FINANCIAL INTELLIGENCE

let's talk about Financial intelligence

When matters regarding financial intelligence constitute the topic of discussion at any gathering, it has been noted that some youth or undergraduates are often indifferent. They believe such discussions do not concern them because they are still under the care or sponsorship of their parents or sponsors.

On the contrary, financial knowledge should be imbibed from a tender age. Even when under the care of others, you ought to know how to intelligently direct the affairs of your finances. This would ensure that you don't run into bankruptcy or financial mishap in the near future.

In view of this, I compiled a list of financial tips that would enable you to live a financially balanced life regardless of whether you are on your own or you are dependent on others.

Tip 1
Never borrow money that accrues interest to start a business . That is to say, never borrow money to start a business expecting that the business will generate income to pay back the borrowed money plus the interest.

Tip 2
Never spend money you haven't received. Don't even promise someone money based on a promise you have from someone else. If someone tells you: "Ezra, come to my lodge tomorrow at 9am and pick #10K"don't go out to buy items on credit based on this promise, with the hope that you will pay off your creditor when the promised money comes; it may not come as promised and this will leave you in problems with your creditors.

Tip 3
If you want to save, whenever you receive money, don’t start spending hoping that you’ll save what remains. Normally what remains is zero because as long as money to spend is available, the numerous things you can spend it on are also available. And things to spend on even incite their 'relatives' so that you spend even more than you had planned. When money to spend is not available, we naturally find a way of doing without it. Before you spend any money, put your savings aside then spend what is left after saving.

Tip 4
When you get an opportunity to meet a very wealthy person, never ask for money. Ask for ideas on how to make money. They may even choose to give you money on their own after seeing that your ideas are great, but let getting money from them never be your objective.

Tip 5
Keeping your seed instead of planting it. Many people stop at saving. It's very, very difficult to save and have all you need to maintain your lifestyle. When you save, your savings are seed; plant it. When you just keep the seed (saving money) some seeds begin to die (eaten by inflation and the like). That's why I recommend that you read about the different types of investment vehicles you can use to grow your savings. I am not necessarily talking about putting the money in a business, because you can easily lose money in business. I am talking about putting it in an investment.

Tip 6
Never lend someone money you are not willing to lose. By the time you lend someone money, be contented in your heart that should the person fail to pay, you will not die. You should not even lose that person's friendship if they fail to repay the money you lent them. If you feel the person might fail to pay you and this will not affect your relationship with them, then lend them money. If their failure to pay would make you hate this person’s entire clan, please advise the person to go to the bank.

Tip 7
Never append your signature to guarantee someone on a financial matter if you are not willing or able to pay the money on their behalf.

Tip 8
Avoid keeping money you don't intend to use in the short-term within easy reach. For instance, don’t walk with #10K in your pocket when all you plan to do in a day costs #2K. Like I mentioned in Money Mistake 3, there are always expenses available to gobble any money that is within reach, so if you don't want to lose it, put it away in a safe place.

Tip 9
Avoid keeping money in inappropriate places e.g. in socks, under the pillow, in a pit, in the sitting room, in the bra, in a travel bag that you will place somewhere in a bus ... impulse buying is a devil that will keep you busy!

Tip 10
Spending money on an item that you can do without (at least for the time being). These days when I pick money from my pocket or wallet, before paying for something I ask myself: What would happen if I didn’t buy this? If I find I can live with the consequences of not having that thing, I smile and walk away.

Tip 11
Paying an amount for something that's not the minimum you can get that same value for. In other words, if you are at a mall and you pay #8K for a shoe that you can get at #3K at Nazi market with the same quality, that's a money mistake except for those who have achieved financial freedom.

Tip 12
Consistently spending all you earn or more than you earn. It's like having a drum where you have an inlet that's smaller than the outlet. It will never get full. And should the inlet ever reduce significantly the drum will run dry. If you do it the other way round and the inlet is bigger, it will get full and even overflow. Hence, we have to always ensure we are widening the inlet while narrowing the outlet – all the time. Your side hustle comes in handy!