Money, money, money. It is the root of all evil, yet it answers all things. Year-in-year-out many work their heart out, all in their bid to have money and more of it.
While some engage in legitimate means to ensure they get money, some other engage in many illegalities just to be able to make money, and in good quantity too.
But, for many others the story of money coming and going hasn't change year upon year. The challenge many never took good cognisance of however is the spirit behind money and how it operates. Money is meant to be spent, but while some and spending it to give room for more, others are spending and becoming pauperised on a daily basis.
Why money hasn't stayed with some people is because of lack of financial discipline and which have left them worse for it. Efforts to open up more streams of making money have left many in debt and financial crisis.
The following financial discipline might be helpful if properly considered.
Financial Discipline 1
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.
Financial Discipline 2
Never spend money you haven't received. Don't even promise someone money based on a promise you have from someone else. If someone tells you to come to his office tomorrow at 9am and pick N100k, 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.
Financial Discipline 3
If you want to save, whenever you receive money, don’t start spending hoping that you’ll 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 'relatives' so that you 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've learnt to save 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.
Financial Discipline 4
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.
Financial Discipline 5
Keeping your seed instead of planting it. Many people stop at saving. It's very, 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. 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.
Financial Discipline 6
Never lend someone 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’s entire clan, please advise the person to go to the bank.
Financial Discipline 7
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.
Financial Discipline 8
Avoid keeping money you don't intend to use in the short-term within easy reach. For instance, don’t walk with #100K in your pocket when all you plan to do in a day costs #20K. Like I mentioned in Money Mistake 3, there are always expenses available to gobble any money that is within reach, so if you don't want to lose it, put it away in a safe place.
Financial Discipline 9
Avoid keeping money in inappropriate places e.g. in socks, under the pillow, in a pit, in the sitting room, in the bra, in a travel bag that you will place somewhere in a bus ... impulse buying is a devil that will keep you busy!
Financial Discipline 10
Spending money on an item that you can do without (at least for the time being). These days when I pick money from my pocket or wallet, before paying for something I ask myself: What would happen if I didn’t buy this? If I find I can live with the consequences of not having that thing, I smile and walk away.
Financial Discipline 11
Paying an amount for something that's not the minimum you can get that other shops. In other words, if you get an item from a high brow supermarket at #5K e.g. for a shoe that you can get at #3K at another local store making sales, that's a money mistake. Do not follow the crowd.
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