I have moved house twice and both occasions have taught me a life lesson that have changed the way I now approach my finances. Each time I was looking for a place, I would set a budget to limit how much rent I was willing to pay per month based on how much I felt I could afford. The apartments I saw and wanted seemed to always be over my budget and viewing a couple of apartments I decided to readjust, I mean increase my budget a bit to be able to afford the place I wanted. House hunting exposed a financial mistake that I kept making, time and time again. A phenomenon I battle with on a daily basis – allowing my need transforming into a want.
Continue reading Wants vs Needs: Finding the Balance
It was the start of the school year in 2002, Martin walked into the classroom with his new pair of Air Jordans, you should have seen the way people swamped around him to have a look, throwing compliments here and there while at it. Before the summer break Martin was, well just Martin. Now Martin was the guy who looked and walked good all thanks to the transforming power of a pair of trainers. All of a sudden Martin was now cool. After seeing what had just happened I knew what needed to be done, and so did my other friends. We were going to come back after the next break and we were also going to be transformed. We were going to take our places among the pantheon of the cool kids. You can imagine how lively the next term was, things were going to happen.
This story is constantly being replayed irrespective of the demographic, the script may vary a little. We sometimes allow our external environment to enhance us, forgetting that we are the ones that should be defining and enhancing our environment. We allow our self worth to be dependent on how we are externally perceived and evaluated. This affects various aspects of our lives including our ability to create wealth.
Continue reading From Self Worth to Wealth
I am sure most of us have heard the phrase “the rich keep getting richer and the poor keep getting poorer” more times that we can count. I know I have. However recently I had a deeper understanding of that statement and the lessons learnt broadened my perspective on wealth. Here’s what I learnt.
Continue reading Dealing with inflation like the wealthy
Hi again, so my previous post was about the need to pay yourself. If you missed, I recommend reading that post so that everything said here will make sense. The link to it is here :),
If you have been inspired to start managing your finances and paying yourself, I would like to recommend a system I believe will be beneficial to you. I like to think of it as a divide and conquer strategy and it involves these 3 simple steps;
Continue reading Divide and Conquer: A strategy to managing your finances
Allow me to introduce you to Drew. When Drew receives a monthly income, first thing Drew does is to pay bills and any other financial obligations he is committed to. Drew uses the rest of the money for necessities and upkeep, hoping to have some left to save at the end of the month. Most months he doesn’t save, sometimes he does, especially when he is determined to buy something he likes (he likes his gadgets) or wants to go on vacation.
I don’t know about you, but to me it looks like Drew does not work for himself, but rather works for others.
Continue reading Earning an income? Pay you First. Not them! You!
These past 5 years I have learnt that one of the most important things you need to do in order to improve your financial situation and set yourself on a path to wealth creation is the pursuit of knowledge and organizing that knowledge into wisdom (implementing what you know). There are various avenues of acquiring wisdom but I would like to emphasis on reading. Here are 5, to mention a few, ways (from personal experience) reading can improve your situation;
Continue reading Want Wealth? Pursue Wisdom. Here’s Why.