I was talking about 6 ways to manage finances the other day on my Whatsapp story and couldn’t share much of it. Hence, I brought it here.
Today is Monday and while some hate it, this particular Monday is being loved by so many people, maybe not in your country, but in my country, it is loved because it is a public holiday commemorating the Worker’s day that was supposed to be celebrated on 1st May.
There are steps to wealth creation that must be followed if one intends to be wealthy. I was reading a book of Donald Trump titled “WHY WE WANT YOU TO BE RICH” which he co-authored with Robert Kiyosaki where he said if he went broke he would be able to rise again.
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If it was me some years back, I would have doubted that. I used to feel once a man got poor he may never be able to get rich again. But you see, the rich man already has this inbuilt instincts of wealth creation, that he can just snap back into; which is what I will be dishing out to you.
RULE ONE: If you cannot increase your income, then by all means live within it
Actually for me, I see this as a bad advice. For instance, I don’t like rice that much. Most times, it is difficult for me to take a meal of rice without a soft drink to accompany it.
While others do feel its a faux extravagant lifestyle for the poor, I don’t feel so. While some will say I should learn to save the money I use to buy this soft drinks. I look at it like, I am saving.
A person is rich by the amount of yams stored in his barn, not by the amount of yams consumed
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Because what I actually desire is fruit juice and not some soft drink. But because my income won’t allow that, I have to live within my income. But then, you should be on the lookout to increase your income.
If you are in a position where you cannot increase your income, make sure that you do not exceed it. Plan your finances well, which leads us to rule two.
RULE TWO: Divide your income into six branches
This second rule is the most important, though, both rules are dependent on each other.
The six branches that will now be formed will help dictate your expenses. Pay close attention:
You must set out a part of your money for giving. Maybe to someone who asks for transport, or food, an event, or a cause.
Set out a part of your income for this. Reason is this, when you give, you give from a position of abundance, and so the universe just keeps the inflow coming for you.
You know that story of the ant and the grasshopper. How the ant gathered food for the rainy day.
Never be a man without savings. A person is rich by the amount of yams stored in his barn, not by the amount of yams consumed.
Many times, when people save money, they then use it for investing. I always say its not supposed to be so.
To grow wealthy, you must learn to invest. But when you do so, do like the rich, who invest with a part of the whole sum.
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Don’t invest all you have without keeping a back up. Learn to be logical and not emotional when making investments. While being optimistic, also get prepared for failure.
By pouring your money into your brain, your brain will pour more money into you.
One thing is to get rich, another is to get rich and remain rich. You should always invest into self education.
By pouring your money into your brain, your brain will pour more money into you. Just as Albert Einstein said, “the day I stop to learn, is the day I start to die.”
Always look out for the next thing you can learn, especially a digital skill.
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To live life you must spend, which is why you must work to earn.
So you should set aside a part of your income for this spending. To say you won’t spend is a deceit.
This is where you keep the money spent to buy new shoes, clothes, etc.
Like I said, there is no rank or order to it. Tithing is just giving 10% of your total income to God, if you are a Christian.
I wouldn’t know about other religions. You could strike this off, if you’re an atheist. But I do believe in it, so its part of the six ways for me.
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PERCENTAGE OF THE 6 BRANCHES
With that we have a wrap on it all, but just in case ypu might want to know how to divide the total income.
- Giving = 10%
- Saving = 20%
- Investment = 20%
- Self Education = 20%
- Expenses = 20%
- Tithing = 10%
Now, working on such tight financial strings might be uncomfortable for you initially, but with time, you’d notice your growth.
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If you loved this. Do well to share to your loved ones. If you feel I missed a vital thing, or a practice of yours, please drop in the comments section. I look forward to learning from you too.