By Kevin Fullerton
Your employer could be the most caring person in the world. They might enter your workplace walking on a bed of rose petals with a halo over their head, but one fact will always remain – profit will always take precedence over the value of employees.
This may sound like a silly question. It is your money after all. You can do whatever you please with it. And that is exactly what we do – we become the bank. Without any experience in lending, we start dishing out loans, to ourselves, friends and family etc. We end up with a massive pile of bad debts – money that is never repaid. If we were to be a bank, we would sink under a pile of bad debts, that is if the CBN did not shut us down much earlier. When is the last time you repaid money you borrowed from yourself?
We often look outside for answers anytime we face challenges. We have this inherent belief that we cannot come up with the answers by ourselves. This belief derives from the fact that as creatures of habit, we hardly think intentionally. We do what we have always done, and when it does not seem to work, we try harder.
Your ability to delay gratification determines the amount of control you have over your finances and many other areas of your life. Seeing and responding to what lies right in front of us comes naturally. However, that is not the whole picture. We need to learn how to look beyond our noses, step back and look beyond the immediate. We need to learn to see the big picture and think strategically.
Debt can be an asset or a liability depending on whether it is good debt or bad debt. Good debt pays for itself while repayment for bad debt comes from your pocket. It is the cash flow pattern that determines good debt or bad debt, not what you spent it on. Many people make this mistake. They assume that since they are spending on their business or an ‘asset’ then it is good debt. That is not always the case. You can borrow money for your business and still end up repaying by yourself.
I continuation of my ‘Simplified’ series, I want to break down further and walk you through the process of investing in treasury bills (Nigerian Treasury Bills (NTB)).
I discussed types of debt and how to avoid bad debt in my previous series of articles. Today, I will look at how to get out of debt. The reality is that many are deep in debt, and when the noose seems to tighten more, they incur more debt to provide temporary relief.
I am still getting requests for more information on investing in FGN bonds, so I am going to simplify it further.
By Brooke Chaplan
An enjoyable retirement is the result of careful planning and countless years of saving. Failure to plan for everything could mean your funds run dry, you don’t have enough for the necessities, or that you have to go back to work when you’re well into your golden years.
How to invest in bonds is one of the common questions I receive from readers. This information is available online on many finance related sites or blogs, including the website of the Debt Management Office (DMO) which authorizes the issuance of the FGN bonds. I want to continue to encourage those serious about their finances to do their homework by reading up on a subject they are not familiar with and ask questions thereafter rather than depend on a ‘guru’ to tell them everything they need to know.