same stockbroker. He verified the ones he could verify and sold the ones he could. At the end of the day, I had my $1000.” There is something strange about the current global economic climate: it is indeed very challenging. Wherever you turn, people seem to be lamenting about how difficult it is for them to get by. Organizations are not left behind in the stories of woe. Again and again, I have had to counsel my clients on how to thrive in spite of the economic challenges. One of the things I say to them is that this is the best moment to build real wealth. Rather than join the bandwagon to sing songs of lamentation, I would focus on offering solutions to the myriad of problems that are cropping up. Having said that, the critical question that begs for an answer is, “How do you build wealth in this very challenging economy?” First, you need to engage in what I call Asset Allocation. Simply put, asset allocation is the proper appropriation of your hard-earned resources. In other words, you carefully determine what you spend your money on, and where to invest it. This is very important in such an economic terrain that we find ourselves in. You cannot afford to spend money or invest anyhow. The real payoff of asset allocation comes when you figure out the right mix of how much of your money you keep safe and how much you’re willing to risk to get greater rewards and have the potential to grow faster. To get the very best of Asset Allocation, you need to determine the percentage of your assets you are going to put into investment vehicles, and what percentage you are going to keep. Before you make the choice, you have to consider three factors: Second, you need to create a Financial Plan now. Agreed, things are changing faster than we could imagine; we still need to be proactive by having a robust Financial Plan that we regularly update. In the first place, it is the Financial Plan that would enable you to properly allocate your assets and resources. A simple plan is better than none. We need to be very strategic in our quest to build and retain wealth in such a time as this. If you don’t already have a Financial Plan, I would suggest that you get one as fast as possible. I have assisted loads of clients in creating their Financial Plans. In conclusion, bad things happen when you refuse to heed sound advice. This reminds me of an acquaintance of mine who got a windfall of $100,000; after his father had passed on. Rather than create a solid financial plan, and properly allocate the money; he invested everything in stocks. This turned out to be the worst investment decision he ever took. Needless to say, he lost the money. May you not lose money stupidly in this season.
Why Nigerians Remain Poor
Ten years ago, I decided to make a bold move of staging an International Conference, to address the germane issue of poverty among retirees. Our main aim was to give those who were about to retire, the tools and insights that would enable them to properly plan and program themselves to retire rich. We approached a prominent Chamber of Commerce for partnership, and met with one of their directors. I mentioned to her in passing that many Nigerians have less than one hundred thousand naira (₦100,000) in their bank accounts. To my rude shock, she said, “it’s true ooo. Me self wey go retire in less than a year; cannot boast of ₦100,000 in my account.” Nigerians have no business being poor; with the abundance of human capital and mineral resources that we have; it’s sickening to see that in spite of all that God has blessed us with as a country, most Nigerians are poor. In my previous article, WHY NIGERIANS ARE POOR, I mentioned that one shouldn’t be fooled by the nice clothes people have on, or the fine cars they are driving; you would be shocked when they opened up to you. Honestly, people are going through a lot of struggles here in Nigeria. This reminds me of an acquaintance who drove a Benz G-Wagon. He later confessed that it was all about trying to package and maintaining a high level status. He was actually in debt running into millions of naira. And that sometimes, it was even a struggle to fuel the car. So, why have Nigerians remained poor? First is insensitive and inconsiderate government at all levels. I am a student of history, and have studied and researched leadership extensively. One of my major findings about developed countries is that they invested heavily in their human capital. Take Singapore (which became independent as the Republic of Singapore on 9 August 1965); the government ably led by Lee Kuan Yew; prioritised the education, wellbeing and prosperity of their citizenry. The current Nigerian federal government is an anomaly. They would rather borrow for recurrent expenditure than invest in us. And the so-called infrastructure such as the railway lines that they have borrowed heavily for, are yet to be justified. I would rather that they pump that same amount into building the capacity of our young people. Give scholarships, adequately fund the educational sector; in other words, first build the mind infrastructure of Nigerians and then the other needed physical infrastructure. My belief is that when you invest in improving the competence, character and capability of your people, they would in turn build the nation. This misplaced priority in my opinion is a major reason Nigerians have remained poor. Second, is the gang up of a few elites against our development. Whether or not you agree, some folks have held this country to ransom because of the mind-boggling money they are making from the current decadence. How come we still don’t have access to uninterrupted power supply? Why are we still importing fuel? Why hasn’t our steel industry taken off? The simple answer is, ‘Gang-up of a few unscrupulous elites.’ These folks shamelessly syphon the resources meant for the vast majority of people, into their private purses. When you come across someone who is very rich but you cannot lay hands on exactly what he or she does for a living; be very suspicious. Third, is faulty systems. I have realised that when there is absence of proper economic and political institutions that can engender the prosperity of a people; it would be near impossible for them to come out of penury. Just look around you; all you’ll see are very corrupt and unworkable systems and institutions. If we would become a developed nation, with prosperous citizens; we need to right the wrongs in all of our institutions. In conclusion, the aforementioned are not necessarily exhaustive reasons Nigerians remain poor; however, they are some of the germane reasons. We now have an ample opportunity to select a new government that would serve us. Let’s endeavour to vote according to our conscience and not according to our stomach (what to gain right now). I still believe in a New Nigeria where the vast majority of us would be rich and prosperous; and we shall achieve it in a few years.