Month: October 2016

Moving Money is the Safest Money

“Money is made to be a medium of exchange
Not a storage for wealth
Attemps to store it defeats it’s purpose
And so it’s value drops”Reach and Stay Rich

When the purpose of a thing is not known, abuse is inevitable. Money was not created to be a measure of wealth or a means by wich riches can be frozen and framed. But we often see it serve this purpose in recent times. Politicians cart away with huge sums of money; diligent employees set aside a lot of their income hoping that someday it will help them attain financial freedom. But all these defeat the purpose of money.

It is okay to save and make plans. But while saving, never loose sight of why saving. A lot of people have plans and most of these cannot be achieved without some reasonable funds. But your money isn’t safe where it is if it is not being used. In the bank, your money is loosing value constantly. In mutual funds, your money is just fine. Under your pillow, your money is also loosing value. Where then is the safest place to keep money? A vault? A vase? A venture?

A Venture

Moving money is the safest money. I cannot overemphasize that. Put your money into use. The average SME venture increases the value of investment by 40%. That is a far more secure place to load in funds. Let’s forget the intricacies of the business for a moment and just take a bird-eye gaze for a moment. Money in the bank is lying dormant in a vault (though technically it is not, but we somehow have that feeling). Though it seems secure and you’ll always get access when you need it, but that safety is it’s bane. It cannot expand! It is locked up.

But in a venture, you might not get access to your funds, but it is definitely increasing in value. Going from hand to hand, city to city but it is picking up value and adding worth everywhere it reaches.

Your money is safest in a venture, not a vault not a vase!

3 Things to Run From When Investing

Security
Banks, Insurance and Mutual Funds are one of the most honest business people to deal with. They never promise heaven and earth. They only promise security. They promise that your money will be safe, they never really promise that you will get rich. Security is not how we would attain wealth. Adventure is what makes wealthy people! Try new stuff. Even the banks make big bets by investing but they ask you not to bother taking those risks. If someone bears the risk, he makes the profit. This is simple economics. Profit sharing is done by the amount of risk taken. If you want to be rich, don’t look for security, look for adventure!

Big Names
Another deception in investment is big names. Big names have the worst probability of expansion. Small and obscure industries stand the greatest chance. Big names sell their brand as a security for you, same as above. Small names sell potential. They do not promise security, they only tell you they are committed to growing as much as you are. They are driven. They are motivated. They are compelled to prove themselves. Big names often rest on their oars and there is hardly any flexibility because of the complex structure and beaurocracy. If you want to make a big name, don’t look for big names. Look for unpopular ones.

Majority
Time and time again we have heard this said, but we do not act as though we understand. The people in the crowd are the most fearful sets of people ever. They criticize everything, laugh at anything and pass judgment based on the song of the moment. But guess what, they are no the wealthiest and cannot be trusted for the kind of legacy you want to build. People usually put down what they don’t understand. if they really understood, they would not be in the crowd, don’t listen to the crowd.

3 Things to do with Money

Your Own Business
Generous Banks give 5% as interest rates. Inflation depletes your money by 17%. Mutual Funds give you back your money intact. None of these options help grow your money. One of the best places to put your money into right now is a business: your own business. Do not be afraid to put all you have or most of it into what you do. The average SME makes about 40% of the money invested! Yes, 40% you’re sure you still want to keep that money in the bank?

Sponsor or invest in a friend’s business
If you have a paying job that you do not want to let go off soon, you can find a friend in business to invest in. Many of us seem to trust the banks more than we trust our friends. If the bank makes a billion, your money will make no big difference and you get almost nothing commensurate in return. However, if you invest in a friend’s business, if he hammers, even if He is the devil’s cousin, He will still remember you for good. And if you don’t have friends that can keep their word, change your friends.

Shares are a good place to be now
This is the best time to buy shares. A word is enough for the wise. Stocks cannot drop beyond their value at the time of a recession. This is true especially for companies who have proved themselves over the years but are caught in the unfortunate dilemma of the recession. This implies that by the time things get stabilized, the stocks will rise to the place where it ought to be. Right now, this figure seems to be about 1000% for the banking industry right now.

Risk is the Meal of the Rich

Money is a Tool
Money is not a God, but a lot of people have made it so. When they make a little they keep it at the most sacred spots of their wardrobes, as if it demands to be worshiped. Money is a tool, those who created it made it a medium of exchange and once it is not fulfilling its purpose, it looses its value! Use money, it is a tool. If you keep cutlasses and hoes without using them, they rust and loose value. If you use them, they rust and loose value too but you would have made enough of it to get another tool and hopefully you have 2 or three tools before the first refuses to serve you again.

Difficulty to let go is a bad sign
If you find it hard to part ways with money, something is not right. You have let the love of money overthrow you. Your heart has been captivated and you do not want to let go. You have been emotionally attached and you need freedom urgently. If you find it hard to part ways with money, you do not need more of it, you have had just as much as you can handle. Money is created as a means of exchange it is meant to move, those who pile it up always get into trouble. They could be robed or it could be destroyed. Moving money is the safest money!

No risk the worst risk
If you read my post on why the Bank is a bad idea, right now you would realize that no risk is the greatest risk. If you bury your money, you loose 17% of it. If you keep it in the bank, you loose 12% only. If you put it to good use, you never can tell what may happen. You may gain 12% or 17% or 30% or 60% or even 100%. You do not have a choice, you either make money or loose it. If you do nothing, you’re loosing 17%. Just remember that.

Why Money in the Bank is the Worst Idea Ever

Inflation Rate: 17.20%
The inflation rate in Nigeria is put at 17.20% in August 2016. This is the worst it has been in the past 9 years. Let me tell you the implication of this: If you hold 100,000 Naira in your hands, at the end of one year you think you still have 100,000 but in actual fact what you have is simply 83,000 Naira. You have lost 17% of your money by doing nothing! (See More)

Interest Rate: 5.00%
If you decide to put your money in a savings account, you would be a bit luckier. The best interest rate in the country is being offered by Standard Chartered Bank and is currently at 5%. That means, with the current inflation rate, the best bank in Nigeria can only help you preserve 88% of your money. 12% is still going to be lost to the economy. (See More)

Service Charges
Banks, despite the poor interest rate and the excruciating inflation, still charge exorbitant rates for SMS. I noticed that some banks have started sending weekly updates and monthly updates. And so that they get more money from you, they send account statement and monthly summary in separate texts. It is terrible that we are made to pay for this text messages. When SMS still cost 15 Naira, this is what the banks charge. Now that texts are now free, we are still being charged the same amount. They make money with our money and still make us pay for reminding us how much money we gave them to make more money with!

If you need a good way to put your money into use, Holla!

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