yomibamgboye
Live,Love,Learn,Leave a LegacyArchive for Financial Freedom
Will Your 2016 Be Different?
Different indices in our economy are showing that 2016 will be a difficult year for Nigeria and by extension Nigerians. The Minister of Finance recently said about 2016 that “It is going to be tough and we are going to have to make extremely tough decisions”.
There are indications that subsidy will be removed meaning fuel prices will go up. This will impact individuals as well as corporate bodies heavily. Without thinking too wild, many will further lose their jobs in 2016.
Pay Attention To This!
Don’t put all your eggs in one basket is quite a valid point when it comes to investment. Loads of people moved from rich to broke during the stock market crash because all their wealth was in that one basket and once it crashed, they crashed with it.
This is why Asset Allocation is crucial to your financial future. One mistake and it could be all over with one having to work far longer than planned.
In this time and age, it is diversify or die but diversifying well could mean you win. Warren buffet’s is quoted to have 2 rules of investing: (1) Don’t lose money (2) See Rule 1.
What Would You Do?
Let’s imagine you got #1,000,000 today, call it bonus from work or earnings from Helping Lives or simply a gift from a dying grandparent. What would you do with it?
Put it in your savings account?
Buy a car?
Pay rent?
Donate to charity?
Take a vacation?
Buy shares?
Would you put it in one place or spread it around?
What Is Your Plan 2?
“Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver” ~ Ayn Rand
Personal finance is broken down into 6 main broad categories. A summary of each is as below:
1. Foundations of Personal Finance (articulating your net worth and household cash flow)
2. Insurance Planning covering health, life, vehicle and business protection from unforeseen future circumstance (would you like your children’s education to continue even if you are not there to support)
3. Investment Planning & Asset Acquisition – managing cash, savings, spotting the right investments and optimising returns (I like to see this as the bedrock of PFP).
What Is Your Plan?
Planning your financial future is one of the most important things you can do in your life. Every successful aspect of your life requires planning, whether it is planning a weekend, or planning a yearlong home improvement project.
In simple terms, personal financial planning entails managing your financial life (saving, budgeting, income flow and expending) in order to manage future risks, achieve goals and maximize returns.
It is an integral part of an individual or family’s financial decision making process as it goes just beyond book keeping of income and expenses/ saving, to deliberately seeking investment and insurance products suitable for your personality (risk level), situation (frequency of income) and future projects.
Get Your Money A Job!
Consider this dialogue…
“It’s 2 weeks to resumption darling, are we on track to fund Oscar’s fees for the new term”…”Yes darling, recall the savings we started last year which became sizeable enough to be invested in a guaranteed Federal Government security? It is maturing next week just in time for the fee payment. We have 2 more investments running and will mature just in time for the 2nd and 3rd term.” “Wow…at least the interest on the investment will be enough to purchase his School bag and other accessories.
Who Wants To Be A Millionaire!
If you want to make 1 Million Naira extra before this year ends, this is for you!
Over the last few months of distributing Ruzu Bitters, we have had phenomenal testimonies of its efficacy. People with High Blood Pressure, Erectile Dysfunction, Diabetes, Pile, Amenorrhea, Dysmenorrhea, Vaginal Discharge, Malaria, Arthritis, Stroke, Constipation, Asthma, Cough, Sinusitis, Ulcer, Fibroid and much more have had different levels of testimony to shareabout this amazing product.
Over the last few months we have touched lives without a shadow of doubt. Marriages have been restored, confidence back, happiness refueled, health challenges fixed and people thankful. You keep hearing “thank God for Ruzu”, “Ruzu is God sent” and much more. It is Nature’s Pure Miracle.
Where Did All My Money Go?
“Don’t tell me what you value, show me your budget, and I’ll tell you what you value.” ~ Joe Biden
Expenses are generally divided into 2 – Budgeted expense and Unbudgeted expense. Research has shown that majority of people spend without having a budget. This in itself is a recipe for spending more than you earn.
In the book ‘The Millionaire Next Door’, the writer reveals, “Planning and controlling consumption are key factors underlying wealth accumulation … operating a household without a budget is akin to operating a business without a plan, without goals, and without direction.”
Are You Financially Healthy?
“We must consult our means rather than our wishes.” ~ George Washington
Increasing income is non negotiable. However, another important element on our financial freedom journey is managing expenses. For what would be the point of creating more income only to blow it on liabilities.
Interestingly majority of people simply just make money and spend without ever sitting down to know where is my money going and what can be eliminated for more savings to happen.
One of the most important exercises you need to do today is to do a financial health check up. To do this, simply sum up all incomes you earn monthly or annually. Secondly add up all the expenses you typically incur monthly or annually.
Money Calls, Answer It!
“A journey of a thousand miles must begin with a single step” ~ Lao Tzu
What skill do you have that can be put to good use to make extra income on the side? What special interest can you grow and make a channel for more income? What are the things you enjoy doing that you can easily throw up as a service for extra income? What do people call you for advice on? These are questions you should ask yourself and answer.
Realize you don’t have to be an expert to start generating income; you just need to be better than some other people who want your help. Think about the last time you helped your parents with a computer problem. You may think you’re just so-so at computers, but to them, you’re a magician. And weeks later, they’re still telling their friends that you’re a “computer whiz.”
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