Monday, 29 April 2013

Steps To Forming Saving Habit And Financial-Freedom

Steps To Forming Saving Habit And

When I saw a thread yesterday of a young
man who is very uncomfortable because he
isn't saving as much as he really desires.
I have gone through that road before. I read
All the books you can think of on Money,
Finance Management, Business,
Entrepreneurship, Investment, Network
Marketing and Savings. Inshort currently I
have over 1,300 books of such books in my
private library but the truth still remains that
there are way more little (nitty gritty) things
one must put up as a new attitude in order to
break through the habit of not being able to
Below are some very most important things
(steps) you need to take to see a considerable
First and foremost, I want to first bring your
attention to the fact that MOST people still
don't know the difference between NEEDS and

Needs : this are those essential things they
you most likely can't do without I.e, transport
fare, Feeding, House rent, Certification or
Professional courses, Utility bills (PHCN, Water,
Recharge card, Internet).

Wants : this are things that we get to help us
feel better in our social life. Sometimes we
think we can't do without them or they are
very important but as soon as they are paid
for, we realize that we could have used the
money to pay for more essential things.
Examples of wants are 'excess' clothes or
fashion accessories, communication gadgets
(Phones, tablets, ipod, itouch, camera), eating
outs (eatries, pizza/shawama joints, suya
spots),excessive clubbing, Satallite TV
subscription e.t.c.
Below are immediate steps to take to curb
excess spending :

* Have at least THREE bank accounts in
different banks. If at all you want to have an
ATM card have it for ONLY one of the
accounts. One account should be for very long
term expences I.e, house building projects,
towards starting a business, planning for your
wedding,retirement plan.
The 2nd account should be for average long
term projects I.e House rent (once a year),
buying a car, Going for pilgrimage, vacation.
The 3rd account should be for your monthly
expenses I.e, transportation, recharge card,
internet, Cable TV, clothes, fueling of car/
generator, feeding, and alms giving (charity,
tithe, allowance to parents, siblings and
NOTE : you should only have an atm card for
this 3rd account and no other account.

* Have A Budget : everything in life is all
about planning, there's an adage that says
"he who fails to plan, plans to fail". Budget
and budgeting is an Extremely important part
of planning to have a profitable business,
happy marriage, successful career and every
other facet of life.
Ensure you have a budget for every single
day, week, month and even year. To be very
honest, keeping budget is a very difficult task
but with discipline and determination, it is
very possible and worthwhile.
You MUST STOP Impulse spending as that is
the only barrier between a rich man and an
average man.
A rich and successful man will NEVER enter a
shop/market/mall to pay for what wasn't
initially on is to buy list no matter how fine or
attractive the item is, unless he thinks he is
getting it far cheaper than the usual price.

* Have more friends who are more Business
inclined than Social inclined : if. I tell you
today that this is the MAIN reason why some
people will most likely never have a
breakthrough in life.

"Show me your friends and......" Also "Birds of
a feather......".
As funny or strange as it may sound, you will
NEVER find the likes of Dangote, Jimoh
Ibrahim, Jim Ovia, Tony Elemelu, Otedola and
others going to a social gathering or event
without the intention of coming out from that
event being more successful. They always and
only go to events to Network (expand their
business horizon), track than someone of
great relevance to them (I.e, a top Custom
Boss, CBN director, Governor, Minister and
the rest). If They weigh their option and see
such invent will not benefit their business and
financial status, trust me, even if Queen of
England or Obama will be present they will
not step foot there.
So many of us today gather friends (majority
of whom are not useful) just as a symbol to
prove how social and friendly we are.
people have been going to Viweing centre
every single saturday for the past 10years to
argue about EPL matches and all through thos
years they have NEVER benefited one single
positive thing be it contract, admission,
business or finance from the people they
meet there and yet they still claim they can't
do without going to viewing centers to watch
match. The people you have been going to
scream your voice out are getting paid and
become richer whereas the same can't be
said about you

Avoid Friends and Family Who always make
you spend : If you have friends who always
encourage you to eat out rather that
preparing home made meals, to go to the
cinemas, malls, events / shows e.t.c. This are
the type of people you should urgently avoid.
When your friends want you to attend all the
Musical and comedy shows, film premiers,
cultural and sporting events, this are thing
that unknown to you wipe out money from
your pockets than you can imagine.
Imagine going to at least 3 shows in a month
which the cheapest ticket you bought per
show is N5,000. That's approximately
N15,000. Yes it looks small but have you ever
sat to imagine those long lasting things
N15,000 could get you? It could get you
company shares, few bags of cement and
blocks, microwave oven, vacum cleaner, deep
fryer, so many beneficial and life changing
books to mention a few.

* Before you spend on anything always ask
yourself "if this item is really need and if yes,
how will it change my life" : just like so many
arguments we get into, so many spendings we
make are absolutely not necessary, if you
can't get excited for an item you paid for
after 3months then that items isn't (wasn't)
really needed in the first place.

* Never Buy things because they are in
vogue : There's always a newer version of
every phone, tablet, Laptop, car, wristwatch,
hand bag, jewellery you buy. If you have a
blackberry bold 4 that is working perfectly,
why want to buy a Bold 5, 6, touch 1,2 and 3
Z10 and iphone 5 just to prove to people you
are a big boy or girl.
Don't forget those people producing these
things keep producing the same thing (with
extremely few changes) just to remain in
business, pay staff and make profit. Using a
phone for a whole year or more doesn't make
you less of a successful person.
Have you noticed that most employees use
phones far more expensive than their
employers? Does is now prove they are more
successful than their employers? The answer
is NO!
Most people acquire things thinking they can
get respect and honor from it whereas a
successful person let's his/her her bank
statement, investment and connection speak
for them.

* Never always be the one to foot the bills
when you go outing with friends : I learned
this a very long time ago. When you go out
socializing with friends never be the one to
always foot the bill. It is always better to have
an agreement with everyone that each person
should pay for whatever they ordered. It
doesn't make you stingy or callous, it only
means you are financially intelligent. You will
be amazed to discover that so many people
never get to eat or drink as much or
expensive when they are being for it by
themselves. A guy who averagely drinks 5
FREE bottles of beer will only order for one
and sip on it for over 2 hours when he knows
he is the one to pay for his drink.

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