Are You Spending Your Money Wisely?

Are You Spending Your Money Wisely?

Today’s topic, like a cup of water taken from an ocean, is with precision, drawn from a well of wisdom, of which I would obviously refer to as the Bible, a book I love so much. I would pull my premise from events that portray how our suspension of an immediate gratification can determine the outcome of our hopeful anticipation of what we call “the future” which I would refer to as today in disguise. Unknown to the ignorant majority is the information that based on the decisions we make in the present, “our future” can be predicted with certainty, zero flaws, and no mistakes, taking into cognizance errors due to parallax.

I want my future to be perfect…actually, I need my future to be perfect, consisting of a beautiful family, a successful business and a lot of money. How I wished it plays out exactly the way the script in our head is written, and sometimes, it does play out as such if the necessary effort required to create the image, in reality, is made available in geometric progressions.

One of the many events that portray a future-minded mentality, had king Solomon advising his subjects to build their business first before building their houses and I totally understand his argument, but do I agree with that? Well, that’s a question for another day. Am I saying we should not build a house? Far from it, but Robert Kiyosaki in his book “Guide to investing” says “The only reason why you build a business is so that the business can buy you assets”. Both Gates and Buffet became rich not because of their high salaries or their great products but because they built great companies and took the companies public.

A write-up went viral some time ago about Shina Peters who built his house with 20million and Jim Ovia who started Zenith bank with the same amount and except you’re a stranger who happens to be deaf, blind and in isolation, then the information that Zenith Bank has more than 500 branches and business offices in all states in Nigeria with subsidiaries in UK, South Africa, Ghana, Sierra Leone, and Gambia is definitely new to you, well now you know, because when your house is diminishing in value, your business will be soaring.

My mentor James Attucher, a multi-millionaire in dollars, wrote a post on why people should not buy houses in America. He said this “I would rather shoot myself in the head than purchase a home” and went ahead to give 7 reasons to justify it, of which immobility, illiquidity, cash trap, levy payment forever are a few amongst the list. While I may not totally agree with all he is saying on the topic, I still believe he has a point because a lot of people believe that buying houses is an investment; however, in the long run, good is not the adjective that qualifies the investment.

Let’s be a little practical about this. So you purchase a home, let’s say for R450,000 in South Africa, this kind will only give you like R5000 in rent every month. Let’s remove levy and insurance of R1200, you have R3800 coming back to your investment monthly. In a year, you have R45600 as profit. Now let us use the money to buy two cars, give them to Uber or Taxify and you will be given R3000 every week which is pure profit. On the two vehicles, you will be making R24000 on a monthly basis. Your insurance on the two cars will be R2000 leaving you withR22000. Your yearly profit will be a whopping R266,664.

Making right investments and spending money on things that will yield returns is a virtue to be cultivated by anyone who happens to want sustainable wealth. Know where to put your money and when to put your money and why. Spending money on assets and not liabilities is the one way to make money grow. You can either work for money or make money work for you, the choice is yours!

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