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Money Doesn't Make You Rich. What then?

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Every person wants and desires to be rich but in reality, not everyone is rich and not everyone will be rich. The world will still have a lot of poor people as well as a good number of persons who feel they are rich whereas they aren't. Did that surprise you? Don't let it! However, not that I'm being negative nor harsh and neither is it a curse but it's just the bitter truth everyone of us should know. It is then incumbent on you to decide on which side to belong - the rich or poor side.


Why did I say so? Again, we will continue to have poor people and people who are seemingly rich because a lot of persons are yet to know and understand the concept of wealth and being rich. Being rich is not what it seems or what it appears to be to many people. If you get to ask people what being rich is, I bet you'll have a greater percentage of respondents answering that "being rich is tantamount to having lots of money." But this is fallacious and partially correct.


Truth is, you need more than just lots of money to be rich and going deeper, RichDad asserts that money doesn't make you rich and I concur. You see, one can have lots of money yet, he is not rich because he could be living in serious debts and/or paying high taxes as a result of buying lots of liabilities.


One may ask, what then do I need to be rich? Here's the answer! What you need to be rich is a high financial IQ or financial literacy. In addition, financial literacy which is the key to financial success begins with understanding your personal financial statement. This entails understanding assets and liabilities.


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Why financial IQ? This is what determines whether you are/ will be rich or poor. The level of a person's financial IQ is seen in how well or badly he utilizes available funds. In the world today, we have two categories of persons and these includes; those with high financial literacy and those with a low financial IQ. A person with a low financial IQ only thinks of spending and eventually ends up buying liabilities whereas a person with a high IQ financially thinks of investments and true assets which in turn generates more income either daily, weekly, yearly or monthly as the case may be.


For instance, give the same NGN 10,000,000 to a person with a low financial IQ and a person with a high financial IQ. Watch and see the vast disparity in the utilization of that fund by the two parties. Years to come, the former might likely come back broke while the later must have gained a high level of financial freedom through his investments. So, it's not entirely about the amount of money you have rather the Crux of the matter is how much you are able to keep.


You might be a high salary earner but try not to be satisfied with that. Look at the bigger picture, your salary doesn't increase daily but your bills and needs does. Also, your children are growing and could be increasing in number which equals more bills yet your salary isn't growing at the same pace. Need I remind you that your retirement day is fast approaching? Oh! You'd use your pension but would that be enough? Think investments! Don't wait for a soothsayer to tell you that.


With this few points of mine, I hope I have been able to convey the message that money doesn't make you rich but financial literacy does. How do you get financial literacy? Sadly, this is not being taught in our conventional schools but you could read books by proven authors and get to understand the concept of wealth as well as investments.


Ndianabasi Tom

Finance

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