27/11/2018
Why You’re "Sleeping on" Financial Education. By Olamigoke Philip @ Ancla NG
My Guess; you think/believe you’ll someday get a job or a wage/salary increase that will make you financially free.
The reality is it doesn’t happen like that. And i doubt if it has ever been. You may ask the elderly.
What is Financial Freedom:
i won’t bore you with an epistle. Financial freedom simply means that you get to make life decisions without being overly stressed about the financial impact because you are prepared. You control your finances instead of being controlled by them.
Maybe it’s paying for your wards’ school fees or getting yourself a new dress or a new home, maybe it’s paying for a car repair.
Being able to pay for these things without stress is just a small part of the picture. It’s more than just being able to afford emergencies. It’s knowing you don’t have to worry about retirement because you’ve worked to invest consistently for decades. It’s the freedom to quit your J-O-B to do something you love, even if means getting paid less.
The path to financial independence isn’t a get-rich-quick strategy. And financial freedom doesn’t mean that you’re “free” of the responsibility of handling your money well. Quite the opposite. Having complete control over your finances is the fruit of hard work, sacrifice and time. And all of that effort is worth it!
Achieving financial freedom is a goal for most people. Yet, too many of us fail to reach that goal.
The following key habits have learnt from mentors, i’m practising and i believe are true to achieving financial freedom.
1. KNOW WHAT YOU WANT (What does financial freedom mean to you):
Financial freedom is very much a personal goal. A general desire for "financial freedom" is too vague of a goal. What does it mean to you? Write down how much you should have in your bank account, what the lifestyle entails and at what age this should be achieved. The more specific your goals, the higher the likelihood of achieving them. Then, count backwards to the current age and establish financial mileposts at regular intervals. Write it all down neatly, and put the goal sheet at the very beginning of your financial binder.
2. LEARN HOW TO MANAGE MONEY (MAKE A BUDGET):
You won’t get ahead if you don’t have a plan for your money. Instead, you’ll find yourself wondering where your money went at the end of every month! That’s not financial independence; that’s a recipe for financial disaster. If you’re married, get on the same page with your spouse about your budget.
Personally, i have a register that accounts for my daily, monthly and yearly cash flows. If you’d ask me how much i spent in the month of April 2017 for instance, i may not know it offhand but i can certainly tell by checking my records.
“Building wealth is impossible if you’re living paycheck to paycheck | Salary to Salary Give every dollar a name before the month begins, and track your spending throughout the month” -- Chris Hogan. If you consistently overspend or underspend in certain areas, you can always adjust.
3. PAY YOURSELF FIRST (CREATE AN AUTOMATIC SAVING PLAN):
A lot of people get this aspect confused. It doesn’t have to be. Your reason for saving should never be for savings sake or saving up for retirement. That’s a losing strategy in this economy!. “Savers are Losers” - Robert Kiyosaki. Your aim for setting aside certain % of your income should be for Investment transactions. That Money isn’t valuable to you while it’s sitting in a bank or in some savings scheme. It might give you peace of mind that it’s in there but it only risk devaluation or at it’s best breaks even; which i highly doubt that because majority of our banks interest rate is below the nation’s inflation rate. I guarantee you’ losing if you think saving your money actually means saving it up in a bank for decades.
3. CLEAN UP YOUR FINANCES AND PAY UP YOUR DEBTS
High-interest consumer loans are toxic to wealth-building. Make it a point to pay off the full balance each month.., mortgages and similar loans typically have much lower interest rates, making them less of an emergency to pay off.
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Article Continues below..
Ancla NG will be Organizing The First Ever Series of the Ancla Expo Session (AES) A Walk to Financial Freedom. Theme: The Core of Financial Freedom.
Date: December 15
Check the Events section on Ancla NG page for more details.
Click on the link to get invited:
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4. IGNORE THE JONESES
I don’t even know if I should call them the Joneses here in Nigeria.
The fact that a neighbour of yours or an age mate down the road/street showing off a new car or his latest smartphone is no reason to do the same. Smile politely, nod, and take comfort knowing your reward is coming tenfold in the future.
4. NEGOTIATE
Some of us, Particularly men are hesitant to negotiate for goods and services, worrying it makes them seem cheap. Overcome this cultural handicap and you could save thousands each year. Small businesses, in particular, tend to be open to negotiation, where buying in bulk or repeat business can open the door to good discounts.
5. GET EDUCATED ABOUT THE FINANCIAL SPACE
Keep up with financial news and developments in the stock market, and do not hesitate to adjust your investment portfolio accordingly. Knowledge is also the best defence against those who prey on unsophisticated investors.
6. PROPER MAINTENANCE:
Most of our properties are liabilities not assets. They don’t generate income to afford taking care of themselves.
Taking good care of property makes everything from cars and furniture to shoes and clothes last longer. Since the cost of maintenance is a fraction of the cost of replacement.
7. SPEND ON THE NEEDFUL
This involves Mastering a mindset of living life to the fullest with less. Now, this isn't a challenge to adopt a minimalist lifestyle at the expense of your health. Nor is this an advocate for utter discomfort, but.. Just making small adjustments by distinguishing between things you need rather than things you want is a financially helpful and healthy habit to put into practice.
8. GET A MENTOR
A lot of us has never seen the need to get a mentor on finances. You can’t become what you don’t know. Being Financially free requires financial education, and our educational system has little or no touch of that. Financial Advice is different from Financial Education. Your Financial Advisor mostly is only obliged to advise you on financial matters. You can’t pay to get your thinking done. Education requires a shift in mindset, strengthening of the known and unlearning the garbage.
*** Ancla NG mentor Programme is not available yet, We’ll Keep you up to date ***
**** Ancla Expo Session (AES) Coming up Dec. 15 ***
9. EAT RIGHT
Like the popular Yoruba saying: “Ilera Loro”. Health is wealth.
The principle of proper maintenance also applies to the body. Poor health may force earlier retirement with lower monthly income.
You know someone that might need this? Share with Colleagues, Family and Friends.
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Ancla NG is a division of House of Ancla, BN: 2680708. The information provided on Ancla NG pages and articles is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs.
Ancla NG does not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. To the maximum extent permitted by law, Ancal NG disclaims any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations result in any investment or other losses. Content contained on or made available in this article is not intended to and does not constitute legal advice or investment advice and no attorney-client relationship is formed.
