“I want it now!” How The seductive Power of Now Robs Our Finances

Photo by iStrfry , Marcus on Unsplash

By Arthur Moses Opio

In my last article, Don’t talk about money and do nothing about it, I mentioned something at the tail end of the message,

“Somehow we have prayed for so long to break the backbone of poverty, but it continues to loom around us, why? We are not productive, our money is not employed.”

Dear reader, money doesn’t come out of thin air, it doesn’t come because we are good or even knowledgeable. It comes down to two major things we must produce goods and services. 

In one of his tweets, Reno Omokri said, “Go to parties in the poorest parts of almost any country, and you will see people dressed in expensive clothes, wearing jewelry, and snapping photos with iPhones, Though not always the case, people choose poverty by spending foolishly instead of investing wisely”

Someone will say, but I can’t invest, I don’t earn a lot of money, I can’t even save. This comes down to one’s money philosophy. There are three toxic money beliefs Ramit Sethi talks about, one of them is not talking about money, the second is not questioning your financial upbringing and the third is investing is only for rich people. 

So you can see that when it comes to money, a lot more has to do with behavior than it is with figures. It is written in Proverbs 21:20, "The wise have wealth and luxury, but fools spend whatever they get."

Seductive Power of Now

Our culture has played a big deal in how we view money. From the time we wake up to the time we go to sleep, money is being spent and not invested. Does this classify us as wise or as fools, I think we know what better to choose. If you asked yourself how much you have spent from the beginning of the year till now, many of you wouldn’t mention and yet a lot of money has passed through your hands. Keeping up with budgets is a hard thing, tracking expenses are equally hard, but the things which are hard to do are the ones that can help us make headway in this money game. 

In his book, how to Secure a financial future, Dr. Sunday Adelaja says that one of the traps of the world system is a culture driven by consumerism. He says that “In this culture, an individual’s value is defined by material symbols. The pressure is tremendous to conform to uniform images of the good life.” He further asserts that the media has played a role in pairing an illusion of the lifestyles of the rich and famous. He then says, “In Africa, cars, clothing, and buildings are important social status symbols. The uniformity of the increasing material desires across continents points to a common driver.”

Adelaja concludes his insight on consumerism by saying, “This trap enslaves, people end up spending their lives, living for food, shelter and clothing. At best they are caught in the bondage of vanities, constantly chasing illusions. They pursue the dreams that they have been fed, to live large, own houses, material things, and have status.”

What has been written above clearly explains the subject of discussion, which is the seductive power of now that’s driven by consumerism.

We have been around people who say, live each day like it were your last. We have seen young people get caught in the web of fear of missing out (FOMO) and all these things have a significant role they play in our money management. 

Yours truly embarked on a weight loss journey. It has taken me sweat, determination, consistency, and willpower to keep going. I cut sugar out of my life, I reduced a lot of consumption of instant foods, and I feel so much better. Denying myself the sweet things has been a hard thing, but it’s the hard things that will always transform us. The lessons from my fitness journey have also had a profound effect on other aspects of my life. I have learned that a keystone habit, once developed, can trigger other areas of your life to get better. I moved from the corner of complaining about my weight and doing something about it to the corner of the action. Instead of consuming, I turned that energy into investing in my family, faith, finances, fitness, and friendships. I used the power of now for gain in things that have improved my life instead of in things that can destroy me.

In his book, the Art of Thinking Clearly, Rolf Dobelli says, “Enjoy each day to the fullest and don’t worry about tomorrow is simply not a smart way to live”. He pauses a question, Would you prefer $1,000 today cash on the table or $1,100 in a month? He says, if you think like most people, you’ll take the $1,000 straight away, but if you hold out for just a month longer, you get $100 more. He further asserts, that, “The introduction of ‘now’ causes us to make inconsistent decisions and this phenomenon is called hyperbolic discounting.” Put plainly he says, “The closer a reward is, the higher our ‘emotional interest rate’ rises and the more we are willing to give up in exchange for it.”

Delayed Gratification Experiment 

Rolf further shared an experiment on delayed gratification (Excerpt from the book the art of Thinking clearly).

In the 60s, a man called Walter Mischel conducted a famous experiment on delayed gratification. In it, a group of four-year-olds were each given a marshmallow. They could either eat straight away or wait a couple of minutes and receive a second. It was amazingly found that very few children could wait. From the experiment, Mischel found that “The capacity for delayed gratification is a reliable indicator of future career success” Rolf then said, “Patience is indeed a virtue.”

Rolf further wrote, “The older we get and the more self-control we build up, the more easily we can delay rewards. Instead of twelve months, we happily wait thirteen to take home an additional $100.” 

You will be tempted with the desire for instant rewards, a little patience, and a little waiting won’t hurt. We shouldn’t let consumerism rob us of the seed that can grow and become a tree that will provide more seed. So let’s have power, let’s have control over our desires for flashy things. If you are to look at where you are and have an inventory of your financial status, your honesty will help you, you will need to sell off some things and invest that money, you will need to downgrade or just live below and within your means. 

As I conclude said Rolf, “The more power we gain over impulses, the better we can avoid the trap of hyperbolic discounting. The less power we have over our impulses, the more susceptible we are.”

Armed with this knowledge, go out and dominate, take charge of your finances, and don’t be a victim of the seductive power of now.

Fireside Chat-Excerpt from Barbra Katende's Insights on World Savings Day Challenge

Fireside Chat Picture from Xeno

By Arthur Moses Opio

Yesterday, October the 31st, 2022, was world savings day.

 

XENO Uganda came up with a fireside chat, talking about savings. Andrew Kyamagero was flanked by Flavia Tumusiime Kabuura and Barbra Katende.

To go straight into some of the key things shared Let me start with this quote.

"A future without savings, you become an outcast in the family. You can't talk. At a funeral, you fetch water. You can't have access to credit. You become a burden to your kids. " —Barbra Katende

Barbra mentioned this to explain the above quote. Without savings, you become a beggar for life. This is so true, especially in a time like this where research shows that after retirement, the people who pick up their NSSF don't have it after two years. 

Uganda's saving culture (terribly low)

In an online article dubbed, "Why Ugandans don't save" by the Daily Monitor, first written on the 5th of November 2018 and updated on the 2nd of January 2021, it was mentioned that our saving rate is 12%. Compared to Kenya (23%), Tanzania (13%), and Rwanda (18%),

According to the article, they said, "Going by the statistics, the saving culture of Ugandans is terribly low."

Having celebrated the world's saving day, the question would be, where are you as an individual?

Ugandans' Lazy-Even a Fool Can Survive

The president of the Republic of Uganda, General Yoweri Kaguta Museveni, while being interviewed on KTN News, said that his compatriots are unwilling or unable to exploit the natural resources in the country. He further asserted, and I quote,

"That’s why these Ugandans are lazy. They are lazy because a fool here cannot easily die. Even if you are a fool, you can survive by eating from your brother’s house. "

Maybe there is some truth in what the President is saying, and many of us here quite know that you can't go hungry. But doesn't that reflect on our savings culture with the 12% savings rate? Many have reasons for not saving, and one of them is that they don't earn enough. Some just have too many excuses about FOMO, YOLO, etc.  

Advice to Young People on Savings

Similarly, Barbra Katende says, "Most of us learn about saving when we have a job and make mistakes when we are young." 

She mentioned that money is not taught in schools, so someone has to learn about it outside of school. She said, "In your S.4 and S.6 vacation, as a student, you should be working. Get experience. She advised students to open savings accounts.

Money and Marriage (It's easy to discuss children, but not money).

In regards to money and marriage, Barbra Katende said, and I quote, "The most difficult subject to talk about in a marriage is finances. You can talk about kids, but it's hard to talk about money."

She was then asked how much couples should contribute.

First, she said, "We should have individual and joint accounts. If I want to do my hair, it is easily done. If the husband wants to watch football, it can happen with ease."

Flavia interjected and commented.

My husband and I decided to open a joint account. I asked, "What's the point of having money if all we're going to do is pay fees?" and we decided to open an account for the child. As a couple, we decided how much to put into the account. My husband and I removed love from money, especially for the money we pull together.

Barbra further asserted this by saying, "I recommend a percentage of the income one earns. E.g., from my salary, "I will contribute 40% of my salary to the joint account." If one earns more, the percentage is more even at 40%.

She concluded by mentioning that not discussing money leads people to problems. Once you agree on percentages, it ceases to be a discussion.

Lying About Money

Andrew Kyamagero asked a question: Why are men scared to talk about finances with women? 

Barbra said, "Men and women lie about money." In giving more light to this point, she said, 

"My brothers said the reason men lie about money is simple; if a man says I have one million Uganda shillings, a woman will say buy land, pay fees, etc., yet he has tires to fix, etc." #SheMoney refers to the money that women lie about. He doesn't know that I have it. If my child falls sick at night, that's the money that will rush the kid to the hospital when my husband says there is no money.

 

Steps to Financial Freedom

A person in the audience asked about the steps to financial freedom. This is what she had to say.

1. Get a job and start earning money. (Live on 50% of your income, the other 50% goes into an investment.)
2. Start to save (pay yourself first). If possible, automate it. Put in a standing order.
3. Start investing (use an institution like @XenoUganda).

Brian Ekajait further added:

1. 4. Seek advice if you don't know how to approach your saving and investment journey. 
2. 5. Be patient with it. It's not an overnight success project.

To conclude the fireside chat, talk, she said,

Don't touch the money for investment; it is money for your future. Set aside money for retirement on the first job or salary you get. Begin planning for retirement. You will retire at 55 and die at 90. It can be joyful or miserable.

Find out more about affordability and raising money-savvy kids from tweets made about the chat via @arthurkmo.

If you are thinking of starting your investment journey today, you can sign up with XENO Uganda @XenoUganda for as little as 10,000 Uganda shillings by dialing *165*5*7#, or by visiting their website myxeno.com to sign up. You can as well use the App. You can refer to my code XENO84105.

 

Happy saving and investment. 

 

Happy World Savings Day.

5 Things Any Student Affected By The 42 Days Lockdown Can Do To Keep Their Mental Health In-check

Photo by Cristian Newman on Unsplash

Dear Student,

Last Sunday on the 6th of June 2021, The President of Uganda while addressing the Nation pronounced new Lockdown measures and one of them was to close all schools and tertiary institutions to curb the spread of COVID19. 

Some students in the Universities were about to start or conclude their exams for the semester, some parents had just paid fees for those that had returned to secondary school. It surely is a tough moment and the times are unprecedented.

Makerere University lost a student to suicide and comments on social media say that she battled with depression. 

I made an appeal on my Twitter account @arthurkmo on the 8th of June, see the picture below on what I said, "Please don't commit suicide"

While reading an article from a certain forum, the writer mentioned some of the students said as they packed their bags to go home, they said and I quote, "Shall we ever finish", "Let us go and get married" etc. Such words already point to anxiety, sadness, and any negative form of emotion. It's normal to feel sad and to see whatever but we need to ensure that we rise above finite disappointment and build on our finite hope.

There could be a student in S. 2 saying by now I should have been in S.4, or that one in S.5 saying I should be in S.6 and almost done. All these are legitimate claims but somehow a natural occurrence is happening that requires everyone to put a hold on certain things, it is sad that closing schools is one of the consequences but I want to remind my reader, that your mind and will to learn hasn't been closed. You can turn this negative energy into positive energy. 

Here is a list of 5 things I do recommend you do at a time like this. 

1. Have hope and rise above the current disappointment: Martin Luther King once said, "We must accept finite disappointment, but we must never lose finite hope" - It is written that hope deferred makes the heart sick, so let us have hope and rise above the current situation, there is a reward for those who never faint not. Hope never disappoints.
2. Connect with your Purpose: What is your purpose? Maybe the 42 days could be a good time to reflect and ask yourself this very critical question. The late Dr. Myles Munroe once said that, "The greatest tragedy on earth is not death but living a life without purpose" After everything Joseph went through with him being sold into slavery and being accused by Potiphar's wife or his fellow prisoners, When his brothers were before him, he said this, ""As for you, you meant evil against me, but God meant it for good in order to bring about this present result, to preserve many people alive - Genesis 50:20 - You don't have to go and get married or sleep around and get infected with HIV or even get a pregnancy you had not planned for, You don't have to become an escort as it has now become an easy way for young ladies and men to make money by offering their bodies for sex - Connect with your purpose
3. Connect with your passion: What do you love doing? Is it blogging, counseling, creating content, writing, coding, encouraging, creating problems to everyday problems - This time could be the birth of the Enterprise that will solve human problems and will be built for posterity - Remember, it is written, whatever you do, do it heartily unto God and not unto men.. so fuel your passion, it is the best thing you can do to eventually fund your dream or wild ideas. 
4. Connect with people: It might be hard to physically meet. But What life has taught us is that it is hard to live in isolation. A person who isolates themselves rages against sound wisdom. Call or text someone, reach out to a mentor, reach out to a peer, reach out to those younger, reach out to that stranger, support those in need. By giving meaning to what you do, you eventually find your purpose. How good and wonderful it is for the brethen to unite.. If you can meet in twos or threes while observing SOPs, please do so. 
5. Connect with God: One of the things life has taught me is that, when we live thinking there is no God, somethings will push us to our knees, so that we can call on him and he answers. May be we have been moving to fast without submitting to his lead and guidance.Whether you belief in God or not, that's a discussion for another day - But Just ask yourself, the oxygen that every one is grappling for in hospitals due to COVID who created, who gave the wisdom for it to be put in cylinders, we might not fully explain certain things, but life has taught has that there is a higher spiritual dimension that holds so many things together. 

Focus on your wins not your losses, focus on doing your best now, you have the opportunity, in this dark hour, know that you got strength, strength within to sail you through the current storm.

Food for thought, The Israelites endured the wilderness for 40 years and some how their clothes did not wear out, they were fed on manna. Yes they complained many times because they wanted meat, you might not be able to have meat now but you have what God has given you to sustain you. God can redeem the lost time and he makes everything beautiful in its timing

#Transform #Impact #Empower 

Life Is About Adjustments

Photo by Greg Rosenke on Unsplash

Today is day two of the 42 Lockdown days. 

If you remember the first days of Lockdown, many of us were anticipating that COVID19 would end after a month or two but that did not happen and until now we are still dealing with this pandemic.

One of the most important things that happened to many of us as we listened to the president address us is that we kept on adjusting. We told ourselves we can wait a little more even if the situation was very inconveniencing. Our attitude and minds played a lot in our mental fortitude to sail through that COVID storm. 

As they started to ease down on some of the restrictions, that still required adjustment, those who worked from home, had to again master working away from home and now we are back again to 30% working from the office and others from home, that still requires adjustment, it’s like shifting from one place to another.

There are people who could be distraught and in great despair. You probably started a business after Lockdown and you were now making great strides and boom!!! Somehow things have slowed down after the directive. You could have taken a loan to rejuvenate your business and now what was bringing you money is cut down. You could have paid fees and now the kids are back. 

It’s a tough pill to swallow but you have to remain steadfast and firm. Your mental campus will be key to how you navigate this season. 

“We must accept finite disappointment, but we must never lose finite hope” – Martin Luther King 

Choose to drive your energy to some of the great gains you have made, look at the lessons learned, the small wins gained. Just Martin Luther said, let us never lose finite hope. Your hope and optimism right now is your anchor; it is what will keep you going. Focus on what you can and not what you can’t. 

Thich Nhat Hanh said and I quote, “Hope is important because it can make the present moment less difficult to bear. If we believe that tomorrow will be better, we can bear a hardship today.”

Use these 42 days to grow and do the rights things knowing tomorrow will be better even if the future seems blick. If you are too challenged, say a Prayer and Let God take over.

#Adjust it starts with your mind, you have the power and will to do it.

#Transform #Impact #Empower

Financial Discipline

FINANCIAL DISCIPLINE

"There is no growth without discipline."

So many things about our lives, work, and experiences require discipline. Just over the weekend, I had an interesting time with a wise old man. As he shared so many things about life, he said that where he is now in life has required making a lot of hard choices. He said he and his wife went through some rough patches but they have stayed together for the past 28 years.

There is so much we learned in his short speech, 28 years seems long but it is also short but what underlined their storyline is how they have worked together and maintained a discipline to bring them this far. My wife and I kept talking through the night about the wisdom we picked and were motivated to emulate some of the great disciplines.

Old & Poor

He talked about an old man who once told him, that it is bad to be "Old and Poor" - this old man was a teacher who taught many of the young people who have become prominent somebodies in this country - but the message to the wise man we were listening too was that we should work hard for our future, we should do whatever it takes to maintain a great financial discipline and put investments aside for the years when we won't be as active.

He encouraged us to invest in land, to do business - he said they failed countless times in many businesses, but that did not deter them because they had to do what it takes to prepare for the future. We marveled at some of the investments they had, and I told my wife that is old money, what we need from such guys is their wisdom, not their money.

Questions To Answer

As the month of October takes shape - ask yourself these three questions.

Where am I from?

Where am I now?

Where am I going?

Those questions need to be answered in the most brutal and honest way. We cannot keep saying that our future will take care of itself, we can't keep saying that, I earn too little to put some money aside for investment, we can't keep having the mindset of I can't do this, "I can't invest", "I can't save", "I can't start a business", etc. Right now in his late 50's going to 60's, the income he is getting is already more than good enough to cater for his life ahead, in 5 years, this man will be retired, but he won't be begging, he won't need to rely on his children, in fact, his children will perhaps be the ones to rely on the generational wealth, he has already put aside.

Financially Disciplined

It doesn't take rocket science to start being financially disciplined. Being financially disciplined is not just about eating rice and beans, it's about having a clear plan for your money- knowing where it is coming from, where it will go, and what it will do.

Some of the biggest problems the world is facing are the issue of financial discipline. We live in a spend-thrift culture, almost everything is got on the go, no plan, nothing at all. Buying out of impulse is the order of the day - the culture of consumerism is the ghost that visits us every day and takes away the little or much that we have- if only what is consumed could be positive consumption, then we would see many investments come up but alas, someone reading this will say ah! that's old talk, I have FOMO, YOLO, etc. The youth will say, I still have time - yours truly used to say he has time, I know many others like me used to say, "I have time" - remember this wise saying, "The race is not for the swift but time and chance happens to them all" - times happens to us all, how we use it and convert it into tangible results is entirely upon us. The woman or man in kikuubo(the common market for everyday people) works so hard, they don't speak or write good English like you do but they make wise investments with their money and time.

Another discipline you will need to learn is financial education, you won't wake up and say I will have 100m in my bank account in a month's time unless you are part of a corrupt cartel that would be - there are financial principles you will need to employ, shortcuts will kill you.

I have mentioned this quote many times and it resonates with the message today, "Personal finance is 80% behavior and 20% head knowledge" - Dave Ramsey

Do not solve a behavioral problem with a mathematical solution, you might be given a pay rise, but the status quo remains the same, the guys who ask for you to house a round of drinks will surely be waiting- It is written that as your money increases, those who spend it also increase. The wise have wealth and luxury, but fools spend whatever they get.

#Transform #Impact #Empower

Patience As a Key Value

Photo by Wolfgang Hasselmann on Unsplash

I recently heard a chat with two young people in their early and mid-20’s and in our conversation somehow we ended up talking about money. While talking about Patience in regards to investing, I used the analogy of African time within the context of Traffic Jam.

One of our biggest causes of traffic jams is indiscipline. 

Many road users (Matatu (taxi), other car owners, and the motorcycles commonly known as Boda Boda) are all part of the traffic jam menace. Such indiscipline isn’t very far, it is something we grow up with, in high school, when we used to stand on the line to pick food, we had bullies who would cut the lines and jump to the front just because they wanted to be ahead of others yet they were very late. Being late normally causes people to try and use short cuts and that is the norm many of us have grown up in. Back to traffic jam, we normally say Matatu (taxi) drivers and many road users use the same tactic of driving ahead, overtaking on the shoulders just because they want to be ahead, that mentality might seem a savior but in the long run, it can cost you a life, money and other resources.

I liken late investors to the kind of road users who wake up late and want to overtake, they are the type who will go for the get rich quick schemes or investments that seem to be too good to be true. When things go high wire, we end up hearing stories of how they crushed ahead, how they knocked another car or how their investments were a quack and someone run away with their hard-earned or money got on a loan.

On the other hand, I liken early investors to the type of people who wake up early and want to beat the jam, such people are always thinking invest early, wake up early to beat the jam so that you can maximize the early morning time to do other productive things that bring in more money instead of using shortcuts. It is written that Jacob served(worked) seven years to get Racheal, but they seemed like only a few days to him because of his love for her (Genesis 29:20) - When you are focused on your goal and you are patience, getting what you have set to achieve will only seem like a few days, but you have to be PATIENT.

If you are the type who is already late, it is important to exercise patience, to avoid using shortcuts, to avoid overtaking cars, because two things can happen, you either knock others or you get knocked, it is not that you will always be lucky – if you are late, stick to the line and re-strategize, it is inconveniencing and slow but you will eventually reach your destination When late, you need to rethink your decisions for the next day or next investment, doing the right thing at the right time enables you to seize many opportunities. One of the reasons the Chinese are very good savers is because they are taught this early, from childhood, they are taught to envision hard times ahead and to put money aside for a rainy day. The Chinese have this culture because many of them grew up facing uncertain times, and their only weapon was early preparation – such values were passed on to their children.

Warren Buffet once said, "The stock market is a device for transferring money from the impatient to the patient" - I also read somewhere on the internet that patience is not just about how long we wait but how we behave while waiting - remember the anecdote of people who overtake while in a traffic jam, they aren't any different from those who look for getting rich quick schemes, you find you have sold land and invested in a quack deal.

We can beat the jam by rising up early, we can beat this money game by starting to invest early, we can avoid getting Get rich quick schemes by investing in the right knowledge and building our financial intelligence. Financial intelligence is built overtime, it is not something you learn overnight – it’s a continuous learning curve

#Transform #Impact #Empower 

 

What Are Your Financial Emergency Tools

Photo by Tory Bishop on Unsplash

Life has taught us so many things and we continue to discover so much more every day. The beauty about life is that there is no quick-fix solution to everyday problems but there are universal principles that can be applied.

Whoever owns and drives a car, in their boot their are tools that are needed for any emergency that occurs. Often for a properly set car, the boot will have a car jack, wheel spanner, spare tyre, toolbox, etc. The manufacturer of the car doesn't put those things in there for decoration, they all have a purpose and when in need, they come in handy.

Whenever you travel, travellers have key things they must carry while travelling, things like a first Aid box, extra clothes, extra cash, these days power banks for smartphones is very handy. While travelling by water, a life jacket is a must kit to have, there are extras for an emergency, for big ships, there are lifeboats that are tacked somewhere for an emergency.

We learn that you have to envisage that the road will not always be smooth even if you have always had a good drive or sail, those emergency tools are a must-have and it can't be taken for granted even if a serious incident hasn't happened.

When it comes to personal finance, we are often told to have emergency funds. An emergency fund is purposely for emergencies, it isn't for saving or even making money out of it. Sudden times like the COVID pandemic can come unannounced, it could take longer than expected, but the funds could help in such period, even sudden sickness, accidents, etc

Purpose To build an emergency fund that can take you through 3 to 6 months expenses as recommended by many financial experts, You can start by putting away 10% of your earnings towards emergency, be wise like the car manufacturers, you can drive and get a puncture, the spare tyre comes in handy until the original tyre is fixed, we need to be wise and do the same too even with our personal finances - Have an emergency fund.

It feels very uncomfortable to do such rudimentary things, but the road ahead doesn't spare anyone, you are better off prepared than ill-prepared. This is the rule of life, “Do the easy and comfortable and life will be difficult, do the difficult and uncomfortable and life will be easier”

#Transform #Impact #Empower