SECRETS OF ACQUIRING WEALTH I. INTRODUCTION 1. Assess your financial status objectively to know where you really are. 2. Decide to acquire wealth. 3. Acquire financial literacy/intelligence *Financial literacy will help you to develop the attitudes and skills for acquiring wealth. 4. Save heavily 20% of your income at least 10% 5. Live below your means to be able to have savings 6. Block all leakages of your money to be able to save 7. Live below your income to be able to save 8. Avoid unnecessary financial burdens (liability) also to be able to save. 9. Do not attempt to build your family house from your salary also to be able to save. You have to save and invest – you will be able to build if you invest N25, 000 x 10years. 10. Multiply your money by investing all your savings 11. Never, never spend your savings on things or occasions. It must be invested or planted to multiply it. Invest any windfall you have e. g leave bonus, traveling allowances. Do not spend all your per diem. 12. Do small business in addition to your salary work. This will give you more money to invest – remember he who sows. II. ASSETS AND LIABILITIES Liabilities are things that take away money from your pocket or bank account. e.g. (i) Telephone (ii) Car for personal and family use – the bigger your car, the bigger it claims out of your pocket (iii) Personal building (iv) DSTV. They are needed but be wisely timed. 1. Assets are things that put money into your pocket e.g. (i) Books (ii) Seminars/workshops (iii) Shares (iv) Landed properties (v) Vehicles for hire (vi) Houses for hire, etc III. ASSESSING YOUR FINANCIAL WELL BEING One of the evidences of financial intelligence on wealth mentality is constant dynamic objective assessment of one’s financial status. Very many lives as rich people when they are actually not rich. The formula below will help you to know whether you are financially o.k. or not: Age x monthly income x 12 = Expected minimum financial worth that can 10 be considered good financial status For example: a man of 40years earning N100, 000 per month, his expected minimum financial worth is: 40 x 100,000 x 12 = N4.8million 10 The assets of the man must be worth N4.8m before he can be considered wealthy or financially healthy. Note: Assets are things that bring money in for you. Assets include shares, landed properties, houses that you rent out. House built for family use is strictly not an asset as it takes money away from you. Your car is not an asset. For a 50 year man earning N200,000/month, his expected minimum worth = 50 x 200,000 x 12 10 = N12,000.00 Try your own status, below. 2. IV. MULTIPLYING YOUR MONEY The only way by which you can acquire wealth is by multiplying money. Just adding to your money month after month will never take you anywhere near wealth. Every money you saved must be multiplied. Your savings must never be spent on things or functions. How to multiply your money: There are two major ways: Through (i) Stocks or shares (ii) Real Estate Examples of stocks/shares – buying the shares of a company makes you one of the owners of the company. Real Estate i.e. landed properties & buildings for commercial purposes appreciate steadily and rapidly in some cases. Examples: (i) N20,000 invested in shares (stock) of First Bank in 1992 is now worth N17million i.e. within 14yrs – sweat less wealth. (ii) N120,000 invested in First bank in 2004 is now worth N400,000 (4 times the invested money in two years). (i) N102,000 invested in GTB 5yrs ago is now worth N900,000 (times 9) (ii) Money put in the I.P.O of Intercontinental Bank doubled within 1½ years. (iii) N10,000 invested in WAPCO (Elephant Cement) in January this year is now worth N50,000 (x 5) in less than one year. (iv) Money put in M & B doubled in 2years. Note: - You can easily acquire wealth without sweating by investing into the shares of good and progressing companies. Your stockbroker knows this companies very well. - N250,000 invested into stocks will multiply within ten years to build a decent four bedroom flat for you and your N250,000 will still be there intact to multiply. - N10,000 every month for 15yrs will make your retirement a very rich 3. one. You will eat whatever you like, ride a decent car, give money to your children and die a rich man with millions to live behind for your children to enjoy. - N10,000 every month for 30years will give you about N320 million. N10,00 every month for 20yrs will give you about N180 million. - Buying shares can help you to turn your stone into gold. POSSIBILITY OF MULTIPLYING YOUR MONEY THROUGH LANDED PROPERTIES Money put on landed properties can multiply within a short time as shown by the following examples: a. Mr. A - N30,000 - N300,000 in 9 yrs b. Mr. B - N250,000 - N1million in 3yrs c. Mr. C - N90,000 - N350,000 in 2yrs d. Mrs O - N400,000 - N2.4million in 2yrs e. Mr. J - N1.5million - N3.5million in 1½ yrs. To acquire wealth is easy but most people don’t have the discipline and knowledge Commonly asked questions: 1. How do I know good companies? – You must have a good Stockbroker. As a professional, he will guide you. 2. How and where do I buy shares from? - From the floor of stock market in Lagos. It is called Nigeria Stock Exchange Market. Only licensed stockbrokers are allowed into the market to you must go through them. You can buy I. P. O (Initial Public Offer) shares directly from the bank but I. P. O shares are issued only occasionally. 3. How do I sell my shares? - Through your stockbroker 4. How soon can I have my money back? - Within 72 hours if you register your shares with a body called C.S.C.S. Your stockbroker will help you do the registration. 5. What happens to my share in case of death? - It will be transferred directly 4. to your children if you have a will. If you don’t have a will, they will go through a lawyer and a stockbroker to claim all your entitlement and transfer the shares into their own names and accounts. 6. Can I use my share to borrow money from the bank? - Yes 7. What if the company fails? - Your stockbroker as a professional will never buy shares from company that will fail. Please don’t buy shares through crook stockbrokers. 8. The dividends they send are always too small? - The more you spend on buying the more your dividend. He that sow sparingly, reap sparingly and he that sow bountifully shall reap bountifully. Again, the real money you make through shares is through: - Increase in the prizes or worth of the shares called Capital Appreciation. - You also make money through bonus issues from time to time. Good companies called Blue Chip Companies give regular bonuses. These bonuses can be sold if you need money but is better you leave them to allow them to multiply more and more. 5. CHAPTER I GOD’S WORD FOR FINANCIAL MANAGEMENT. The word of God is complete in all respects for training and instruction so that those who follow it and live by it may get the best possible out of life. It (the bible) has a lot to guide us in the effective management of our businesses and finances. Below are some of the bible references. Please go through them carefully. People read these passages without knowing that they are business and financial management principles. We must not only look or think about spiritual application of the truth contained in the bible. They have holistic applications because they are divine and eternal truths. Matthew 25:14-30 – “Again, it will be like a man going on a journey, who called his servants and entrusted his property to them. To one he gave five talents of money, to another two talents, and to another one talent, each according to his ability. Then he went on his journey. The man who had received the five talents went at once and put his money to work and gained five more. So also, the one with the two talents gained two more. But the man who had received the one talent went off, dug a hole in the ground and hid his master’s money. After a long time the master of those servants returned and settled accounts with them. The man who had received the five talents brought the other five. ‘Master,’ he said, you entrusted me with five talents. See, I have gained five more.’ His master replied, ‘Well-done, good and faithful servant! You have been faithful with a few things; I will put you in charge of many things. Come and share your master’s happiness!’ “The man with the two talents also came. ‘Master,’ he said, ‘you entrusted me with two talents; see, I have gained two more.’ “His master replied, ‘Well done, good and faithful servant! You have been faithful with a few things; I will put you in charge of many things. Come and share your master’s happiness!’ Then the man who had received the one talent came. ‘Master’, he said ‘I knew that you are a hard man, harvesting where you have not sown and gathering where you have not scattered seed. So I was afraid and went out and hid your talent in the ground. See, here is what belongs to you.’ His master replied ‘You wicked, lazy servant! So you knew that I harvest where I have not sown and gather where I have not scattered seed? Well then, you should have put my money on deposit with the bankers, so that when I returned I would have received it back with interest. Take the talent from him and give it to the one who has the ten talents. For everyone who has will be given more, and he will have abundance. Whoever does not have, even what he has will be taken from him. And throw that worthless servant outside, into the darkness, where there will be weeping and gnashing of teeth.” The man going on a journey did something to make sure his money does not lie idle while he was on his journey. He had another alternative idea of putting his money in an interest house. The first two of the servants demonstrated wise management of the money given to them and got great reward for this – they were made to endlessly enjoy the wealth of their master. The third servant did not manage the money given to him well he was banished into everlasting hardship. Proverbs 27:23-27 – “Know well the condition of your flocks, and give attention to your herds; for riches do not last for ever; and does a crown endure to all generations? When the grass is gone, and the new growth appears, and the herbage of the mountains is gathered, the lambs will provide your clothing, and the goats the price of a field; there will be enough goats' milk for your food, for the food of your household and maintenance for your maidens.” Proverbs 13:23 – “The fallow ground of the poor yields much food, but it is swept away through injustice.” Proverbs 24:27 – “Prepare your work outside, get everything ready for you in the field; and after that build your house.” Ecclesiastes 7:12 – “ I the Preacher have been king over Israel in Jerusalem.” Ezekiel 10:19 – “And the cherubim lifted up their wings and mounted up from the earth in my sight as they went forth, with the wheels beside them; and they stood at the door of the east gate of the house of the Lord; and the glory of the God of Israel was over them.” The following references talk about unwise management of finances and businesses. Proverbs 13:7 – “One man pretends to be rich, yet has nothing; another pretends to be poor, yet has great wealth.” Luke 15:11-16 – “And there appeared to him an angel of the Lord standing on the right side of the altar of incense. And Zechariah was troubled when he saw him, and fear fell upon him. But the angel said to him, "Do not be afraid, Zechariah, for your prayer is heard, and your wife Elizabeth will bear you a son, and you shall call his name John. And you will have joy and gladness, and many will rejoice at his birth; for he will be great before the Lord, and he shall drink no wine nor strong drink, and he will be filled with the Holy Spirit, even from his mother's womb. And he will turn many of the sons of Israel to the Lord their God,” Proverbs 23:21 – “for the drunkard and the glutton will come to poverty, and drowsiness will clothe a man with rags.” Ecclesiastes 5:13 – “And I applied my mind to seek and to search out by wisdom all that is done under heaven; it is an unhappy business that God has given to the sons of men to be busy with.” CHAPTER 2 WHAT IS MANAGEMENT OF PERSONAL FINANCE Management by simple definition is handling your resources (money as in our subject) thoughtfully carefully and constructively to avoid wastage and ensure optimum benefits possible to obtain from you money. Good management of personal finances leads to progressive financial growth and continuous and ever increasing financial freedom and prosperity. On the other hand bad financial management leads to financial management leads to financial stress, sorrow, and stagnation. God’s Plan of abundance for all: In Matthew 5:45 we see that God gives everyone the importunity to enjoy abundance. Many sincere Christians, children of God do not know how to manage or tap into these opportunities. They therefore remain poor. Many non-Christians learn how to tap into God’s provisions of abundance. The word of Jesus is seen here that says “children of this world are wiser in their generation than the children of light” – Matthew 16:8 Wisdom of Management: Good management is wisdom. And we know wisdom is the principal thing. Note that the following things as good and necessary as they cannot replace wisdom – *Prayer *Holiness *Fasting *Giving of tithe *Positive or faith confessions *Prophet offerings *Intellectual brilliance (Eccl. 9:11). What these things do is to bring you into the corridor of prosperity. Wisdom is the key that will help you to enter into the hall of abundance. We shall now look at some of the principles of effective personal financial management. CHAPTER 3 PRINCIPLE OF RIGHT ATTITUDE For effective and rewarding management of your finances your attitude about money matters a lot. If the way you think about money is wrong your management of money will be wrong. As a man thinks in his heart so is he. If your attitude is right about money, your management of money will be right and you will get highly fulfilling and satisfying result from your money. Wrong Attitude about Money: 1. Money is nothing. This is saying in your heart that money is not important. This attitude will variably leads to careless, thoughtless management of your money. This attitude will lead to two impoverishing situations. First, that of not making much money, secondly that wastage and leakages of money. Most of the people who think this way actually want to be free from becoming slaves of money. They want to avoid the stress of chasing money. They want to be spiritual about money. But unfortunately it is like they are jumping from frying pan into fire. The fact is that money is very important. You need money for almost everything in life – to eat, drink, clothe yourself, transport yourself, get a house to live in, to communicate, to get married, to run a family, to acquire education, to give your children education and even to be able to maintain a good name and status in the society. An African (Yoruba) proverb says “lack of money makes a man mean and bad in the society”. Another one says “It is easy for a wife to insult her husband when the husband has no money to run his family.” 2. Money is everything. The attitude of money is everything is the direct opposite of the first wrong attitude. Thinking that money is everything is a pernicious attitude in life with will as well lead to stressful gradual or subtle but seriously harmful effects. First, it brings the likelihood of spend all the time in chaping money. To the most of one’s health, conscience, marriage, home and government! In the second place it can lead to making money at all cost – by hook or crook. Many people with this attitude tend to spend so much time on making money that they have no time to enjoy the money. Another evil effect is that of the attitude of money is everything is misaddress and hoarding of money. One of the surest way be rich happy is to share your wealth with other with sincere mind free of selfish motives. 3. There is always time to make money This is the procrastinations’ attitude. You know that it has been said that procrastination is the thief of time. It is actually not the thief of time. It is the thief of money, good opportunities and invariably destiny. Procrastination can never become all they could possibly become in life. They never acquire all they could possibly acquire. They continue to aspire never acquire till they expire. The fact of the matter is that there is a time for everything on earth. A time when it is easy to make money and a time when it is not easy to make money. A time when to make money and a time to enjoy your money. The night will always come when no man shall be able to work or make money. Make hay while the sun shines. 4. It is not possible to make money and be rich without being dishonest. There is a wise saying – “The foundation of wealth is always rough”. This is true in the sense that many people made their money and acquire their wealth through rough, dishonest, sharp and sinful practices. The same saying is true in the sense that most rich people suffered greatly, disciplined themselves and denied themselves a lot in order to be able to make, manage and multiply their money. It is a great error to have attitude that one cannot make money without dishonest. What I have discovered is that such name do not have fertile minds. Very many people developed fertile minds, which enabled them to make and manage their money and multiply. I have a good view for all at this point – that everyone can develop a fertile mind. It is not difficult. It is as simple as applying fertilizer to soil to recondition and make it yield plenty of fruits. Secrets of developing a fertile mind in discussed in another book. But in respect of our present discussion, the chapter on principle of information offers some suggestions that having the attitude of dishonesty is necessary to acquire money can either make you withdraw from making money or lead you to monkey businesses whereby you start to make dupe people. This is another turbid spirituality that sends to project evil into almost everything. Money can lead to evil. Money on it’s own is not evil. It demands on each person on his or her state of mind. Position, science, technology and knowledge too can be abused but that does not make them evil. Money is not evil. It is the love of money that is evil. Money is good. We shall this latter even from the Bible. The attitude that money is evil will sedate your mind, deprive it of its fertility and rub you of ideas that can bring you into a life and ministry of prosperity. Right Attitude About Money. Before we enumerate what our attitude should be about money let us look at the following statements from the scriptures: Ecclesiastes 10:19 – “A feast is made for laughter, and wine makes life merry, but money is the answer for everything”. Proverbs 29:5 – “Whoever flatters his neighbor is spreading a net for his feet.” Proverbs 13:11 – “Dishonest money dwindles away, but he who gathers money little by little makes it grow. With this in mind we can say that you must have the following attitude about money: God wants you to live in financial abundance. There is abundance available for all. Money is good and very important in life. You can make plenty money without being dishonest or ungodly. It is better to make money and acquire wealth little by little. Money has wings. It must be tied down so that it does not fly away. CHAPTER 4 PRINCIPLE OF GOALSETTING. You must have personal financial goals without goals you are going nowhere and you will get nowhere! Most people do not have well stated financial goals. Many who try to have goals have mean, narrow, unchallenging and anti- progressive goals. You must have short range and long-range goals. Sample of progressive and challenging goals: To be able to feed my family and myself well with balanced diet everyday. To clothe my family decently. To have enough money that will make me live without stress for 6months even if all sources of income should suddenly be cut off. To have a yearly income of at least 1.0million Naira by 35years of age 2.0m Naira by 45years of age 3.0m Naira by 55years of age 5.0m Naira by 60-65years of age. To have enough money that will enable me give very good and standard education to my children. To be able to support my parents well in their old age even if the responsibility lies on me only. To be able to support some less privileged people around me. To be able to pay my house rent without any embarrassment and build a decent house (not necessarily a mansion) latest by the age of 45-50years. To be able to retire rich – i.e. have assets that are worth millions of Naira at retirement or by 60years. To leave inheritance for my children’s children as the bible says in Proverbs 13:22. CHAPTER 5 INFORMATION Information brings transformation and if you are not well informed you will be well deformed. To be able to manage your finances in a way that will bring you wealth and riches you must constantly seek relevant information by: 1. Reading extensively on the subject of personal financial management. 2. Attending seminars on financial management. 3. Seeking advice from professional financial managers – Prov. 15:22; 20:18; 24:26 CHAPTER 6 PRINCIPLE OF PLANNING Planning ensures that your money goes to where it should go at any given time so that you may be able to reach your set goals. It reduces leakages and wastages. Every aspect of your life will be well catered for. Your long-range goals – post retirement period will not suffer. CHAPTER 7 PRINCIPLE OF SAVING You are rich by what you save and not by what you earn. Save regularly and heavily. Genesis 41:34 suggest 20% of your income. It may be more or less. But not less than 10% of your income. You can join a savings club e.g. Investment Club. After your tithe deduct your saving. You can then begin to spend. Do not loan your savings to people. Do not spend your saving on things that will not yield more money (liabilities). CHAPTER 8 PRINCIPLE OF SAFE KEEPING OF YOUR MONEY Keep your money save from thieves Do not carry plenty of cash on you. o it could be lost o the more you carry the more you spend. Do not keep you money with people. Do not keep large sum of money in your bank for too long. o Purchasing power of money drops every year. Do not keep your money in fixed deposit – Go to Treasury bill instead. CHAPTER 9 PRINCIPLE OF WISE SPENDING Keep a good record of your spending Buy by reason never by impulse. Buy after thorough bargaining o Do not be shy to ask for discount Buy quality things. “If you buy cheap you will buy twice” – A Chinese proverb. Buy in bulk. Poor people pay more for what they buy. 7. Buy in season and learn storage techniques. The price of maize per kilo in February doubles what it was in December and January each year. Ditto beans Live below your income. Spend only 70% of your income. Plan your expenses before going to market. Avoid ostentious living and prodigating – Prov. 13:7; Lk 15 Avoid womanizing and drunkenness (Prov. 6:32; 7:26; 23:21. Avoid hoarding of wealth Eccl. 5:13. CHAPTER 10 PRINCIPLE OF INVESTMENT – MATT 25:15 Investment is called planting or sowing in the Bible. With this understanding you will see that the Bible talks a lot about investment. Without investment you cannot be said to be managing your money properly. Investment leads you to MULTIPLY your money. You must invest in the following if you are expecting financial abundance: The kingdom of God through your tithe. The lives of your wife/husband. The lives of your parents The life of your Pastor. The lives of poor people Prov. 19:17 You must invest into various businesses. - Invest in up to 7 or 8 businesses – Eccl 11:2 - Start to invest early in life continue to invest in your old age Eccl 11:6 - Study secrets of successful investment very well. CHAPTER 11 PRINCIPLE OF MULTIPLE STREAMS OF INCOME – ECCLESIASTES 11:1-6 God made four streams to water the Garden of Eden to make the garden rich. You need more than one stream of income. One stream of income puts in serious danger of financial embarrassment. The virtuous woman in Prov. 31 teaches us about multiple streams of income. The same thing is prophet Habakkuk. The virtuous woman – Prov. 31:14 – Importation V 16 – Real Estate V 16b – Cash crop farming V 24 – Textile trading Prophet Habakkuk 3:17 Fig tree plantation Citrus plantation Olive tree plantation Arable farming Sheep keeping Cattle keeping Keys to Multiple Sources of Income 1. Work with your head and not your hand. 2. Learn to organize labour i.e. to use people to get work done. 3. Learn to share your profit, power and praise with others. 4. Learn to make money work for you. CHAPTER 12 PRINCIPLE OF CHARACTER We have been talking about skills in the management of personal finances. The importance of character must be noted and understood. Negative characters will block maximum results you can possibly obtain as you try to put the wonderful skills into use. Negative characters can even ruin all you have achieved with good skills. Positive characters will multiple possible results of your learnt skills. Positive characters will also enable you to enjoy the results you obtain when you practice the skills. It will maximize your satisfaction. CHAPTER 13 OPPORTUNITIES FOR CONSIDERATION 1. Buying and selling of shares. Seek the assistance of a stockbroker. Study a lot on stock market Buy shares of blue chips companies i.e. companies who always declare dividends and bonuses e.g. First Bank, Union Bank, Cardbury, Unilever, Oando, Coca-cola. 2. Real Estate – Buying and selling of landed and housing properties. You need the advise of a reputable Estate Surveyor and Manager. 3. Selling of Christian books 4. Keeping of honey bees 5. Rental Services 6. Telephone Services. 7. Concrete block molding. 8. Agricultural Industry – (Poultry, vegetables special irrigated, stock pilling, oil palm trees plantation, fish farming etc) SECRETS OF ACQUIRING WEALTH: INTORDUCTION 1. Assess your financial status objectively. 2. Develop positive altitude about money and wealth 3. Live below your means 4. Acquire information about wealth through reading and authentic interactions. 5. Multiply your money through investment in stocks and possibly real estate for examples 6. N20.000 invested in the stocks of FBN in 1992 is now worth N16,000,000+ through bonus issues, capital appreciate and dividends. 7. N102,000 invested in the stocks of GTB 5 years ago is now worth N900,000 also through dividends, bonus issues and capital appreciation. 8. Money put in the IPO of Intercontinental doubled in just one year. 9. Money put in M & B doubled in 2 years. 10. Money put on landed properties can get multiplied with a short time N30,000 – N300,000.00 in 9 years N350,000 – N840,000 in 1 year N1,500,000 – N3,500,000 in 1½ years N400,000 – N2,400,000 in 2 years ASSESSING YOUR FINANCIAL WELL BEING One of the evidences of financial intelligence on wealth mentality is constant dynamic objective assessment of one’s financial status. Very many live as rich people when they are actually not rich. The formula below will help you Age x monthly income x 12 = Expected minimum 10 Financial forth that can be considered good financial status For example a man of 40 years earning 100,000 per month Expected minimum financial worth = 40 x 100,000 x 12 = N4.8million 10 The assets of the man must be worth N4.8m before he can be considered wealthy. Note: Assets are this brings money in for you. Assets include shares, landed properties houses that you rent out. House built for family use is strictly not an asset as it takes money away from you. For a 50 year man earning N200,000/month Expected minimum worth = 50 x 200,000 x 12 10 = N12,000,000 Try your own status. THE ADENUGAS Experts all over the world have called the attention of Nigerian governments, political leaders, policy makers, the wealthy and well organized private sectors operators to the facts that socio-economic liberation of Nigeria will be rapid like that Asian Tigers Japan, China and Asian Tigers (India and Co) if will focus of motivation and mobilization of our people toward small scale industries and self employment. This is exactly what Dr. Tunji Adenuga and his wife Biosohawa a lawyer have been preaching, practicing, organizing people to do in their own little capacity for the past 18 years. What researchers have taken a lot of time to see, the Adenugas has received by divine revelation because of their large heart, love and passion for the poor and less privilege people majorly located in our rural communities. This couple, are among few rare Nigerians who careless about personal gains in order to see that things are better for others. They have for the past 18years turned their backs against the comfort of greener pastures, which their professions could afford them in big cities or overseas. In them I see the higher concept of life and success, which I often teach people – life, success and true and eternal happiness is not about what you get but what you give. Their giving themselves made life better for many people. Now they are crossing frontiers to stimulate the leaders of our people to do the same. It is my prayer that God will preserve their lives to see a better Nigeria, which is their dream and life aspiration. They deserve to be listened to and be supported. - Odun Orioke.