This is a space of TRUTH where you can get inspiration to Impact your personal life and the life of others, I chronicle some of the things I have done, I share my failures and successes in regards to personal finance, personal leadership etc. I also share other inspirational stories of men and women who have shaped this world in this area.
Your attitude and mindsets will be reset to start believing that you were designed to do more with what you have (I call it re-writing personal finance).
I have been following a discussion on a forum where some one got so agitated and shared a message from their BANK (I will not mention the bank) Titled "CHANGE OF INTEREST RATES ON YOUR PERSONAL LOAN".
The person wrote to the bank and told them, "Please stop cheating/exploiting customers". The person wrote that and brought out the fact that the Central Banking Rate (CBR) issued by Bank Of Uganda had gone down to 11-13%. They wondered why the Banks rate hadn't gone down and they called that predicament names like, "DAY TIME ROBBERY" .
In response to the discussion, one person wrote and said, "Banks are here to cheat us and that is how they make their profits." So this brought many questions to my mind, Are Banks really in for the development of people or they are here to trap people? When you look at television adverts from Banks, they rush to tell you how easy it is to get a loan and that mind control of making it look like you can purchase your dream very fast has become a phenomenon.
People are getting loans to wed, loans to consume and have luxuries (cars, mansions etc), very few are getting loans to invest in already existing businesses that could be probably 3% of wealthy Ugandans who get to invest, this basically means that control of money is taken away from you because some one else has chosen to control your finances.
Each time you get paid, instead of investing first, you have to pay off your debt, (DEBT IS A TRAP), remember what the bible teaches, it says that a borrower is a slave to the lender (Proverbs 22:7) and it doesn't have to be your portion .
Some one then wrote and said that, "May be we should organize a strong SACCO and lend to ourselves, they said SACCOs give out good loans at about 14% per annum. Then he exclaimed by saying, UNFORTUNATELY MANY OF US ARE TRAPPED SO IT DOESN'T HAVE TO SOUND LIKE A QUICK FIX".
A good number of people have bank loans and because of inflation and the unstable economy the prime lending rate keeps changing and at times they say it affects even old loans. The reason the guy said that they are all trapped it is because, somehow everyone has a loan and they have to first clear that before they can borrow from other sources that would have been relatively flexible with their interest rates.
This brings us to a place where we need to ask ourselves, if it is sustainable to keep going to the bank or to form investment groups/SACCOs. May be it is high time people came together to form groups with proper guidelines and lend to one another. The group must be a team of committed, trustworthy, hardworking, and people willing to see others develop.
I have read about and heard testimonies of SACCOs that have helped people develop with less stress and such stories are true. They will tell you how they are able to pay back because of flexibility and the aim of the SACCO is really to empower but not destroy.
However, we all need to know that we should owe no one a debt except the debt of love, always think before you get a loan or start changing your mindset by saying let me SAVE a certain portion of my income for a certain period of time, if you need to beef up the money to do something mega then that's where you start analyzing whether you need it or not.
Financial discipline is important to the quest for financial freedom. Invest the money you get, use it wisely. One of the laws of money is that money must be increased otherwise it diminishes (The parable of the Talents is a good pointer Mathew 25:14-30).
We can not live on one source of income and the scriptures tell us that we should diversify our investments, you can read the whole of Ecclesiastes chapter 11. Use your skills, Do you have land that is idle, maybe its time you think of planting the food you buy from the market everyday, We also need to cut off expenses that aren't important, this means budgeting must become a part of your everyday life.
Debt can be beaten with such knowledge applied everyday. No one has to be trapped. People perish because of a lack of knowledge, when you get knowledge, it is like light or insight to a prevailing situation, then don't just get the knowledge make use of it by APPLYING IT.
Our minds need constant renewal, the less you learn, the more ignorant you become.
Our brains are created in a way that, they can learn so much, in other words, they are elastic, that's why you can read as many books and watch as many videos. Do you know how we often talk about movies of old, those movies have been stored somewhere in our memories that we can relay some scenes word for word. That's how powerful our minds are.
The question then that comes to mind now is, what are we doing with our minds? are they lying idle and wondering or are you the type that is giving it mental exercise by learning constantly so that you can rightly divide the word of truth. I once heard a wise man say that "The first ground you must till is that of the mind"
I have heard before that Ignorance is expensive especially when it comes to things to do with the law, if you don't know then, you will pay dearly.
Dr. Sunday Adelaja said, "The worst kind of poverty is the poverty of the mind"
Dr. Myles Munroe said, "Ignorance is dangerous because it permits the possibility that we will live all our lives and never know why we lived."
Finally, it has been said that people perish because of the lack of knowledge, you may have all the opportunities but if you lack the knowledge to apply at a given time, then you will have lost everything.
Do whatever it is within your means to read about your areas of interest but also diversify and know about other spheres as you improve on your area of gifting.
Proverbs 21:20 (NLT) – The WISE have WEALTH and LUXURY, but FOOLS spend whatever they get.
Are you the type who spends whatever you get, you might have to just check through your life and examine the things that actually make all your money go away and puts you in a place to keep borrowing, are a consumer or an investor, is your appetite for spending great or are you a person who surrounds him or herself with those who are spend thrifts? You could be eating your future a way by the decisions you are making right now - every decision has a consequence. Indeed our lifestyles really dictate our personal finance.
One of the things that we all need to agree on is that we have a large appetite for many things. You find someone having 10 fleets of cars, yet you can only drive one at a time, having 5 smart phones, yet you can only use one a time, having 100 pairs of shoes yet you can only put on one at time, in fact we have a lot of things that we have spent on that are not being used. Everything you acquire should have a purpose, because without a purpose, abuse is inevitable.
We live in a world where a phone manufacturer will release a new version of the same phone but with only one or two enhancements. The first thing that comes to mind then is that we should have the latest (keeping up with the Joneses), so we keep saying I need to upgrade and the upgrading comes with an expense that is not even planned for.
Until we deal with our urge or desire for things, then we shall remain enslaved or controlled by what's coming out there. TV adverts, music videos or even movies have been the place where many adverts are pushed forth and the more we feed our minds on such things the more it becomes normal to acquire things you don't need to impress people you don't know.It is better for adverts to come and find you prepared, because when you are prepared, your spending will be purposeful. You can't be caught off guard and it will also build self control and kill the urge to want what you don't need.
We have to delay gratification if we are to win with money. What we hunger for simply becomes a god in our lives, it becomes our master because we have failed to master money by telling it what to do.
Our lives have also been programmed. You find on such and such a day there is this big event, it isn't bad to go out but it is good to plan your going out to avoid being caught up by the crowd and having to borrow to keep spending to keep a lifestyle that is superficial and isn't adding value but only destroying your destiny.
When you make money, the first thing to do with it, is not to spend but to save. Think like a farmer, farmers always have to keep seed after every harvest for the next planting season. If you have no seed then you might as well have no food. Remember your ego can cost you, selling that car and using a taxi might look like you have dropped but it is just part of the game plan.
I know of someone who left a very expensive house they were renting and went to a cheaper but still good place. They put off all thoughts like, "What will people think!, My standard has dropped etc", now they live a life of freedom and even have more money to support others, they have stopped living for themselves and have the others in mind.
Here are a few things to note:-
1.Don’t spend money you have not made (This makes many borrow with the hope that money will come, what if it doesn't?) 2.Don’t be under the slavery of your desire or the good life 3.Don’t try and live by other people 4.Don’t eat tomorrow’s food today (Always save) 5.Don't buy out of impulse 6.Plan 7.Work on a budget - A budget tells you where your money should go. 8. Save to Invest (Saving is not for addition, it is for multiplication (be fruitful)) 9.Think long term (Be Visionary) 10.Cut down on your expenses.
According to Merriam Webster Dictionary DEBT is "a state of being under obligation to pay or repay someone or something in return for something received : a state of owing"
No one on this earth wants to be under the spell of debt, the scourge of being taunted all the time that you owe this or that. One of the greatest forms of slavery in this modern day and era is financial slavery which comes through borrowing. This is coming about because people have a big appetite for luxuries, they want to own 5 fleets of cars, yet they can only drive one at a time, they want to build many homes to stay in yet they can stay in one instead of building for rentals so that they can make income out of it. The good debt would be the one you get to put in an income generating asset but normally we get debt to consume, buy luxuries etc.
We live in a fast paced world where people want things in an instant, talk about quick money (Proverbs 13:11), students have ended up betting their tuition fees with the hope that they will make more money and pay later, it hasn't always been the case that money will be made, in fact it has gone the other way round. A lot of lack is needed to do gambling (betting), it is a real fight against the odds, you make it one time and win and you start feeling like you can do this over and over forgetting that in life, a point comes where things won't work the way you want. This even kills the desire and value for work. Check out my blog on how Work Is Profitable https://arthurkmo.blogspot.ug/2017/06/work-is-profitable.html
We have reached a point where Financial Services Companies like Banks, Mobile Money have learnt that people love to consume, and consumers are easy targets for all kinds of things. These banks or service industries work with great advertising firms to do eye catching adverts that leave you wanting, If you look at adverts around from Banks, you will be told, you can get a loan for a car (instead of saying save for a car), you will be told you can get a loan for a wedding (instead of being told save for a wedding), This is a way of killing your patience and building on your drive and desire to want things on an instant. Some people have been saved a lot of trouble by exercising patience but it's a virtue build over time after failing and being hit many times.
You will be told by telecom companies that you can borrow airtime or money when your charge is running out, as much as money is being made by these companies or organizations, we the consumers are turning out to be slaves to these schemes. Many times when your airtime is low, you will get a message telling you that you can borrow so that you can keep chatting, they already have power over us but we can choose to have power over our lives by planning and making the right decisions. The messages are becoming normal and we are becoming victims. But we can control our own space, money and time by managing ourselves.
Fight DEBT and bury it, give yourself the ability to to be a LENDER and not a BORROWER. We all know the consequences of racking up debt especially if it has not been put into something that generates income. Debt is something that takes a way your peace until it is dealt with, you can not do much since it consumes the whole of you. Buy your freedom back by fighting Debt.
If you are to get a loan, it has been said, only get it to improve what you are already doing. However if you can avoid it, please do and work on your personal finance journey, make sacrifices, be obedient with your budget, create avenues to give back to the world otherwise Debt is a trap used by the world system.
Proverbs 22:7– “The rich rules over the poor, and the borrower is slave to the lender”
"Most of us have heard this verse a million times, but most of us still use debt to fund our lives. 2/3 of all people, and 1/3 of high income earners are living paycheck to paycheck because of debt." - Jason Cabler
"Debt limits your freedom to live life the way you want to live it. As long as you have debt you are obligated to put much of your time and energy toward paying it off. Just think how your life would be different if you had the freedom and choices that come with having no debt." - Jason Cabler
The bible says we should owe no one anything except the debt of love. If you want true financial freedom in your life, then commit yourself to getting out of debt. You will be amazed at the difference it makes in every aspect of your life. Having debt undermines your ability to build wealth and puts your financial plan at risk. It’s simple. Steer clear of debt - Dave Ramsey Read more from this link on how to achieve financial freedom
Proverbs 14:23– “In all toil there is profit, but mere talk tends only to poverty.”
When we read the story of creation, it gives us a picture of how valuable man is to the things that God has created. He gave man dominion over all his creation.
***Now no shrub of the field was yet in the earth, and no plant of the field had yet sprouted***
There were two things that could not allow plants or shrubs to grow.
1. No rain
2. No Man to attend to (cultivate) it.
This is the account of Genesis 2:5
It is written in Genesis 2:15 " Then the LORD God took the man and put him into the garden of Eden to cultivate it and keep it."
We are created to work, there should be no place for laziness. When we diligently work, we reap the rewards as well. It is also written in Proverbs 12:11– “Whoever works his land will have plenty of bread, but he who follows worthless pursuits lacks sense.”
Dave Ramsey says that the only way to beat being broke is by going to WORK, work isn't necessarily only a JOB, we have been blessed with so much potential and we only need to come out and do something. It is also written in Ecclesiastes 9:10 "Whatever your hand finds to do, do it with all your might, for in the realm of the dead, where you are going, there is neither working nor planning nor knowledge nor wisdom."
So lets not ignore work, we are God's workmanship created to do good works. You reap what you sow, if it is laziness, then there will be no fruit.
The bible tells us that we don't wrestle against FLESH & BLOOD but against PRINCIPALITIES & POWER. Are you in a place where it's tough, where evil is the order of the day, you see things happening and it looks normal. Are you afraid of speaking against injustice because you think that your FAVOR will go away or you won't be considered for this or that opportunity.
There are times we are in a horrible PIT in our lives and it's only God that can take us out of it. Do you feel like you have been in a PIT for too long, have you waited and there is no rescue. May be you have been calling on man for help, may be you have been calling on your ancestors, may be you have been looking at your own strength. Remember the pit is not your FINAL destination.
In Psalm 40 verse 1 David said, "I waited patiently for the Lord; and he inclined unto me, and heard my cry. 2 He brought me up also out of an horrible pit, out of the miry clay, and set my feet upon a rock, and established my goings."
We can only learn patience through tough times, we can also learn that only God is the one we can DEPEND on, it is written in Romans that the hope that God has given us doesn't DISAPPOINT because God has shed his love abroad our hearts. Our fights are not to be faced with fear because Christ has made us more than conquerors, he has caused us to triumph. It is written that we shouldn't cast away our confidence that has GREAT REWARD, and I am also reminded of what God told Abraham in Genesis 15 verse 1 ....“Do not be afraid, Abram, for I will protect you, and your reward will be great.”
I encourage someone out there with these words from Isaiah 41:10
Don’t be afraid, for I am with you. Don’t be discouraged, for I am your God. I will strengthen you and help you. I will hold you up with my victorious right hand.
May God set your feet upon the ROCK and may he establish your goings.
Discipline yourself through the PAIN (Hebrew 12:11)
No discipline is enjoyable while it is happening - it's painful! But afterward, there will be a peaceful harvest of right living for those who are trained in this way.
When a seed is buried in the grown, it first has to die before it can germinate, then it has to grow, for it to grow, it has to be cared for, fertilized, pruned and given the best care, so that after so many weeks, days, months or years, its purpose for planting is eventually realized, is it electricity poles, furniture, etc that you want, it will take patience and courage to wait, while you take care of it. Your faith and desire to cut will be tested, but if you wait a little longer, you end up appreciating because you are looking more at the END result (Future) than at the satisfaction of the moment.
I have had time to listen to people especially when we start talking about money, money touches everyone's heart. Personally, I have had to go through and continue to learn about money, I wish I learned somethings earlier but you can never have it all. The conversation normally stems from how money is not enough, how the economy is biting and prices of things are high, people keep talking about how they are paid little and that they aren't able to save since most of it is expended - we all are victims in one way or the other but there is a way around these things, they say it's not possible to budget with small money, even those who have a lot don't budget because they believe they have an endless flow, yet such money can be put to develop and transform the society, economy, people, etc.
You know our actual wealth isn't in money only, there is much more to that, we know very well money can't make us rich, we know that we have to provide goods and services to attain wealth and I also know from what the bible teaches me, its God who makes me rich and he has given me the tools that pertain to life and godliness. Other conversations I listen to as well stem from those who talk about investing money, and in such stories you hear about their failures, bad investment decisions and how careful people are, you also hear of how people have won with money and are making the right decisions in different ventures. It is important to humble yourself to learn, indeed those who are humble are exonerated.
I want to focus on SAVING, I believe many times when people hear of this, they just give up before they even start or try, you know what, I was like that before I started appreciating what this simple tool can do, its hard, takes a lot of discipline, sacrifice, delaying gratification and the willingness to come out of debt and be financially free and have peace at that. People have created a notion around them that this can't be done but the amazing thing is that there are people doing it and there is a lot of success in this area.
Benjamin Franklin once said, "If you will be wealthy, think of saving as well as getting it". This basically tells me that we have to work at it. You know you can choose to ignore such a message but if you put your mind to the truth and power behind such a topic, then liberation has already started in your mind. Remember as a man thinks so is he, if we think of saving then we shall save, if we don't think of saving then we shall not save. Dave Ramsey, Americas trusted voice on Financial matters said this,
"Successful folks don’t win at life because they have a magic pill or top-secret information. They win at life because they work at it for years."
Let us look at some of these reasons why people don't save. In light of some of the reasons, I want you to have this scripture in mind
Proverbs 21:20 (NLT) The WISE have WEALTH and LUXURY but FOOLS spend whatever they get (Each time I have read this, it puts me back to the drawing board)
let's see the reasons
I can't afford to Save
I can always save later
It's too complicated
I just need to get 'this' out of the way
I am waiting for less market volatility
It's impossible to get ahead
I'm afraid to face my financial fears
I'm too busy
It's too late
I'm too OLD
I just can't do it and many more excuses
There are many more reasons, but if you see all this, it really gets down to attitude, we need to change our attitude towards this concept of saving, I have come to realize it is very biblical
See what is written in Proverbs 6:6 (NLT) Take a lesson from the ants, you lazybones. Learn from their ways and become wise. And let's see further what Ants do Proverbs 6:7 Though they have no prince or governor or ruler to make them work, 8they labor hard all summer, gathering food for the winter 9 But you, lazybones how long will you sleep? When will you wake up?
Now to me, sleep means a state of inactivity, a state of no awareness or to be spiritually dead or suspended from something. If you haven't woken up, maybe this is the time, God told Joseph about the famine that would last 7 years and also about the 7 years of abundance, what he did in the year of abundance enabled him to serve not only Egypt but other nations and his own family. There is a serious lesson in this story, what do we do when we are making money? we all need to take advantage and do the right thing in such periods because its true seasons come and go, they do change but if someone is prepared they can be able to manage the changing seasons. Read Genesis 47:13-27 and look at the action he took in verse
26 Joseph then issued a decree still in effect in the land of Egypt, that Pharaoh should receive one-fifth of all the crops grown on his land. Only the land belonging to the priests was not given to Pharaoh.
Here are a few things you can do to get you going and started on the saving journey.
From a personal point of view, I believe if you can learn the art of saving, then learning the art of investments becomes interesting because you get to appreciate that hard-earned money that has been saved for a goal should not just be squandered, you make calculated steps, even Jesus said that before you build a house, you must calculate the cost, so it is wise to know how to put money aside.
As a Christian, you know very well that everything we own is for God, even the money in our hands, so give to God first (10% or more), then pay yourself, then invest and budget for other things.
I have learned that the first thing to do with money is to save it first and not spend then save later, after saving it makes you appreciate the importance of budgeting (telling your money where to go, this is how Dave Ramsey puts it, "You have got to tell your money what to do or it will leave you").
First of all, start by changing your mindset and this means feeding yourself with literature about saving, the bible has wonderful scriptures and we all know the bible talks a lot about money,
Buy books of renowned men and women who have talked about money extensively, the total money makeover by Dave Ramsey, Thou shall prosper by Rabbi Daniel Lapin, Money won't make you rich by Pr Sunday Adelaja, Make sense of money by James Abola to mention but a few.
Research online there people who are blogging a lot about how to win with money and read those articles. listen to success stories like this one see video below
There are many stories out there and in Uganda as well. I encourage you to buy the book Make Sense Of Your Money by James Abola, it's simple, precise, and clear on what to do.
While still young and energetic, I encourage you to start early, have a goal in mind, be visionary and take advantage of one the best words in financial literacy that is called COMPOUND INTEREST (Interest upon interest). On a personal note, I have seen that work and having started not so early, my wife and I are already seeing the benefits, you can't believe it until you start seeing your dividends.
If you feel like you can't take that money to your savings account, then talk with your bank so that a standing order of a particular amount is created, and on a particular date that money is deducted into your savings account. Don't have excuses that you can't save, because you need the savings to enable you to invest that is if you going to build your own capital base.
If you manage to start self governing yourself, it pushes you to start planning for your children whether you have or don't have and Insurance has come in with good packages to help many people out there. This also puts you in a place to be able to give back to the work of God, family, community, church etc
We shall continue talking about this, I believe in financial freedom, financial peace, financial independence, God who owns everything. He given has the wisdom to create wealth, the question is Can we put that wisdom to Task, all the answers are found in the bible and I am on a journey of discovery as I read from it and see stories of day to day successful people.
