Hey Blog Fam, 

Trust we are all doing good and following hard after all that the Lord has placed in our hearts.

Our financial life is a big part of our lives, and either we choose to accept this fact or not, it is just what it is.

I sincerely think that a whole lot of energy and time should be put into developing ourselves financially.

Our finances is one aspect of our life that was not covered in our school curriculum, and even if you have a degree in accounting, no one taught you the practical ways of saving, budgeting, or investing. What they just teach is the theoretical part of it, without you knowing how to apply these things in the real world. I know these things; my sister is an accountant.

We all graduated out of school only to begin to learn how money works through reading of books, attending financial webinars, and a whole lot of other ways.

So, permit me to be your financial sister today as we dive into those three things you should not do if you want to get closer to your money goals;

 

1.       1. Don't Spend All You Earn

As simple as this rule is, it’s a pity it’s being flouted.

Even before I read the Richest Man In Babylon by George S. Clason, I have learnt by experience never to spend all that I make.

No matter how much hits your account every pay-day, it still wouldn’t lead you to financial freedom if you do not set aside a part of that for the future.

Add thy purse to fattening.

Related: PERSONAL FINANCE; DO I NEED TO EARN MORE TO SAVE MORE?

There is a lot of reasons why you should not spend all you earn; from the fact that you won’t be able to tackle legitimate emergencies when they come to you, to not being able to even meet the need of others, you will even deprive yourself of the wonderful feeling that comes with stacking up cash somewhere. I don’t know about you, but there is this good feeling I get knowing that my account is breathing.

I know the rave of the moment is investing because everybody seem to be investing, but truth be told, if you have no savings stored up somewhere, you would not even be able to invest when the opportunity comes.

2.       2. Don't Invest In What You Don’t Understand

After saving your money consistently for over a period of time, there now comes a point in time when you’ll be expected to put your money to work, or in the way we say it in this generation; let your money work for you. The returns gotten from a good investment is always bigger than what is obtainable by just saving your money. 

With savings, what you get is just the actual money saved or a little interest if you save in some banks, but with investments, you can get an attractive percentage on your funds while your principal amount is still safe. Talk about money giving birth to more money.

The beautiful (EVIL) thing is that some people have sat down in the corner of their rooms and have so come up with business structures or ventures that do not exist and then start asking people to invest in it.

There are some people who had told others to come invest in agriculture or even landed properties, promising them a certain percentage on their money after a period of time, it's a pity that at the end of the day it is then realized that there was no farm anywhere neither was there any property anywhere. So both principal and interest of the individual is gone.

We are in the era where everywhere you look, there is a new investment scheme around the corner.

It is almost getting harder spotting the genuine ones from the fake ones (Ponzi schemes), because the Ponzi schemes are beginning to have structures like the genuine ones.

But one way you can sure guard against this is to NEVER invest in something that can’t be written on pen and paper or you don’t understand.

A decision to never invest in a business model that cannot be explained in simple and clear terms might be the wisest decision you’ll ever make.

Even as you learn about investment by reading about them and doing your findings, try as much as possible to stay away from investments you do not understand the modus operandi, many of them are just Ponzi scheme and they don’t last long, and at the end of the day, they cause one to lose the money that have taken years to stack up.

The fact Ponzi schemes are on the rise doesn’t mean that there are no legitimate ones, but make sure you do your research WELL before parting with you Grace-earned money.

 

3.       3. Don’t Be Afraid of Making Mistakes

I love this one!

This point almost looks like it is in contrast with the above point, but it’s quite different.

Some individuals in their advance years haven’t tried investing in anything before, they feel that they have to look critically at every investment well, and even when they have done all that needs to be done and it is then time for action, they still find themselves not being able to do what must be done.

I am very aware that there are so many Ponzi schemes in today’s world, but after you have dotted all i’s and  crossed all your t’s, then it might be time to really commit to it.

As a young person myself, and I believe anyone who is reading and still loves to learn is a young person, so as young people, we shouldn’t be afraid of making mistakes or failing.

And to think of it, you don’t fail, you only learn how not to do things, I know learning from the experiences of others is the better one, but if you have to go through those experiences yourself, learn as quickly as you can, pick yourself up and keep going ahead.

As a word of caution, if you are trying out an unfamiliar terrain as it concerns investments, you might want to start small.

If you have One Million Naira to invest, investing all at once into a venture you are trying out might not be the best decision, so you might want to start small. Maybe with 10% at first, then increase the percent as you get comfortable with what you’re investing in.

In achieving your money goals, there will be times when you will make some not-so-wise decisions, it is because most people do not want to get to this level of making mistakes that they just choose to stay with the familiar things they know and the traditional ways of doing things since 1805, but we are currently in 2021, the times are changing, and we can’t afford to keep doing things as we have always done them before.

These traditional ways of doing things include having money lie fallow in bank.

If you live in a place like Nigeria; where I currently live in, you are not just not gaining any significant return on your money, but with the rise in inflation you are also losing money too. What One Hundred Thousand Naira can do for you in 2018 as recent as that seems isn’t same with what it can do for you in 2021.

The scriptures tell us that some people do not go out because there is a lion outside. This should not be you, please.

The lazy person claims, “There’s a lion out there! If I go outside, I might be killed' Proverbs 22:13

 

There are indeed lions outside, but if you don’t go outside, hunger might kill you inside, and if you do decide to go outside, you might find out that the lion is even dead or that it is not close to your environment as you thought it was.

And as you test the waters; trying to practice the things you have learnt, you might make a few mistakes (the ways you should not do things), but this shouldn’t keep you away from trying again. It’s best you learn how not to do things now with one million naira than learning the same lesson with one hundred million naira years down the line.

So, if fear has been keeping you back or holding you back all this while, now might be a great time to kick fear out so that you can begin to do the things you have to do.

Remember, God hasn’t given us the Spirit of fear, but of love, power and a sound mind.

To recap all we have discussed, never spend all you earn not to talk of spending more than you earn, don’t invest in things you don’t have sufficient knowledge about and don’t allow the fear of making mistake hold you back from making decisions.

This is my prayer for you.

You prosper, you keep prospering until you become very prosperous.

Trust that this prayer will become your reality.

 

There is so much light***

Related: HOW YOU CAN SAVE MORE MONEY IN 2020

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