A friend commented lately, that the most important things in life are never taught. How true! Over the last 2 weekends, I have been extremely busy, I have been co-organizing together with my colleagues the second ever HR MBA 1 (Methods Becoming Actions). While we were busy making this happen in Ostra Hotel over 2 full weekends, I and this Friend- Babatunji Farinloye, saw a newly wedded couple. We laughed at how no school course covers training for marriage, raising children, building relationships, managing personal finance and so many of the really important things in life. I joked, that marriage is the only institution where we get a certificate before the school begins. While it is true that school does not prepare one for most of the important things in life, one must avail him/herself the privilege of such interventions. There is a mouth watering intervention coming up next week maximizing the use of the public holiday on May 29. Read on.
Financial intelligence is one of those skills that we are not formally thought, but is so important. Families that are able to transfer wealth across generations, did not merely leave their children their money as inheritance. They left with them a legacy of financial intelligence. Rockefeller’s children were taught from the tender age of 4 some key principles about money, no wonder he was able to transfer his wealth and his children grew up to be responsible and wealthy men. He gave them 5 rules, which we will look at in details. Before we delve into this topic however, I’ll like to also invite a few that are willing to transform their money mindset for a special 1 day Financial Intelligence Event. Please, this is on first come first serve basis. In a Nut shell, 15-20 people (myself inclusive) will come together on the evening of the 28th of May to 5pm on the 29th of May, and play Robert Kiyosaki’s Cash Flow 101 game. We’ll be lodging in a hotel for the night, and I’m certain it will be a memorable and mindset changing event. If you are interested as an individual or as a couple, kindly log your interest. I’m still finalizing arrangements, but total costs should be in the ball park of tops N30,000 per couple (or duo) for accommodation, feeding and logistics.
The Rockefeller rules for his 4yrs olds are still as relevant today as they were then. They are also very applicable to every age, these are the key tenets of financial intelligence that created and sustained wealth.
Rule 1 -Work for all you get!
Rockefeller encouraged his children to learn to work, to learn to be rewarded for work done, rather than be given gifts or to beg. Work is the horizontal flow of value from a supplier to a consumer. Money flows in the direction of service. Money that is worked for is replicable. He ensured that his children understood that money is a reward, not a gift or a right.
Rule 2 -Give away the first 10%
Different religions encourage their people to part with 10% as an offering or as a commitment to God. All the great and rich men of all times, have shared this same principle. Giving away 10% of your money is a sign of spiritual stewardship. You know that it is not yours, that you are merely an administrator of the funds in your charge. Giving opens up your hand to recieve.
Rule 3 -Pay yourself the next 10%
Many of us have so many other people on our budgets except ourselves. We pay the power man, water man, provisions man and we forget in the frenzy, to pay ourselves. One of the most popular financial books – The Richest Man in Babylon, alludes clearly to the fact that 10% of what you earn should be saved as yours. What you pay yourself is not for Mr or Mrs Biggs. It’s yours to save.
Rule 4 -Live on the rest.
Many of us find it increasingly and extremely difficult to live within our means. Before we collect the salary for the month, 80% of it is already carried forward to service debts. We must learn to live within our means. Parkinson’s law states that when money increases, those that will help consume it also increases. We must however learn how to contain ourselves within our means. Atimes we need to dim our present, to brighten our future, and finally.
Rule 5 -Account for every penny
Now this is difficult. It involves being shrewd and taking the time and dilligence to track daily spendings. There are two parts to accounting for every penny (kobo), one is done ahead of spending, called budgeting, and the other after spending, called accounting. Budgeting is planning, this is crucial to financial success. The pain of accounting is not absolutely useful on the short term, but on the long run it gives you a clear picture of your priorities.
A rich man once said, “Money is game” If you know the rules you win, if you don’t know the rules you don’t win.
Indicate your interest in The Game. If we have spill overs we’ll need to reschedule another session for them. I look forward to seeing you on the 28-29th of May.
Just in case you want to know what people have said about the game, this is for you –
“Learn why the idea of creating wealth by building assets (by having a home, car, clothes and jewelry) is a myth and how one simple shift in your thinking can change your financial life. Learn the secrets of cash flow and how to never worry about money again. Learn how to achieve your dreams, how to stop the financial “bleeding”, how to become financially secure, and how to get out of the rat race forever.
This board game will transform the “money mind-set” of anyone who plays, whether they are new to financial information, or seasoned investors”
“I am an adjunct instructor in the Entrepreneurship Program at the University of Arizona and have been looking for educational materials that would give my students practical, simulated experience on how cash flow actually works in real life situations. CASHFLOW 101 is the only educational tool/game I’ve found that REALLY demonstrates the effect and interconnections that a single decision can and will have on your balance sheet and income statement. I’ve played this game with a number of my students and they have told me that they finally ‘get it’ when they make a buy/sell decision on the game board and then have to make numerous adjustments to their balance sheet and income statement.”
“Wow! A picture is worth a thousand words! This game is an absolute must for business students at all levels! In fact it is an absolute must for anyone who plans to live longer than the next 24 hours!”
Carolita Oliveros, Lawyer and Adjunct Professor
Entrepreneurship Program, University of Arizona