When I saw a
thread yesterday of a young man who is very uncomfortable because he isn't
saving as much as he really desires.
I have gone through that road before. I read All the books you can think of on Money, Finance Management, Business, Entrepreneurship, Investment, Network Marketing and Savings. Inshort currently I have over 1,300 books of such books in my private library but the truth still remains that there are way more little (nitty gritty) things one must put up as a new attitude in order to break through the habit of not being able to save.
Below are some very most important things (steps) you need to take to see a considerable change.
First and foremost, I want to first bring your attention to the fact that MOST people still don't know the difference between NEEDS and WANTS.
Needs : this are those essential things they you most likely can't do without I.e, transport fare, Feeding, House rent, Certification or Professional courses, Utility bills (PHCN, Water, Recharge card, Internet).
Wants : this are things that we get to help us feel better in our social life. Sometimes we think we can't do without them or they are very important but as soon as they are paid for, we realize that we could have used the money to pay for more essential things. Examples of wants are 'excess' clothes or fashion accessories, communication gadgets (Phones, tablets, ipod, itouch, camera), eating outs (eatries, pizza/shawama joints, suya spots),excessive clubbing, Satallite TV subscription e.t.c.
Below are immediate steps to take to curb excess spending :
* Have at least THREE bank accounts in different banks. If at all you want to have an ATM card have it for ONLY one of the accounts. One account should be for very long term expences I.e, house building projects, towards starting a business, planning for your wedding,retirement plan.
The 2nd account should be for average long term projects I.e House rent (once a year), buying a car, Going for pilgrimage, vacation.
The 3rd account should be for your monthly expenses I.e, transportation, recharge card, internet, Cable TV, clothes, fueling of car/generator, feeding, and alms giving (charity, tithe, allowance to parents, siblings and relatives).
NOTE : you should only have an atm card for this 3rd account and no other account.
* Have A Budget : everything in life is all about planning, there's an adage that says "he who fails to plan, plans to fail". Budget and budgeting is an Extremely important part of planning to have a profitable business, happy marriage, successful career and every other facet of life.
Ensure you have a budget for every single day, week, month and even year. To be very honest, keeping budget is a very difficult task but with discipline and determination, it is very possible and worthwhile.
You MUST STOP Impulse spending as that is the only barrier between a rich man and an average man.
A rich and successful man will NEVER enter a shop/market/mall to pay for what wasn't initially on is to buy list no matter how fine or attractive the item is, unless he thinks he is getting it far cheaper than the usual price.
* Have more friends who are more Business inclined than Social inclined : if. I tell you today that this is the MAIN reason why some people will most likely never have a breakthrough in life.
"Show me your friends and......" Also "Birds of a feather......".
As funny or strange as it may sound, you will NEVER find the likes of Dangote, Jimoh Ibrahim, Jim Ovia, Tony Elemelu, Otedola and others going to a social gathering or event without the intention of coming out from that event being more successful. They always and only go to events to Network (expand their business horizon), track than someone of great relevance to them (I.e, a top Custom Boss, CBN director, Governor, Minister and the rest). If They weigh their option and see such invent will not benefit their business and financial status, trust me, even if Queen of England or Obama will be present they will not step foot there.
So many of us today gather friends (majority of whom are not useful) just as a symbol to prove how social and friendly we are. Some people have been going to Viweing centre every single saturday for the past 10years to argue about EPL matches and all through thos years they have NEVER benefited one single positive thing be it contract, admission, business or finance from the people they meet there and yet they still claim they can't do without going to viewing centers to watch match. The people you have been going to scream your voice out are getting paid and become richer whereas the same can't be said about you.
I have gone through that road before. I read All the books you can think of on Money, Finance Management, Business, Entrepreneurship, Investment, Network Marketing and Savings. Inshort currently I have over 1,300 books of such books in my private library but the truth still remains that there are way more little (nitty gritty) things one must put up as a new attitude in order to break through the habit of not being able to save.
Below are some very most important things (steps) you need to take to see a considerable change.
First and foremost, I want to first bring your attention to the fact that MOST people still don't know the difference between NEEDS and WANTS.
Needs : this are those essential things they you most likely can't do without I.e, transport fare, Feeding, House rent, Certification or Professional courses, Utility bills (PHCN, Water, Recharge card, Internet).
Wants : this are things that we get to help us feel better in our social life. Sometimes we think we can't do without them or they are very important but as soon as they are paid for, we realize that we could have used the money to pay for more essential things. Examples of wants are 'excess' clothes or fashion accessories, communication gadgets (Phones, tablets, ipod, itouch, camera), eating outs (eatries, pizza/shawama joints, suya spots),excessive clubbing, Satallite TV subscription e.t.c.
Below are immediate steps to take to curb excess spending :
* Have at least THREE bank accounts in different banks. If at all you want to have an ATM card have it for ONLY one of the accounts. One account should be for very long term expences I.e, house building projects, towards starting a business, planning for your wedding,retirement plan.
The 2nd account should be for average long term projects I.e House rent (once a year), buying a car, Going for pilgrimage, vacation.
The 3rd account should be for your monthly expenses I.e, transportation, recharge card, internet, Cable TV, clothes, fueling of car/generator, feeding, and alms giving (charity, tithe, allowance to parents, siblings and relatives).
NOTE : you should only have an atm card for this 3rd account and no other account.
* Have A Budget : everything in life is all about planning, there's an adage that says "he who fails to plan, plans to fail". Budget and budgeting is an Extremely important part of planning to have a profitable business, happy marriage, successful career and every other facet of life.
Ensure you have a budget for every single day, week, month and even year. To be very honest, keeping budget is a very difficult task but with discipline and determination, it is very possible and worthwhile.
You MUST STOP Impulse spending as that is the only barrier between a rich man and an average man.
A rich and successful man will NEVER enter a shop/market/mall to pay for what wasn't initially on is to buy list no matter how fine or attractive the item is, unless he thinks he is getting it far cheaper than the usual price.
* Have more friends who are more Business inclined than Social inclined : if. I tell you today that this is the MAIN reason why some people will most likely never have a breakthrough in life.
"Show me your friends and......" Also "Birds of a feather......".
As funny or strange as it may sound, you will NEVER find the likes of Dangote, Jimoh Ibrahim, Jim Ovia, Tony Elemelu, Otedola and others going to a social gathering or event without the intention of coming out from that event being more successful. They always and only go to events to Network (expand their business horizon), track than someone of great relevance to them (I.e, a top Custom Boss, CBN director, Governor, Minister and the rest). If They weigh their option and see such invent will not benefit their business and financial status, trust me, even if Queen of England or Obama will be present they will not step foot there.
So many of us today gather friends (majority of whom are not useful) just as a symbol to prove how social and friendly we are. Some people have been going to Viweing centre every single saturday for the past 10years to argue about EPL matches and all through thos years they have NEVER benefited one single positive thing be it contract, admission, business or finance from the people they meet there and yet they still claim they can't do without going to viewing centers to watch match. The people you have been going to scream your voice out are getting paid and become richer whereas the same can't be said about you.
* Avoid
Friends and Family Who always make you spend : If you have friends who always
encourage you to eat out rather that preparing home made meals, to go to the
cinemas, malls, events / shows e.t.c. This are the type of people you should
urgently avoid.
When your friends want you to attend all the Musical and comedy shows, film premiers, cultural and sporting events, this are thing that unknown to you wipe out money from your pockets than you can imagine.
Imagine going to at least 3 shows in a month which the cheapest ticket you bought per show is N5,000. That's approximately N15,000. Yes it looks small but have you ever sat to imagine those long lasting things N15,000 could get you? It could get you company shares, few bags of cement and blocks, microwave oven, vacum cleaner, deep fryer, so many beneficial and life changing books to mention a few.
* Before you spend on anything always ask yourself "if this item is really need and if yes, how will it change my life" : just like so many arguments we get into, so many spendings we make are absolutely not necessary, if you can't get excited for an item you paid for after 3months then that items isn't (wasn't) really needed in the first place.
When your friends want you to attend all the Musical and comedy shows, film premiers, cultural and sporting events, this are thing that unknown to you wipe out money from your pockets than you can imagine.
Imagine going to at least 3 shows in a month which the cheapest ticket you bought per show is N5,000. That's approximately N15,000. Yes it looks small but have you ever sat to imagine those long lasting things N15,000 could get you? It could get you company shares, few bags of cement and blocks, microwave oven, vacum cleaner, deep fryer, so many beneficial and life changing books to mention a few.
* Before you spend on anything always ask yourself "if this item is really need and if yes, how will it change my life" : just like so many arguments we get into, so many spendings we make are absolutely not necessary, if you can't get excited for an item you paid for after 3months then that items isn't (wasn't) really needed in the first place.
* Never Buy
things because they are in vogue : There's always a newer version of every
phone, tablet, Laptop, car, wristwatch, hand bag, jewellery you buy. If you
have a blackberry bold 4 that is working perfectly, why want to buy a Bold 5,
6, touch 1,2 and 3 Z10 and iphone 5 just to prove to people you are a big boy
or girl.
Don't forget those people producing these things keep producing the same thing (with extremely few changes) just to remain in business, pay staff and make profit. Using a phone for a whole year or more doesn't make you less of a successful person.
Have you noticed that most employees use phones far more expensive than their employers? Does is now prove they are more successful than their employers? The answer is NO!
Most people acquire things thinking they can get respect and honor from it whereas a successful person let's his/her her bank statement, investment and connection speak for them.
* Never always be the one to foot the bills when you go outing with friends : I learned this a very long time ago. When you go out socializing with friends never be the one to always foot the bill. It is always better to have an agreement with everyone that each person should pay for whatever they ordered. It doesn't make you stingy or callous, it only means you are financially intelligent. You will be amazed to discover that so many people never get to eat or drink as much or expensive when they are being for it by themselves. A guy who averagely drinks 5 FREE bottles of beer will only order for one and sip on it for over 2 hours when he knows he is the one to pay for his drink.
Don't forget those people producing these things keep producing the same thing (with extremely few changes) just to remain in business, pay staff and make profit. Using a phone for a whole year or more doesn't make you less of a successful person.
Have you noticed that most employees use phones far more expensive than their employers? Does is now prove they are more successful than their employers? The answer is NO!
Most people acquire things thinking they can get respect and honor from it whereas a successful person let's his/her her bank statement, investment and connection speak for them.
* Never always be the one to foot the bills when you go outing with friends : I learned this a very long time ago. When you go out socializing with friends never be the one to always foot the bill. It is always better to have an agreement with everyone that each person should pay for whatever they ordered. It doesn't make you stingy or callous, it only means you are financially intelligent. You will be amazed to discover that so many people never get to eat or drink as much or expensive when they are being for it by themselves. A guy who averagely drinks 5 FREE bottles of beer will only order for one and sip on it for over 2 hours when he knows he is the one to pay for his drink.
great
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