STOP

Over the years, I’d seen the rich becoming poor and I’d seen the poor becoming wealthy and famous and this has nothing to do with them engaging in money ritual or doing anything illegal as the religious people had made many to believe that once you’re rich, wealthy and famous you had dabbled into something evil.

Some things require common sense; and it is unfortunate that the common sense many do not have especially the deeply religious individuals. As I do tell people; common sense is never common. And this is the very reason why we have so many ‘senseless’ individuals in the world today.

I’m not a financial expert. But I’m a student of life and common sense. And haven lived this life for over two decades, I can categorically say that I know some things many do not know and if you’ll remove your religious cap and make a decision to learn something new, I bet you, you’ll see your life transforming at the speed of light and things falling in place for you.

Making money, saving money and investing money is one aspect of life the school and the religious organisations will never teach you. As a matter of fact, the religious organisations teach you more on how to spend and spend without thinking; with the belief that the more you spend, the more God will bless you. But alas, majority of them either end up imprisoned by poverty.

Proverbs 21:20 is one verse of the scripture most religious leaders of organisations will never touch; yet, it is one verse of the scripture you needed most if truly you want to live a fulfilled and meaningful life.

I’m going to quote different versions of the Bible of Proverbs 21:20; please pay closer attention to what King Solomon said as you read each version of the same verse

In the house of the wise are stores of choice food and oil, but a foolish man devours all he has. NIV

There is precious treasure and oil in the dwelling of the wise, but a foolish man swallows it up. NASU

The wise have wealth and luxury, but fools spend whatever they get. NLT

Precious treasure and oil are in a wise man’s dwelling, but a foolish man devours it. ESV

Valuables are safe in a wise person’s home; fools put it all out for yard sales. TMB

There is desirable treasure, and oil in the dwelling of the wise, but a foolish man squanders it. NKJV

In the home of the wise are fine treasures and oil, but a fool quickly devours it. CJB

Wise people’s houses are full of the best foods and olive oil, but fools waste everything they have. NCV

There is desirable treasure and olive oil in the dwelling of the wise, but a foolish person devours all he has. TNB

The wise man saves for the future, but the foolish man spends whatever he gets. TLB

There are precious treasures and oil in the dwelling of the wise, but a self-confident and foolish man swallows it up and wastes it. AMP

Wise people live in wealth and luxury, but stupid people spend their money as fast as they get it. GNT

Precious treasure and oil are in the dwelling of the wise, but a foolish man consumes them. HCSB

Whatever makes you spends, consumes, swallows, devours, waste, squanders and sell everything you have is a proof of your stupidity and foolishness. And I really don’t care what you are spending on so long it is not life threatening.

Some many people are of the habit of spending the money they haven’t earned, to buy things they don’t need, to impress people they don’t like. It is a proof of madness to save what is left after spending. The wise and the prudent are of the habits of spending what is left after saving.

Any fool can spend money; including the mad man on the street. But to earn money and save money and defer gratification is to learn to value money differently. You don’t know the values of life or what life is until you understand the value of money no matter how little it is.

To understand what money is, you must understand what “Financial Intelligence, Financial Planning and Financial Discipline” is. Until then, your financial life remains zero.

FINANCIAL INTELLIGENCE

Financial Intelligence is the ability to understand and effectively manage your financial affairs. A combination of knowledge, skills, and attitudes, that enable you to make informed decisions about your financial resources, both in the present and in the future.

To be financially intelligent, you must be competent in the following areas:

Budgeting.

Create and maintain a budget, allocating money to different expenses and savings goals.

Investing

Understand different types of investments, risks, and returns, and choose appropriate investment strategies.

Debt Management

Understand the costs and risks associated with borrowing money and managing debt responsibly.

Financial Planning

Develop and implement long-term financial plans that align with your personal goals and priorities.

Risk Management

Understand and manage financial risks, such as loss of income, unexpected expenses, and market volatility.

Financial intelligence is a vital aspect of your personal finance. It includes core components such as financial literacy, numeracy, and emotional intelligence; and requires a range of skills and competencies. However, understanding these components and skills is very crucial if you are to develope financial intelligence.

Financial literacy is the knowledge and understanding of financial concepts, such as budgeting, saving, investing, and debt management.

This means that it is very important that you place yourself, and spending on daily, weekly and monthly budget. With this you can track your spending, know how much you are spending and what you’re spending on.

Once your spending is closely monitored, then you can decide what you are saving from your earnings and what you are saving towards. The saving habit of cause gives you the opportunity to invest be it in business, properties or in any ventures that can bring financial returns no matter how little or much it might be.

This of cause will also help you to manage your debt very well. This debt management of a thing is one aspect of life many had not learnt. Something happened to an older friend of mine some years back. He owed a bank millions of Naira and instead of him servicing the debt he kept jumping from one Pastor to another asking them to pray that the bank should not take over his business. But I know that is not possible. Eventually, his business was taken and sold to a higher bidder.

Prayers don’t bring money or pay debts. You develop the capacity to make money and if you are owing, you come up with a strategy to pay off. If you borrow money from anyone or from any financially institutions and you refused to pay back or asking God to touch their heart to write off your debts as some religious leaders are teaching; you’re a wicked man and so is anyone teaching you such and the bible established that in Psalm 37:21-22 saying; “the wicked borrow and do not repay, but the righteous give generously; those the Lord blesses will inherit the land, but those he curses will be cut off. NIV

I love the way other translations puts it saying;

Wicked borrows and never returns; righteous gives and gives. Generous gets it all in the end; stingy is cut off at the pass. TMB

The wicked borrow and never pay back, but good people are generous with their gifts. Those who are blessed by the Lord will possess the land, but those who are cursed by him will be driven out. GNT

The wicked borrows and does not repay, but the righteous shows mercy and gives. For those blessed by Him shall inherit the earth, but those cursed by Him shall be cut off. NKJV

Do you then know what the life and end of the wicked will be? In Job 18:5-21 it was said that; “the light of the wicked indeed goes out, and the flame of his fire does not shine. The light is dark in his tent, and his lamp beside him is put out. The steps of his strength are shortened, and his own counsel casts him down. For he is cast into a net, by his own feet, and he walks into a snare. The net takes him by the heel, and a snare lays hold of him. A noose is hidden for him on the ground, and a trap for him in the road. Terrors frighten him on every side, and drive him to his feet. His strength is starved, and destruction is ready at his side. It devours patches of his skin; the firstborn of death devours his limbs. He is uprooted from the shelter of his tent, and they parade him before the king of terrors. They dwell in his tent who are none of his; brimstone is scattered on his dwelling. His roots are dried out below, and his branch withers above. The memory of him perishes from the earth, and he has no name among the renowned.

18 He is driven from light into darkness, and chased out of the world. He has neither son nor posterity among his people, nor any remaining in his dwellings. Those in the west are astonished at his day, as those in the east are frightened. Surely such are the dwellings of the wicked, and this is the place of him who does not know God.” NKJV

If you borrow money from individuals or organisations and you think or believe that you don’t have to pay back because the earth belong to the Lord and it’s fullness thereof; also remember that the earth God had given to the sons of Men, and the earth will either respond to you or react to you, depends on your actions and deeds towards others.

Numeracy on the other hands involves the ability to use and interpret numerical data, such as financial statements, ratios, and investment performance metrics. You need a financial guru to show you how this works and keep to it.

Emotional intelligence is your ability to manage your emotions, and behaviours related to money, such as impulse buying, financial stress, and procrastination. This is very important; and your first point of addressing this is to find out what your weaknesses are and begin to guide against it.

To achieve this, you need to require financial intelligence skills which includes…

Critical thinking and problem-solving

Develop and acquire the ability to analyze financial information, evaluate options, and make informed decisions.

Communication and collaboration

Develop the ability to communicate financial information effectively and work with your spouse and others to achieve financial goals.

Planning and organising

Make is an ability to set financial goals, create a financial plan, and manage resources effectively.

Develop the ability to adapt to changing financial circumstances, overcome setbacks, and manage your financial stress.

Make it a point of duty to increase your financial knowledge. Financial literacy is the foundation of financial intelligence.

It is therefore important that you track your spending. This of cause will help you to identify areas where you can cut back and save money. You can use tools such as budgeting apps or spreadsheets to track your expenses and create a budget.

Saving is very crucial to been financially stable. I advice and suggest that you start saving early and consistently. Set up automatic transfers to a savings or investment account. The key is to make saving a habit and prioritize it over unnecessary expenses. For me, I’ll suggest that you consider investment account over savings account.

While investing is good, investing wisely is very crucial and it’s a critical aspect of building long-term wealth. You can start by investing in low-risk options such as mutual funds or index funds. It is important to understand the risks and returns of different investment options and diversify your portfolio. Most banks now have investment arms of their business; talk to your account manager, he or she should be able to guide you right.

Putting money in investment and not managing your debt if you are indebted in any kind or form is more of you building with one hand and destroying with the other. Debt is a huge obstacle to financial intelligence; therefore, manage your debt responsibly and avoid high-interest debts.

Make it a point of duty to create a financial plan. This will help you to prioritize your financial goals and develop a roadmap to achieve them. Make sure your plan includes short-term and long-term goals, like building an emergency fund, paying off your debt, and saving for retirement. Review your plan regularly and adjust as your financial circumstances change.

Now, when I said “paying off your debt” I’m not talking about vows and financial promises you made in your religious organisations. That’s not what I’m talking about. I’m talking about debts that can affect your finances and take you from grace to grass like my friend that failed to service the debt he borrowed.

To do this effectively, practicing financial discipline must come to play. It is critical that we develop discipline and self-control when it comes to been financially intelligence and this we can do by sticking to your budget, avoiding unnecessary expenses, and resisting the temptation to make impulsive purchases.

Above all, get a Financial Adviser to provide you with personalised advice and guidance on personal finance and investing. The Financial Adviser can also help you to develop a financial plan, manage your investments, and make informed financial decisions.

I must be sincere with you; building financial intelligence is not an easy task. It requires a combination of knowledge, skills, and the right attitude. But if you can follow the steps outlined above, I guarantee you strong financial capabilities comb with long-term financial stability and security. As we all know that building financial intelligence is a journey, not a destination, which requires ongoing learning, practice, discipline and staying focused.

FINANCIAL PLANNING

The future belongs only to those that planned for it today. The future all by itself is uncertain, as we all know; anything can happen at any time. Therefore, it is essential that we plan for the future before the future arrived.

While it is good to hope for the best, it is also necessary to plan for the worst. Unexpected life threatening circumstances can shake up your finances considerably. This is the reason why you need to have an emergency fund to deal with such issues. It is therefore important that you keep certain amount equal to Six Months’ Salary as a contingency fund. This can be invested in a liquid fund so that you can access the money quickly in case of an emergency.

It is important that you enjoy what is left of your life after retirement to the fullness. It is undoubtedly a good thing. Enjoy more time with your family, explore your passions, dreams and even travel around the world. But before you think of all these, you need to ask yourself a crucial question: how can I fund all these expenses? Well, this is possible only if you have adequate amount of money that can get you the kind of enjoyment retired life you so desired. My advice, have a financial plan that provides regular income post retirement.

Managing your money in the best possible manner is the key to financial stability. Take this from me, trying to satisfy the needs of your family members is a major trick to your financial fulfillment. Note that the children will always need something different from one another and this will always eat into your finances if and when you failed to plan your finances. When it comes to personal finance, planning is critical. It will not only help you to understand the needs of different family members but also how you can achieve them. But still; it is important that you manage your money in the best possible manner.

Putting all your money in savings in a bank account is a proof of foolishness. But putting the money in mutual funds can and will definitely provide you with better annual yields. My advice is to identify your family needs; and I mean your immediate family; not extended family, make your money work actively to achieve your family needs by putting it in the right portfolio that will yield enough to cover the needs.

To create a successful financial plan, you need to first and foremost understand your current financial situation. Determine the status of your current finances, viz., your income, expenses, debt, savings and investments. This are the first steps in financial planning, these automatically gives you a good sense on the state of your finances and ways to improve it.

The next thing you do is to write down your financial goals. Ask yourself some critical questions such as; “what are the different financial goals I wish to achieve in life?’ Get a Diary and write down your financial goals; and make sure that your goals are specific. For instance, in the next six months, I want to save One Million Naira. Then make sure every time, any time money enter your hand you save larger percentage of the money no matter how little it is and no matter what happen to you, you don’t touch the money.

Now, saving money without tying it to something can be dangerous. Anything can happen that will make you to start spending the money. So, the best way to save money is to invest it and there are numerous investment options available to you; you only have to speak with your bank account manager or a stockbroker. Mutual fund market has the largest investment schemes; you might look into that. But you also have to bear in mind that different investment avenues help you to achieve different goals. To dig further, equity funds are suitable for long-term goals like retirement planning, child’s education, etc. Debt mutual funds are for steady income and risk averse. When it comes to investing, financial experts have highlighted the importance of mutual funds. Investing in these funds consistently over a longer period will definitely help you to achieve your dreams and goals.

Having the right plan is not as important as implementing the right plan. There is a need for you to select the right investment option based on your goals, age, risk appetite and investment amount. If you are unsure on the funds you need to select for your portfolio, you can avail the services of a financial advisor. These are professionals who help investors make the right investment choices. They also help with other aspects like insurance, retirement planning, estate planning and taxation. Now, don’t say how much am I earning that I should invest? My dear, start with what you have.

Many people make mistakes of putting their money in an investment and going to bed to sleep. That’s an error. Make it a point of duty to monitor your financial plan regularly. Remember that the financial planning process does not end once you invest your money. It’s also requiring that you monitor how the funds are performing regularly. If they don’t perform, you may need to replace them with better performing funds.

FINANCIAL DISCIPLINE

Anything that is based on discipline will definitely yield positive results. Discipline comes to mind when individuals or group of people discuss making improvements to their lives, habits, health or finances.

Financial discipline is the determination to develop a set of rules to achieve your financial goals; making informed decisions for your spending and saving. A skill meant to make you have control over money rather money having control over you.

Know these and have peace.

Dishonest money dwindles away, but he who gathers money little by little makes it grow.

Prov 13:11 NIV

Of what use is money in the hand of a fool, since he has no desire to get wisdom?

Prov 17:16 NIV

Whoever loves money never has money enough; whoever loves wealth is never satisfied with his income. This too is meaningless.

Eccl 5:10 NIV

Wisdom is a shelter as money is a shelter, but the advantage of knowledge is this: that wisdom preserves the life of its possessor.

Eccl 7:12 NIV

A feast is made for laughter, and wine makes life merry, but money is the answer for everything.

Eccl 10:19 NIV

Don’t I have the right to do what I want with my own money? Or are you envious because I am generous?’ Matt 20:15 NIV