How to Avoid Living a Poor Financial Life… This workshop is created to uncover some common mistakes people make with money that result on their poor financial life. However, you will also be given adequate and reliable information on how to stay safe and avoid living a broken financial life.
- Never borrow money that accrues interest.
Never borrow money that accrues interest to start a business. That is to say, never borrow money to start a business expecting that the business will generate income to pay back the borrowed money plus the interest.
- Never spend money you haven’t received.
Never spend money you haven’t received. Don’t even promise someone money based on the promise you have from someone else. If someone tells you: Samuel, come to my office tomorrow at 9am and pick 30K, don’t go out to buy items on credit based on this promise, with the hope that you will pay off your creditor when the promised money comes. It may not come as promised and this will leave you in problems with your creditors.
- Avoid spending first if you must save.
If you want to save, whenever you receive money, don’t start spending hoping that you will save what remains. Normally, what remains is zero because as long as money to spend is available, the numerous things you can spend it on are also available. And things to spend on even incite their relative so that you
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spend even more than you had planned. When money to spend is not available, we naturally find a way of doing without it. That’s why I have learnt to save money with an INVESTMENT CLUB. Once I send money there I assume I no longer have it. Before you spend any money, put your savings aside then spend what is left after saving.
- Avoid asking money when you meet a wealthy person.
This is very important. When you get an opportunity to meet a very wealthy person, never ask for money. Ask for ideas on how to make money. They may even choose to give you money on their own after seeing that your ideas are great, but let getting money from them never be your objective.
- Never lend money you are not willing to lose.
Never lend money you are not willing to lose. By the time you lend someone money, be contented in your heart that should the person fail to pay, you will not die. You should not even lose that person’s friendship, if they fail to repay the money you lent them. If you feel the person might fail to pay you and this will not affect your relationship with them, then lend them money. If their failure to pay would make you hate this person entire clan, please advise the person to go the bank.
- Never append your signature on financial matter.
Never append your signature to guarantee someone on a financial matter if you are not willing or able to pay the money on their behalf. Do I have to explain that one? No, it’s self-explanatory.
- Never spend more than you earn.
Paying an amount for something that is not the minimum you can get that same value for. In other words, if you earn 1.2m /year and you spend N1.3m /year, you will end up in a spiral of debt that’s hard to walk away from. If you spend exactly as you earn, you will never be prepared for emergencies. Spending less than you earn, allows you the freedom to save, to prepare for the future, and deal with the inevitable crises that life throws at you. The bigger the gap between your income and your spending, the better.
- Avoid just saving plan to invest.
Keeping your seed instead of planting it. Many people stop at saving. It’s very difficult to save and have all you need to maintain your lifestyle especially after retirement. When you save, your savings are seed; plant it. When you just keep the seed (saving money) some seeds begin to die (eaten by inflation and the like). That’s why I recommend that you read about the different types of investment vehicles you can use to grow your savings. Here, I am not necessarily talking about putting the money in a business, because you can easily lose money in business. I am talking about putting it in an investment.
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Career Province Team.