There is something that people need to understand about money; the only one that has the ability to grow and multiply is the one that you have invested. As a business person, when you are spending, it is always advisable to spend from either the proceeds of the investment or what is remaining after saving but not the other way round. You need to understand the difference between the money meant for your business and the one meant for personal use.
The money meant for business can be likened to seed (for farmers). If a farmer misplaces his priority and eats his seeds, when the planting season comes, there will be no seed for him to plant. In the same way, when a business person eats his business money (or his capital), his business might be affected. The best practice about spending is; it should be done after investing a part or saving a part, then the remaining is what you spend from.
It takes a considerable amount of maturity for one to be able to prioritize their spendings and to be able to separate what he wants from what he needs at the moment. You do not have to spend because you feel like spending or because someone else is spending, or maybe to impress someone.
I have understood something over the years; the people that you might want to impress with your spendings may not even notice it and if you go broke on that, they may not help you either, so be wise. Being an entrepreneur or a business person has responsibilities laid on your shoulders and the first one is the welfare of your business. When money comes to you, the first thing to do is to figure out how to invest part of it or at least save some.
There is a particular adage in Southeast Nigeria that says that:
It is the firewood you gathered during that dry season that you will use to provide heat for yourself during the cold season.
This is the same way saving works. You will be surprised to know that unforseen financial circumstances may arise at anytime but it is only when you prepare for it that it will not take you unawares. The truth is; how you spend, save or invest your money is your choice, but the outcome and the result is not your choice.
If you constantly spend on the things you do not need just to show off, a time may come when you may be faced with financial strain and you will need to sell the things you need as a way to survive. Remember this popular quote:
Have the future at the back of your mind when you spend.
Thanks for reading
And let's not forget hard work! At the beginning is very important :)
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That's very correct. Hard work is very important and not just that but working smart too.
Thanks buddy
This post flashed my mind back to a post I wrote about investing, savings and earning. This three topic are topic you dare not toil with. Many people still don't understand the power behind those words.
That's right. This topic is very important and everyone in business needs to be aware of it so as not to run into financial strain.
Thanks buddy
hi dear @samminator
I love how you express that advice is very similar to the one given in rich dad poor dad, if many people give that advice it is because it is vital for life, I loved that Nigerian saying.
blessing
Exactly, it is very vital, not just to business people, but to everyone. Thanks a lot for the comment buddy
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Thanks buddies
It is very common for Latino entrepreneurs to spend everything that comes into their businesses and when business goes bad they simply go bankrupt, investing instead of spending allows the business or capital to grow so that when the bad days come they can continue to grow, saving and investing should be the north of any businessman or entrepreneur.