Hello everyone! Another column is launching today and this one is quite special. ‘The keys’ is a segment where we are going to be sharing tips to achieve goals in life. We are starting with Financial keys which will be anchored by Seth Akinbulumo and will be posted once every two weeks. Please share, comment and Enjoy!
P. S: There are still more surprises loading.
FINANCE MANAGEMENT 1
There are few things worse in life than financial stress, hence, the need for us to handle money respectfully. Lack of respect for money and for one’s self is what leads to seeking gratification through accumulation of things. Generally, these material possessions will not be income-compounding asset, or assets that will appreciate in value that is why it is said that if you spend your money buying what you do not need, you will end up needing what you can’t buy. Getting the needed financial knowledge and skill on your finances will definitely in no little way do you more good than harm. This is why for the next few weeks we are going to be discussing; Finance Management. Before we get started I will like you to ruminate on these words by financial expert, Todd Duncan;
‘Nothing acquired to fill a void of self-worth will ever bring the happiness and peace of mind that comes with building long-term financial security’
Contrary to the most commonly accepted definition of financial wealth, real wealth is not measured by the abundance of things acquired. Real wealth is measured by the total amount of acquired assets that will appreciate in value and create real abundance. Your net worth is a proven way of tracking how well you are doing financially. Your net worth is the summation of your personal assets subtracted from the summation of your personal liabilities.
It is worrisome that more people today have more liabilities than assets (including myself). What mostly lead to this is that we do not think long term; we are so consumed by the presence that the pursuit of instant gratification is more important to us than long term goals. We give hope to this weakness by asserting; ‘Tomorrow will take care of itself’. For example, if in 1997, Peter decided as a twenty-five year old man, to invest five hundred thousand naira in small stocks instead of buying a new car, his investment today will be worth more than five million naira. The question then should be; Are you comfortable trading your future freedom for current short-term pleasures that may lead only to temporary contentment?
For you to be wealthy requires discipline. The world’s wealthiest people know that the first key to building wealth is proper cash-flow management. Until we start tracking where our money comes from and where it goes, we cannot appreciate how much we are spending that we do need to spend. To build wealth, we must have more money coming in than we have going out. Get more insights following this series!
