Recently, a friend, in an analytical tone asked me what I thought about the year 2008. I answered; “2008…That was one year too many” I believe most people would share my sentiment in this respect going by the myriad of record-breaking and history-making events that we witnessed.
America elected her first afro-American president in a landslide election victory. Indeed that was a “Change” in America even if the anticipated change does not manifest eventually. The turn out at the election that secured the ticket for America’s first black president into the white house was unprecedented in history.
Zimbabwe’s controversial election and her 85 year old leader’s obsession with power certainly cannot be shoved aside by political observers. I was stunned to the bones when I watched Robert Mugabe declare to the whole world on CNN that Zimbabwe belongs to him! Well, you may say "what fallacy!" Another fascinating event in 2008 was a confirmation of the truism that “falsehood may run for years, certainly the truth will catch up with it one day”: John Darwin, the canoe man who faked his own death and orchestrated his incarceration after years of lies to the world and his two sons cannot but make this saying more true.
2008 was a roller-coaster year I’d add. There were so many surprises here and there. The rate at which events unfolded was unbelievable! Finally, a curtain was drawn over the princess Diana death inquiry even though Harrods’ owner, Mohammed Al-Fayed differed with the jury’s verdict.
It started as a rumour, and then it gained more attention. This is arguably one of the most shocking events of our time; the event that shook the world economic powers right to their foundations. And the world is still counting the casualties of this event which has earned itself a name that causes even financial doyens to bow -“The Credit Crunch”. That is a phrase that sends shivers down the spine of even the most astute financial managers of our time. What some may have initially thought was “the business/problems of the Americans” turned out to be the problem of the whole world. I guess many until now still grapple with the fact that when America sneezes, the whole world would catch cold. In spite of governments’ desperate moves to contain the situation, it was still gloom and doom in the news almost on an hour-by-hour basis for the better part of 2008.
The effects of Credit Crunch, I bet will remain indelible in many families globally. Even the “Credit Crunch-immune” Nigerian economy (as initially boasted by her Central Bank governor, Prof. Charles Soludo) felt and still feels the pinch. Stock markets are crashing. House prices are falling. Redundancies are on the rise - jobs are being lost. People lived and still live in fear of the unknown with increased sense of insecurity in their jobs. The giants are indeed fallen and are still falling.
Thanks to Israel’s last minute invasion of Gaza which in the past week or so has dominated the news, Credit Crunch seems to have receded to the background in the news. But earlier forecasts for 2009 before the curtain was pulled over 2008 were not the least encouraging. We have heard carious analysts predict that the worst is yet to come. It therefore becomes important for everyone to guard their wallets with all diligence and ensure that measures are put in place to prevent their fountain of wealth from drying in 2009.
At the moment, short term measures are needed to contain the situation and to survive it. However, these short term measures would enable individuals and corporate bodies to take more enduring steps to hedge against future economic shockers such as this. The good news is that tough times do not last; Infact, history has proved that it is tough people that do. Economists propound that economic events are cyclical which means that this time won’t last forever. However, while the situation continues, not everyone would survive the crunch. In the short term, what really matters is survival. And what would you do to survive? Here’s a tip:
9 to 5 or 8 to 4 may not be the answer at this crucial time in human history. I said in one of my postings last year that in the light of the current economic situation, it is not the hard workers that’d stand out (I’m not against hard work by the way, it has its own purpose and advantages), but the smart workers. One way to demonstrate smart-working is by creating alternative source(s) of income at this crucial time. That would not only help beat the crunch, it can become en during financial lifeline for you.
The day after Boxing Day, I played a game (the first time I heard about and played this particular game) called “the game of life” with my friends whom I visited and it blew my mind. Although I had read the book (Rich Dad Poor Dad) authored by the designer of the game (Cashflow 101), the reality of the wealth of knowledge in the book didn’t hit me as clearly as when I played Cashflow 101. That was when I realised that your profession or how much you physically have in your bank account does not actually determine whether you are or would be rich. Your attitude and the decisions you make in life hold the key to where you belong on the wealth ladder. To enter the league of the rich, two things are very crucial; (1) Your Cashflow and (2) Your Passive Income. You generate “passive income” when through your attitude and investment decisions, you get your money working for you and not the other way round.
I learned in this game that delayed gratification is one of the keys to getting rich. You may belong to the class of people who work hard to earn so much and wait several years to save money for your dream holiday or to buy your dream car. You save for this “luxury” so that you won’t incur any debt – fair enough, good thinking. What if you wait for say one or two more years and get this money to pay for the so-called luxury! It’s like eating your cake and still having it isn’t it? There’s no better time to grab opportunities as when there’s anxiety in the market and people are cautious about taking risks, if you can take calculated risks. I also learned that calculated risks means knowing when to hold on, when to fold up, when to walk away from a deal and when to cash in on an opportunity. It is also very crucial to keep up to date with happenings in the market and on the global scene.
Unless your monthly passive income exceeds your expenses, you are still in the Rat Race my friend.
What is the implication of getting out of the Rat Race? It means that your monthly passive income exceeds your monthly expenses, which in turn means that you do not have to work at all! Your money is doing all the work for you and your assets are actually paying for your expenses and liabilities.
America elected her first afro-American president in a landslide election victory. Indeed that was a “Change” in America even if the anticipated change does not manifest eventually. The turn out at the election that secured the ticket for America’s first black president into the white house was unprecedented in history.
Zimbabwe’s controversial election and her 85 year old leader’s obsession with power certainly cannot be shoved aside by political observers. I was stunned to the bones when I watched Robert Mugabe declare to the whole world on CNN that Zimbabwe belongs to him! Well, you may say "what fallacy!" Another fascinating event in 2008 was a confirmation of the truism that “falsehood may run for years, certainly the truth will catch up with it one day”: John Darwin, the canoe man who faked his own death and orchestrated his incarceration after years of lies to the world and his two sons cannot but make this saying more true.
2008 was a roller-coaster year I’d add. There were so many surprises here and there. The rate at which events unfolded was unbelievable! Finally, a curtain was drawn over the princess Diana death inquiry even though Harrods’ owner, Mohammed Al-Fayed differed with the jury’s verdict.
It started as a rumour, and then it gained more attention. This is arguably one of the most shocking events of our time; the event that shook the world economic powers right to their foundations. And the world is still counting the casualties of this event which has earned itself a name that causes even financial doyens to bow -“The Credit Crunch”. That is a phrase that sends shivers down the spine of even the most astute financial managers of our time. What some may have initially thought was “the business/problems of the Americans” turned out to be the problem of the whole world. I guess many until now still grapple with the fact that when America sneezes, the whole world would catch cold. In spite of governments’ desperate moves to contain the situation, it was still gloom and doom in the news almost on an hour-by-hour basis for the better part of 2008.
The effects of Credit Crunch, I bet will remain indelible in many families globally. Even the “Credit Crunch-immune” Nigerian economy (as initially boasted by her Central Bank governor, Prof. Charles Soludo) felt and still feels the pinch. Stock markets are crashing. House prices are falling. Redundancies are on the rise - jobs are being lost. People lived and still live in fear of the unknown with increased sense of insecurity in their jobs. The giants are indeed fallen and are still falling.
Thanks to Israel’s last minute invasion of Gaza which in the past week or so has dominated the news, Credit Crunch seems to have receded to the background in the news. But earlier forecasts for 2009 before the curtain was pulled over 2008 were not the least encouraging. We have heard carious analysts predict that the worst is yet to come. It therefore becomes important for everyone to guard their wallets with all diligence and ensure that measures are put in place to prevent their fountain of wealth from drying in 2009.
At the moment, short term measures are needed to contain the situation and to survive it. However, these short term measures would enable individuals and corporate bodies to take more enduring steps to hedge against future economic shockers such as this. The good news is that tough times do not last; Infact, history has proved that it is tough people that do. Economists propound that economic events are cyclical which means that this time won’t last forever. However, while the situation continues, not everyone would survive the crunch. In the short term, what really matters is survival. And what would you do to survive? Here’s a tip:
9 to 5 or 8 to 4 may not be the answer at this crucial time in human history. I said in one of my postings last year that in the light of the current economic situation, it is not the hard workers that’d stand out (I’m not against hard work by the way, it has its own purpose and advantages), but the smart workers. One way to demonstrate smart-working is by creating alternative source(s) of income at this crucial time. That would not only help beat the crunch, it can become en during financial lifeline for you.
The day after Boxing Day, I played a game (the first time I heard about and played this particular game) called “the game of life” with my friends whom I visited and it blew my mind. Although I had read the book (Rich Dad Poor Dad) authored by the designer of the game (Cashflow 101), the reality of the wealth of knowledge in the book didn’t hit me as clearly as when I played Cashflow 101. That was when I realised that your profession or how much you physically have in your bank account does not actually determine whether you are or would be rich. Your attitude and the decisions you make in life hold the key to where you belong on the wealth ladder. To enter the league of the rich, two things are very crucial; (1) Your Cashflow and (2) Your Passive Income. You generate “passive income” when through your attitude and investment decisions, you get your money working for you and not the other way round.
I learned in this game that delayed gratification is one of the keys to getting rich. You may belong to the class of people who work hard to earn so much and wait several years to save money for your dream holiday or to buy your dream car. You save for this “luxury” so that you won’t incur any debt – fair enough, good thinking. What if you wait for say one or two more years and get this money to pay for the so-called luxury! It’s like eating your cake and still having it isn’t it? There’s no better time to grab opportunities as when there’s anxiety in the market and people are cautious about taking risks, if you can take calculated risks. I also learned that calculated risks means knowing when to hold on, when to fold up, when to walk away from a deal and when to cash in on an opportunity. It is also very crucial to keep up to date with happenings in the market and on the global scene.
Unless your monthly passive income exceeds your expenses, you are still in the Rat Race my friend.
What is the implication of getting out of the Rat Race? It means that your monthly passive income exceeds your monthly expenses, which in turn means that you do not have to work at all! Your money is doing all the work for you and your assets are actually paying for your expenses and liabilities.
Take your destiny in your hands. You will wait forever if you wait for the government to change your world. You can choose to stay in your comfort zone or dare t stand out. The choice is yours.
I wish you a fear-free 2009, friends.
1 comment:
Absolutely timely and fantastic. The will to delay gratification is enormous and yet possible. Thank you
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