|
Getting your Trinity Audio player ready...
|
I love money.
I bet your reaction to my assertion above was bolstered by a table that had gold-digging innuendoes for legs. I used to think the same and in fact, it was a light-bulb moment for me to discover that it is instructive to love money. Money is good. Money can help you come out of debt, sleep better, start that business, buy that house or car, help people in need, take that trip and help cover that financial obligation that keeps you up at night! Why then are we shy or discouraged to own the fact that we love money?
One of the success factors of financial freedom is to develop a good relationship with money. Like the relationship with that special person, your relationship with money should be enjoyable. You should know it, love it, understand it, nurture and grow it. To get the best value, you should pay your money goals adequate positive attention.
The love of money, on the other hand, and as one of the holy books declares it, is the excessive attachment to material wealth that precipitates wrongdoing. This does not symbolize a healthy relationship.
So, let us establish the fact that to win with your finances, you must be in a healthy relationship with this partner – money. I would like to discuss this healthy relationship under three broad areas as follows;
- Mindset – You should embrace the mindset that money is good, and it exists to work for you. Be comfortable in this mindset and you’ll begin to see opportunities to make more money. Your income is the fundamental derivation of your personal finance process – the more you earn, the greater your chances of securing an accretion to your savings and investments accounts.
- Discretionary spending / Budgeting – A budget helps you allocate your money in advance and in line with your goals. Being comfortable with money helps you build the discipline required to spend less than you earn knowing that savings and investments guarantee financial stability.
- Grow your money – I would recommend that you automate your savings and investments as much as possible – you can leverage the diverse Fintech platforms available – for convenience and accountability.
So, what do you invest in? The answer to this question is specific to you, in a manner that addresses your personal circumstances such as your age, your risk profile, your retirement goals etcetera. The salient point, in my view, is to operate by asking pertinent questions and investing only in what you understand.
You can start with a separate savings account – preferably a high-yielding one to house your emergency funds, as it is crucial to be able to access this account when faced with exigencies – and another account for locked-in investments. Your locked-in investments account for medium-terms savings that will grow if managed conscientiously. This can be in Treasury bills or bonds with fixed return on investments or in the stock market – whether directly or through pooled funds.
What to look out for? Evaluate the underlying transaction in whatever arrangement promises you a certain amount of return on your investment. If you’re placing your money with an organization, what do they in turn invest your money in? That gives you an idea of whether the arrangement is legit. If you can’t understand and articulate which investment vehicle is generating your return, don’t do it.
In summation, you should love money to the extent that you put your finances together in a way that respects and waters that relationship. That yearning that might make you resort to deplorable means of making money, is what should be avoided.
Finally, I love money and I intentionally put in the work to make it a sweet relationship, as should you.
Temitope (Temi) Obasanya
Temi is a Chartered Financial Analyst and Personal Finance Expert with over 11 years’ work experience spanning regional markets across sub-Saharan Africa. She currently works as Treasurer of a leading consumer finance organization in Lagos, Nigeria. Her passion for social impact and sustainable wealth solutions has seen her deliver financial literacy coaching to individuals and small businesses, helping them make better financial decisions.
Email: topebusari@gmail.com
LinkedIn: https://www.linkedin.com/in/temitope-busari-cfa/
