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 assets, 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 not 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 leads 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 the series.

Comments

Post a Comment

Popular posts from this blog

8 POWERFUL LESSONS I LEARNT FROM FAILING

Image
Failure is one of the most feared occurrence in life and also the most counter-productive. Failure is an occurrence not a destination. No one wants to fail. We are daily overwhelmed by the fear to fail at our dreams, the fear to fail at achieving a goal, the fear to fail at what we know and the fear to fail at what we do not know. This most feared enemy have lead millions of people to abort their big dreams and to settle for less. This doesn't have to be your story. I have shared with you here, eight lessons I have learned from this enemy that will certainly make your story different from that of others. 1. Failure Makes You Strong The more the number of times you fail at a thing the stronger you become at it. There's an inner strength that comes with failing if viewed the right way. It is the strength that wants to make you try again. The strength that comes with the zeal  to find out ways to do it right. 2. Failure Spurs Creativity The next thing that happens to a ma
Read more

LEARNING FROM CHAMPIONS- The Inspiring Story Of Peter J. Daniels

Image
Born in Australia, his parents were third-generation welfare recipients used to being poor. Peter attended elementary school in Adelaide. Because of a learning disability, he found it difficult to understand and assemble words. Consequently he was labeled stupid by teachers who were either too busy or didn't care enough to find out why he struggled. One teacher in particular, Miss Phillips, would make Peter stand in front of the class where she would berate him with, "Peter Daniels, you're a bad boy and you'll never amount to anything". Of course this did nothing for his self-esteem. As a result, he failed every grade in school. One of his earliest career choices was to become a bricklayer. A few years later, married with a young family, he decided to go into business for himself. The first venture failed miserably and he was broke within a year. Undaunted, he saw another opportunity and channeled his energy into making it a success similar fate awaited him; h
Read more

6 FOUNDATIONAL HABITS FOR WEALTH BUILDING

Image
Let's get one thing clear: While money may not be of ultimate importance, it still ranks up there with oxygen in giving you life. Hence, the need for you to handle money with intelligence and intention. With that in mind, let's look at the six foundation habits that will help ease your financial pressures as we round up our course on finance management. 1. Develop a Positive Attitude about Money. Attitude is important when it comes to money. In fact, attitude is the driving force in your subconscious mind. Attitude shapes your self-talk and ultimately your financial reality. If you constantly say to yourself, "I'm broke, I'm broke", your subconscious mind hears these negative words and sets up your actions to be consistent with the message. If instead it hears, "I'm building wealth, I'm building wealth", it sets up your actions to become a wealth builder. These messages are sent to your brain and are heard as absolute truth whether they
Read more