Despite Subsidy Removal, Behold 7 Ways to Boost your Finance and Build Wealth
Posted: October 26th, 2023, 8:18 am
Now that the pangs of subsidy removal effects are here, and we are adjusting to what seems to be our new normal, taking the time to manage your money better will definitely pay off. With drastically reduced Naira purchasing power, skyrocketing prices, soaring inflation, currency devaluation and more, it is high time we became money-smarter.
More often we tend to believe that earning more money automatically translates to wealth. However, experiences have shown that this is not really true. There is another factor that is equally as important as making more money. And this factor, when defective, can make one look as though he's not making enough money at all. And unless addressed, such person will never attain financial mastery and independence, and hence fulfillment. That factor is Financial Habits.
No matter how much you make, if you fail to master your habits, you can remain very poor forever, never having enough. never breaking free from the financial slavery of spend-it-before-you-earn-it debt doom cycle. However, if you can cultivate the following seven habits I am about to unveil, the earlier the better for you. Even if you don't make more money, you will at least manage and apply the little you have to live a life of rest of mind void of many financial heartbreaks, uncertainty and potholes. These seven factors and habits will tell whether you are barely making a living or you are actually building wealth.
Below are the 7 ways you can boost your finance and possibly build wealth despite subsidy removal.
1. Living below your means
Living on less than you make is a critical approach necessary to building and maintaining wealth and financial stability. It also helps avoid debts big time. Spending as much as you make or even more than you make will definitely enslave you into an eternal gallows of a life cycle of make-it-spend-it cycle. One in which you are just one paycheck away from being broke, homeless, car-less, hopeless or even dead. That is not the best of lifestyles. You deserve to live a life of rest of mind and financial stability. Living on less will help you able to have money for other purposes life emergency savings, retirement savings, investments and many more that can help you look into the future with at least some rest of mind.
To achieve this, it is important to check your lifestyle and spending habit.Do you impulse-buy? Do you even have a budget for your income/salary?
2. Multiple streams of income
In finance and investment, it is a well known fact that you do not put all your eggs in just one basket. It can be hard to become financially independent on just one stream of income. For employees, if you lose your job, that may be the end of all income and you may be left broke or desperately looking for another job immediately, or you will be forced to dip into your savings. All these will definitely leave you broke or even in large debts in no time to pay your bills.
Having alternative sources of income tends to provide a financial cushion or shock absorbent in times of such distress. And also, multiple sources of income build wealth faster!
Great ways to build passive income or multiple/alternative income sources could be through side investments of side hustles. Some invest in rental properties that generate income. Some could try high yielding stocks. A side hustle has now become a great topic these days. Side gigs work best if they fit well into your time without stretching you too much, and its something you have skills knowledge and passion for, and that does not conflict with your current day job.
The best kinds of side hustles are what you love doing. Can you freelance? Affiliate marketing? Design logos or websites? Teach? There are numerous money-making opportunities out there that can fit right into your schedule and also fetch you good income. It is becoming more rampant these days that people end up resigning from their day jobs to face their long time side hustles 100% after realizing it makes them more income than a 9 to 5 does.
3. Let your money work for you
People who end up being wealthy in life do not work for money all the way. At some point, they put the money they have to work! And when you let money work without distracting her, she performs miracles. She multiplies herself!
Am I speaking in tongues? No. Only solid investment plans and actions create sustainable wealth. Salary will not take you there. A Yoruba adage says:
Day job (work) is for making a living. But investments (trade) makes one rich. (Ise omo alaseje, owo omo alasela!)
That is the truth! Rarely will you find a salary job that can take you to your financial dream of being independent and maybe rich. Work (salary) will only sustain you up until you have been well spent and your youthful vigor expended to the last drop by your employers till you reach retirement. And pray that your pension comes. Is that the best life to live? I bet you deserve better.
Accruing wealth requires real capital investments. This involves putting money into products and services to make profits while still not losing your investment seed. You may start a company or build a product which you market and sell.
Of course this requires taking calculated risk. But running away from the risk will jeopardize your financial future. Or compromise your dreams of becoming financially stable someday. Take calculated risks, and protect your investment with savings plan. Businesses thrive when you don't tamper with the working capital and especially when you plough back any profit into the business. That is why you need what I call the Rainy Day savings. This will support you in lean times without jeopardizing your investments. So, t a point real quick, let money start working for you. Invest.
4. Giving back
Fulfillment in life is not only about how much you have, but important is also how much you have given back and how many lives you have touched. I admire with awe learning of many American billionaires who make it a habit to give back by helping the less privileged and also empowering others. Even if you are not yet a billionaire, there are ways through which you can give back. And know what? It's for your won benefit.
When you cultivate the act of giving, and when you empower and enrich others, you are securing your own future I will the following ways:
One, it connects you with the world and your community at large. It's very rare to make sustainable wealth without people. We all need people. People around us are our greatest assets. They are the ones who OK would patronise you, they are the ones who would recommend or condemn your dreams.
Second, givers never lack. It's and act of nature. To receive, you need to open your hands. It will be hard to receive on a tight-fisted hand. This does not mean that you should give out senselessly even your own little means of survival. But cultivating the act of giving back help bestow on you blessings from the heart of the people.
Third, giving back leads to fulfillment. When you help a charity course, or you aid the less privileged, or you help someone achieve a life dream, or you help the needy, tell me, what feelings grow in your heart? Unparalleled joy and fulfilment and satisfaction. This is the calling of every human who has the ability.
Sometimes ago, I donated a little fund via the World Food Program to starving children in an area of the world hit by earthquake. Each time I remember that little act, I feel some sense of joy. Cultivate the art of giving back today.
5. Build good money habits, get rid of bad
Now is a good time as any to practice frugality. Avoid impulse buying, create a budget that works for you, and stick to it. By implementing a budget, you can avoid money pits and save up spare cash for emergencies.
Those that had a previously established emergency fund when the pandemic hit can testify to how having one softened the blow on their finances. Try as much as possible to replenish what has left the fund, and if you don’t have an emergency fund, now is the time to start building one in a savings account with high interest.
6. Get rid of bad debt
Being debt-free is a lifetime commitment that requires you to always live below your means. However, some extenuating circumstances can land you in a pile of debt. The best thing to do? Start prioritizing paying them off! Pay off your high-interest debt first and try as much as possible not to incur any more debt.
Track your spending by creating and following a budget. This will help manage what you have more effectively. Once your overall spending falls in line, you’d be able to find the balance between paying off debt and working towards financial stability.
7. Educate yourself
The more you improve on your financial knowledge, the better you become at managing your finances. Reading a personal finance book is a great way to start, and the knowledge you’ll gain will prove invaluable.
You can also take courses focused on an area of financial development you’re interested in, and talk to professionals in the finance industry. Spending time to learn more about your personal finance can be enlightening, and when this knowledge is strategically implemented, the effect will be transparent.
And that is the benefit of joining Aza Hub. Here we share financial education. Stay. Invite others.
Conclusion
In conclusion, there is a thick fine line between barely making a living and actually building wealth. The 7 habits discussed above may not make you reach automatically. But even in the short to medium term, you will start experiencing improvement in your financial mastery. Talking of simplifying your lifestyle, to avoiding impulse buying, and the importance of budgeting, alternative source of income, and giving back, you can live a life free of avoidable heartaches and financial malady which can ruin your happiness and fulfilment in life.
Good luck.
More often we tend to believe that earning more money automatically translates to wealth. However, experiences have shown that this is not really true. There is another factor that is equally as important as making more money. And this factor, when defective, can make one look as though he's not making enough money at all. And unless addressed, such person will never attain financial mastery and independence, and hence fulfillment. That factor is Financial Habits.
Below are the 7 ways you can boost your finance and possibly build wealth despite subsidy removal.
1. Living below your means
Living on less than you make is a critical approach necessary to building and maintaining wealth and financial stability. It also helps avoid debts big time. Spending as much as you make or even more than you make will definitely enslave you into an eternal gallows of a life cycle of make-it-spend-it cycle. One in which you are just one paycheck away from being broke, homeless, car-less, hopeless or even dead. That is not the best of lifestyles. You deserve to live a life of rest of mind and financial stability. Living on less will help you able to have money for other purposes life emergency savings, retirement savings, investments and many more that can help you look into the future with at least some rest of mind.
To achieve this, it is important to check your lifestyle and spending habit.Do you impulse-buy? Do you even have a budget for your income/salary?
Those are words from the mouths of financial experts. To achieve this, you may need to simplify your lifestyle and also stop comparing yourself to others. Learn to be frugal and avoid all unnecessary luxuries that drain your pocket. This may involve going for an economy car or class, eat more at home rather than at expensive restaurants and other extravagant spending. You need to really control your spending. With this, you can be sure you save at least 10%, or even 30% of your income/salary every month."Poor people spend their money first and save what's left. Rich people save their money and spend what's left"
2. Multiple streams of income
In finance and investment, it is a well known fact that you do not put all your eggs in just one basket. It can be hard to become financially independent on just one stream of income. For employees, if you lose your job, that may be the end of all income and you may be left broke or desperately looking for another job immediately, or you will be forced to dip into your savings. All these will definitely leave you broke or even in large debts in no time to pay your bills.
Having alternative sources of income tends to provide a financial cushion or shock absorbent in times of such distress. And also, multiple sources of income build wealth faster!
Great ways to build passive income or multiple/alternative income sources could be through side investments of side hustles. Some invest in rental properties that generate income. Some could try high yielding stocks. A side hustle has now become a great topic these days. Side gigs work best if they fit well into your time without stretching you too much, and its something you have skills knowledge and passion for, and that does not conflict with your current day job.
The best kinds of side hustles are what you love doing. Can you freelance? Affiliate marketing? Design logos or websites? Teach? There are numerous money-making opportunities out there that can fit right into your schedule and also fetch you good income. It is becoming more rampant these days that people end up resigning from their day jobs to face their long time side hustles 100% after realizing it makes them more income than a 9 to 5 does.
3. Let your money work for you
People who end up being wealthy in life do not work for money all the way. At some point, they put the money they have to work! And when you let money work without distracting her, she performs miracles. She multiplies herself!
Am I speaking in tongues? No. Only solid investment plans and actions create sustainable wealth. Salary will not take you there. A Yoruba adage says:
Day job (work) is for making a living. But investments (trade) makes one rich. (Ise omo alaseje, owo omo alasela!)
That is the truth! Rarely will you find a salary job that can take you to your financial dream of being independent and maybe rich. Work (salary) will only sustain you up until you have been well spent and your youthful vigor expended to the last drop by your employers till you reach retirement. And pray that your pension comes. Is that the best life to live? I bet you deserve better.
Accruing wealth requires real capital investments. This involves putting money into products and services to make profits while still not losing your investment seed. You may start a company or build a product which you market and sell.
Of course this requires taking calculated risk. But running away from the risk will jeopardize your financial future. Or compromise your dreams of becoming financially stable someday. Take calculated risks, and protect your investment with savings plan. Businesses thrive when you don't tamper with the working capital and especially when you plough back any profit into the business. That is why you need what I call the Rainy Day savings. This will support you in lean times without jeopardizing your investments. So, t a point real quick, let money start working for you. Invest.
4. Giving back
Fulfillment in life is not only about how much you have, but important is also how much you have given back and how many lives you have touched. I admire with awe learning of many American billionaires who make it a habit to give back by helping the less privileged and also empowering others. Even if you are not yet a billionaire, there are ways through which you can give back. And know what? It's for your won benefit.
When you cultivate the act of giving, and when you empower and enrich others, you are securing your own future I will the following ways:
One, it connects you with the world and your community at large. It's very rare to make sustainable wealth without people. We all need people. People around us are our greatest assets. They are the ones who OK would patronise you, they are the ones who would recommend or condemn your dreams.
Second, givers never lack. It's and act of nature. To receive, you need to open your hands. It will be hard to receive on a tight-fisted hand. This does not mean that you should give out senselessly even your own little means of survival. But cultivating the act of giving back help bestow on you blessings from the heart of the people.
Third, giving back leads to fulfillment. When you help a charity course, or you aid the less privileged, or you help someone achieve a life dream, or you help the needy, tell me, what feelings grow in your heart? Unparalleled joy and fulfilment and satisfaction. This is the calling of every human who has the ability.
Sometimes ago, I donated a little fund via the World Food Program to starving children in an area of the world hit by earthquake. Each time I remember that little act, I feel some sense of joy. Cultivate the art of giving back today.
5. Build good money habits, get rid of bad
Now is a good time as any to practice frugality. Avoid impulse buying, create a budget that works for you, and stick to it. By implementing a budget, you can avoid money pits and save up spare cash for emergencies.
Those that had a previously established emergency fund when the pandemic hit can testify to how having one softened the blow on their finances. Try as much as possible to replenish what has left the fund, and if you don’t have an emergency fund, now is the time to start building one in a savings account with high interest.
6. Get rid of bad debt
Being debt-free is a lifetime commitment that requires you to always live below your means. However, some extenuating circumstances can land you in a pile of debt. The best thing to do? Start prioritizing paying them off! Pay off your high-interest debt first and try as much as possible not to incur any more debt.
Track your spending by creating and following a budget. This will help manage what you have more effectively. Once your overall spending falls in line, you’d be able to find the balance between paying off debt and working towards financial stability.
7. Educate yourself
The more you improve on your financial knowledge, the better you become at managing your finances. Reading a personal finance book is a great way to start, and the knowledge you’ll gain will prove invaluable.
You can also take courses focused on an area of financial development you’re interested in, and talk to professionals in the finance industry. Spending time to learn more about your personal finance can be enlightening, and when this knowledge is strategically implemented, the effect will be transparent.
And that is the benefit of joining Aza Hub. Here we share financial education. Stay. Invite others.
Conclusion
In conclusion, there is a thick fine line between barely making a living and actually building wealth. The 7 habits discussed above may not make you reach automatically. But even in the short to medium term, you will start experiencing improvement in your financial mastery. Talking of simplifying your lifestyle, to avoiding impulse buying, and the importance of budgeting, alternative source of income, and giving back, you can live a life free of avoidable heartaches and financial malady which can ruin your happiness and fulfilment in life.
Good luck.
of savings