1. Never borrow money that accrues interest to
start a business. To be precise, never borrow money to start a business
expecting that the business will generate income to pay back the borrowed money
plus the interest.
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: "Joe, come to my office tomorrow at 10am 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.
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.
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.
5.
Do not keep your seed instead plant 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 (savings) 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.
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.
7.
Never append your signature or approval 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.
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.There are always expenses
available to eat up any money that is within reach, so if you don't want to
lose it, put it away in a safe place.
9.
Do not spend money on an item that you can do
without (at least for the time being). When picking money from the wallet or purse
to pay for something ask yourself: 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.
10.
Avoid consistently spending all you earn or more
than you earn. It's like having a water drum where you have an inlet that's
smaller than the outlet. It will never get full. And should the inlet ever
reduce significantly the drum will run dry. If you do it the other way round
and the inlet is bigger, it will get full and even overflow. Hence, we have to
always ensure we are widening the inlet while narrowing the outlet – all the
time. Your side hustle comes in handy!
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