The psychology of money
A journey into your financial goals.
It's the first Newsletter for the year, I am very excited because it's going to be a fulfilling year, Why?, I don't know too.
How are you doing today and how will you be doing throughout the year? It is my hope that you have planned a great year ahead and you did not forget to plan the number of achievements you'd be smashing. If you are yet to plan your year, I think you should be concerned about it.
On sunday, I hangout with some bright minds virtually to discuss about our 1st Quarter Goals for 2021, we all shared our goals, discussed about the last quarter achievements too and it was an awesome session. Even one of my guys sef is planning to get married, lol, don't tell me I'm overdue, I am not soliciting your opinion. Just like every other person, almost all of us have financial goals. Especially me, I said specifically that I want to count money as much as possible, So help me GOD!
Thinking about which book to start the year's newsletter with, I thought of Morgan Housel's book, The Psychology of Money. It is not a book that will teach you about investment or business ideas, it is more of telling you that you should check your behaviour towards money, if you want to be financially stable. The author examines personal finance through human behaviour. His conviction is that behavior trumps other considerations in the pursuit of financial success.
“Doing well with money has a little to do with how smart you are and a lot to do with how you behave.”
Engage in the right behaviours and you are likely to succeed. I began to wonder how we behave towards money and made a comparison with people who are more disciplined with their money, it's just a sharp contrast.
I am a huge fan of disciplined savings. Your saving rate is as important as your income. It is vital that you build the saving habit and ensure saving out of all of your income. When saving, discipline is very much important. This is one the things cowrywise taught me with savings. I remember I started saving with them around July, 2019 and was planning a 12 Month savings. In January 2020, I was in dire need of money to cater for somethings and decided to ask for my money and pleaded with them that I'd ensure I meet up with the 12 month target with the remaining 6 months, LMAO, they didn't give me o, my eyes was red but we meuve.
So, savings require discipline, and it is with this attitude you'd build a good saving habit which will lead you to a good money habit and propel you towards your financial goals. However, be careful of saving for interest, religious beliefs warned against interest.
Additionally, people spend to show how much money they have, this is the easiest way to lose your money. When you spend to prove your financial worth, you tend to foolishly lose your wealth because more reasons to prove your worth will always surface, that's when you'd know people are the least you should spend to impress, wahala.
“The most important part of every plan is planning on your plan not going according to plan.”
Planning your money is the best way to keep them. With planning, you cut down unnecessary expenses and save more.
Behaviours like these are said to fortify one for financial breakthrough.
I will also add that your money should also work for you. This is where investment and spending your money on assets comes in. When your money multiplies, you position yourself for financial success. However, investment comes with risk and sacrifices, I won't say more, lol.
You read up to this point?
Wow, you na baba/mama o!
I do not take this for granted.
PS: let's embark on a journey of getting more subscribers. Kindly tell just 3 of your friends about this Newsletter and get them to subscribe. This will get us going skillfully.
Thank you, see you next time we see.