Monday Financial Nuggets: Change your thinking and words concerning Money

Our words are powerful whether we believe it or not. And it is unrelated to religious beliefs. Religion has nothing to do with the words we use. However, if you stop to think of how you came into being, you might agree that you are a spirit or are of a divine nature. If so, your words, and thinking for that matter, have some degree of spirit or divinity to it such that whatever you say or think will surely come to pass. Some times those words might merely be stated in passing; that is, with no seriousness to it, yet you will eventually see it come true.

Do you recognize any of the following negative thoughts or statements concerning money? They could be your words/thoughts or from others.

Negatives

  • I don’t or never have enough
  • It feels like I’m putting my money in a basket with big holes
  • Whenever I make (or have) money, some thing comes to take it all away
  • Money goes out faster than it comes in
  • I will never make it
  • There’s never enough
  • My parents (or family) are poor, I will just be like them

I’m sure there are more. I racked hard to come up with these as I am a highly faith-filled lady such that when everyone says that there is a casting down, I believe that there is a lifting up. Negative words are not in my vocabulary. Never say never, so I’ll say I rarely use negative words. Some call it affirmations. Others call it declarations. I call it faith. Though in faith, you have to make declarations. But non-faith folks also make declarations. Whatever you call it, replace those negative words and thinking with positive faith-filled ones and watch the change not only in your money, but life generally. You shall have whatever you think and declare.

The positive for the above statements therefore are:

  • I have more than enough (I have an abundance and more to give away)
  • My money is in a secure place
  • I make (and have) money, nothing takes it away without my permission
  • Money comes in to me faster than it goes out leaving me with a good financial cushion
  • I will make it (or I have made it, or I am wealthy and financially secure)
  • There’s an abundance (or I have surplus)
  • My parents (or family) are poor, but I am (or will) be financially unlike them (or though my parents were poor, I am (or will) be wealthy.

The above are examples of words we use daily without much thought. Any wonder things are staying the same though our intentions are for them to change? Stop those wasted thinking and words today.

What would you do …?

Let’s dream a little for Monday Financial Nuggets … What would you do if you won a half-a-billion dollar ($500 million) lottery:

A. Liberate several people and families

B. Liberate yourself with whatever freedom means to you

C. Build at least a school, hospital, or some infrastructure

D. Donate it all to charity

E. None of the above

F. All of the above

Dream and ponder on the idea just in case it manifests 😆

Though I don’t believe in luck, Good Luck!

Genetics and Money Management Skills

Genetics play a significant role in our lives whether we like it, admit it, or not. How we manage money, or fail to, including our money habits are also genetically linked.

If any of one’s parents is a spendthrift and philanthropist with whatever they have, certainly at least one of their children will inherit those tendencies. Similarly, if the other parent is a miser and is stingy, at least one of the children will inherit those tendencies. Those tendencies will be either dominant or recessive in one or all of the children.

However, if any of the children strongly abhors either of the tendencies, and is intentional about not inheriting it, s/he can work hard to ensure that s/he does not become that tendency. For example, if growing up I watched how my mother was always giving our things and household items to everyone that visits us, often depriving us, I might hate being a philanthropist and or giver. Likewise, if momma was also hiding stuff from others and does not help family members or friends who needed our help, I might detest being a miser. The key is be intentional about playing the part that you want to be till it becomes a part of you.

This is so true and became evident to me while in college and participated in the U. S. Census decennial count. All information collected are confidential. I marveled at a particular race who, though they don’t make much comparably, were happier and better managers of their resources. In one of my rapport, I remembered chatting with one head of household who told me that he’s being living in his house for ten years and that he doesn’t go out, he’s happy at home with his family. All he wants to do is rest after work; most times his wife and children go out without him. He owned his home and was planning to pay it off way before the maturation of the thirty-year loan that he got. He stated that he came from a poor background, but had worked hard to financially elevate himself and wanted to give his family a different lifestyle. To say that I was impressed was an understatement.

“It’s not how much you make, but how much you keep.” The quote has been attributed to a few. One of those people is no other than Robert Kiyosaki, the personal finance guru and author of the Rich Dad Poor Dad series. The other is Shaquille O’Neal, the former LA Lakers forward.

One who makes $40K a year, like the head-of-household guy above, could be living a more enriching lifestyle than another who makes $120K a year with a big hone, big mortgage, every gadget in town in his household, cars, and college kids. The latter’s finances could be stretched thinner and leaner than the former.

A man’s life does not consist in the abundance (or lack) of his possessions.

No excuses for any of us. Being from a poor background, does not restrict us to poverty for life. An intentional act, coupled with divine ideas, and working smart and hard, will break the backbone of lack.

Women in Economics – IMF Blog

Women in Economics – IMF Blog
— Read on blogs.imf.org/2021/08/06/women-in-economics/

For Monday Financial Nuggets, I’m sharing an International Monetary Fund (IMF) Blog on Women in Economics.

As much as I enjoyed reading each lady’s contribution to Economics, I was disappointed that the Blog was biased in its showcasing, lacked diversity, and merely focused on one segment; in this case, the ivy leagues. A better title could have been “The Ivy League Women in Economics.”

I’m sure you will agree with me that there are more women contributors in the world than showcased. A sample of women from each continent would have been more relatable.

Nigeria’s very own Ngozi Okonjo-Iweala, was excluded. Okonjo-Iweala is currently the Director-General of the World Trade Organization. Prior to that, she was the former World Bank Managing Director; an organization she worked at for almost three decades rising through the ranks. Would we say that she’s not influential or important enough to make the list of Women in Economics (or Finance)? She studied Economics at Harvard. Which means that she qualified both ways.

Okonjo-Iweala was however included in another blog, People in Economics. Why she was in one but omitted from the other baffles me.

Well, it’s always great to read about women, their leadership and contributions worldwide. I just hope that the reads are inclusive; except of course, the title specifies to the contrary.

Nonetheless, I hope you enjoy reading the profiled Women in Economics and realize that it is only a segment of the whole.

Why You Shouldn’t Max Out Your 401(k) – Of Dollars And Data

Why maxing out your 401(k) might not be as beneficial as you initially imagined.
— Read on ofdollarsanddata.com/should-i-max-out-my-401k/

I think this is worth sharing for Monday Financial Nuggets. This is for you if you work 9-to-5, or have ever contributed to a retirement account, or are thinking of contributing.

Many, if not all of us, had heard that it’s good to max your annual contribution to the retirement/401k (or 457k if you’re a public/government employee) because of the employer matching contribution. Well, the same folks (financial experts) who touted the paradox of maxing out are singing a different song now.

If you’re currently maxing out on your 401k, this is a must-read for you.

I never maxed out; only contributed enough to have each employer I worked for match it. But I did know a few people who did. The few I knew complained about any and everything involving money; it was pulling strings to get them to take self or family to dinner or vacation. Whether or not it paid off for them, I wouldn’t know.

Anyways, maxing out surely puts a strain on available cash-in-hand and, as the article states, dampens the enjoyment of living, and missing out on one’s youth including other life essentials.

Of course, we’ve been taught that life is about opportunity costs. But about time we make life about equilibrium.

I hope you enjoy reading the article and learn something. Let me know your thoughts on this in the Comments.

Monday Financial Nuggets: The Poor, The Rich, and The Wealthy

The poor, the rich, and the wealthy: God made them all. Baring any financial inheritances, and level playing fields, God created all equal – one head, two eyes, and two legs. None was born with two heads and three or four legs, right? Such a being will no longer be human.

Why then are some poor and some rich or wealthy? Why isn’t everyone in a level financial field? And why is it that some no matter how hard they labor, it’s as if the money is being thrown into a basket with holes and yet have to worry about food, clothing and shelter? Yet, some only work a few and have all the luxuries of life and not a care in the world?

Is it right to say that God intentionally created some to be poor? God, the One who owns the hills and cattle on the hills (meaning that God is abundantly wealthy and owns everything) will desire that His sons and daughters live in abject poverty, while reserving the wealth for a few 1% (10%?)? That is not the kind of God I have come to know. Let’s think about this for a second.

The above verse has weighed heavily on my heart until I came across another statement, then I understood what the verse meant.

The Three Types

There are three types of people in the world: the poor, the rich, and the wealthy.”

Dr. Myles Munroe

“There are three types of people in the world: poor, rich, and wealthy.” This statement was made by the late Dr. Myles Munroe, the Sr. Pastor of Bahamas Faith Ministries International. Dr. Munroe went on to say that:

  1. Poor people always talk about money. “I don’t have enough.”
ThinkerTalker says: Change your words and start speaking in abundance and positives, lest it becomes self-fulfilling.
  1. Rich people think about “things” and what they have. “Look at my clothes, yacht, car, stock, etc.”
ThinkerTalker says:  Don’t let “things” be the yardstick for measuring your life. There are tons of invaluable feats that we can invest in. Let’s look for those.
  1. Wealthy people think and talk about ideas. They don’t think or talk about their money or things.
ThinkerTalker says:  May God bless us with multi-million dollar ideas and creative abilities.  Could it be that we are already blessed with those million-dollar ideas but we’re sitting and procrastinating on them or allowing fear to keeps us from moving forward with them?

Looking at the three different types of people, we can deduce the outcomes based on each’s mindset, focus, time and money management. Including each’s proactiveness and reactiveness.

In order to become a different type of person, one has to desire the type and vigorously pursue it. what it is that is done differently by those types.

Income Inequality

Put another way, there is income inequality and the gap has widened for the top 10% while shrunken for others. “Income allows a family to get by; wealth allows a family to get ahead.”

Credits: Federal Reserve, St. Louis

“Income is also a fairly common indicator of financial well-being.”

Education has been deemed a necessary tool to help in reversing the lack. Still some debate the need of education because of such people like Bill Gates and Steve Job. Such folks should engage in however means they know or have to stay informed,

Demography may not be economic destiny, but it is strongly related to financial outcomes

St. Louis Fed

In conclusion, we can reverse an unhappy financial situation, be it personal or generational, by investing early in life for the long run, having cash (or readily convertible to cash) in hand, spending wisely, and managing the money we have.

Thanks for reading. Cheers to your wealth and improved financial situation

Of Money Magnet and Money Repellant

Today’s post is all questions. Answering them, in my opinion, will make you aware, if you are not already, of your thoughts and beliefs. Thanks for participating.

  1. Does money flow to you easily or is money attracted to you and vice versa?
  2. What example(s) do you have of #1?
  3. Do you repel money?
  4. Give an example of an occurrence.
  5. Are you a money magnet or a money repellant?
  6. Are you a good money manager/ess or a good money mismanager/ess?
  7. Now that you are conscious of your money habits, what are you going to do differently?

We’ve all heard the sayings “a magnet attracts and a repellant repels,” especially if you were a science student or had physics class(es) in high school. Also, the phrase “like (energy) attracts like (energy). But is’t true when it comes to money? If true, how does one become a money magnet?

Being a money magnet or repellant depends on your beliefs. But it is not enough to believe, without some corresponding actions backing it up. For example, I believe that when I pray for something, I will get it. But I don’t believe that praying for money without working or doing something for money will cause the money to flow to one.

The money is found in the cultivation of a God-given idea.

ThinkerTalker

When people pray to God to bless them, God answers by giving the person an idea. But most folks still continue to pray and eventually give up concluding that God didn’t answer their prayers. The money is found in the cultivation of a God-given idea.

Anyone who doesn’t allow money to “rest easy” (aka stay in their hands or bank accounts) is a money repellant. As my sista, Kathy E. Garland, stated “A lot of us can generate income, but learning how to invest, instead of spend is a big deal.” That is so true for many. Money repellants make the money but unfortunately, the money comes in one way and goes out the other way. (could be a post for another day.)

Being one or the other could also be hereditary; the repellant more of a pathology that needs to be corrected and/or reversed.

Thanks for participating.

So you think you’re ready for marriage … How’s your F-Financial Development?

Our fourth post in the pre-marriage series, PEMFESS + P, is the F-Financial Development. Click here for the M-Mental Development.

Preamble

Money. Money. Money. We can’t do without it and only few can live wisely with it. To be respected in most marriages, you must contribute financially to its success. It’s sad that love is no longer enough to keep marriages together forevet. Not all men (or their families) recognize or appreciate the non-financial contributions that a woman/wife brings to the marriage. Sorry if you thought otherwise. Sometimes though, it could be the wife (and or her family). If it ain’t dollars, it ain’t matter.

The love of money is the root of all evil. Yes, many have been known to commit murder because of money. Families and friends have also parted ways as a result of this five-letter-word. And several marriages have also been destroyed as a result of inadequate money and money issues. Even those marriages that “end amicably,” in the western cultures, turn monstrous at the mention of alimony, child support, or distribution of assets.

Preparation is key

So how do you prepare to tread the marital waters as far as finances are concerned? The answer is to prepare wisely and financially before marrying. There’s not a set amount of money to set aside (save); that is an individual prerogative.

“Financials” is a wide topic. For the purposes of this Series, we will compress it to:

vow to be an asset and not a liability.

I’m not going to write a finance or an accounting post explaining what an asset or liability is. Please do your research to better understand the terms if interested. For this post, simply remember that assets (+) add (or bring) in, while liabilities (-) subtract (or take away) money.

How do you become an asset?

To be an asset, you need to have your own money, tangibly stashed away, such that your prospective spouse recognizes that you can hold your own and contribute meaningfully in, and to, financial matters. The contribution should not be in a corky arrogant manner, but gently and meekly. Except you have wealthy parents who are willing to set you up financially once married, never ever start marriage wholly dependent on your spouse. It’s a different story if after marriage something happens that necessitates the dependency. Even at that, you should still strive to hustle to bring something to the financial table. It doesn’t matter if your prospective hubby (or husband) tells you “honey, I don’t want you working; I’ll take care of it, you and our family!” Do it for your own self value. The contribution also doesn’t have to be a 9-to-5 deal.

Some cultures still live in the “fantasyland” (aka husband-does-it-all) mentality. The one who gets the rude awakening is the lady/woman when love fades and the man begins to act chauvinistically mean and controlling the matrimonial funds, no longer giving her any, and depriving her of access to the money or accounts. “Afterall, it’s all mine – you never worked!” Sad if the couple have been married for ample number of years.

Statistics

“Data released by financial firm TD Ameritrade found that 41% of divorced Gen Xers and 29% of Boomers say they ended their marriage due to disagreements about money.”

“Money problems are the #1 cause for divorce in America and money causes the most stress in relationships.”

Start now

To be financially smart, start investing diligently now while single, in both liquid and illiquid assets. Rule of thumb is to save 3-12 months salary as emergency fund; the more, the better. The truth is that once married and you start having children, it gets harder if not impossible to save and invest. Doing it now also yields benefits because the money will continue to compound (of course , depending on the amount) even if you got married and are unable to add more to it.

Ponder on these

In addition, the following are questions you should have answers to before marriage:

  1. Know your money habits and attitudes: are you a saver or spender? What type of hubby do you want or need: a compliment or complement
  2. What’s your money management technique? Do you use a budget or make impulsive purchases
  3. Do you know yourself financially? Are you flexible or rigid as to who you are financially?
  4. Do you have debts, such as student loans, credit cards, etc., that needs to be cleared or reduced
  5. What’s your financial goal(s) and/or fears?

Being cognizant of answers to the above, including mapping out strategies for implementation, will bring a sense of financial peace that will be beneficial, to you, your future husband, and family, when it’s time to get married.

To your financial and holistic development

Monday Financial Nuggets: Prenups and The Rich and Famous

It is yours, mine, and our money blog. Since I’ve being blogging on pre-marriage, I thought to research on pre-nuptial agreement (also known as prenups) because the main reason for it is to protect one’s money and assets before marriage.

“A prenuptial agreement (“prenup” for short) is a written contract created by two people before they are married. A prenup typically lists all of the property each person owns (as well as any debts) and specifies what each person’s property rights will be after the marriage.”

Read more about pre-nups here.

It’s all about money.

Personally, I do not like prenups. I feel that it is preconceived, could be manipulative, that the one who initiates it has a hidden agenda unbeknownst to the other, and places the initiated in a rabbit dark hole. However, having read some articles, there are a few valid reasons that the prenups could be a wise thing to have. One of such that I agree with is, is having one to protect children from a previous marriage, without which properties or money left on death of a former spouse would be contested, conflicted, and could eliminate those children.

I also found an article on the rich and famous’s divorces. What it cost them, financially, to divorce. It is an interesting read. Read here.

Well, I hope that you acknowledge that divorce is a painful process for everyone involved; not only for the married (but soon-to-not) couple but also for family and friends.

Is there anything that can be done differently to avoid divorce? I hope that the Pre-Marriage Self Development Series is helpful for ladies contemplating marriage. I also hope that the Series helps ladies enter marriage smart and with realistic expectations. The F-Financial Development piece of the Series is still a couple of blogs away. Stay tuned.

Of Wealth and Attitudes

Do you know what determines whether you will be wealthy or not? Or yet, if you’re wealthy, whether or not you’ll be able to manage and hold it?

There is a science and art to wealth and most of us are still trying to figure it out. I do not have the right answer, but I realized that that there is no one thing that determines one’s propensity to be rich. Well, being born into a wealthy family could be one inclination to continue in the wealthy paths if the wealth is passed down and properly managed. Sometimes the wealth is donated to organizations rather than willed to the children. Another inclination is to hit the jackpot. Short of these two, you’d have to work and make your money work for you.

The Science

In making your money work for you, one scientific way is to save or invest. Savings is less riskier than investing. With savings you’re guaranteed your money back, with a meagre extra. Except, of course, there is a bank run. I pray not. But with investing, there’s no guarantees – you can either lose it all or make large sums of extra money from it following a rule of finance of “the greater the risk, the greater the reward.”

But how do we save or invest? Consistently. Consistently setting aside a fixed amount is the key.

For how long? Forever. Excuse me, nothing is forever. Howabout holding for the long run, at least consistently for ten years. Better will be twenty to thirty years, and best for as long as you live.

This is the main secret of Warren Buffet’s wealth after his experience of selling his initial stocks too early only for the stock to quintuple. According to sources, Warren Buffet started investing in stocks at the age of 11.

Undoubtedly, Warren Buffet benefited immensely from the compounding interest (CI) over the long haul. With CI, your money multiplies exponentially. For example, if interest rate is 5% and you invested a $1000, the first year will be $1,050, (note: leaving the same amount in a savings account might only yield about $2-$5!), second year will be $1,102.50, third year $1,157.63, 4th year 1,215.51, 5th 1,276.28, etc.

The compound interest formula is P*(1+i)^n; where P = principal, i = interest rate, and n = number of years. You can plug the numbers on your computer or an Excel spreadsheet to calculate it.

Compare compound to simple interest using the same example of $1,000 at 5% for 5 years, the total interest will be $250.

The difference in this examples are not so great; $26.28. However, the larger the amounts invested, the higher will be the yields and thus become more meaningful sums.

The yields will also depend on if the rates are calculated annually, quarterly, monthly, or daily.

“It is science because investing is a process and art because of the manner in which it is executed.” –

Brijesh Damodaran

The Art

Having the money is not enough. Our behaviors with money; how we view it, including our spending habits, whether we believe in savings, in taking risks or not, will also determine whether we hoard money, donate it, or just like to stare at it in our room, drawer, or safe. Unfortunately, some still don’t believe in keeping their money in the bank. Once the bank is full, do we go on a spending spree or start bragging about it? May God forgive us for either. These sums up our money attitudes and falls under the art of money. Our attitudes towards money is constant irrespective of our salaries or business revenues. Some folks wished they made more money. But I propose to you that it is not about making more, it is about efficiently managing what you already make.

The art of money management can be genetically-inherited or environmentally-acquired by learning from different sources such as friends, from work, or self-taught.

Like everything else, the art of money management (that is, our behaviors and attitudes) can be changed. We can reprogram ourselves if a particular habit is not working. May God help us all to see what areas of our money habits need to change.

Monday Financial Nuggets: 10 things I wish I knew about Insurance

  1. Keeping the life insurance I had when I was younger. Generally speaking, we are all more agile and healthier at 20-30 years old than we are at 40 and over. Buying life insurance at an older age is more expensive. I realized that if I had retained the whole life insurance, I could have locked it in at the former premium.
  2. Buying whole life is better than term. At end of term, one is older and life insurance becomes more expensive. Exception is only if one dies before the term life ends.
  3. Auto insurance is higher for a leased or financed car than for a car bought outright or owned free and clear. This is one of the reasons people talk about preferring to buy used cars.
  4. You get a better (I hate to use the word “cheaper”) rate/premium having the same insurance company for multiple cars, as well as using the same insurance company for your other needs; for example, home, renters, personal, life, etc. It’s called bundling.
  5. That auto insurance companies can use your no-fault auto claims as a potential negligence on your part and raise your premium.
  6. In insuring personal items, keep detailed information and receipt of valuables, as well as take photographs. This will help in case of loss.
  7. Having a fireproof safe box is a good investment.
  8. Staying with the same phone company is good. You can lock-in the plan/price you initially got if your needs remain unchanged.
  9. The essence of having insurance for cellphones, especially when new. The concept is similar to any other insurance, but not necessarily worth it after 2-4 years of owning the phone.
  10. Your good, and long, driving record can get you discounts off your auto premium.

The above are based on my experiences. Insurance companies’ policies do vary. As always, please do your due diligence (research, compare premiums, and ask questions) before purchasing any type of insurance.
Have a financially-wise week.

Quadrant

A quadrant (quad) among other definitions, is “the area included between such an arc and two radii drawn one to each extremity.”

What quadrant do you belong to? Which quadrant are you presently operating in? And which should you truly be in?

Other terms have been used. Terms such as buckets, sections, structure, quarter, etc. But I like the term quadrants. It is the term used by Robert Kiyosaki, the Rich Dad, Poor Dad best-selling author, in his Cashflow Quadrant book. It is a good personal finance read if you choose to read it. I first read the book over a decade ago and it’s being more meaningful now than ever before.

Not everyone is cut out to belong in the same quadrant. The quadrants that I’m talking about are E (Employee), S (Self-Employed), B (Business), and I (Investor).

Over the weekend, I pondered on these quadrants. Most of us will start out as an Employee and progress through the “ranks” before finally settling in one. It is possible to operate in more than one rank simultaneously. But for maximum impact and benefits, it’s better to focus on one. Did I just say that? Scratch that. All Investors are Business folks and vice versa. Most Employees also operate as Self-Employees (Self-Ees).

The E-Quad

We all know what it means to be an Employee; you’re at the mercy of your employer who has placed a cap over what you can make working for him or her and probably a ceiling on how high you can go. The “official” number of hours you signed up for was eight (8) per day or 40 a week. But the number of hours needed to get the job done or to impress the boss so that s/he can remember you (or your name) for promotion or the five percent (5%) annual salary increase, is 10-12 per day or 50-60 per week. Some “smart” Employees, who are aware (and woke) decide simultaneously to start a “business” with the hope of some day transitioning to it. The problem however is that the constant inflow of bi-weekly checks feel so comfortable and subsequently derails the courage to transition.

The S-Quad

The few who do transition however are happy that they’re putting all those hours into “building” their “business”. The problem though is that they are building a Self-Employment. Happy that they are working for themselves and not another person. Happy that they have their own schedule; can choose to work their own hours, schedule doctors’ and dental appointments around their clock without feeling guilty asking someone for time off. And equally happy that they have no micro-mangers standing behind their desks or staring over their heads. But, is Self-Employment really better?

Self-Employment is still a one-man show (sole-proprietor). Well, before you shout me down – yes, you can employ an admin or receptionist. But you are still the major driver of the ship and without you, there’s no business or sailing. The problem also is that you do not get paid if you’re sick or hospitalized. You don’t get paid if you don’t work. If you have a family emergency or a sick child or spouse, you do not get paid for taking time off your work to care for them. And I hope that you do not leave them uncared for because of your work either.

So, which is better?

Self-Employment is good; better (or not necessarily better) than being an Employee depending on your variables and reasons for starting it in the first place.

The B-Quad

The second-to-the-last quad is Business. Being in Business means creating everything that demonstrates that you are doing business. By this, I mean, a business name, business phone, business bank account (with a business debit or credit card) to avoid co-mingling which gets one in trouble with the IRS, a business website, and a business marketing strategy. Setting the business up is one thing, running the business is another. In business, you have (hire) folks who can do other segments of the business while you focus on your area of expertise. These are your team. The goal is to eventually create a system that can run on its own leaving you time to take a vacation, rest (that will be beneficial to avoid sickness), and probably start another business.

The I-Quad

The last quadrant, an Investor, is one that a majority of people never aspire to. This does not mean that you become a stock trader. There are tons of commodities that one can invest in besides stock. You also don’t have to do the investing yourself. There are a few ways to get involve in investing. You can learn to understand the basics or engage the services of investment bankers or companies. It is in the Investing quadrant that you have your money working for you. You can roll the money made from being an employee, self-employed, and your business into Investing.

Ponderous Note

If everyone becomes a Business person or an Investor, who would be their Employees? This is where one’s purpose comes to play. Know yourself and decide accordingly. One can be an Employee and still be an Investor, though the income-generating capacity might be limited. While Income is limited as an employee, it is infinite in business and investing. You can make income in each quad, but one quad generates more than the other. Sure, other variables might contradict this statement. Please do your due diligence, bear in mind your life purpose, and choose your quad wisely.

There are also tax advantages in the B and I quads that are not available to the E and S. Again, do your research, consult a tax advisor.

This post is not saying that one quad is better than the other. It’s just an overview of all the quads.

Money and Propensity to Splurge

Money. Money. Money. We cannot do without it, but can we have more than enough of it such that we do not know what to do with it?

Money, in my opinion, is primarily a tool to be used to get the things we need or want. It is when we have the “more-than-enough” that we are able to help others. Someone who is unable to provide for him or herself and family cannot financially help another. Yes, some are wired to “give the shirt (or blouse) on their back” to another and go without, but not everyone is so wired. There is a special grace for that kind of selfless giving. I think of Mother Theresa in this regard. I’m sure that there are others, too. I however don’t know them. Most of the time, albeit with a few exception, folks give for what they can get back in return.

The way we spend (or treat) money is primarily relative and depends on different demographical factors. For example, someone who was born into poverty could vow to work so hard to become affluent in life and never have to be poor ever again. I would expect such a person would value money and make wise money decisions. Still, I acknowledge that this is not always so.

Then again, there’s another born into poverty, who hustled hard, made the money, and splurges on everything, including their children, excusing him or herself for the childhood lack. I would expect such person to understand and be willing to help those who lack. Yet again, I acknowledge that it is not always so.

I commend both categories of people because they recognized the lack that they were born into, but rose above, and from, it.

There’s yet another category of folks who inherited wealth. Some know its value, while some don’t.

Any of these categories of folks might or not lean towards extravagance and splurging.

I am not judging anyone.

I just want us to ponder on the excesses we indulge in. The thought of splurging has being tossed in my head for about a month since I heard the news about a mid-day robbery incident that occurred in Beverly Hills. I wanna spit it out today. Several items were stolen from unsuspecting residents while enjoying meals at a restaurant. Among the items that made the news was a half-a-million dollar ($500,000) wristwatch. I’m like OMG 😱! What d _____!!!! The next day, the victim got on TV to request that the rogue return it as “it will be useless to you, you’ll not be able to operate it.” I was astound as I watched the guy. I just shook my head.

Of Security and Proactiveness of the Authorities

If I were the victim, I would rather not show my face for safety and security reasons.

First thing first, it is sad that in such an affluent neighborhood, the Authorities were not super-efficient as to detect the planned attack before it happened. Secondly, what audaciousness (or is it ‘audacity’) of the perpetrators – I mean in broad daylight?! That’s a slap on the neighborhood’s law enforcement agencies. Thirdly, was it a random or targeted act? Well, we’ll leave the Authorities to do their jobs.

Going back to the stolen item. I am not judging. I love the good things as well, but I cannot fathom wearing that priced watch, or any such priced item, on my hand. My hands better be made of pure gold or FL (flawless) diamond for it to happen! The watch’s price tag is enough to buy a home free and clear. Yeah. Yeah. Yeah. The wristwatch’s value is probably peanuts, to the owner, and might equate a $500 price tag to you and I. And that might be true. But since I don’t personally know the guy, we can only make some assumptions.

Anyways. I compared the above guy to Warren Buffet who, though he’s one of the richest men in the world, still lives in the same house he bought in 1958, buys used cars, and eats McDonalds three times a week for lunch!

Where does the differences lie? Again, we do not compare apples to oranges, but for the purposes of this post, for ponderous money thinking, let’s weigh the two. Which money side/habits would you lean on? Offer your reasons for either Splurging or Frugality in the Comments.

Have a great and wise financial week.

Monday Financial Nuggets: Youngsters and Money

Few working youths (per United Nations’ referenced ages 15-24) know what to do with money, either earned or gifted to them. I used to be one of those several years ago. Maybe not totally, but looking back, I acknowledge that I could have done better.

A working teenager has no money responsibilities like bills or rents/mortgages, except to splurge on new outfits, shoes, makeups, eat-outs, and other mundane things. Not that those things are unimportant, but it’s sheer vanity to acquire and accumulate endless amounts of them, most of which lay unused.

By the way, if you have tons of these mundane things lying unused in your closet or house, have a garage sale or post them on platforms like Depop, OfferUp, or Facebook Marketplace. Of the three, I have only used OfferUp, but my daughters have successfully used Depop and FB Marketplace. Please do your due diligence before choosing one for your purposes.

Once those mundane items have been sold, resist the urge to buy more things, and invest the money or put it in your savings account.

But what if the teenager could save at least half the amount of their paycheck every week and never touch it. For example, saving $50 every week for three months (using summer when most work), s/he would have saved $600 . On top of this, interest accrued depending on where the money is saved or invested, could add an additional $1-$25 or more per year. Imagine leaving that money untouched for another four years while in college, with compounded interest … Think about that for a second.

If a teenager could discipline him/herself to save and/or invest, it becomes a habit that will stick and only get better. The teenager would have mastered a money habit where most have failed.

Similarly, graduating out of college and starting full time job is the dream of almost every graduate. Some however are anxious to be independent and live alone. But precious one, what is the hurry? Ponder for a second how great it would be if you could live rent-free with your parents while working in an effort to save the most that you can for down-payment for your own house? It becomes harder to save when the bills start pouring in and/or when you start a family. I am puzzled when kids look forward to being 18 and independent. “Now I can drink alcohol” seems to be the most popular reason they give for the excitement! Hello?! There are better and more things in life than the liberty to be able to buy and drink alcohol. Why not think on those things?

Needless to say, the earlier you start saving and investing, the better. The rule of thumb is to save three to six months’ living expenses. Some say three months’ salary. Either way, the goal is to start and save the minimum of either three months’ salary or living expenses.

There’s no need to rush out of your parents’ home. It is a shield for you. Use living with your parents wisely and to your advantage before the bills start rolling in.

I acknowledge however that there are several other reasons when a young adult might decide to move out. Reason such as finding their first job in a different City or State. This is understandable but should be the exception and not the norm.

The essence of this post is to encourage youths to save, invest, and spend wisely. I hope it communicated that. If not, do let me know.

Financial Monday: how long will The Stimulus Check go

As you may have heard, President Biden’s $1.9 trillion covid relief package was signed last week. According to reports, some families have received their $1,400 stimulus checks this weekend. I’m happy for those people. We all could use some financial/money help, couldn’t we?

The $1,400 Stimulus Check per person is for earners of $75k or less. As a result, several have rushed to file their 2020 tax return. Others will have eligibility based on their 2019 tax return, if they qualify.

What are your thoughts on the stimulus checks? Is it worth it? If you qualify, would you rather receive the check than be employed, or have a steady work/business?

If I’m not mistaken, it is a one-itime check. Then what?

Don’t get me wrong. I’m not expecting anyone who gets it to “look a gift horse in the mouth.” A British saying that simply states “don’t be ungrateful.” My thoughts are that the check will be applied to unpaid bills since the amount barely covers rent for most. The check undoubtedly will be worth receiving for many. However, my question is “how far will the $1,400 go?” As I pose the question, I ponder on the popular saying “teach a man to fish rather than give him a fish.”

I would suppose the people would prefer certainty and consistency. Where is next month’s pay (or $1,400) coming from? Looks like the smile or happiness will be short-lived.

How far will your stimulus check go?

Financial Monday: Best Practices for your Finances during Covid

Are you managing your finances differently during covid? If so, what are your best practices?

It has been over a year that we all have been plagued with uncertainties of life and living. Most of us have either lost a loved one or know someone (or family) who has. In addition, tons of folks have either lost their jobs or had pay cuts or reduced work hours in lieu of being laid off. And for those still privileged to have a job, permanence is not guaranteed. Neither is the future certain for pay increases irrespective of Congress’s recent action to raise the federal minimum wage.

And yes we are grateful that the vaccines have arrived, and are being strategically doled out. But the end of covid is still not near.

With all these uncertainties, it will be prudent for us to manage our finances wisely. I hope you agree with me. What steps, if any, have you incorporated for yourself and household regarding finances? Have you made adjustments in the areas of personal finance such as spending, saving, investing, budgeting, and/or retirement, that have been beneficial and you are willing to share?

There are daily necessities that cannot be forgone especially if you have children. Bearing that in mind, are you one of those working from home, but still indulge in purchasing the latest foundation though you have one unopened bottle, and another halfway through, at home? Are the cups of lattes and croissant ($7-$9) from Starbucks still a daily necessity for you? And though there are restrictions of movement in place nationally, are you still indulging in buying clothes/clothing everyday or week though you can’t go out? Are you ordering food delivery everyday? These are a few of the things that I see folks still doing. However they are areas that ideally could be minimized or totally eliminated till normalcy returns to our lives.

There are helps available for those struggling to pay their bills. Creditors are being empathetic during these times and are offering various kind of help. But you will need to let them know. Please contact your creditors rather than avoiding their calls.

So, what are your thoughts on living minimally during covid? Do you agree or not? Are there any other areas that you would advise folks to trim financially?

I have eliminated a few things myself. For example, Starbucks is no longer a daily want for me. Since I’ve been cooking a lot, I am reluctant to dine out. My business/personal trips have been eliminated till further notice. Understandably, right? You’d be surprised how many folks are still traveling around the nation and across the seas. I could still use some more trimmings and I’m looking for those areas.

How about you? Feel free to comment. Thank you.

Financial Monday: Teenage Millionaires

Do you remember what you did at ages 4, 8, or 9? Most of us probably don’t.

The above featured teenagers started their businesses at those ages. They have now made some impressive business and financial strides that most adults have never made, nor would ever make in their lifetime. I still haven’t made my $1 million dollar, still working towards it!

These teenagers have made millions for themselves, retired or employed their parents, and are using business lingos that most adults have never heard of.

They were not born with silver spoons nor had parents who handed them the businesses. Each teenager made it by sheer curiosity, hard work, and determination.

I would guess that about 50% of most kids their ages put up lemonade or cookie stands outside their homes during summer. I remember being compelled to stop to buy a $1-cup (and a bag of cookies) most times just to encourage those kids. But one took it a notch higher.

Another traded stocks, while one started with “hustling” trading t-shirts. All three are now famous entrepreneurs.

There are probably more of them out there. Geniuses or unicorns? You be the judge.

While most kids were being kids, some are stepping out and being exceptional and even surpassing the adults.

Here’s to their much more success 🪘

What are your thoughts?

Financial Monday Nuggets: How would you spend a windfall of $1.5 million

Credits: Eric Prouzet / Unsplash

How would you spend a windfall of $1.5 million if it fell in your hands today?

Let’s talk.

The time to think about $1.5 million is when you don’t have it because you’ll have the time to allocate and fine-tune its use before it shows up in your hands.

If you had $1.5 million today, how will you utilize it?

We’ve all heard of various people such as athletes and lottery winners who have had windfalls of money literarily. Some by a dint of big and multi-year contracts and or hard work, while others by sheer “luck” falling in their laps only to be “begging” and/or homeless and back to square one within a short period of time; sometimes in as short as a year. I hope that no one reading this post will have such an experience.

So, let’s talk family. If you won $1.5 million, were gifted or “luckily” sign a multi-year contract to its tune or more, how would you spend it?

This post is to steer our hearts, minds, and heads to think and effect a sustainable outcome. How many years will you stretch the $1.5 million to work for you, and your family if you have children?

. . .

Technically, most of us would have made over $1 million in the course of our working lifetime. For example, a college grad starting work right out of college, earning $25,000 per year, and working straight till retirement – p.s. college grads earn much more in the USA, except it’s a sales job base salary which of course has bonuses attached. Others making much more would make the $1 million in lesser number of years. But few, or none, of us have $1 million in total assets. 😓

A paradigm is required to be able to effectively manage money. Your attitude towards (or with) money will often determine whether money flows to and stays with you.

Let’s think on the post’s question today, through the week, and hope that the question stays with us and propels us to fruitful financial action. 😊

Monday Financial Nuggets: Why You Need Money to Live a Full Life

The problem for my poor dad was that his attitude towards money kept him poor.
— Read on www.richdad.com/why-you-need-money

Sharing Robert Kiyosaki’s blog on “Why you need Money.”

. . .

I need money to live the abundant life. I hope you do too. Being wealthy is good, except of course, you’ve dedicated your life otherwise. To this, I normally say “if you don’t need the money, it’s okay for you to make it and give it to those who need it; be a philanthropist.” I hope you agree.

Money of itself is not evil. It is the love of money that is the root of all evil. Instances of roots of evil include when a person kills another or sidesteps others in contracts/deals, when spouses murder for insurance or hide assets from each other, when businesses arbitrarily raise prices (I can see some saying that that’s “profit” but profiteering is greed in my opinion), etc. The list is endless. I’m sure you can add to the list, too.

Kiyosaki’s foundational education focused on comparing his friend’s Dad (Rich Dad) to his biological Dad (Poor Dad) and concluding that our attitude (a blog for another day), with and towards money, makes all the difference. In one of his trainings, I remembered him saying that even though he’s wealthy, he has no problem buying a Porche but that when it comes to groceries, he has a hard time buying a higher-priced bottled water, he compares, wasting time before picking a cheaper one! I must confess that I do this too but I hope that I don’t waste as much time as he does. 😊

Anyhow, having money not only to do, pay, and buy the comforts of life, but also being able to help others especially those who can’t repay you, is the greatest benefit of being wealthy. Other benefits include:

  1. Donating to worthy causes
  1. Ensuring that your family is well taken care of during and after your lifetime
  1. Helping to build private infrastructures, such as schools, transportation, communication, hospitals, to name a few, that will help more people
  1. Vacationing to various places which is educative, and
  1. Random acts of kindness.

. . .

Is’t possible to financially help everyone? I guess not, but each one touching (helping) one will go a long way.

I pray that money will answer to you and that you will send it on divine errands; that is a tool to take care of your lifestyle and others.

Be blessed.

Monday Financial Nuggets: 10 Tips for Success

youtube.com/watch

Financial Words of Wisdom from Dr. Myles Munroe. I hope the video blesses you.

. . .

  1. Everything is subject to change (To everything there’s a season and a purpose under heaven Ecclesiastics 3:1-2). Never make a permanent decision in a temporary problem.
  2. Do not pursue success or money or things. Pursue purpose, vision, ideas. There are three types of people; (1) poor, (2) rich, and (3) wealthy people. Poor people talk about money all the time; rich people talk about things, while wealthy people talk about ideas. Ideas, not money, control the world.
  3. Look for deployment; not employment. Your job is what you’re trained to do; your work is what you’re born to do. Job:Compensation:Retirement vs. Work:Fulfillment:Never Retire.
  4. Change. There are again four types of people: (1) Those who watch things happen (2) Those who wonder what happened; (3) Those who don’t know that anything is happening; and (4) Those who make things happen. Be the proactive people who effect change. Not all change is positive, but without change there can be no improvement. You have to decide what kind of change you want.
  5. Become a person of value; develop yourself and focus on self-improvement and self-expansion. Intellectual capital.
  6. Pursue God. Follow your passion.
  7. To be a genius, just do a little extra. “When experience is your best teacher, progress is imprisoned.”
  8. Use your adversity for your benefit.
  9. Discover your purpose.
  10. Learn from every experience; good or bad.

Have a great and productive week. 😊

Legally Speaking, is Digital Money Really Money? – IMF Blog

Legally Speaking, is Digital Money Really Money? – IMF Blog
— Read on blogs.imf.org/2021/01/14/legally-speaking-is-digital-money-really-money/

. . .

Digital currencies came into existence about five years ago. I was first approached about it by a guy whom I thought was blindly passionate about a fallacious investment. Nothing I said could dissuade the guy. I flatly refused his invitation to join as I shook my head and watched him walked away disappointed. That was five years ago. Today, I’m still skeptical about the quasi-investment. When I received this blog, I thought it was a topic worth sharing.

. . .

“Cryptocurrencies are not legal tender in any jurisdiction; they, unlike the conventional currencies issued by a monetary authority, are not controlled or regulated and their price is determined by the supply and demand of their market.” – The Law Library of Congress

Click here for the Law Library of Congress’s full report on regulation of cryptocurrency.


  • What is the origin of digital currency?
  • Who started or created them?
  • If they are not legal tenders, fully acceptable in the general markets, why do people put so much into them?
  • They have no intrinsic value; neither are they backed!

According to Corporate Finance Institute, “The value of a virtual currency is mainly driven by the sentiment of traders.”

Per Scott-Briggs, there are ten (10) digital currencies:

  1. Ethereum
  2. Ripple
  3. Litecoin
  4. Dash
  5. Peercoin
  6. Dogecoin
  7. Primecoin
  8. Chinacoin
  9. Ven
  10. Bitcoin

However on further research, and much to my surprise, I found that there were much more. I stopped loading more after I got to 600!

I also could not find any government/country that has accepted digital currency as its legal tender. Click here to see various countries’ regulations on digital currency.

Finally, Joseph Stiglitz, Nobel Laureate in Economics in 2001 and former Chief Economist of the World Bank, has this to say about digital currencies; “The real reason why people want an alternative currency is to participate in vile activities.” “What we really should do,” he said, “is to demand the same transparency in financial transactions with bitcoins that we have with banks.” If this were to be done, he believes, the bitcoin market “would simply collapse.”

. . .

Folks, what are your stand on digital currencies? Are you trading in them and do you think that they are the currency of the future?

Thanks for reading.

Monday Financial Nuggets: Munroe’s Kingdom Solution to Financial Problems

Credits: Unseen Histories / Unsplash

It’s a Martin Luther King Day in the USA 🇺🇸. Happy MLK Day to all. If you don’t know who MLK is, please seize the day to research, read and learn about the significance and contributions of the man and civil rights leader. Thank you.

. . .

I’m sharing one of Myles Munroe’s plethora of financial principles. I hope it blesses you as it had blessed, and continues to bless, me. Watch the animated video here and the full version here.

One of the keys to living financially free … one of the secrets God talks about when He says that “I will give you the keys of the Kingdom of heaven …”. One of the principles/keys is The Principle of Management.

Principles of Management is the most absent component in churches … that’s why most churches are suffering, broke, or attracting broke people. And that is why most of the people in churches in the city are financially embarrassed – they quote scriptures but don’t experience those scriptures.

In the above scripture, we read that

  • God created
  • God withdrew rain
  • He withdrew rain and nothing grew
  • He refused anything to grow

Why did God withdrew rain?

  • Because He had no manager
  • He withdrew rain because there was no man to till the ground; to add value to what He was about to create.

What is Management?

Management is defined as the
effective, efficient, and correct and timely use of another person’s property and resources for the purpose for which they were delegated with a view to producing the expected added value back to the person. (That’s a mouthful!)

Management automatically implies that you don’t own the material.

Management also implies that when you bring it back, it’s supposed to be better; that is, have more value.

God is upset at lazy people. (Father, forgive me/us and revive us again!)

Management and Prayer

God will never give you what you pray for 🤔; only what you can manage. For example,

  1. you’re praying for a $1,000 but couldn’t pay $10 tithe on the $100 He gave you yesterday
  2. you’re praying for a big house and you cannot manage the apartment that you’re presently renting – you keep it dirty
  3. you pray for a bigger church and God says that you cannot manage the church you’re renting
  4. you pray for souls but can’t manage the people you got now – God protects them (the souls/people) from you!

If you get the million dollars you’re praying for, it will kill you! 🤕

You cannot manage $500; you spend $200 on a dress, $150 on your hair and put $20 (or nothing) in the offering; and ask God for a million dollars?! Is God stupid or what?!! (God forbid!)

God wants you to be an economist. To economize means to get the maximum out of the minimum.

We need to know (or appreciate) the value of what we already have. You have the audacity to tell God that you are broke and unemployed, yet in your house, there’s an oven that’s only used twice a week – that’s abuse and bad management. You have an oven that you only used one day a week. You can at least get some flour, water, and raisins; bake some cookies, put them in a plastic bag and make yourself a factory out of your own kitchen. That’s Management – get the most out of the least.

p.s. please check with your City and State, especially in the U.S., before using your residential oven for commercial purposes. Most have regulations governing this.

Again, you got clothes in your closet that you don’t wear and they’ve been there for ten years and you’ve put on too much weight, they’ll never fit you again; and you’re saying that you ain’t got money?!

To economize means to add value to your gift.

Put another way, answered prayer is regulated by your capacity to manage. God will never give you what you pray for 🤔. He regulates His answer by what you could manage …. money is easy to get; money is supposed to come to you, but it it keeps moving away from you, it’s telling you something – YOU CAN’T MANAGE.

Father God please teach me/us how to do better by managing the resources that You’ve given us.