Editor’s Note: I was pleasantly shocked when without prior communication, two Grow360 team members (one in Lagos, the other in Abuja) sent in very different articles with very similar analogies! Guess the G360 spirit is quite strong. Coming in quickly after Yemi’s Go Wash Out, here’s Femi’s brief but insightful piece on gaining control over your finances as a young person. Enjoy!
So small and intangible, we thought the droplets from our bathroom faucet was. But before dawn, a tank full of reserved water turned empty per droplet loss!
“Oh my gosh!” Was the remark from the unlucky occupants of the corpers’ lodge at that moment. Disappointment filled the house as the dripping faucet in the bathroom, thought to be a negligible fault, forced us all to go hustling an impromptu gymnastics session at the narrow well behind the house.
Over a million times (not literally a million- but you know what I mean) have I heard the saying ‘little drops of water make a mighty ocean’. But a tiny leakage can also do just the opposite.
In our finances too, let’s address the concept of tiny leakages before it drain us to a flaccid and irrecoverable loss. I see many young people and I have observed enough older ones too, who started well financially and soon after welcoming a tempting leakage, they ended up ‘broker’ than they started.
The following factors are financial leakage boosters:
When you believe your current financial status should be reflected in the numbers of cars you drive or the numbers of expensive gadgets you acquire, when your finance continually obeys Parkinson’s law (this law states that expenses will rise to meet any rise in income)- then the presence of a cancer in that financial life has been detected.
Solution: Buy what you need. When you buy based on wants you will never reach satisfaction. Reflect back on secondary school economics (man is (and most certainly, women are!) insatiable). Maybe you don’t need a financial ‘breakthrough’ after all. Just break Parkinson’s law.
Buying without a plan. It makes you give in to all kinds of marketing lies. The key factor in buying on impulse is buying expensively needless things in the name of class, painted through adverts. So you saw that ‘irresistible’ item and your mind goes, “just get it today- you don’t know when next you’ll see it”. Believe me friend, unless it’s some rare painting by a 17th century artist or something like that, you WILL always find it to buy again- when you’re truly prepared for that purchase.
Solution: Budget BEFORE spending. Not the other way round.
Irrespective of what your yesterday was, tomorrow still remains a treasure. If you allow any of the leakage booster mentioned above to decide your life, you will give in to boasting in the past you have lavished instead of the future you are building. You’ll talk about the cash you’ve blown rather than the fortunes you’re building. Don’t let that happen to you.
Tiny leakages when left unchecked soon run you out of supply; financial or material.
The concept here is to make you understand that if those financial droplets (in form of your earning power today, irrespective of the amount) are gathered and used right, a bright financial future is sealed. Every penny counts. If you care less about your financial seeds today, tomorrow you will miss the enjoyment of relaxing under its shade because the seed that never saw the soil can never live to tell the experience of pruning. It’s in you! Be wise.
Coming up next: B.S.S: The Proven 3-pronged Strategy to Financial Rest. Watch this space!
Grow360 is fast becoming a formidable resource centre for young people who desire to lead the exceptional life. Kindly check out some of our other life-enriching articles below.
G360 Team Member, Jade, has a challenge for you this week. Click here to find out.