30/12/2023
If you receive 1 million dollars now and you are asked to return it in 1 year without interest will you collect it?
Most people will collect it and not be able to return it back because they have not built the capacity to handle such money. Even people who have no idea of business too will jump at it and throw the money away. The same thing happens when people who have not done business for once in their lives spend all their gratuity or pension on a new business idea. It’s not gonna work. You can’t run a business with an employee mindset. The worlds are different.
Everybody cant be rich and it’s not because of anything deep, it’s because of the lack of financial knowledge.
Most of us have needs and wants. We know money as a tool to meet our needs. We don’t know money as a resource that can be used to make more money.
We often see money as something to meet our needs, we don’t know money as a tool to create more money. So when you receive your salary you immediately meet your needs, you buy food, clothes, shoes, perfumes etc, that’s all most people know about money and that’s why they will always need money.
I don’t shame the poor, I wouldn’t do that, but most of us have financial struggles because our primary knowledge of money is spending or at most saving , not investing in a business to increase it.
For those of us who came from low and middle income families, our default response to money is spending because we have been deprived. It’s like taking a hungry child to eat buffet in Sheraton, e go wan die there 😂
So when you make your first money, maybe salary, na expenses you go quickly try to meet so you can feel safe and proud of yourself and that’s the problem. To be financially free, you must be able to afford something and not buy it. You must be able to act broke when you have cash in an investment. Until you can delay gratification and drink Garri and sugar instead of fat chicken every day, you will always run out of cash.
So the 1 million dollars will not change your life if you have not learnt how money works. If you have not learnt to meet your personal needs last.
So to improve in 2024, invest first before you meet your needs. If you run a firm like me, put your money in an asset or improve your marketing or do something that will help you earn more. Your needs should come last. That’s the only way you can turn 1million dollars into 1.2m dollars in one year.
A consumer mindset will keep you struggling. Rich people know this that’s why they rarely spend lavishly. Rich people are stingy because they invest all their money. They don’t carry cash or mess around. They calculate every money. But a poor man pikin go dey throw am around anyhow without thinking of the future and he is soon broke.
So my message is, think like the rich, don’t attend to everything that seek to take money away from you. Let the inflow, I mean credit alert exceed the outflow or debits. Plan all expenses, every cash in your account must be meant for something.
Copied
© PYK
