“Savers for a Rainy Day”
In an earlier article written for adeadeogun.com by Hellen Prest Ajayi , titled “The Upside of a Falling Economy” she talked about the ups and downs of recession and how to be a winner in a somewhat gloomy situation. The article generated a lot of responses and questions. One of the readers Mrs Denny Iyallah sent in the following contribution from the UK, which I find quite interesting. I believe that her contribution titled ‘Savers For a Rainy Day’ being an expansion of a section of Hellen’s article, would be beneficial to all.
“Savers for a Rainy Day”. By Denny Iyalla
Saving for a rainy day requires a lot of discipline. Discipline is an attribute that so many people lack these days. The ability to restrain one’s self or consistently stick to a plan is gradually eroding humanity. We all love the good things of life and that is by no means a crime nevertheless, we also need to remember that life is full of peaks and troughs. Nobody prays for evil but it is good to plan for a rainy day.
Here are a few tips that can help,
- Redefine your definition of “rich”– What is rich? Being rich doesn’t mean driving fancy cars or lavish living; many people do that on a loan. Most people think wealth is measured by material objects. Well, my definition of being rich is having enough money to meet my (or my family’s) basic needs, a few wants and also to others.
- Buy with cash– You shouldn’t spend money you don’t have. Many banks provide overdraft protection and credit cards it is so easy to spend without realising how neck deep we are in debt. Many businesses offer sales on credit and many people buy almost everything on credit just to keep up appearance. There is no need for that. If you don’t have the cash, don’t buy. The truth is nobody really cares the brand of clothes you have on, just don’t come out naked.
- Stay healthy – We all know the popular saying “health is wealth”. Well, staying healthy keeps away the hospital bill. Eat smart, stay fit and you will save money which would have been used on hospital bills.
- Stay in and relax – Every vacation must not end up in UK, USA or Dubai, go somewhere local (Obudu ranch, Yankari game resort, Tinapa Resort, Olomu rock etc) or stay at home and bond with your family and friends play games visit local entertainment centres and save the difference.
- Save for the rainy day – “Even when things are going great you must always be prepared for a change. Create a budget and stick to it. If you take the time to save a minimum of 20% of your monthly earning you will be prepared to handle the storm when it comes. If you live above your means, then when the slightest change occurs, you will not be prepared to adapt. Financial flexibility is more important than keeping up with the Jones’s.
- Stop the competition – We continually compare our wealth against that of others. We are competitive and envious. There is a difference between aspiration which I call healthy competition and the competition for the sake of it. The compounding issues of globalisation, Americanisation, technology and social media (Facebook, Instagram and the likes) encourage people to strive for more and more then you end up with a situation that makes you insatiable. It is so sad to see someone earn 1 million naira and the first they think of is a flashy car or a trip abroad just to prove to peers that you have ARRIVED. They fail to re-invest, so what happens when that stream of income ceases? They can’t even fuel the fancy car neither can they sustain the affluent lifestyle they have acquired because of the quick buck/windfall or stroke of luck in business. This leads to desperation, many fall into depression or resort to crime. My advice? It is fine to aspire to wealth, but don’t lose sight of the means to accomplishing it. Be real!
- Invest your money – A popular maxim “don’t put all your eggs in one basket”, this also applies to sources of income. Don’t depend on one source alone. If you have a paid job and you have a good business idea; carry out a proper market research and then venture into it. If you are not business savvy, speak to an investment banker. Rather than leaving you loose change in the bank you can invest in fixed-term deposits or bonds.
PS: I must warn that there are risks involved. Financial investments such as stocks and bonds may not yield as much as you invested so you have to.
- Manage your time – Time is money. Manage it well.
You can choose to spend an hour doing nothing productive or tutor a child and earn a buck. It’s all up to you. Sometimes we say we don’t have the time to develop ourselves and end up at the same spot for years. There is always time if you create it. Focus! Try to simplifying your daily tasks, reduce or eliminate whatever isn’t productive and keep your focus on what’s important. It takes discipline but it can be done. You, the president and Bill Gates have the same number of hours in a day, same 24 hours. We all know how productive they are, what you do with time matters.
Do you remember the song –Time na money by Mike Okri? My peers would but the younger generation wouldn’t. Check on YouTube but here is an excerpt to help drive the message home.
Time na money ooo, time na money,
Make you use your time well,
No waka waka,
No gossip gossip,
No spoil another man,
Use your time well,
Do better thing,
Money no dey fall from heaven,
Do better thing money go come,
Na true word I dey tell you so … orinando!
I think there is too much emphasis on the quick fix or the easy option in today’s society. For example taking diet pills to lose weight instead of the exercising and eating well. The truth is for money to multiply it must be managed. Management includes saving and investing wisely. If you live above your means you will eventually end up at the mercy of others.
I implore you to live a comfortable life, not a wasteful one. Do not spend to impress others. Do not live life trying to fool yourself into thinking wealth is measured in material objects. Manage your money wisely so your money does not manage you and always live well below your means.
Remember! Living below your means is a way to build wealth, reduce stress, create options, and find peace of mind.
Enough said! A stitch in time- saves nine. It’s not too late to start!
Interesting read and very expository.
A very informative and concise write up. I see this as a soul searching article.