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| Mr. Femi Awoyemi, Accomplished Accountant & Founder, Proshareng.com |
It’s so
important that I will repeat it: don’t borrow money unless you really, really
have to. And even then don’t. Not unless you are borrowing off someone who is
lending it interest free, no strings, not secured against your house, no
potential for messing up friendships – and that sounds like cloud cuckoo land.
Ha, there is no such thing as free money (or a free lunch).
important that I will repeat it: don’t borrow money unless you really, really
have to. And even then don’t. Not unless you are borrowing off someone who is
lending it interest free, no strings, not secured against your house, no
potential for messing up friendships – and that sounds like cloud cuckoo land.
Ha, there is no such thing as free money (or a free lunch).
If someone lends
it, they’ll want it back – plus. And that plus is what kills most of us, stops
us from becoming prosperous. It has to be nipped in the bud. And if it’s too
late for that, then it needs to be severely pruned. We have to get rid of that
plus.
it, they’ll want it back – plus. And that plus is what kills most of us, stops
us from becoming prosperous. It has to be nipped in the bud. And if it’s too
late for that, then it needs to be severely pruned. We have to get rid of that
plus.
The plus is
usually financial (i.e. interest on the loan) and this is what usually cripples
people. However, the plus can be emotional also – if you borrow from friends
and family it can cause all kinds of other complications – it’s never ever
simple.
usually financial (i.e. interest on the loan) and this is what usually cripples
people. However, the plus can be emotional also – if you borrow from friends
and family it can cause all kinds of other complications – it’s never ever
simple.
“When you are starting a business, advisers often
say it’s OK to borrow off people you know because they are willing to support
you etc. But the novelist Jilly Cooper
says she is wary of lending money to friends as it is terribly difficult to see
someone at Christmas and give them a hug knowing they owe you £10,000”.
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Payoff your
loans and debts before you do anything else. It’s the only way to get rid of
the plus. I know, I know, lots of people borrow money to start their own
business and then go on to make millions
and what am I talking about– we all have to borrow, don’t we? Do we? I have a
friend who started his own business with three friends. They all put in £500
and ran the business for 15 years. Then they sold it for £43 million. Yep, and
not a penny borrowed. The upshot was they had to share with no one – and at
times like this you don’t want to share, no matter what your parents said about
how we all should learn to share.
loans and debts before you do anything else. It’s the only way to get rid of
the plus. I know, I know, lots of people borrow money to start their own
business and then go on to make millions
and what am I talking about– we all have to borrow, don’t we? Do we? I have a
friend who started his own business with three friends. They all put in £500
and ran the business for 15 years. Then they sold it for £43 million. Yep, and
not a penny borrowed. The upshot was they had to share with no one – and at
times like this you don’t want to share, no matter what your parents said about
how we all should learn to share.
I have another
friend who borrowed heavily to launch his business, which he successfully sold
for £8 million. But nearly every penny of that went into loan repayments and
interest. He was left with very little and, having not learnt his lesson,
proceeded to start another business with capital raised by money loaned from
the City. But he says he has learnt a lot because this time he’s only borrowed
£3 million. Ho! ho!!!
friend who borrowed heavily to launch his business, which he successfully sold
for £8 million. But nearly every penny of that went into loan repayments and
interest. He was left with very little and, having not learnt his lesson,
proceeded to start another business with capital raised by money loaned from
the City. But he says he has learnt a lot because this time he’s only borrowed
£3 million. Ho! ho!!!
When you are
starting a business, advisers often say it’s OK to borrow off people you know
because they are willing to support you etc. But the novelist Jilly Cooper says she is wary of
lending money to friends as it is terribly difficult to see someone at
Christmas and give them a hug knowing they owe you £10,000. Personally I would
find it hard to hug someone who owed me a lot less than that!
starting a business, advisers often say it’s OK to borrow off people you know
because they are willing to support you etc. But the novelist Jilly Cooper says she is wary of
lending money to friends as it is terribly difficult to see someone at
Christmas and give them a hug knowing they owe you £10,000. Personally I would
find it hard to hug someone who owed me a lot less than that!
12 People you must not borrow from.
Try not to
borrow from:
borrow from:
• Your parents
• Your children
• Other people’s
children
children
• Friends
• Lovers
• Passing
strangers
strangers
• Loan sharks
• The City
• The banks
• The credit
card companies
card companies
• Offshore
investment bankers of any sort
investment bankers of any sort
• Me
From The Book; The Rules of Wealth by
Richard Templar
Richard Templar
(Read Rule
38 of Rule of Wealth tomorrow on Asabeafrika)
38 of Rule of Wealth tomorrow on Asabeafrika)
Read-to-Wealth Series
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