Story
Do not slight a boy because he has humble beginnings, Abraham Lincoln grew up in a log cabin

Do not slight a boy because of his parents, William Shakespeare's parents could not write their own names

Do not slight a boy because of a physical handicap, Milton the great doctor was blind

Do not slight a boy because he quit school, Thomas Edison the great inventor quit in the third month

Lesson
The lives of great people teach us that we too can rise above our challenges and leave behind us financial legacies to be admired hundreds of years to come.

Quote: Obstacles are those frightful things you see when you take your eyes off the goal.

Following is an excerpt from a counseling session i had with a client. You may catch a few gems which you could use in your financial plan.

PERSONAL FINANCE COUNSELLING: SESSION 1 

1)      Thank God everyday because you have an income. This means you have something to enable you learn how to budget and also how to prioritize expenses.

2)      Pay Yourself First. Before you consider paying for anything with your income, set aside some money for yourself every month. The recommended amount is 10% i.e. 10% X 10,000 = 1,000. Start with something, however small.

If you do this starting in January, on X-mas day you will be smiling all the way to the shopping mall knowing you can blast 12,000/= if you needed to.

3)      Understand how you are spending your time and money. I suggest you make 2 types of analysis.

Expenditure Budget A. List your expenses into 2 categories; FIXED and VARIABLE. Fixed includes transport 2,000/= etc. Variable includes food, clothing, church offering, entertainment etc. 

 If you think creatively, you can cut the variable by almost half. For example, entertain yourself in ways that don't need your cash outlay, eat at home instead of restaurants, recycle old clothes that people forgot you had etc. Click here for more tips. How much can you save each month by being creative? ………………………./=

Expenditure Budget B. List your monthly expenses into 3 categories; Savings/Investments, Personal Development and Consumables. Start with savings/investments. This is the amount you pay yourself first and other amounts you set aside to buy land, a house, start a business etc. Personal development is expenditure related to self improvement e.g. education, finance books, motivational seminars etc By default, anything else that is not considered savings, investment or personal development should fall into consumables category.

What % of your expenditure is savings/investments?    .............%

What % of your expenditure is personal development? .............%

What % of your expenditure is consumable?                 .............%

How many hours in a week do you spend on enquiring or learning about savings/investments?    .............%

How many hours in a week do you spend on personal development?    .............%

How many hours in a week do you spend on leisure/entertainment?       ............%

 4)      What is your desired income level? 


What kind of lifestyle would you like, irrespective of how much you are earning right now? 

For example: I would like to pay myself 10,000/= per month, spend 15,000/= on investments, spend 3,000/= on personal development, live in a four bedroom house renting for 20,000/=, driving a car costing 500,000/= whose monthly expenditure is 10,000/=, spend 8,000/= on food and entertainment, spend 2,000/= on church and donations, spend 2,000/= on communication and 5,000/= on other expenses. Total expenses are 75,000/=. Hence the desired income level is 75,000/= X 1.3 = 97,500/= after taxes. 

This exercise does 2 basic things. One- It creates a goal and it opens your mind to desire to a better lifestyle and your adrenaline starts flowing. You are now ready to make a sacrifice or work harder or smarter to reach your desired income level. Two – If you think about the desired income and the lifestyle it will afford you and if you can imagine and dream about how happy you will be, you set in motion a process in which the world will start to bring you opportunities that will lead to your desire. 

Here is an exercise for you to do every morning for the next 30 days and let us see if you will receive at least one miracle. Pray your normal prayers and be at peace with God, everyone and everything. Then say, "I would like to earn …….per month or better." (Insert your desired income level in the ……..). Then imagine yourself living the kind of lifestyle the desired income will afford, e.g., see yourself relaxing with a smile in the plush living room of your beautiful home watching a 50-inch plasma TV, then driving in your sleek red sports bmw then flying first class on vacation with your significant other etc. etc. then wake up and go about your business as usual. 

However, keep your ears and eyes open. Fate, God and/or The Source will start giving you cues. For example someone will introduce you to someone senior in their company. This is a cue for you to start a small rapport with that person and ask for a meeting. It doesn't matter that this person is not in HR. She could be a sister to the HR Manager of Citizens Bank. Or you may have some time on your hands and a friend tells you she is going to drop a message at XYZ office. This is a cue to follow the person. This may be the place where your application for double your pay is awaited. This may be the job you need now that will later catapult you to the 100K target. 

 Tell me what has happened in your life after the 30-day experiment.  

 5)      Be inspired. Read autobiographies of great people. It is so easy to do this on the internet for free. I normally use  www.wikipedia.com because they have short summaries but at the library you can borrow Cds and books for free. Read quotes by famous people on www.brainyquotes.com

 6)      Be educated on personal finance. If you click on the following link you will see some basic books that I have recommended on my website www.MyMoneyTips.Weebly.com/ten.html

7)      Pursue your purpose with passion. I would like to believe that your life has a bigger purpose in this world than just going to work 8-5. Start thinking about this now. The way to start is to consider the 3 or so things that make you feel excited when you accomplish them. These are the 3 or so things that would bring real happiness in your life if you did them instead of going to work 8-5. List them down. In later sessions we will figure out how to live your desired lifestyle while accomplishing your higher purpose. 
 

Quote: Find your purpose and you will never work a day in your life.

Quote: Nothing really is work - unless you would rather be doing something else. 

Please send in your homework to Q 2,3,4 within 48 hours. Update me weekly on how you are doing on Q5,6,7. Even if it's nothing, let me know you did nothing. No explanation is required. 

 Best wishes. Reply to [email protected]

 

Story

A college professor I know told me an interesting story about a former student of his. Whenever the professor entered the lecture hall, he noticed that a particular student, whom we will call Dave to hide his true identity, would be walking around the hall chatting noisily with everyone who cared to listen.

However, when the professor started his lectures, Dave would immediately sit down, fold his hands on his desk, slump his head on his hands, close his eyes and stay motionless. Thirty minutes later he would jolt up from his comatose, scribble something on his notebook for five minutes then fall back into his coma for another thirty minutes. This queer sequence of events would repeat itself until the lecture was over.

Since the professor was teaching Complex Number Theory, he assumed Dave had given up on this difficult subject in Mathematics and had preffered to gain some sleep instead. He also assumed that Dave was recording his dreams whenever he woke up from his sleep to scribble on the notebook.

When exam results were released at the end of the semester, the professor was eager to see how Dave had faired. He was shocked beyond words. Dave was top in his class with an A in all subjects including Complex Number Theory. He immediately called for Dave to get an explanation on the mystery of the exceptionally good performance.

Dave explained that inorder to absorb every word the professor was saying, he would close his eyes to block any interuption and therefore dedicate 100% of his mind in understanding the lecture. Every thirty minutes he would summarize his understanding by scribbling notes in his own words. This way, Dave was able to remember everything the professor had said during the exam.

Lesson

In your life there are many times that you have been presented with valuable financial information which would have significantly and positively improved your life if you had acted on it immediately. But instead, people saw you operating the same way you had always done - it is like you were fast asleep and you never learnt anything.

I want you to surprise everyone one day. I wish you will one day become financially independent and reveal a secret plan which brought you success when everyone thought you were daydreaming.

(Pssssssttt: Dave eventually graduated with honors and 10 years later became a distinguished Professor of Pure Mathematics.)

Quotes:

It may be hard for an egg to turn into a bird: it would be a jolly sight harder for it to learn to fly while remaining an egg. We are like eggs at present. And you cannot go on indefinitely being just an ordinary, decent egg. We must be hatched or go bad.C. S. Lewis

Only the wisest and stupidest of men never change.
Confucius

 



 

 

Twenty years ago I decided to research about religion and i came across many definitions and conflicting schools of thought about the definition of religion.

Some definitions were very simple and straight forward but they left me begging for more spiritual illumination e.g. Religion is an idea, and anyone can have his. by XXXX. 

I also came across a definition that made the author's political orientation very clear. It stated that religion is simply a drug that is given to the poor masses so that they can peacefully accept to be exploited to create wealth for their masters while surviving in the worst form of human existence, which is being a contented slave.

But there is one simple definition that I have found very useful in my life till this day. It stated that religion is a recognition that there is in existence powers that are non-human and these powers have a direct effect in our lives. 

It is for this reason that I urge you today to invoke help from these non-human powers. You need all the help you can get in creating wealth.

You may also consider reading more about this in the book, "The Attractor Factor" by Dr. Joe Vitale. Vitale teaches some simple ways of invoking miracles in your life, including help with your finances, relationships and career.  

The first time I heard the phrase 'Brute Force Techniques' was in college. My Mathematics professor handed me my assignment and told me that I got the answer to problem number 2 because I had applied brute force techniques. His comment intrigued me. After the lecture I went to the library to research what a Brute Force Technique (BFT) was.

Since then I have applied BFT numerous times. Even if you have never heard of BFT, I am sure you will know what it is when I list a few examples below.

Example 1. You get employed to work 40 hours a week and your pay is $10 an hour. You do some quick math and you find out that comes to (40X10)=$400 a week X 4 = $1,600 a month.

However, $1,600 will only afford basic necessities and a life devoid of luxury and comfort. You then realize that getting 2 additional 40-hour-per-week jobs paying $10 an hour will shoot up your earnings to $4,800 ($1,600 X 3) a month.

If you go ahead and work the three jobs for a total of 120 hours out of the maximum 168 hours possible in a week, you are definitely applying Brute Force Techniques.

Example 2. You find out a business that makes you $1,000 a month by selling 10 items at $100 each. You also realize that inorder to sell the 10 items you had to distribute 1,000 flyers. You then do some quick math and you find out that each flyer you hand to a prospective customer earns you $1 per month ($1000 / 1000 flyers).

What should you do to earn $5,000 a month? BFT answer is; distribute 5,000 flyers a month.

I hope you now understand what a Brute Force Technique is. You will also realize that using BFT in the long term is not very efficient. There must be a better way. It is called being SMART. See two examples below.

Example 3. You go to college and thereafter get a job that pays $30 an hour and you leave your $10 an hour job. ($30 X 40 X 4)=$4,800. You now work 40 hours a week instead of 120 hours a week and still earn $4,800. This is SMART.

Example 4. You attend a business seminar and you learn how to add more value to your product so that people can buy it for $200 instead of $100. You also learn how to write a better advertisement to explain the added value so that 25 people buy for every 1,000 flyers you distribute.

If you then distribute 1,000 revised flyers, you will earn $5,000. What if you distribute 5,000 flyers? You will earn ((5000/1000) X 25 X $200 )=$25,000 a month!

The math looks easy. The hardest part is overcoming your state of inertia. You must jump a notch in your belief system and be ready to learn and make sacrifices. It is possible to go beyond BFT but it will take courage, effort, time and money. Are you ready?

Quote:  If at all you are going to think, you may as well think big. Donald Trump

 

This week's recommended reading is the famous personal finance book written by George Samuel Clason in 1926, "The Richest Man in Babylon". I have listened to the recorded books CD version three times.

G.S. Clason narrates the fundamental gems of personal finance in the form of interesting parables. Some of my friends have asked me to summarise the most important teachings of "The Richest Man in Babylon" as an article for this website.

One of the chapters is titled, "7 Cures for a Lean Purse". Please get hold of the book or CD version and start implementing Clason's simple financial strategies which contain so much wisdom that the book has sold over 2 million copies.

If you need help in getting a copy, please email me at [email protected]

Story

A certain ethnic community in East Africa has a very ingenious method of encouraging financial success in the family. This strategy has guaranteed wealth generation for generations and I am privileged to finally let the cat out of the bag. Spouses will no longer lose sleep because of financial distress. Tomorrow morning, hundreds of spouses will be cheering all the way to the supermarket and very soon they will be smiling all the way to the bank.

In this particular African community, the most precious gems of financial advice are delivered on the day a man and his girlfriend are joined together in marriage. Among the many gifts that the couple receives, there is one that is unmistakably special. It is a pure leather gold-plaited pouch. It is handed specifically to the bride - amid loud ululations from the ladies and noticeable dead silence from the gentlemen present.

Inside the beautifully decorated pouch lie a dozen secrets of success, namely 12 brand new six-inch razor sharp needles. The needles come with very simple instructions that are given only to the bride. The bridegroom is requested not to listen. The oldest aunt of the bride is usually given the honor of delivering the instructions.

"Listen very carefully, Sweet Beauty. I am sure you are very much in love with your husband. Today is obviously the happiest day of your life," old Auntie would begin, amid great pomp. 

"However, love does not pay the bills and love alone will not ensure a life of luxury, comfort and prestige. Today I hand you the key to wealth and success. If you use this key regularly, you and your children will be happy for this day. All the secrets of financial success are contained in this fine-looking pouch," she would continue, amidst giggles from the women. 

"If you ever lose sleep in the middle of the night because of financial worries and you wake up to find your husband happily snoring in his sleep, take one needle from the pouch and stick it on his behind. By the time you are through with the 12 needles, you and your children will be living a life of luxury, comfort and prestige," old Auntie would conclude amidst loud cheers and peals of laughter from the wedding guests. 

Lesson

Are you struggling financially? Is your husband happily snoring in his sleep while other men burn the mid-night oil working for their families? Then rush to the supermarket and buy a special well decorated pouch and place it on your bedside drawer. This may be the missing link to the life you have always dreamed of - a life of luxury, comfort and prestige.

Special note: Husbands and would-be-husbands, please ask your spouses to read this blog carefully. The special pouch with 12 needles may be your only reason to succeed financially and become wealthy. Do this for the sake of the dear family that you love so much.

(This blog is dedicated to my dear cousin  Becky Njeri. I wish you the best of financial success on your wedding day)