Thursday, November 5, 2009

Are You Working for Money?

In my previous post, I started talking about how my money is working for me. To put things in perspective for you and help you understand how far the good Lord has brought me, I’ve been called ijebu by my own family members because I like to keep my own money and spend everyone else’s.

But what’s the harm in that as long as I share some of mine with you when you’ve exhausted your own? Lol. But seriously, I am not one of those people who love the power that comes with buying whatever they want. Instead I feel like I’ve been overpowered or outsmarted when I spend. As if the seller has succeeded in separating me from my money. But because I like good things (who doesn’t?), I will help you spend yours if you like spending!

I don’t like finding myself without money (abeg who does?) so I’m slightly uneasy and grumpy when I’m broke. I like to have a savings, cut my coat according to my size and take zero risks.

But my motives for being prudent could keep me in a stagnant cycle. Why? Because I can fall into the trap of always working for money and not having my money work for me.

I’ve come to understand that having your money work for you is the path to independence and this will mean different things for different people but I think this means spending my money on things that would:

- bring in more money long term

- save me money in the long run

- improve the quality of my life or someone else’s life

But how does this play out practically? Are there any hard and fast rules? For instance, if you received a $20,000 bonus from your employer, would you use it as a down payment on a house, go back to school for your masters or buy a car? This is assuming that you need all three of these things and don’t own any?

What impact would your life circumstances have on making such a decision? For example, if you were…single, married, a mother, a father, due for retirement, an aspiring entrepreneur etc?


  1. I'm so like you then. I hate to spend. But with $20,000, I split. 20% savings and figure out the rest.

    During my internship at a 9ja bank one of the workers told me 'if I die today, someone else will spend the money so I could as well enjoy it now'. hehehe

  2. Though it's always tempting to live large at times, the benefits of being able to put your savings toward something like a house or car is worth the time spent saving. It's not as glamorous, but I relish it.

    I'll instead focus on getting deals and bargains...not sure that stores in Nigeria have sales like some do here though. But then again there's that bargaining element that isn't really as prevalent in Canada...

    Happy saving!

  3. Me I can be stingo too when I have to be. If I had 20k, I would save only 30% at most, probably in a high interest or equities market. I may buy a cheap car if possible but def by a house. If I'm single, maybe put off the house and go for my masters.

    Nice article

  4. kinda stumbled on ur blog... its wikid!! I barely do blogs, but urz caught me... B'ham stand up!!! Anywayz, wtz grad (BEng+Msc) salary like in Nig, coz lads keep quotin numberz. Am confused (^^)...

  5. @Ladi,mmmh, interesting advice but what happens if you live til 90!
    @GNG, I miss those bargains, in Nigeria, things are expensive and you never know if you're really getting a bargain
    @Myne whitman, am with you on the house. I can always buy a car at anytime after all it's a depreciating asset. It's best to invest in real estate as early as possible.
    @anon, glad you like ;)As for the paycheck it depends on the industry you move into, banking, telecomms, oil pay higher.

  6. $20K bonus eh? Savings, bonds, mortgage and then the LV bag I've been watching for, oh, I don't know, ever... lol! Oh, and some money in the kids college fund, actually that comes before the LV bag.

    Ah, now you have me dreaming about some extra spending money... But really, by the time you pay taxes on the $20K (in the US), there isn't much left, I guess...

    Hope all is well.

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