ARE YOU EATING YOUR TOMORROW TODAY?
Last week, I talked about financial planning. Today I want to ask you a simple question. CAN YOUR FUTURE AFFORD YOUR CURRENT FINANCIAL LIFESTYLE?
This is a story of Ade my friend. He is a young man with big dreams. He got a high-paying job almost immediately after he graduated from the university. He was earning a good salary and living in a big apartment which cost 30% of his annual salary. His car was awesome, he spent another 15% of his salary on fuel and the rest was spent on the upkeep of his family.
Two years later, he lost his job and all attempts to get another job didn’t yield positive results.
With nothing to fall back on, he sold his car three months later at a ridiculous price and had to withdraw his children from the expensive school they attended.
Life is not fair you may think, but this has happened to a lot of people so much like Ade; over and over again. The problem is we don’t learn from other people’s experiences until we get the same results.
Now let me ask you again; CAN YOUR FUTURE AFFORD YOUR CURRENT FINANCIAL LIFESTYLE?
I once asked a young man I counseled this simple question; Why have you not been saving? He responded thus.
Sir, you know I have to feed my family, pay rent, fuel my car and on and on he continued. I smiled and asked him to write out the exact amount he spends on each of the things he listed and he did. After that, I discovered that his car alone consumed 35% of his monthly salary. I will not go into all the other details but I told him to sell the car without thinking twice and buy a smaller one.
He was shocked. How can I sell my SUV? What will people say? That car is so comfortable, it makes my life easy he continued. I smiled and said, I agree that the car is good but it’s a big liability to you. It’s taking too much and not bringing anything back. If you can monetize the image it gives you then it’s okay.
Ladies and gentlemen, some of us have lived a financial lifestyle that our future can’t afford. That you can afford something now does not mean you should buy it. If you’ve lived a lifestyle of spending all you earn, it is time to #GetSmarterWithMoney. Shed all the excess weight off and channel your finances to more productive and profitable ventures so as to secure your tomorrow.
I’m not saying you should not live a good life but all I want you to answer is; Can your future afford it?
Why live large now at the expense of tomorrow. Do you not know that your income should be divided into 3 major parts? If you don’t know, look for the post with #GetSmarterWithMoney where I talked about the S.I.E Trinity (Save, Invest, Expend).
I just want you to learn from the mistakes Ade made. Bring your cost to the barest minimum and invest the rest for a secured future.
Don’t be afraid of what people will say. Sell off your liabilities and or turn them into investments. Your fancy car can do Uber too. That your expensive shore collections can be sold on OLX and the funds used to buy bitcoin. The list goes on and on.
The bottom line is, do not eat your future today because it is sweet, the taste will be so bitter tomorrow.
Till I come your way again,
iAM Robor Bliss, Owisi
Founder, Getting Smarter With Money
How To Plan A Budget And Manage Your Finances Like A Pro In 2018