One day, a boat filled with sailors rowed past the cliff. A sailor spotted the goat, grabbed a bow and shot at him. As the goat lay dying he gasped “I thought my enemies would come by land. I never thought to look out to the sea”
Wealth is only guaranteed when your personal money making machine is made up of effective money generation and money retention system. A defect in either of these systems makes you vulnerable to poverty and financial failure. Unfortunately most people intending to make money often concentrate all their efforts on generating money with little or no attention on controlling money. This is like trying to save the life of an automobile accident victim by doing everything to get him to the hospital without stopping blood flow from his body. The truth is: he is likely going to die faster due to loss of blood than due to the injury sustained. You will remain poor more as a result of lack of money control skills than due to lack of money generation skills. This is true for individuals as well as for organizations.
Think about it this way, every time you save $100, you are automatically $100 richer. But every time you need to make $100 you will need to spend some money in other to make it, sometimes as much as $ 80. Therefore preventing yourself from losing $100 might be equivalent to making $500 or more. The first and most important skill of enduring prosperity therefore is money retention skills.
If you ask most people if they are good at controlling money, their answers will be a resounding yes. But this approach will give the kind of result you will get if you ask children if taking ice-cream is good for their health. The best way to know if you have money control problem is to answer the five questions below as sincerely as you can with a yes or a no. No one else needs to know what your answers are, but being sincere with yourself will put you on the path of enduring prosperity.
- Do you regularly find yourself in short-term and long-term non-business debt? E.g. You always have to borrow money or apply for IOU before the end of the month
- Do you find yourself borrowing money from people who earn less income than yourself? E.g. Sub-ordinates or non-working parents
- Do you find yourself usually involved in regret expenses? These are expenses you incurred and wished you had delayed for more important expenses
- Do you find yourself usually involved in emotional purchases or expenses? Buying things or spending money not because you need to but because of what people will say
- Do you find yourself regularly unable to meet expected and predictable bulk expenses such as: Children school fees, Maternity bills, House rents, Major car repairs
- Do you find yourself regularly dreaming of jackpot or sudden financial breakthrough and therefore frequently participating in different types of lottery or lucky dips