According to an expert, here’s why you should or shouldn’t bring money into a high-yield savings account. You can consider putting it into a high-interest saving portfolio if you have the extra cash right now.
While a lot of economic turmoil has been caused by the coronavirus epidemic. Many are worried about how to better plan for the future while preparing for current expenses as well.
If, after paying your necessities and bills, you have some surplus cash, you may want to consider placing your surplus cash into a high-yield savings portfolio.
You can gain extra money with a high-yield savings portfolio, while also getting access to your cash anytime you need it.
However, the banks don’t give enough interests to be considered as a high savings portfolio. Your best shot at getting a higher interest is in a financial vehicle like Payvest.
A bank can only boost of 7% interest per annum, but we can guarantee you 40 – 60%. Before we go over the pros and cons of having a savings portfolio with Payvest instead of the banks.
Things To Consider About High-interest Saving
Here are some vital questions you need to ask yourself:
First, ask yourself; when will you need to use this cash? When deciding on what kind of savings portfolio to grow your money, you should first consider how soon you plan on dipping into the funds.
A high-interest savings portfolio is a perfect way for you to maintain emergency funds that you can access easily if the need arises.
As we all know, banks charge ridiculous maintenance fees on their high-yield savings accounts especially when you withdraw or transfer your cash out of your account.
Now is a good time to start saving, particularly if you already have a paycheck coming in, to prioritize saving for an emergency.
For the future, it might benefit you to use a high-yield investment portfolio like Payvest to stash your money now. This is better than saving your money in a traditional savings account or other shady investment vehicles.
If you currently have a stable income with an adequate emergency fund to cover at least three to six months’ worth of expenses.
Then you can want to consider putting your extra cash in a high-interest savings portfolio to grow for short-term goals.
If you’re creating an emergency fund, organizing a potential holiday or looking to pay your rent, a high-yield savings account is a perfect place to store your cash while you prepare for short-term targets.
You should consider investing your money for higher long-term returns on a trusted platform. Saving money consistently over time can help you build wealth in the future, even though it might take more time than an outright investment.
It’s sweet and easy to live a lifestyle above what you can afford especially when you have high-income expectations and social friends to impress. However, most people don’t realise they are living above their means until its too late. Here’s a way to find out if you’re living above your means.
1. YOU’VE NEVER HAD A BUDGET
The first step to financial freedom and living within your means is having a budget, if you’re not worried about how much money you spend each day, there is a good chance that you’re spending more than you think. you need to take an honest inventory of your income, spending, and savings goals. That way you can be able to spend wisely and live within your means.
2. YOU DON’T HAVE ANY MONEY LEFT AT THE END OF THE MONTH
People whose lives solely depend on their monthly salary find it difficult to save because they have nothing left at the end of the month. An easy way to start saving and become more conscious of your spending decisions is to allow yourself to spend money only on the bare necessities for 30 days – rent, toiletries, bills, foodstuffs and cut out everything else. No shopping, no hangouts, no eating out, and especially no date nights.
3. YOU ORDER THINGS YOU CAN’T AFFORD
It is not advisable to order things you can’t afford, it will put you in debt. It is bad that before the next salary comes you have nothing left of it cos you are already indebted. If you can’t afford it twice at the moment don’t bother.
4. YOU CANNOT LIVE 3-6 MONTHS WITHOUT A SALARY.
Because certain things are unpredictable, we advise you to reserve 20% of your income for emergencies. In cases where you lose your job or have serious health issues, you will live comfortably without running into debt.
5. YOUR EXPENSES IS WAY HIGHER THAN YOUR INCOME
Your lifestyle doesn’t match your income, you spend too much and can’t give an account of your expenses when you’ve exhausted your income.
6. YOU AREN’T SAVING AT LEAST 10%
Saving money may seem impossible, but it’s probably a lot more realistic than you think. If you can’t save at least 10% of your income monthly, it could be a sign that you are living above your means.
7. YOU BORROW MONEY TO PAY BILLS
It’s a clear sign you cannot afford your lifestyle so you borrow from friends and relatives to clear your debts. This is a straight road that leads to poverty because you are taking on more debt to pay the debt you already have.
8. YOUR DEBT KEEPS INCREASING
If your debts keep piling up and all you have is just a single stream of income, perhaps you don’t even have a job, you should know you are living way above your budget. If you’re in debts and you keep letting people do things you can do by yourself laundry, car wash, cleaning you will end up financially dependent.
9. YOU LET YOUR FEELINGS DICTATE YOUR SPENDING
If you let the feeling that you only live once (YOLO) get to you, you will end up borrowing because you don’t want to miss out. But don’t let your FOMO (fear of missing out) dictate how you spend money. While you don’t need to give up your entire social life, it is important to take a look at your motives for spending and find affordable ways to spend quality time with yourself and friends.
10. YOU ARE WORRIED ABOUT WHAT PEOPLE THINK
Because you care so much about what friends will say and you don’t want to be judged, you buy things at the expense of impressing friends to show off on social media, even when it’s above your budget. You also spend lavishly to create an impression.
If you discover you’re guilty of one or more of these warning signs, there is a solution, these tips will help you live within your means and improve your finances.
1. Create a budget: The only way to create an effective budget is, to be honest with your spending habits.
2. Get a side hustle: With a side hustle, you can charge great money per client, do all of the work from home, and
3. Always use cash: Using cash is a great way to stick to your budget. Why? You can only spend as much as you have.
4. Don’t let People’s Opinions Influence Your Financial Decisions: Don’t be too concerned about what others think of you, it could lead you to make bad financial decisions.
There’s a sweet feeling that comes with being engaged or married. However, the issue of money has torn most marriages apart, because couples have failed to understand that managing money as a couple is all about honesty, transparency, and respectful communication.
The only way to avoid fights and distrust as a couple is to have a common understanding of managing your money.
1. HAVE A DATE, TALK ABOUT MONEY
As a couple creates time for a heart to heart conversation, be honest about your debt and current financial status. Let your partner know how you feel about money, your spending habits, and your money goals.
It will help you understand them better and also prevent issues before they happen. Don’t be too hard with the outcome, you will learn from it.
2. BE EQUAL WITH YOUR PARTNER
As a couple you’re a team, If you have a debt, work together as a team to clear it off. No matter how experienced your partner is about managing finance, mistakes are bound to happen, it is not advisable to let your partner control all the joint finances alone.
Have a mutual understanding, know what you can and what your partner can’t afford. If something happens to one of you, the other would have an idea of your financial affairs.
3. CREATE AN EMERGENCY FUND
An emergency fund is important, it will help you pay off debt and also sort out other financial issues that may arise unexpectedly. Set aside 20% of your income for 6months to save for an emergency.
4. JOINT OR SEPARATE ACCOUNT?
First, understand that what worked for other couples might not work for you. Find out if your partner’s financial goals and spending habits are the same as yours, also discuss your partner’s records of managing money only then can you consider having a joint account.
5. OPEN A JOINT ACCOUNT
Now that you’ve figured your partner’s spending habit matches yours, you both can go ahead and create a joint account and automate funding your account monthly. This will give you the freedom to spend the remaining part of your money without your partner’s input.
6. OPEN A SEPARATE ACCOUNT
If your partner’s spending habits don’t match yours, we advise you to keep your money separate, that doesn’t mean you’re separated. Split the bills 50/50 or any way suitable, consider your partner when making decisions about money, plan, and communicate regularly.
7. PLAN ALL THE WAY
Your spouse isn’t just a roommate; you need to figure logistics and plan as a couple for shared goals as newlyweds. You need to talk about household logistics— how you will work toward your goals, who pays the rent, school fees, other household expenses, and how you will reimburse each other.
Discuss your plans, ideas, and logistics to make sure you both understand and agree on the plan and that all your bases are covered.
8. CREATE A JOINT BUDGET
Know that budgeting as a couple will help you combine both income and expenses, create a budget together then practice living on a joint budget for as long as you can, it will track your spending and refine your budget to match your spending needs.
Understand that as you grow your budget will also increase, take note of that and readjust your budget
9. BE SUPPORTIVE
If your partner is unemployed or isn’t earning, perhaps earns less than you, you could both keep separate accounts and have the main earner pay their partner an allowance. The main earner can transfer an agreed amount each week or month to their partner’s account.
Before you make this decision, make sure you both feel comfortable with the idea, you’re not doing your partner a favor if one partner is looking after the kids, or working as a carer – that’s a job too.
10. CHECK YOUR FINANCES REGULARLY
It’s important to know exactly what’s happening with your money as a couple, so discuss your finances with your partner regularly and openly. This will help you both stay involved with household finances, manage your money responsibly, and deal with any issues together.
11. SET GOALS
As a couple, you both must figure out your financial status so you both can establish long term goals (like buying a house, car, paying tuition fees, and also plan for retirement) to achieve this goal as a couple, communicating with your spouse shouldn’t be a challenge.
However priorities of personal finance are as unique as the individual themselves, so every saving strategy must consider the needs and aspirations of both partners to be successful.
12. ASK YOUR PARTNER
Ask questions to make sure that you and your partner have similar priorities, or can find a compromise somewhere in the middle,
- Are savings and investments a major priority for you, or do you prefer to spend money as it comes?
- How much of our income are we willing to spend on household logistics?
- How much money do we spend to support our external families if the need arises?
- How many children are we having?
- If we plan to have children, how much do we want to support them financially?
- Do we pay for daycare/child care?
- Should we save for retirement?
- Do we buy our own house or keep staying in a rented apartment?
Understand that managing money won’t work without communication, don’t expect your partner to know your financial status if you both don’t have healthy communication.
Most people don’t see the importance of having a relationship with money. They believe money is just something they deal with in exchange for value and services. Our relationship with money begins at an early age. Those who have had positive examples set from an early age are more likely to grow up with a healthy money mindset, allowing them to coexist happily with money and to have a great relationship with it.
Having a relationship with your own money is the same as having a relationship with someone you love. Just like any relationship, you’re in it by choice. We honor our relationships through behavior and intention and it’s no different when it comes to our relationship with money. To improve your relationship with money, certain things need to be put into consideration.
1. CHECK YOUR SPENDING HABIT
Take out time to check out why and how you spend money. Know your patterns and what motivates your spending habits. Do you buy on impulse? What are your triggers for your spending?
To be able to figure that out, get a diary to track your expenses. it will help you get a better understanding of how you spend your money and it will also help you make changes and adjustments where necessary.
2. CREATE TIME
Because money is important, you need to create time to manage it. Creating a budget is only the first step to improving your relationship with money. You also have to set time aside to inspect it.
As a family or as an individual, spend time at the end of every week to look at your budget, you can track your expenses daily or weekly. Get involved: If you want to add more value to your money and your life, you need to decide to make it a priority.
3. DO NOT COMPARE
Most times we humans tend to compare our income to others and only be satisfied if ours is relatively higher. If we are offered a raise with everyone else, we tend to be less satisfied.
Comparing yourself to others and focusing on their income is a never-ending treadmill of dissatisfaction, and it only makes sense to make a deliberate effort to get off. Set aside time to reflect upon what you like and respect about yourself without comparing yourself with others.
Focus on how you have improved or grown without worrying about how you rank. Take satisfaction in how hard work and experience develop your skills or speed.
4. HAVE A RETHINK
Money is an essential tool that meets most of our basic human needs, especially food, clothing, and safe shelter, etc. money has more to do with other factors that impact our wellbeing. And meeting some of these needs requires money, but little if you have a planned budget.
We can meet our deepest needs for affection, understanding, belonging, and identity through our relationships, the pursuit of purpose in life, spirituality, and connection with nature. Buying more things or a bigger house cant do any of these.
So don’t look for fulfillment in acquiring more money or material things, you will be disappointed. Money brings you happiness when you spend on the right things
5. PRIORITIZE & MAKE GOALS
To make your relationship with money a priority, your goals should be specific and detailed. you must have something that you are working towards. It could be saving for a family vacation, or preserving funds for emergencies, or perhaps saving to clear up a debt you just need to have a plan for your money.
Having an action plan allows you to take out the guess-work and gives you clear steps you need to take to be successful. If you are married, your money goals should be decided together and should be something you talk about during your financial meetings. Your goals should be specific and detailed.
6. ADJUST YOUR GOALS
If you take a good look at your budget, you will figure that most of what you need in life is not about money, you can have a good life and spend less. While humans tend to adjust our expectations upward as our income goes up, you can consciously change that.
Instead of wanting more expensive things and more of them, you can choose to save a new income. Instead of buying things, you can give yourself the security of having enough money. One way to help yourself change your spending habits is to establish incentives that will motivate you to meet your goals.
These can be rewards for meeting goals or punishments when you don’t.
7. KNOW YOUR MONEY TO A PERSONAL LEVEL
You have to take out time to know everything about your money, how it comes, and how it’s spent, understand it on the most personal level. If you don’t know where your money is going, there is no way you can nurture it.
It’s hard to tell if there is a problem in any relationship unless someone tells you. Most of the time that’s your significant other, your friend, or a family member. Your money can also tell you if there’s a problem, you just have to look for it.
The easy way to know your money is by creating a budget. A budget not only allows you to choose where your money is going but it allows you to avoid unnecessary spending. If you have a budget, you are clear on what money is coming in, how fast it’s going out, and where it is going to.
8. DONT TAKE MONEY FOR GRANTED
See your money as an opportunity instead of an obstacle. It’s easy to feel like your money is restricting you, the one way we do this is by taking our money for granted. Don’t see money as a set back when you can’t afford a need instead think of ways your money can work for you.
If you have a budget in place and make time to respect and inspect it, the illusion of your money being an obstacle will slowly disappear. You have to let go of the fear and consider the possibility that you do have the resources to make your priorities a reality.
9. FORGIVE YOURSELF
You need to forgive yourself for past & current money mistakes. It’s important to realize that you must accept the things that have already happened. You can not change your credit card debt situation, your income circumstances, or lack of savings. All you can do now is accept the decisions you made in the past and change them in the future.
Just like with any relationship, you are going to make mistakes along the way, it won’t be as easy as it looks in the books but remembers you are not perfect and your self-worth shouldn’t be dependent on your mistakes. Take these opportunities, learn from them, and move on.
It’s never too late, find ways you can shift your money mindset from negative to positive and move on. The truth is, unless you let go unless you forgive yourself unless you forgive the situation unless you realize that the situation is over, you cannot move forward – Steve Maraboli
10. MONEY CAN MAKE YOU HAPPY
Understand that spending money on material goods doesn’t bring happiness. But there are ways that money can make you happier if you spend money on others. people are happy when they spend it on someone else or donate it to charity, they experience a significant increase in their sense of wellbeing.
Spend money to buy time. create more time in your life for fun and friends. Get people to help you do basic things and get yourself to rest, enjoy the evening with your partner or friends, or just have some downtime alone. Hire someone to help you do the work.
Buy experiences, not material goods. Use your money to buy experience. Experiences directly increase your wellbeing and the wellbeing of others you share them with. it enhances relationships and promotes connection to purpose and community.
Moreover, we are less likely to have buyer’s remorse with experiences, and they don’t lose their value over time instead, they can create happy memories.
The 20s are the second decade of life and the transition from being teens is still fresh. In this period of one’s life, we tend to carry the exuberance of the teenage year forward into our 20’s and take certain things for granted.
Especially as it concerns money, unfortunately, it is in one’s 30s that life reveals more of its irreversible realities. The one thing young adults take for granted is money management and if not considered can make you broke for most of your adult life.
Most times being broke throughout one’s adult life didn’t just start as a result of losing a job or having no opportunities to make money, they arise from many errors made with money.
On this article, we will be sharing 14 money mistakes common with young adults in their 20’s:
1. SPENDING TO MAKE THEMSELVES HAPPY
Many young adults derive joy in spending money to make themselves happy, they feel good about themselves when they spend on others too, it is bad to have a mixed feeling with money it can put you in a dangerous situation.
If you’re having a really bad day it’s not advisable to go shopping or spend money frivolously. The temporary fix from emotional spending passes quickly, but saving money will help you structure your finances.
2. BEING UNDER PRESSURE
Being under pressure to spend money on friends and family and not considering where it hurts you financially can lead to a dead end. The moment people discover you have been received your salary or got some cash to spare, they will come for their share.
If you’re not financially disciplined you will end up sharing till you are left with nothing. If you keep being pressured to spend more and you keep spending without a laid back financial plan you will certainly go broke.
A lack of financial budget is like setting your money on fire. Plan your money, create a budget, dedicate a certain percentage to either savings or investments.
3. BUYING THINGS ON IMPULSE
Buying things you don’t necessarily need on impulse is another big mistake young adults make. It’s important to treat yourself once in a while but its also important to resist the temptation if your expenses are getting out of hand.
Before you pay for that expensive product, give yourself a 48hrs to think through the following;
Do I need this?
Can I afford it?
Why do I want this?
If you can answer these questions after 48hrs of thoughts, then you go ahead and purchase it.
4. CAREFREE SPENDING
Many young adults spend more on things because they are guaranteed a salary that comes in by the end of the month or perhaps daily.
This motivates carefree spending and buying unnecessary things without having any financial plans especially when there are friends and colleagues to impress.
It is important to stay within your earnings so you don’t run into debts. If you want to build wealth, you have to watch your spending habits. Carefree spending will only lead to a bad financial crisis.
5. NO SAVINGS FOR EMERGENCY
As a young adult, having a special account for emergencies is another aspect of savings. Having enough money in the bank to pay for things you need like food, drinks and clothing can make you feel good.
However, it’s important to have an emergency fund reserved for unforeseen circumstances because uncertain things are bound to happen. If you think you have a better future than your peers you will be disciplined to save.
6. CHOOSING MONEY OVER OPPORTUNITIES FOR GROWTH
Many young adults will choose a job offer with a good salary over a job that offers more opportunities for growth and learning. Choosing growth over good pay especially if you just graduated will help you gain more experience although it’s not an easy task.
These learning opportunities give you a chance for promotion and are invaluable and chances are that you will end up with a much better wage than the first job after a short time.
7. IGNORING EMPLOYMENT BENEFITS
Many young adults don’t care about the employment benefits of their job especially when it has to do with saving part of their salary for health care emergencies or retirements.
8. FAILING TO PLAN
It is said that failing to plan is planning to fail. A good financial plan is necessary to maximize your income. Plan your finances, write a budget, save, and invest wisely. Having a goal is a good motivation to plan financially.
9. NOT SETTING LONG TERM FINANCIAL GOALS
Young adults are concerned about meeting short term goals; paying rent, buying foodstuffs, wearing good clothes, and acquiring new gadgets.
You need to set long term financial goals like starting a business, furthering your education or buying property, and work towards achieving it.
10. STAYING IN DEBTS
It’s frustrating to go into debt. Most people purchase their budget and the source of payback goes south. Being in debt due to borrowing comes with compounding interest rates.
Focus on paying your debts before you start saving for long term goals. If you’re working first take out a certain percentage of your income and pay off your debts gradually. It might take a while, but it will clear it off eventually.
11. HAVING UNREALISTIC FINANCIAL EXPECTATION
One mistake young adults make is borrowing money and making promises to pay back when they get a job they’re expecting or when salary comes without a backup plan. 98% percent of the time, their plans fail and leave them stranded.
12. SCHOOL IS NOT ENOUGH TO MAKE YOU RICH
You should understand that your education starts the day you leave school. The real world is different from the four walls of a classroom. The idea that school will make you rich after graduating is obsolete and should be erased from your thought.
Successful people learn daily even after they’ve left school but unfortunately, most young people stop reading the moment they graduate. You need to read good books, listen to insightful programs, and follow up on lucrative trends.
13. INVESTING WITHOUT CARRYING OUT A RESEARCH
Investments can be very rewarding if you’re not throwing money away on shares and Ponzi schemes. As a young novice, you need to do proper research and study some books on investing.
Reading good books about stock markets and real estate will save you the headache and tears that come with losing your hard-earned money.
14. CHOOSING A PARTNER WITHOUT KNOWING THEIR FINANCIAL CAPABILITY
This is another mistake young adults make in their 20’s, they go into marriage without knowing the financial capability of their spouse. And a few years later, everything begins to crash because their finances were not able to sustain them.
Before you say I do to anyone, sit them down and talk about your finances. Agree on your income and expenses, know the financial background of their spouse. As you plan the future together, save and invest for uncertainties that are bound to occur.
One of the best ways to increase your skills and intellect is by reading books. By reading a good book on finance you consume a huge amount of research in a relatively short period of time. These books help you manage and understand the ideas behind money, savings, investments, finance, and budgeting.
The best way to get a grip on your finances and grow your funds is to learn, educate yourself on money, and shape your mind towards financial freedom.
So we searched for 30 “Best of Lists” highlighting the most recommended Books about Finance by various sites and combined the 11 most earmarked Finance Books that kept appearing on recently published lists.
From a total of 174 Finance Books reviewed and ranked, here are 11 of the Most Recommended Finance Books that appear on most of the Best Finance Books lists to get you on the route to financial freedom.
1. The Intelligent Investor: The Definitive Book on Value Investing | Benjamin Graham and Jason Zweig
A Philosophy published in 1949 Teaches on investment and finance approach. The intelligent investor has 13 out of 20 times been listed in the hallmark of Grahams, not for profit maximization but loss minimization. In this respect, the Intelligent Investor is a book for true investors, not speculators or day traders. Also recommended by the most successful investors, Barron’s American premier financial magazine, and Fortune Magazine.
2. Your Money or Your Life | by Vicki Robin and Joe Dominguez
The author Vicki Robin shares 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence” dare to express the idea that living frugally will make you happier.
Earning money should not mean misery, you just have to learn to structures your budget accordingly. Overall, it’s not so much about learning to budget as it is about living within your means by changing your habits and enjoying life.
Your Money or Your Life is a book listed 4 out of 20times, highly recommended by John Robbins (The best selling author and president of the Food Revolution Network).
3. The Richest Man in Babylon | by George S. Clason
The Richest Man in Babylon is a book written in 1920, listed 6 out of 20 times. George Samuel Clason issued the first-ever famous series as he dispenses financial advice through a collection of parables set 4000 years ago in ancient Babylon.
Still regarded as the classic of personal finance advice, his book is a great gift for a graduate or anyone who seems baffled by the world of finance and a wonderful. This book is a refreshing read for even the most experienced investor as recommended by the Los Angeles Times.
4. Rich Dad Poor Dad | by Robert T. Kiyosaki and Sharon Lechter
Rich dad poor dad was written in 1997. Listed 3 out of 20times, this book advocates the importance of financial literacy, financial independence and building wealth through investing in assets, real estate investing, starting and owning businesses as well as increasing your financial intelligence to improve one’s businesses.
“Rich Dad Poor Dad is a starting point for anyone looking to gain control of their financial future.” (USA TODAY) Also Recommended by NY Times bestseller for over 6 years.
5. The Millionaire Next Door | by Thomas Stanley and William Danko
The Millionaire Next Door was written in 1996, listed 5 out of 20times. This book is a compilation of research done in 1973, by the author in the profile of millionaires with a net worth exceeding one million dollars. (USD)
The authors compare the lifestyle of the under accumulators of wealth and the prodigious accumulators of wealth. They found out that millionaires were disproportionately clustered in the middle class and blue-collar neighborhoods, not in the more affluent or white-collar communities.
This book further explains why noting that high-income white-collar professionals are more likely to devote their income to status items or luxury goods thus neglecting savings and investments.
“The kind of information that could lift the economic prospects of individuals more than any government policy…The Millionaire Next Door has a theme that I think rings very true…”Hey, I can do it. You can do it too!” As recommended by Rush Limbaugh.
6. Think and Grow Rich | by Napoleon Hill
Think and Grow Rich reveals the secrets that can bring you a fortune. By suppressing negative thoughts and keeping your focus on the long term, you can find true and lasting success.
“The most powerful instrument we have in our hands is the power of our mind.” – Napoleon Hill
Napoleon Hill compiled this philosophy of American achievement for the benefit of all people in 13 principles. 7 out of 20 times listed one of the most popular personal development and self-improvement books of all time with over 100 million copies sold since its first publication.
I strongly commend this philosophy to you for achievement and service in your chosen field.” as Recommended by Senator Jennings Randolph West Virginia.
7. One Up On Wall Street |by Peter Lynch
Listed 7 out of 20 times talks about how to use what you already know to make money in the market. Peter Lynch is America’s number-one money manager. His mantra: Average investors can become experts in their field and can pick winning stocks as effectively as Wall Street professionals by doing just a little research.
“Mr. Lynch’s investment record puts him in a league by himself.” (Anise C. Wallace The New York Times). Also Recommended by The elite of the investment community.
8. The Automatic Millionaire | by David Bach
The Automatic Millionaire written by David Bach originally published in 2005 explains that you do not need to get rich through a budget but with a well laid out plan. The book offers timeless principles including phone numbers, websites, and every element that will get you started on your road to wealth within an hour.
Also Recommended by New York Times and Business week.
9. The Science Of Getting Rich | Wallace D. Wattles
Wallace D. Wattles spent a lifetime considering the laws of success as he found them in the work of the world’s great philosophers. He then turned his life effort into this simple, slender book – a volume that he vowed could replace libraries of philosophy, spirituality, and self-help to attain one definite goal: a life of prosperity
He further explains how creation and not competition is the hidden key to wealth attraction, and how your power to get rich uplifts everyone around you. The Science of Getting Rich concludes with Wattle’s rare essay “How to Get Want You Want” – a brilliant refresher of his laws of wealth creation.
10. The Total Money Makeover | by Dave Ramsey
The Total Money Makeover is a proven plan for financial fitness. Listed 7 out of 20 times, Dave’s all-time bestselling book has helped millions of families get rid of debt and change their lives forever with its simple, practical seven-step plan. How does it work? By getting to the heart of your money problems: You.
Dave condenses his 20 years of financial teaching and counseling into 7 organized, easy-to-follow steps that will lead you out of debt and into a Total Money Makeover. Plus, you’ll read over 50 real-life stories from people who have followed these principles and are now winning with their money. It is a plan designed for everyone, regardless of income and age.
11. How Rich People Think | by Steve Siebold
In this book the author Steve Siebold spent 30 years interviewing 1, 000 millionaires and billionaires to figure out what distinguished them from the average person.
This book will teach you how rich people think. It compares thoughts, habits, and philosophies of the middle class to the world-class when it comes to wealth. The differences are as extreme as they are numerous.
To get hold of your finances, plan, and organize your account system, we recommend you read and understand the books listed above.
Furthermore, it gets you out of debt and helps you live in financial freedom.
On Tuesday, 10 March 2020, the Senate passed the Companies and Allied Matters Act (Repeal and Re-enactment) Bill. The 2020 CAMA Bill seeks to establish an efficient means of regulating businesses, minimize the compliance burden of small and medium enterprises, enhance transparency and shareholder engagement, and promote a friendly business climate in Nigeria.
THE CAMA BILL 2020: A SUMMARY
Here is a summary of the new Companies and Allied Matters Act (CAMA) signed into law by President Muhammadu Buhari on August 7, 2020.
The passage of this legislation has been three decades in the making. However, its coming herald better times for small and medium businesses in Nigeria. It has been considered as Nigeria’s most significant business legislation in three decades.
Below are some aspects that are of interest and much importance:
- It is now possible to establish a private company with only one (1) member or shareholder.
- Statement of Compliance need not be signed by a lawyer. It can now be signed by an applicant or his agent, confirming therein that the requirements of the law as to registration have been complied with.
- The concept of “authorized share capital” has now been replaced in the Act with the concept of “minimum share capital”. This means that promoter(s) of a business does not need to pay for shares that are not needed at a specific time.
- The procurement of a Common Seal is no longer a mandatory requirement.
- The new CAMA makes provision for electronic filing, electronic share transfer, and e-meetings for private companies. So certified true copies of electronically filed documents are admissible in evidence, with equal validity with the original documents.
- Reduction of Filing Fees for Registration of Charges; the total fees payable to the CAC for filing has been reduced to 0.35% of the value of the charge.
- A merger of Incorporated Trustees. The new Act provides for a merger between two or more associations with similar aims and objects. CAC will approve the terms and conditions of such a merger.
- Disclosure of persons with significant control in companies. This bolster transparency in company operations. Companies are under obligation to disclose capacity in which shares are held, either as a beneficial owner or as a nominee of an interested person.
- Restriction on Multiple Directorship in Public Companies. The Act prohibits a person from being a director in more than five (5) public companies at a time.
- Business Rescue provisions for Insolvent Companies. This provides a framework for rescuing a company in distress and keeping it alive as against allowing such an entity to become insolvent.
- Enhancement of Minority Shareholder Protection and Engagement by restricting firms from appointing a director to hold the office of the Chairman and Chief Executive Officer of a private company.
- Exemption from appointing Auditors – Small companies or any company having a single shareholder are no longer mandated to appoint auditors at the annual general meeting to audit the financial records of the company.
- The appointment of a Company Secretary is now optional for private companies.
- Creation of Limited Liability Partnerships (LLPs) and Limited Partnerships (LPs) – The new CAMA introduces the concept of Limited Liability Partnerships (LLPs) and Limited Partnerships (LPs). This combines the organizational flexibility and tax status of a partnership with the limited liability of members of a company
Please note that items in italics are points from the new bill which I think might be of interest to us in the distant or not so distant future.
One of the common goals in a person’s life is to become rich and financially independent. Many people take advantage of opportunities that lead them to success and financial freedom.
The truth is wealthy people don’t stay wealthy for too long except they have healthy financial habits to help them grow their wealth.
Financial success is all about making informed decisions and taking risks to reach your financial targets as well as establishing a routine to track your expenses.
The reason why successful people remain wealthy is a simple fact that;
1. Successful people live within their means
If you ever want to be as wealthy as the people you admire, you should avoid spending money on things you don’t need. You can only be able to live within your means if you create a budget and stick with it.
Allow yourself some money to spend on wants and ensure you prioritize both basic expenses and savings for future goals.
2. Successful people spend less than they earn
Spending more than you earn consistently is a very easy way to accumulate debts. One of the most important financial concepts to understand and live by is controlling your spending habits.
Do not buy things you cannot afford at the expense of paying later, if it’s not in your budget, buy within your means.
3. Successful people set goals
To reach financial freedom, you need to set goals. Set smart and profitable investment goals, this will give you peace of mind and financial security.
Successful people always have a plan but having a plan is necessary if you want to achieve them. If you have a standard salary, decide how much of your salary you want to save or invest and stick with it.
4. Successful people save and invest
The reason why the rich stay strong during a time of recession and an economic meltdown or a financial crisis is because of their regular savings and investment habits.
They spend the interest generated from their investments they know about different assets they can invest in that bring high returns. To achieve financial success, you need to be informed about what’s going on.
5. Successful people track their expenses
It is very important to track your expenses, know how much you spend and how much you choose to save and invest. But sadly most people don’t track their expenses, once they reach the financial goals.
They tend to spend lavishly without keeping records. Ever wondered why someone who had millions in their name ended up poor and broke?
It’s simply because they failed to track their expenses, tracking your expenses is of great importance than having a budget.
6. Successful people don’t procrastinate
Successful people don’t procrastinate, they are action-oriented. It’s either done now or they find an alternative.
They create opportunities because they don’t believe good things come to those who wait. They create their financial fate and always seek advice from financial advisors.
7. Successful people know their asset
The rich know how much they are worth, especially the value of assets and liabilities. Many people find it difficult to evaluate their assets and tend to overvalue their cash.
Money depreciates every day, so its important that you make profitable investments that give high interest if you want to keep a significant net worth.
It’s sad when people think that they are wealthy without taking their liabilities into account.
8. Successful people are smart about debts
The rich understand that buying fancy cars, houses, and luxuries they cannot afford the debt is a bad reason to be indebted. They always say ‘no’ to huge debts.
Taking loans with very high-interest rates will only destabilize their finance, so they avoid debts with high-interest rates. They wait until they have some money to purchase it later, rather than going in debts.
9. Successful people don’t waste time complaining
If something bad happens, they don’t waste the whole day complaining about it, they take full responsibility for themselves and their actions and not blame the government.
They believe they are in charge so they take advantage of situations, change course, and move on. Even in the toughest economy, they believe the future lies in their own hands.
If you want to attain financial freedom and live up to the standards of the rich people you admire, you need to make necessary adjustments on your finances.
10. Successful people are not afraid to say NO
When unreasonable requests come up they say, “I’m sorry that’s way above my budget”. Unlike most people who say yes to impress others at the expense of our finances.
11. Successful people pay more attention to learn more
The rich pay close attention to details, and do things the right way rather than let things pile up. They value integrity and love to learn new things unlike the ignorant that assumes they know everything.
They love to read and believe in life long education. Successful people listen to audiobooks, and educational materials even as they commute every day.
Your 20s might be the time to live it up, but the age of 30 is very tricky. Most people would have already set up their retirement plans while others would still be wallowing in debt and living from paycheck to paycheck. There are certain financial milestones that you are supposed to have achieved as it concerns your annual salary, savings and investment portfolio, retirement plan, emergency fund, insurance plan, etc. You can use this article as a checklist to help you set up your financial life. However, there are no hard-and-fast rules that say you need to do these things by 30.
1. Be debt free
Although, we can argue that age 30 comes with more responsibilities in terms of family, kids, social engagements, etc. But you definitely don’t want to carry over the baggage and financial mistakes from your 20s. Try as much as possible to pay off all pending loans, even if it means you will have to start saving up or even work 2 jobs at a time. Debt is an absolute no-no.
2. Have an emergency fund
It is an error to have zero savings by the time you clock 30. The essence of having a lockdown savings account cannot be overemphasized. No matter how pressed you are for cash, your savings should be declared untouchable. You should have at least 6 months of your salary saved up.
3. Have a diversified portfolio
There are a lot of lucrative investment options on the money market which include forex, index funds, treasury bills, corporate shares, stock market, etc. No amount is too small to start investing, you need to have at least 5 solid investments under your portfolio by age 30.
4. Set up an insurance fund
You are never too young to set up a basic insurance plan to cover your health and mortgage insurance. This will cushion the burden of attending to personal emergencies from your salary or having to tap from your savings. There are quite several trustworthy insurance firms, you could ask your healthcare facility for their insurance packages.
5. Have a profitable side income
You must have at least 2 revenue streams which could be part-time engagements, a side business, or dividend payments from your investments. There’s nothing more soothing than having some extra disposable cash besides your monthly salary.
There you go, so what financial milestones are you still working on?
If you ever want to have a good life – a financially secure life, then you need to save. Financial independence is the status of having control over your money, in terms of income and expenses. The easiest way to achieve financial independence is by adopting a flexible saving culture.
Saving is the act of keeping aside one’s assets for the sake of emergency or investment. It’s a simple way of preserving money to meet a specific need. Savings refers to whatever part of your income that isn’t spent or money reserved for a specific purpose.
The extent to which a person chooses to save is dependent on their preference for future security over present consumption. Here are a few reasons as to why you should save, besides gaining financial independence;
Why Saving Your Money Is Important
For Financial Independence
To attain a level of financial freedom, you need to cultivate a saving culture. Saving helps you afford basic necessities, manage emergencies, start a business, or invest in valuable opportunities.
Truth is, financial independence is not synonymous with being rich. It’s about having a good relationship with money.
Saving for retirement is an important goal that everyone should have. A consistent savings plan might not be glamorous today, but it will create a sense of control over your spending habits.
To cater for Expenses
The best way to cater for annual expenses is to prepare a budget and save for them in advance. It will not only save you time and money but also bring you peace of mind.
To get out of Debt
The easiest way to come out of debt is to prepare a savings plan, that would allow you to save 20% of your income. Then reach an agreement with whoever you are owing to pay them annually or quarterly till the debt is over.
How To Plan Your Savings
However, in order to save you need to have a main target or goal. This will help you strategize and plan your savings from creating a budget, setting up different accounts and building an emergency fund.
Creating a budget: On your budget, be specific about how much you have and what you really need to spend money on. Meaning that you have to cut out unnecessary expenses from your monthly budget. Beyond creating a budget, stick to it.
You can use the 50/30/20 rule as a guide to saving
- 50% for Expenses (which includes rent, food, transport, shopping, gifts)
- 30% for Savings
- 20% for Emergency funds
Setting up different accounts for certain goals or targets. You are less likely to spend money when it’s out of your reach. Until your money is safe from you, your savings will never grow.
Building an emergency fund with 20% of your income. An emergency fund will help you avoid going into debt if you ever lose your job, have to pay for medical bills or encounter unforeseeable circumstances.
If you tend to buy things on impulse, keep your card at home when going out. If you think you need something, give yourself 48 hrs to consider if it’s necessary. Otherwise don’t buy anything in a hurry.
Avoid debts, do not even buy things on credit. As a matter of fact, avoid anything and anyone that will cause you to spend beyond your budget.
Financial Independence is more than a goal, it is an intentional lifestyle that has to be maintained.