Whether you have broken your 2020 new years resolution by now or not, for the most of us, our finances continue to be a concern.
Here is the first step towards planning for a Secure financial future.
Take Stock of Current Financial Status, that is,
Calculate your current NET WORTH.
Do this at least quarterly; certainly
do it once a year!
Compute the current value of all your assets (what you own).
The total of non-obligated funds (balance) at all bank accounts The fair market value of all real assets you own
trade-in value of cars, motorcycles, boats, scooters, trucks, etc.
Current fair market value of all real property you own
house(s), farm(s), land(s), etc.
Current trade-in value of equipment and appliances you own
TV’s, Refrigerator, tools, computers, sound systems, etc.
Current trade-in value of all furniture, jewelry, antiques, etc.
Compute the current value of all financial investment instruments
(these are the value of these instruments
that will be available to you on demand
after deductions of all penalties, fees,commissions etc.)
Cash payout of all retirement accounts
Cash payout value of bonds, stocks, etc.
Cash payout of life and other insurance policies
Cash payout of all other investments
Compute your total debts (Liabilities);
Current short term loans
(those payable within 1-5 years)
credit card(s) balance(s)
total current value of all car loans/note(s)
other short term debt(s)
e.g. lease or rental obligations
current value of total long term obligations
Mortgages/house payments
Student Loans
many student loans have a payoff value
attached to your total balance
Other Long term contractual Obligations
current value of total child support payments
current value of alimony or divorce settlements, etc.
current value of all other court ordered payments, etc.
Compute the Net Worth
= Total Current value of Assets – Total Current Value of all Debts. This is the foundation of all planning for a secure financial future!
The numbers need not be super accurate.
This is just a birds eye view of your current position
Now that you know your current financial status,
the Next Step is to SET SOUND FINANCIAL GOALS
That is, clarify where you want to be
That’s in the next Post
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Scanning the landscape of your financial future?
There are about six major ways to become wealthy:
Be Born into a Wealthy Family
It goes without saying that
if you are the child, relative, or heir of
Warren Buffet, Bill Gates, Sam Walton, or
Africa’s Aliko Dangote, or Mexico’s Carlos Slim, or
any of the royal families in Kuwait, Oman, or Dubai, etc.
you WILL
But this path to wealth is not available to over 99% of the planet!
Photo by Roger Sekoua on Pexels.com
Marry into a Wealthy Family
Kate Middleton, and Meghan Markle
married into British Royalty and into Wealth!
The wives of Rupert Murdoch, Mark Zuckerberg, and Elon Musk
However, this road is reserved
for only a tiny sliver of humanity. It also appears that
the wealthy generally marry
people of similar economic status.
Win a Lottery Jackpot with a Big Cash Prize
The odds of winning the mega million jackpot in the US
for example, is over 1 in 300 million
that means it is ‘possible’ to lose over 300 million times
It also means that you may never win
if you play the lottery every day
of a 100-year life span
(that is about 36,600 days!)
and never win!
As a means to wealth,
winning the Jackpot is therefore a ‘false hope’ for the majority of us.
Note: Forget about the publicity
around those who win;
the prize money
(less the portion
that goes to the organizers)
is coming from all those who did not win,
(that is a lot of people!)
Photo by kat wilcox on Pexels.com
Steal Money From Plenty of People or From a Wealthy Person
The problem with this approach is that
it is illegal and you may get caught, it is anti-biblical, unethical, and immoral; moreover people/the wealthy will work to protect their money, and
therefore the success rate of achieving lifetime wealth
through thievery is also very low.
Therefore, this is not a viable approach to wealth
for average person (some still try to make a living
by scamming people out of their money).
Become a Successful Professional in a Well-paying Industry
Note: “successful” Also Note: “well paying industry”
star athletes, champion sportsmen, movie stars, etc.
at the top of their profession
(Usain Bolt
the 100 meter Jamaican world record holder
is reportedly worth over $30 million
professions requiring high qualification, and
that are in high demand
but with low supply of workers, for example,
brain surgeons, computer whiz, fund managers, etc.
Also Note: Working for income in an excellent but regular job
is not usually a means to wealth!!
The possibilities here in my judgment are greater
than the previous listings
but still for most people
it is not a feasible way to build lifetime wealth.
Start and Run Your Own Successful Business
Note again “successful” Starting and running a business requires
special skills
which many people do not appear to have;
willingness to take risks,
willingness to bear full responsibility
But with risks comes financial reward
that can grow without limit
into lifetime wealth,
as long as the business continues to grow
The proportion of people who can take this is also greater
than than the previous options!
Get A regular career and invest wisely
in other Successful Businesses
over a long period of time!
Note: you do not have to be successful at
starting and running a business; but
you must be good at picking successful businesses
over a long period of time!
This means using modest regular income, and
saving all you can, while
investing in businesses that are successful,
over a long period of time,
will generally compound into wealth!
This is the most available route for most people!
On a final note:
Becoming ‘wealthy’ need not be your goal, rather Make it your goal to become Financially Free:
Have enough to tithe and give to the work of the Lord.
Have enough to cover your budgeted expense
including miscellaneous, as well as
unplanned and unexpected expenses.
Have enough to cover for emergencies.
Save enough to guarantee a desired standard of living in retirement.
Have enough to leave a legacy for the next generation!
Have enough to be generous and make a difference in the lives of others.
This we can all do
If we start early, with much planning, prayer, and discipline!!
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I NO LONGER MAKE NEW YEAR’S RESOLUTIONS!! WHY? Two things!
I have come to view the end of one year and the start of another as
a little too artificial.
Imagine looking back to the earth
from the vantage point of the moon.
What is the difference between
December 31st and
January 1st?
Or Imagine being a bird, or another animal.
What is the difference in the experience
of December 31st relative to January 1st?
I have resolutions,
but they are no longer bound by an artificial timeline. My resolutions
like time itself,
are always on a continuum; and they
are about
‘always growing’;
always becoming a better version of me.
Photo by Akil Mazumder on Pexels.com
I don’t stop striving to become better version of me
just because I broke a resolution after two months.
Neither do I wait until the next December 31st
to resolve to start again;
to become a better version of me;
after I fail by February 1st each year.
So what should we do on the 31st of December each year?
Do celebrate
the end of a block of (man made) ‘time’ and the start of a new one,
like everybody else; and
it is useful to have time markers along the way, but
Do, never become obsessive
that you must meet all your benchmarks within the year
to consider yourself successful!
So here is the ONE AND ONLY RESOLUTION
Always strive to become a better version of yourself with each passing day:
Be better at your faith, you know,
trust, pray, love, give, testify, know, and serve more, etc.,
about and as a result of your faith!
Better in your character
(the real you;
what’s inside;
like toothpaste,
what comes out when pressure is applied);
Be more dependable, more patient, more truthful,
more balanced, less self-centered, more at peace with yourself,
more generous with others,
with your resources as well as with their faults etc.,
more self disciplined with time, words, and actions; wiser.
Better in your relationships: more
serving, self-less, open, forgiving, listening and less talking,
considerate, gentle, humble, and more self-control.
Better at your Career: Make it your goal to be
more dependable, knowledgeable, skillful, useful, available, etc.
A wise man once said, long ago:
“…One thing I do: Forgetting what is behind and straining toward what is ahead, I press on toward the goal to win the prize…” Paul (ca. AD 52-62, Phil 3.13-14)
HAPPY NEW YEAR!! PLEASE LIKE AND SHARE!!
In Developing Countries;
it is easier to come up with gift ideas,
(if you have the funds for it),
there are many things that people need
but do not have; indeed
cooked food was the gift
my mother dispatched
(through us children)
to neighbors, extended family, and friends
as a sign of good will at Christmas time;
watches, shoes, garments, jewelry, dishes, sheets,
pens, books, personal music player, TV, computers, toys, etc.
are all also great gift ideas.
In affluent societies like in the Western World
coming up with the perfect gift at Christmas
can be a challenge;
because most people use
their regular incomes or
credit cards to buy what they
One option is to buy
high-end gifts
exotic and rare versions
(which can be very pricey)
of things people use on a regular basis.
Regular folks perfect gift;
here are a few suggestions of how to give the perfect gift.
The perfect gift takes time
Start early, as early as September
listen to everyday conversations,
listen to expressed desires and aspirations
and make a note for gift
The perfect gift may be an ‘experience’
Gift things
they can be
a vacation, cruises, concert, a trip to a destination
museum/zoo visits or theme park rides, air fare, special trips;
time off work, housekeeping, or baby sitting;
an offer of cleaning, laundry, grocery shopping;
scholarship, tuition contribution, tutoring,
a special radio station/you-tube, blog post announcement, etc.
The perfect gift should be personalized, customized or handmade;
an autographed book/ticket/music/fan wear,
(from the author or composer, or admired person)
monogrammed items:
a person’s name, initials or special message,
can be inscribed on
silverware, bathroom set, plaque, musical instrument;
The perfect gift must fit the personality of the receiver
Some people want big
(the amount spent is impressive)
others look for small details
(how rare, how much effort, how much thoughtfulness!)
Some people are visual
others are action oriented, still
others are moved by sound, etc.
Some people like things, others like ‘experiences
Some people want to keep up with their peers
(they get gifts that are popular)
others want to know that ‘they’ are unique
(they get gifts
How do you know what is the perfect gift?
People usually give the type of gift
that THEY like to receive; use that to guide your gift
TO THEM! not the other way around
do not give what you cherish
(I once gifted a hat
that she has never used;
it was something I fancied for myself!)
The perfect gift may be what someone tells you they want
They tell you directly Some apps make it easy to create a registry for gift requests.
This should have been posted before Thanksgiving Day. All the same,
“Better Late than never,” and on thanksgiving week,
I heard one radio announcer say:
“Thanksgiving is not a day, it is an attitude of the heart.”
Photo by nappy on Pexels.com
T – THANK and PRAISE God
for all things BIG SMALL
And do not forget
the precious people in your life!
H – HEALTH AND
are things we can all be thankful for
even if we are ill at a hospital
A – APPRECIATE and ADMIRE
the beauty of God’s creation
N – NAME and NUMBER
your blessings
its a rewarding experience,
including the precious people in your life.
K – KINDNESS and THANKSGIVING
in the heart
are twin siblings in the same home.
S – A SMILE and a CHEER;
want to see it on the face of the deserving?
Just say, “Thank You!”
from the heart
and with a warm smile
G – GIVING and RECEIVING:
The one exists not without the other
I – ICTUS;
Five Greek letters for ‘fish
Jesus, Christ, God, Son, Savior:
at least one reason to “give thanks!”
V – VISION and VALUE:
Nothing says:
“I see and I value what you have done” like when you say
I – INSIDE and OUTSIDE:
A thankful heart outwardly
N – NICE and NEW:
Thanksgiving is always that
Photo by Panos Sakalakis on Pexels.com
G – GOOD to GREAT:
‘Good Gifts’ ‘GREAT GIFTS,’
when it is received with a heartfelt:
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We are Designed by God to Reach out to Him and to Others; To Reach Out for Love and Towards our Dreams!
Reach!! 