In this edition, we shall be looking at APPLYING THE SECRETS OF THE RICH TO BECOMING RICH.
My desire for readers at the end of this part four on the pill on Money Management is to create a hunger in you for financial education. I do not despise academic and professional education. All I have been trying to say is that in this millennium, each individual’s level of financial literacy is what will determine whether he or she will end up poor or rich, including businesses. Therefore, in putting these articles together, aside the motivational content that they are designed to provide, I want to help us acquire certain secrets of the rich to help improve on our personal economies especially as we treat the issue of money management.
I visited a very rich man some months back in the company of his son. All I could get were few minutes to chat with this rich Nigerian and elderly statesman and I discovered why he is rich and why all his children exude this confidence about money and business. He just talked with us for a few minutes and his reflections were so calculated and on point and he demonstrated deep business experience.
Now, there are abilities that the rich have that distinguish them from the rest of us. Rather than malign them, I learn from them. The good news is that these abilities are practicable and can be replicated. They are as follows:
- Ability to make more money. The rich know how to make more money than most of us do. Our academic and professional training raise us to be specialists, thus restricting us to making money from only a source. The issue of money should not be so because we all have different talents, abilities, personal skills and strengths which can be exchanged for money without necessarily disturbing our professional or academic training. Again, there are needs in the society begging for solutions, and the guy who can meet these needs is the same guy to whom your money and my money will go to. Therefore, the number of problems you can solve, needs you can meet, quality of products/service you can supply and the backend offerings of your business can help you increase your ability to make more money.
- Ability to protect your money. When Mike Tyson was declared bankrupt some years ago, he alerted the press and whoever cared to listen about how his close friends, even his manager were among many people who stole from him. Well, that could be face-saving in itself, but a closer look shows that any rich fellow who fails to protect his wealth or riches will end up having his money and assets pilfered, burgled and in some cases taken away from him through the legal system. So, you need to understand that it is not enough to make money in your business, you must also endeavour to protect the money that you make.
- Ability to rightly budget your money. Budgeting should not be the preserve of corporate institutions; individuals are supposed to also budget to manage their resources. Budgeting rightly is critical to your financial status. A budget is simply a plan for the coordination of resources and expenditures. Like Robert Kiyosaki’s Rich Dad noted, “Most people use their budget as a plan to become poor or middle class rather than a plan to become rich.” Most people operate their lives on a budget deficit rather than a budget surplus. Instead of working to create a budget surplus, many people work to live below their means, which often means creating a budget deficit. A budget deficit is simply excess expenditure over income, while budget surplus is excess income over expenditure. If you want to change your financial story, you must aim for budget surplus, which means excess income over expenses without having to live below your means.
- Ability to leverage your money. This is one aspect that is very important for us as business people or individuals seeking to increase our financial intelligence. The rich don’t necessarily have more intelligence than you and I do; they have better financial intelligence. They don’t buy all the assets they own using their own money. By leveraging their relationships, financial support from financial institutions, venture capitalists, better banking records, among others, they open the door for better financing for their ideas.
- Ability to improve your financial information. I won’t stop sharing this story. I interviewed Mr. Sunny Ojeagbase, the Publisher of Complete Sports and Complete Football, few years ago for my TV programme. Having risen from grass to grace, he confidently told us (production crew) that he had no more money problems. However, he made a comment I will not forget in a hurry. He said, among many other things, “…Supposing I lose everything I have achieved so far, as far as I can sell pure water or (do some business) … I will bounce back.” Isn’t that funny? This is a guru in sports journalism, who has been blessed by God in his trade. I believe this great Nigerian and philanthropist made that statement based on the quality of financial information he has. Today, you are what you are financially because of the financial information you have. If you want to go to the next level, change the quality of financial information you have.
I am sure that your money management skills as an SME owner or manager or as an individual have increased quite a bit after having gone through these brief series on the subject. Next week, we shall be looking at Persistence as another pill you need for success in 2019 and beyond!
Bridget Olotu is the CEO/Lead Consultant, DeAim Innovative Resources Ltd. She can be reached on 08033036002 or firstname.lastname@example.org.