There are only few topics more emotional than money, and if we are true to ourselves, most of us would admit having ambivalent feelings about money. On the other hand, we desire and want the comfort and security money can bring, but still we fear that financial success could negatively have effect on our morality. Quoting the word of E.C McKenzie; “there is nothing wrong with people possessing riches but the wrong comes when riches posses men” by itself money is natural and takes the character of he who possesses it.
In the hand of a good person, money can do a lot of good, for himself, his family, his community and even the world at large. Becoming financially independent is a choice and one of the most important decision we should make in life. Having enough money is essential to your enjoyment of freedom, happiness, opportunity and full self-expression that you want in your future. A major responsibility of adult life is to build financial fortress so that he will never worry about money again and circumvent the problem that comes with lack of money.
Do you come to the end of your working years still financially dependent, hoping for family and children for support, bitter or displeased about your financial state and wishing you had done things differently?
It has been observed that the primary reason for marital breakdown, disagreement among families, associates and acquaintance is problem over money.
In addition, one of the sources of stress, anxiety and even suicide is worry about money. Hence you owe it to yourself and your loved ones to achieved financial independence. No doubt we admire those who have achieved financial independence and its attendant options and comfort like Bill Gate, Aliko Dangote, and the rest that we wish to be like over financial success.
To few individuals their wish galvanizes them to action, while for the majority some personal, self-limiting believes prevent them from ever taking the bold step toward financial independence. This self-limiting believes ranges from the believe that I have nothing to start with, I have no inheritance (material) to build on or that I might not be educated enough to achieved financial independence. These notions are very far from the truth, for most of today’s self made millionaires started with little or no money and they never came from a rich family or they are not even graduates but still manage to climb the ladder top of financial success.
Well this discourse is not necessarily intended to motivate you into wanting to become a millionaire (but if you want to, why not?), it is sure meant to inspire you to choose if you want to become financially secure. For most of us who are struggling financially, this is the root of the problem. We have not made the decision; we wish our money problems would just go away and hope our financial situation will improve not knowing that our money concern is just one of our concerns. We have not decided to take the bull by the horn by putting our financial concern on the front banner of our concerns.
To make definite decision, set a goal to become financially secure. Most often than not to become financial independent, you have to make it a priority, make it a major goal and then apply basic financial principles that would overtime get you to the financial level you so desire. Below are few of these principles:
SET A GOAL: to become financially independent you must begin by setting a goal. You must leave the realms of wishes and desire into the level of goals and actions. Remember, we are responsible for everything that happen to us, it is going to happen because of us. Decide now how much you want to be worth in 5, 10 or 15 years from now and pen it down as a goal and set a deadline for this goal. Determine how much money you need to earn monthly, save monthly and perhaps invest every month and every year to achieve this goal. Determine what action you will take and create specific measures to help you tract your progress on a regular basis.
VIOLATE PARKINSON’S LAW: one of the major problems people often encounters and which you must continually fight against on your journey to financial freedom is explained by Parkinson’s Law. The law stated that as income rises, expenses rise in greater proportion, meaning that expenses always rise to meet income. Most of us are familiar with this reality. For example you might be earning N15,000 today and you will tell yourself that if you were getting just additional N5000 you will be able to live within your income and even have some to spare. But I guess we know better because no sooner do we start receiving that higher wages, our expenses increase to cover the added income.
Hence to achieve financial independence you must be deliberately and regularly violate the above law by discipline yourself to live within your income not above.You will agree with me that “if you’re outgo exceed your income, you’re up-keep will become your downfall”.
PAY YOURSELF FIRST: to become financially independence, you must do more than just violating Parkinson’s Law. You must develop a habit of saving at least 10% of your income. Almost every person that becomes financially independence has the habit of taking a certain amount of their paycheck and putting it away for the term. Clement Stone once said “if you cannot save money then the seed of greatness is not in you”. Saving like any form of discipline has a subtle effect because at the end of the day, week or month the result might be hardly noticeable but after 5 or 10 years the difference becomes incredible. If your income is not substantial you can start saving 1% later 2% and gradually you start saving up to 10%.
One funny but true definition to an extent definition of a rich and poor is; poor people spend their money and save what is left but rich people save their money and spend what is left. It the same amount of money but differentiated by philosophy.
MAKE INVESTMENT: you violate the Parkinson’s Law and at least save 10% of your income; good. However that is not enough you must make and have investment. You might wander where the money for this will come from especially as you are not to touch your savings. I will tell you, you are not only going to form a habit of saving 10% of your income, you are also going to learn the habit of saving another 20% from the 90% left. Half of your 20% you are going to used to create wealth. In a nutshell, what I am trying to say is that, you must live on 70% of your income because, it is this that you will spend on necessities and luxuries while remaining 30% is split in three (3) part for saving, another for capital investments. The part for investment you could use to buy, fix manufacture, sell or render services. The secret is to engage in commerce, even if it is part time.
Yvonne Zinas is a Part 3 students of the Mass Communication Department of the University of Maiduguri, Borno State.
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