In essence, Simply Organise Your Life!
Many people wonder why their finances aren’t in good shape.
The answer is simple; ‘Their life lacks a definite focus.’ The number one determinant of a financially balanced life is
the centre. What holds your centre together? A popular African novel started
with this quote, “When the centre does
not hold, things fall apart.” The same is true for our finances.
Do you know why it is called personal finance? It is because
it has to do with you- YOUR PERSON! Your finances (spending, saving, etc) are prioritised according to your life values.
So if your finances are fit and shapely, it is because YOU
have them focused on where your person is directed, and on what defines your person.
If your finances look shabby
and disorganised, it is because YOU are living life daily as it comes- no
focus, no goals!
Some real life examples
Check out very developed countries, and compare them with undeveloped
countries like ours-Nigeria. What do you see? You will notice that the budget of
developing countries for a new fiscal year comes out late. For example, Nigeria’s
National Assembly only just passed the budget for the 2015 fiscal year in
April! How can you say you want to be wealthy and live in surplus yet your
budget is shoddily done?
But do you know why that occurs? Our leaders lack vision and
rule the country without purpose. They are going nowhere, and taking us along
with them. It’s so sad that we seem to follow aimlessly too. [Hopefully things
will change in Nigeria with the new government.]
Let me give you another example. What is the difference
between a thriving company and one that is barely surviving...? If you said ‘Cashflow’, you are right! What
determines a good cashflow? The budget! What makes a successful company make
and stick to its budget? Its vision!
Many people fail to see that prosperous countries, wealthy
businesses and successful people achieve all that simply because they live with
a focus, a vision! You will not budget, or stick to one (even if you do) unless
you are motivated to achieve a goal, vision or target.
I was talking to a friend the other day who said the cinema-house company he works for isn't making money. But then he told me the Directors (investors and founders) take money at will out of the company's account, employ people -family and friends- who write their own bills and do not pay taxes out of their salaries, etc. So I told him that the company makes money, it is the owners that are bleeding it slowly due to their poor financial choices and lack of vision.
If you find out your finances aren’t organised, it is
because your life lacks a good centre. Steven Covey talks about the principle-centred
life (You can find out more by reading his bestseller- 7 habits of highly effective people). What many need is simply to
set goals for their life, and review them, regularly.
In summary, to have a balanced and organised ‘personal
finance,’ you have to:
- Set financial goals for yourself. The road to wealth is paved with goals. You can watch the video from George Kinder to fully grasp the point. Or follow this link to read more about the three (3) questions that will get your life and finances on the right track.
- Have a plan on how to achieve your goals. Yes, take the pains to make a plan.
- Seek and join (or create) a network/community that will help you achieve your goals. It might be a committee of friends, a cooperative society/social club, your religious organisation, or even a bank. You need people to achieve good success. No man is an island.
(Credicoins Network -which is all about helping people/Africans organise their personal finances- will also help in this regard.) - Start immediately and keep reviewing/evaluating your plan to find out how far and how fast (or how slow) you are going. And make appropriate changes afterward.
Thank you for reading. My very desire remains to see you become rich...very rich...so rich that people say you have become too rich!
See you at the very top.
[N.B: These are the three Kinder questions (for those who won't use the link above)
- Imagine you are financially secure, that you have enough money to take care of your needs, now and in the future. How would you live your life? Would you change anything? Let yourself go. Don’t hold back on your dreams. Describe a life that is complete and richly yours.
- Now imagine that you visit your doctor, who tells you that you have only 5-10 years to live. You won’t ever feel sick, but you will have no notice of the moment of your death. What will you do in the time you have remaining? Will you change your life and how will you do it? (Note that this question does not assume unlimited funds.)
- Finally, imagine that your doctor shocks you with the news that you only have 24 hours to live. Notice what feelings arise as you confront your very real mortality. Ask yourself: What did you miss? Who did you not get to be? What did you not get to do?
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