Before you spend, Save and invest : money management principle that keeps always debt and poverty

in LeoFinance10 months ago (edited)

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It will be totally out of place to continually chase after how to make more income while neglecting what can be done to sustain every little money that enters our hands.
I have heard that many people are virtuous and humble just because they are at the low level of life. Just try such peoole with million naira and watch their attitude and character change instantly

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There are principles guiding income, expenditure budget and savings and until we learn some money etiquette we might either remain poor or get into bigger problems.
Such is the case with the person mentioned above.

A very low income earner who chooses to lavishly squander money mistakenly sent to his account

This is 21st Century and almost every monetary transactions are traceable even the ones in blockchain and crypto.
A lack of financial knowledge must have pushed him to think that this is some free or miracle money 😁.
Going further we can see from different newspapers and headlines regarding hoe he has spent this money lavishly buying all manner of things and giving out huge chunk to his neighbors, now he has been arrested and is in a bigger trouble.
Looking at it now, he may be in danger of debt throughout his lifetime depending on how much he has spend from the total of that 280million.
Nevertheless we are not expected to spend every little money that enters our hands.
If he has been wise to invest this money even if it doesn't belong to him, he could have made some profit on that money and still be able to refund the exact capital, but reverse is the case since he chose to spend first before anything else .

Here is one of the principles behind income and Expenditure that wealthy people understand and this is means to Spend only incomes left after investing.
Every little money they get, they first think about what to save and invest from the said amount before spending the rest.
Save first before spending.

If you spend first, there is a likelihood that nothing will be left for savings and investment.

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People won't understand the power of investing and how it can transform our life. It is a gradual process

Exactly 👌

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This is so true and it gets scary when you factor in the fact that expenses are usually unlimited. There is no limit to what counts as our needs/wants, so taking out a portion of our earning for investment purpose and saving some before running expenses will surely count as a wise decision.

It's not an easy pratice though, but it is worth doing.

Exactly,👌 thanks for the addition.

That's why some of the post payout is in hive power because if all where floating payout some people will spend all thier earned coins and don't power up

Truth
Any transactions are not hidden most especially the introduction of BVN system.
Thanks for sharing dear friend
Happy hiving

Thanks for stopping by.
It is duly appreciated

That's the principle I always try to follow, save/invest first then spend after. If only he had good financial etiquette, he would have made his life better financially than suffering this huge debt which will take a while to sort out. Financial knowledge is important.

Thank you for this contribution. 👌

You're most welcome :)

Good for him! It is rather wonderful that he went out and bought things and gave his neighbours presents, rather than being cowed and frightened by finding the money in his account. We often discuss whether we are ready for abundance when it comes our way, because that is part of the equation, too.

I wonder: does the bank not have any responsibility for this at all? (When I say "bank" I mean the corporation, not any individual that may have made a user error). I also think the bank has more than enough reserves and insurances to cover any money he may have spent.

I'm sorry that in this unkind world he will be held responsible rather than the debt being wiped out.

Well I doubt if any bank or financial institution here will be willing to pay for anyone's mischief and the insurance systems here are not reliable at all.
Anyway we still await what will become of his fate.

Personal financial books recommend paying your first before paying your bills. As well as automating the investing process. This guy will have a criminal record to have stolen 280 million Naira!!!

I just don't know where his fate lies until some judgement is passed, looking at things, he has really spend a huge chunk of the money.
Thanks for stopping by.

I liked the article overall but a couple of things I would mention.

Two things really stood out to me:

First: I'm not sure it is fair to say that a virtuous, humble person turned bad overnight because he got a large sum of money. Many people who have no money do not know how to use money wisely. they haven't been trained with it! When they get money they finally have the ability to do things they have always wanted. Buy the items that are advertised everywhere. Get respect from people in power because they have money. Taste food they have never tasted before because it was too expensive. Shop in stores they couldn't even think of buying anything in when they had no cash. Help out neighbors who are struggling that they were powerless to help before.

Of course they will make poor choices. It's like my son on his first day driving. He's seen me drive all the time so he thinks he can do it. However, his first day behind the wheel its a horrible experience because he is terrible! Same thing when a poor person suddenly has money. Sure they think they can handle it but really....no.

Second:

" that wealthy people understand and this is means to Spend only incomes left after investing"
. I know some wealthy people and some rarely if ever invest. I know others that spend way too much and will eventually end up poor. I know others who "Have Enough" and rather than invest more to make themselves even more rich they give more away to help others.

Wealthy people are as diverse as poor people. Investing first is GREAT advice but not a character trait of all wealthy people.

and

Third: Where is the rest 😁 It was a great start, but there is much more to be said! Hmmm... I think I know my next post topic 🤔

Just my thoughts :)

Thanks for writing and I really did enjoy the article.

Oh wow, I like your point of view.
It hurt less to understand things from different peoples perspective.
Wealthy people do have a damage of choices on what to do with their money just like every other person.