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| Glo Ambassador and Actor Odunlade Adekola with Actress Laide Bakare |
Gosh this is a
hard one for me. I have to admit I find this one of the most difficult to take
on board. How am I to learn this one? Any tips? I know I should:
hard one for me. I have to admit I find this one of the most difficult to take
on board. How am I to learn this one? Any tips? I know I should:
• Budget for
today and only for today. If I don’t have it, I don’t spend it.
today and only for today. If I don’t have it, I don’t spend it.
• Ignore what I
think or know is coming in, in the future.
think or know is coming in, in the future.
• Put loads
aside for tax – no, even more than that.
aside for tax – no, even more than that.
• No loans,
overdrafts, no borrowings of any sort so I won’t be tempted to use future
income to payoff debts run up today – or the reverse, run up debts today
knowing that income from the future can be used to pay them off (very naughty).
overdrafts, no borrowings of any sort so I won’t be tempted to use future
income to payoff debts run up today – or the reverse, run up debts today
knowing that income from the future can be used to pay them off (very naughty).
“The bubble has to burst somewhere and if you are
always spending in advance you will get caught out one day”.
The downside of
spending future income is:
spending future income is:
• The income may
not materialize or be less than you thought.
not materialize or be less than you thought.
(Counting
chickens that never hatch)
chickens that never hatch)
• The bubble has
to burst somewhere and if you are always spending in advance you will get
caught out one day.
to burst somewhere and if you are always spending in advance you will get
caught out one day.
• It encourages
sloppy financial planning.
sloppy financial planning.
• Whatever you
bought will have long lost its appeal or wear out, get broken or even
completely forgotten.
bought will have long lost its appeal or wear out, get broken or even
completely forgotten.
• You lose touch
with reality – the future isn’t real until it becomes today – and as such you can
overspend only too easily.
with reality – the future isn’t real until it becomes today – and as such you can
overspend only too easily.
I guess I need a
four-point plan:
four-point plan:
1. Question
whether I need a particular thing today or could wait until later to buy it – a
useful ploy as once the ‘blood lust’ has worn off the appeal often wears off
too.
whether I need a particular thing today or could wait until later to buy it – a
useful ploy as once the ‘blood lust’ has worn off the appeal often wears off
too.
2. Question
whether it is worth it. Obviously, if buying today against tomorrow’s income,
you will incur interest – so is it worth the extra?
whether it is worth it. Obviously, if buying today against tomorrow’s income,
you will incur interest – so is it worth the extra?
3. Question the
risk factor. If I commit myself today, what if my circumstances change and I
need that future income for other purposes?
risk factor. If I commit myself today, what if my circumstances change and I
need that future income for other purposes?
4. Question that
if I spend today I might not have income for a really exciting spend that might
come up – better to keep it just in case.
if I spend today I might not have income for a really exciting spend that might
come up – better to keep it just in case.
Follow this with me and it should reduce our credit
card balances considerably.
card balances considerably.
From The Book; The Rules of Wealth by
Richard Templar
Richard Templar
(Read Rule
83 of Rule of Wealth tomorrow on Asabeafrika)
83 of Rule of Wealth tomorrow on Asabeafrika)
Read-to-Wealth Series
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