By Fasipe, Opeyemi O., FCA
INTRODUCTION
It is no longer a news that the whole world is under financial stress at this very point in time, only the Wise can survive it. Don’t let anyone fool you with the old saying, “Money doesn’t buy happiness.” Study after study has shown money is essential component for overall well-being, life satisfaction, health and modern life.
FINANCE
Finance in a clear term means Money management. Knowing where to put or invest money for overall benefit of an entity or family. While PRUDENCE is the ability to govern and discipline oneself by the use of reason. Also as the skill and good judgement in the use of resources
The two words put together, all the players in the home must be able to manage whatever money that comes into the family by governing one desires and discipline oneself. Not everything you buy, not every issue needs your attention. Amos 3:3 says “Can two works together except they agree? Husband and wife must agree on what direction their money should be applied to.
In some cases both husband and wife may not agree, yet must respect the view of each other. Many families are finding it difficult these days financially because of lack of financial intelligence. Though there is growing in consumerism with ease but you must always be mindful of your purse.
FINANCIAL INTELLIGENCE
i. It is the gathering of information about the financial affairs of entities (family) of interest, to understand their nature and capabilities and predict their intention.
ii. It is also a type of business intelligence constituted of the knowledge and skills, gained from understanding Finance and accounting principles in the business world and understanding how money is being used. Financial intelligence is needed for a happy family
Intelligence solves problems and produces money. Money without financial intelligence is money soon gone. In this financial world and recession, financial prudence is the answer..
5 MAJOR THINGS TO DO AS FINANCIALLY PRUDENT INDIVIDUAL
1) Set Financial Goal
Every family must set a financial goal in,
*Short term,
*Medium term and
*Long term. This will assist them in ensuring discipline in their use of money.
Multiple studies have shown that if you believe you can accomplish a goal, you are more likely to be successful.
2) Maintain a Budget
Luke 16:1 – Jesus told his disciples: “There was a rich man whose manager was accused of wasting his possessions.” This shows that God Himself is against wastefulness. Luke 9:17
A successful family needs a budget! A budget is not intended to put you in “spending jail”. Instead, a budget prioritizes what you spend your money on. A budget is a plan expressed in monetary term showing the expected income and expected revenue over a given period.
Every family must have a budget that will aids prudence of resources and ultimately leads to a happy home.
3) Increase your source of income
Do not rely on a single source of income. You should have two to three streams from where you earn money. This will help the family to meet up ever increasing demands at home. Gen. 2:10 – …a river divided into four to water a garden. Increase your stream of income!
4) Save and invest
Invest! The best time to plant a tree was yesterday. The next best time is today! The same is true of investing.
Save! Saved money (up to 5 months of your monthly pay) keep you and your family afloat in unexpected situations.
5) Avoid Debt!
(Loans, unnecessary purchases)
Debt is a monster! Escape its prison, it keeps you and the family on a spot, if not financially backward. Only borrow for productivity, don’t borrow for ceremony, and don’t buy on credit if not a-must-get item.
FINANCE ADVISE BASICS
1) The constant lack of money says one thing: lack of financial literacy.
2) Wealth is not in the amount of money, but in the ability to handle it.
3) While you are dependent on money, you will not be able to increase it.
4) It is easy to spend money, but it is interesting to invest.
5) The influx of funds is not a reason to rejoice, but a reason to think.
6) Time, connections, ideas and experiences around you cost money.
7) Money can be earned on anything if you remember that everything costs money.
8) Finding “how to make money” is better than borrowing to make money.
9) Money is where there are goals
10) Always follow budgeting rules; 50/20/20/10
IN CONCLUSION
Every venture has its prosperity potential, financial intelligence and discipline will guide you to make money where others are seeing obstacles. A family either discipline their finances or their finances discipline them. Gather all the intelligence needed to come out of poverty dungeon. I see you in the realm of financial prosperity.
God bless you.