1. I am by no means a financial expert .
2. I know that money is considered a sensitive topic so I hope that we can share our opinions and experiences without judgement. That said , I don’t want to talk about money from a place of blame and shame or without acknowledging the reality that many people are less privileged , living in poverty and that there are systems in place that make it really hard to come out of that cycle .
Wealth and wellness :
Wellness to me is wealth of the mind , body and spirit . I believe that building true wealth from a financial perspective facilitates these other aspects of wellness. That said , early last year I embarked on a journey to financial freedom .
What does financial freedom mean to me ?
Financial freedom is the liberation from a life that revolves around money . I would never want money to limit or determine my experiences and opportunities. From a monetary perspective, it means comfortably living off of my passive income.
How the journey begun
Whenever I am interested in something, I study it like I would with any other subject. In this case, I know that before I can be financially free, I must first acquire financial literacy. Therefore, I reached out to my audience through Instagram and asked you all to share some personal finance books and resources that have helped you. Based on these recommendations, I purchased and read 3 books: Rich Dad Poor Dad by Robert Kiyosaki, The Richest Man in Babylon by George S. Clason and Smart Money Woman by Arese Ugwu. I read them in that order but I wish I did it the other way round.
A quick review of the books
Rich Dad Poor Dad
It is about the author’s real dad and his friend’s dad who have different approaches to financial management. This is definitely a thought provoking book because the rich dad’s mentality challenges a lot of popular beliefs about money. I like that the author invites us to create conversations around these ideas and does not insist that you should agree with them. However, since he mainly invests in real estate, many of his examples revolve around that. He does explain some concepts but there are a lot of new financial terms that I had to go and make sense of outside the book. Having read other resources after this, I realized that it might not be as beginner friendly as I thought. I hope to revisit this book when I learn more about real estate so that I can make use of the tips given.
The Richest Man in Babylon
It is written like the parables in the Bible. The setting is in ancient Babylon where a young man asked a rich man to mentor him. The rich man shares principles on saving, settling debt and investing. I really enjoyed the narration in this book. The stories are easy to follow and the pointers were are clear. I would consider this beginner friendly and would highly recommend it !
Smart Money Woman
A book written by an African woman for the African woman. The story revolves around Zuri, a working class lady who is earning a lot of money but has no idea how to manage her finances. Each chapter has actionable steps which makes it the perfect practical guide for a beginner. This was my favorite of the three because it is very relatable. It tackles common struggles that young women face on their personal finance journey and offers solutions. Anyone can read this book and benefit from the straightforward advice that the author gives.
The overlapping concepts:
Each of these books is so unique in how they conveyed their message on managing finances but they also shared some common principles. This is what I took away from them:
1.Determine what you want your money to do for you.
The first step to financial independence is to define your goals. Thereafter, your goals will determine the decisions you make. Your target might be to settle your debt, get rich quick , retire early , become a millionaire or even all of them combined. Based on this, you must envision what your ideal life looks like and how your finances will play a role in that. Try not to compare yourself with others or use others as a template; define wealth for yourself.
2. Wealth is a mindset.
The belief that you need money to make money is not necessarily true. In Rich Dad Poor Dad, he gives a number of examples of how he made money without spending a single penny. He also touches on how what you believe about money holds true in your life. If you consider money something you can never be successful with, then that will be your reality. Additionally, money alone isn’t the source of wealth. Ideas are also also a powerful form of currency that can translate it into tangible income.
3. Develop diligence
The approach to wealth can be divided into these 3 categories: acquisition, retention and growth. Are you looking to find new sources of income, to retain the source(s) you already have or to grow your passive income? Regardless of your approach, there is an emphasis on diligence with what you have . If you cannot manage 10 shillings responsibly, you will not manage 10 billion shillings successfully.
4. Seek wisdom from experts
In all three books, the characters sought advice from people who were more knowledgeable on financial matters. Do not try to go at it alone. There are many people willing to share their expertise. Where possible, speak to successful people , get a financial advisor or even take personal finance classes. Allow more experienced people to assist you in the areas you are not well versed with.
These are a few of the general tips I gathered. However, I encourage you to read these books for more specific insights. I will be sharing some of the practical steps I have made on my journey in future posts.
It is never too early or too late to start! Now it’s your turn to share; What resources have been beneficial to you ? What were the key takeaways from them? Leave a comment down below !
Thank you so much for stopping by.
Always remember that your hair is your crown and your body is a temple; embrace it , love it and take care of it .
God bless you all !