Post by Trade facilitator on May 12, 2018 22:21:36 GMT 1
Put in another way, "Are You Growing Richer or Becoming Poorer?" You are the best person to answer that question. But in the course of determining your wealth status, I will give you a tip here and there to help you assess yourself.
Early 2017, I gathered at the Conference, Sheraton Hotel, when The Thy Global Investment Limited held an commodities export seminar to over 60 participants. It was a wonderful event as it saw eminent agricultural, financial and other professionals expound on various export and money topics. You can get the DVDs of the summits held both in Lagos in and the company's head office, Singer bus stop, Ewupe, Sango, Ogun State respectively.
Whenever I ask people the question on growing richer or poorer, they always seemed to be confused. The confusion stems from the fact that they have not really paid attention to financial ratios or numbers that determine their financial status to a great extent. In trying to help them solve the puzzle, I start out by helping them calculate their wealth ratio. If you're opportuned to have read write-ups 'Teach Yourself Investing and Grow Rich... and The Billionaire Investor', you must have come across pages which copiously thrashed the concepts of wealth status determination. You can get the 2 books if you need to read more.
Now the Wealth Ratio (WR) is expressed as : Expenditure divided by Income or Wealth/Income. The next thing I ask these clients of mine after calculating their wealth ratio is to do so for the previous months, and if possible, for the past 12 months. As soon as they determine these numbers, I will ask them to compare them with each other and note if the numbers have increased or decreased and by so doing, they will be able to know if they are financially moving ahead in life or not. Based on these, I will ask them to start keeping books to check their wealth status.
The dictionary definition of money is in terms of money. But the actual definition of money should be in terms of "time" rather than money. Let me give you an example, if a man spends Twenty Thousand Naira (N20,000) monthly and has One Hundred Thousand Naira (N100,000) in his bank account, he is simply 5-month wealthy. The reason is that the amount will enable him meet the cost of 100,000/20,000 or five months. In a similar development, a man who has Forty Thousand Naira in his account and spends Five Thousand Naira only (5,000) is 40,000/5,000 or 8-month wealthy. You can see that whereas the first man has much more money, he cannot survive on his reserve for a long period. Conversely, the man who has a lesser amount of 40,000 will last longer. This tells us one Important thing: your spending pattern will be a determinant of your wealth status.
To be sure you're saving for the raining days, every extra or saved money you have, simply seek an expert's advice and invest in exportation of agriculture commodities for as little as you can afford, depending on where and who you approach. Soon as you aquired the necessary training and follow the learned procedure, your spending pattern will begin to change.
So get set to determine your WR. Get a sheet of paper and draw a table with four columns and thirteen rows. On one column, write Month. Then write Income on the next. Write Expenditure on the 3rd column and Wealth Ratio (WR) on the last. Total all the income you have received from January 2018 through April 2018 and write it down in Column 1. Your income will include salaries, gifts from friends and other relatives, dividends from stocks, interest from bank accounts, CDs, capital gains from sale of landed properties etc. The next column is for your Expenditure. Next on the column is the Wealth Ratio for that month. Write the number in that column. Repeat same for all the months and then watch the trend.
At the end of 12 calender month, pull your excess together and meet with a professional exporter who will advice you on what commodity that is trending.
Let us consider a situation where a certain man spent N80,000, N100,000 and N150,000 in January, February and March 2018 respectively. During these periods, his income never changed but remained at N60,000. His Wealth Ratio for the respective months are 60,000/80,000 (or 1.333 for January); 60,000/100,000 (or 1.666 for February) and 60,000/150,000 (or 2.5 for March. That means the extra money he had were loans borrowed from elsewhere). You can see that the number kept increasing from 1.333 to 1.666 to 2.5. What that means is that his wealth status had decreased, or put in another way, he had become poorer.
What if his salaries increased with respect to his expenditure? It will then depend on how much increment that income was. For best results, he must make sure that his income for every month must be greater than his expenditure. If he is able to change the course of the Wealth Ratio through exportation as a part-time from 2.5 to 1.666 and to 1.333 or even lower, then he must have started beating a path to financial destiny. So you must constantly watch your Wealth Ratios to see what figures they are giving you. It is a clear mirror to your financial destiny.
Early 2017, I gathered at the Conference, Sheraton Hotel, when The Thy Global Investment Limited held an commodities export seminar to over 60 participants. It was a wonderful event as it saw eminent agricultural, financial and other professionals expound on various export and money topics. You can get the DVDs of the summits held both in Lagos in and the company's head office, Singer bus stop, Ewupe, Sango, Ogun State respectively.
Whenever I ask people the question on growing richer or poorer, they always seemed to be confused. The confusion stems from the fact that they have not really paid attention to financial ratios or numbers that determine their financial status to a great extent. In trying to help them solve the puzzle, I start out by helping them calculate their wealth ratio. If you're opportuned to have read write-ups 'Teach Yourself Investing and Grow Rich... and The Billionaire Investor', you must have come across pages which copiously thrashed the concepts of wealth status determination. You can get the 2 books if you need to read more.
Now the Wealth Ratio (WR) is expressed as : Expenditure divided by Income or Wealth/Income. The next thing I ask these clients of mine after calculating their wealth ratio is to do so for the previous months, and if possible, for the past 12 months. As soon as they determine these numbers, I will ask them to compare them with each other and note if the numbers have increased or decreased and by so doing, they will be able to know if they are financially moving ahead in life or not. Based on these, I will ask them to start keeping books to check their wealth status.
The dictionary definition of money is in terms of money. But the actual definition of money should be in terms of "time" rather than money. Let me give you an example, if a man spends Twenty Thousand Naira (N20,000) monthly and has One Hundred Thousand Naira (N100,000) in his bank account, he is simply 5-month wealthy. The reason is that the amount will enable him meet the cost of 100,000/20,000 or five months. In a similar development, a man who has Forty Thousand Naira in his account and spends Five Thousand Naira only (5,000) is 40,000/5,000 or 8-month wealthy. You can see that whereas the first man has much more money, he cannot survive on his reserve for a long period. Conversely, the man who has a lesser amount of 40,000 will last longer. This tells us one Important thing: your spending pattern will be a determinant of your wealth status.
To be sure you're saving for the raining days, every extra or saved money you have, simply seek an expert's advice and invest in exportation of agriculture commodities for as little as you can afford, depending on where and who you approach. Soon as you aquired the necessary training and follow the learned procedure, your spending pattern will begin to change.
So get set to determine your WR. Get a sheet of paper and draw a table with four columns and thirteen rows. On one column, write Month. Then write Income on the next. Write Expenditure on the 3rd column and Wealth Ratio (WR) on the last. Total all the income you have received from January 2018 through April 2018 and write it down in Column 1. Your income will include salaries, gifts from friends and other relatives, dividends from stocks, interest from bank accounts, CDs, capital gains from sale of landed properties etc. The next column is for your Expenditure. Next on the column is the Wealth Ratio for that month. Write the number in that column. Repeat same for all the months and then watch the trend.
At the end of 12 calender month, pull your excess together and meet with a professional exporter who will advice you on what commodity that is trending.
Let us consider a situation where a certain man spent N80,000, N100,000 and N150,000 in January, February and March 2018 respectively. During these periods, his income never changed but remained at N60,000. His Wealth Ratio for the respective months are 60,000/80,000 (or 1.333 for January); 60,000/100,000 (or 1.666 for February) and 60,000/150,000 (or 2.5 for March. That means the extra money he had were loans borrowed from elsewhere). You can see that the number kept increasing from 1.333 to 1.666 to 2.5. What that means is that his wealth status had decreased, or put in another way, he had become poorer.
What if his salaries increased with respect to his expenditure? It will then depend on how much increment that income was. For best results, he must make sure that his income for every month must be greater than his expenditure. If he is able to change the course of the Wealth Ratio through exportation as a part-time from 2.5 to 1.666 and to 1.333 or even lower, then he must have started beating a path to financial destiny. So you must constantly watch your Wealth Ratios to see what figures they are giving you. It is a clear mirror to your financial destiny.
