Treasury bills is one of the money market instruments or vehicle an investor can use to generate fixed interest income. Nigeria Treasury Bills (NTBs) are short term debt instruments issued by the Federal Government through the Central Bank of Nigeria (CBN) to finance short term expenditure. More »
Most of us are not aware of the cash flow pattern around us. Like a worker who takes his usual way to work, he can drive and talk on the phone (if he does not get caught) and buy something on the road, all at the same time. The reason he can pull this stunt is because his mind is not on the ride to work. He has done it so many times, he can drive to work with his eyes closed, if there are no other cars on the road, that is. The point is, he is not thinking. He is operating on auto pilot, virtually brain dead.
For most people, thinking about their personal finance causes them to enter a fog and makes their eyes glaze over. While it is a rather dry exercise, keeping tabs on your personal finances is of utmost importance to your future. The basic reality is that most people have goals and dreams and to achieve those goals and dreams, it takes money.
Your home is your castle. For many, it is your biggest investment. I huge chunk of your net worth is tied to the valuation of your home. However, for most people, your home does not generate any cash flow. Many homes are actually liabilities and not assets because they require regular financial expenditure to maintain. To turn your home into an asset, you need to lower your expenses and generate income from your property so that you have a net positive cash flow which is the main characteristic of an asset.
The year 2015 is finally here. I am pretty sure you expect this year to be better than last year. That is how it is supposed to be. The real issue is, how? For you to have a better year, you need a better you, so Happy New You!
I have been offline for a while to focus on some projects. I have big plans for 2015, which will unfold as time goes on. For a start, this blog will wear a new look. My Youtube Channel will be launched 1st quarter of this year, as well as the first financial independence seminar for 2015, some media events and of course my second book and the 2nd edition of my first book.
“After placing the orders, we leave the rest to the market forces.” – Sam Evans
Good traders make a new trade regardless of the outcome of the last trade. However, rookies often allow irrational emotions to guide their actions when they are making trading decisions. Why are some traders always frustrated while others play the markets joyfully? Let’s read some cogent examples.
The year 2014 is gradually coming to a close. In the coming weeks, Christmas music will permeate the air. Nations and corporations have finalized their 2015 budgets. If you have not done so already, it is time to put your 2015 goals on paper. A key component of those goals is your financial goals for 2015. You can decide what you want for next year.
Herein lies our power – the power to choose. We can choose what we really want. We can choose what to focus our minds on. We can choose what to look out for – either how it can be done or why it cannot be done. There are no right and wrong answers. The answer is what you want it to be. The mind simply obeys your commands.
If you say it is impossible, your mind will respond “All correct Sir!” and get to work gathering evidence to prove the master’s point. After all said and done, we create our world by what we believe, say and do. Seeing that we have this awesome power to choose, what do you want for 2015?
Your biggest impediment to change is your current mindset. The current financial situation you face was created by your mindset. The mindset that got you into the problem will not get you out. If you do not change the way you see, you will keep doing the same things and expect a different result.
The way we see things is the problem. Until you see differently, you cannot act differently in a sustainable way. This is the main reason learning how to do something will not work by itself in the long run. You can learn how to save money, but if you do not change internally and see differently, you will fall make to your old ways and even wipe out the small savings you have been able to accumulate.
In my last post – to every problem, there is a solution, we can see that asking the right questions is critical to arriving at the desired solution. Consultants and coaches are trained on how to ask the right questions. If you have a challenge and ask the wrong questions, the effort will be dissipated in solving the wrong problem. The same thing goes with seeing. We think we see things as they are. The reality is that we see things our mind tells us to see. You see what you focus on. We see with the mind, not the eyes.
If you are in the market for a new car, the moment you decide on the make and model you want to buy, your mind will note it and start making you aware of that particular car anytime one comes within your vicinity. You start seeing the car all over town. Everywhere you turn, you see the car in different colours and year model, especially the colour and year you settled for. That is your reticular activating system (RAS) in action. When you decide something is important, your mind puts it in it’s watch list and the moment your eye scans the item, you brain triggers an alarm. It is like an SSS or FBI operative setting eyes on the number one wanted person.
We are all faced with challenges, especially of the financial variety. When you are stuck in a rut, you believe there is no way out. Being in that place becomes your new normal, and getting out seems out of your reality. Some days ago, looking through the books in my study, my eyes fell on ‘Retire Young, Retire Rich’ by Robert Kiyosaki. Tears welled up within me as I reached for the book.
I first read the book in 2002 when I first started out my journey to financial freedom and independence. As I thumbed through the book, I remembered the goals I set and how impossible it seemed at that time. As it dawned on me that I actually exceeded those goals when I bid farewell to the rat race, tears of gratitude ran down my face. I was glad I was alone, because it scares my wife and kids to see me cry.
Fixed income investments are a crucial part of a solid financial foundation. Fixed income investments are virtually risk free (if you are dealing with a solid institution) and your returns are guaranteed. However, there are rate risks involved, i.e. upon maturity of your investment, the rates may change and sometimes downwards. If you have no other source of income apart from your interest income, then you will be adversely affected when rates go down.
Here are ways you can manage rate risks to minimize downward fluctuations in your interest income.