Money Matters Part II

By Olamide Falase.

The Million Dollar Loaf of Bread…

Remember when I told you earlier http://ovundahnyeche.com/2019/01/08/money-matters-part-i/ that there are some boring terms about money that you need to remember?

Let me ask you this question.

Which is more important, how much money you have, or what you can purchase with what you have?

To a Zimbabwean, that question is a “no-brainer”, he’ll probably say, “Of course it is what you can purchase (You see, there was a time a loaf of bread cost Z$35 Million – in case, you were wondering what I wrote, it’s 35 million Zimbabwean Dollars. You don’t believe me? Check this out https://www.jasonhartman.com/price-of-a-loaf-of-bread-jump…/ )

One very vital way of looking at money is to always think of it in terms of “its purchasing power”.

If someone offered you, US$10,000 or N3 Million which would you accept?

Remember that 3 million is a lot more than 10 thousand (in fact, 30 times more) however, a simple exchange rate comparison will have you opting for the US$10,000 precisely because the US$ is a better STORAGE OF VALUE than the Naira.

Of course choosing between the US$ and the Naira is, to most, a simple decision, but imagine if you had to choose between getting N3 Million right now, or N3.5 Million in 2 years’ time (Both amounts are guaranteed).

Now the choosing becomes more interesting, although I suspect that most Nigerians will settle for the N3 Million today, but I am also willing to wager that it is not for reasons that has to do with understanding how money works.

Make I digress small!!

Always remember that no matter how much or little you earn, you are someone’s “gbogbo bigs boy” or “gbogbo bigs gehs”

What this means is, there is ALWAYS something you can set aside from your current earnings and still maintain a standard of living.

It helps to imagine that there is someone, somewhere, right this minute, who may not even live too far away from you, who can subsist on what is left from your earnings after you have set some of it aside as savings.

Trust me, it is not hard to imagine it, and even much more easier to experience.

You just have to make up your mind to do it.

The toughest part is overcoming the false notion that you are as rich as what you wear, drive, eat or live in.

Truth is, you are as rich as what you cannot do without. The fewer the things you cannot do without, the wealthier you are likely going to become.

Saving money wouldn’t make you wealthy, but you cannot become wealthy without developing an attitude of savings..

I had to jump a whole lot of steps in my “money series” to get here, and so, there will likely be many people who wouldn’t understand what on God’s planet I am talking about; for that I apologize profusely.

I just thought I needed to say this to someone who would need the encouragement to develop an attitude of needing less than they earn.

 

Olamide Falase has nearly 18 years industry experience, which spans the Banking, Food Services, Civil Construction and the downstream sector of the Nigerian Oil and Gas industry, most of which has been in management and leadership positions. He presents industry related issues in a relatable format, easy for a broad range of people, not only to understand but to also relate to.

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