SIMPLE ECONOMICS

Let's do some quick thinking. The longer you live in this world, the more you discover nothing is constant and consistent. What is cheap and available today might not be readily available tomorrow. Things happen no one can control, even banks crash, government get changed suddenly, policies change, people change too. Things you don't plan nor expect can suddenly arise. This is the fact of life. Rich people go bankrupt too.

There are things you can do to mitigate unwanted surprises and development. Include storage and reserve in your budgets. Many of you are already familiar with this and do practice it, though might be difficult for many whose expenses outweigh their income to maintain. Expenses are constant, income must be constant too, even more constant. Never allow your expenses outweigh your income lest you live a deficit life. Best for income to be more constant compared to expenses at the ratio 7/3. This will make life better for you. You will have nothing to do with debts and be ready for any emergency. This is the ideal. Check this equation.

[  ] Expenses outweigh income = Hardship and constant lack.

[  ] Expenses match income = A life of financial status quo. It comes, you spend it, no extra to do other things and make more. A financially limited life. You are stagnant, no movement. You will live and die at the same spot.

[  ] Income outweigh Expenses = A life of excess. This is the ideal. You can do what you want and still have extra to save or use to rise financially. This extra can come in handy during emergencies or unexpected development.

The issue of greed and corruption that has made getting that extra or comfort very difficult for many is what has come to stay in this world. The resources would have been enough for all, but for corruption. Have you also noticed that a law seems to be at work in this world to ensure that most people will never have enough. Have you noticed that over generations, prices have always gone up, they never come down. Children born into this generation might not understand. I remember when N20 was the highest currency in my country Nigeria. Our National budgets were in few millions, etc. Today N1000 is just for big bread, yet price is still rising. Same scenario worldwide. Think. Soon all the billions some people have in hiding will no more be enough. A few cars, one or two houses and the money will finish. Why ? Just go and check the price of cars and building materials. Someone will always wake up one day and decide price must go up. Strangely, everyone will comply. This is why there is no end to stealing and corruption. The money is never enough, others want everything for themselves only, etc. I have since discovered that those who actually spend the most also hike price. Quite ironic. I have seen people with means and flashy lifestyle also queuing at the filling stations and also paying huge sums at the supermarkets, yet they have power and enough connections both in government and among the people to crash price, yet they simply join the queue. Some do have more than enough, I know, but majority hardly do. A life of consistently having excess to keep and use as you wish is most desirable, but not that easy in this world. To be able to wake up once in a while, decide to have fun, travel, go on a cruise or holiday trip, eat some special delicacies that are not part of your daily meal, get some positive enjoyment, etc, and have the financial muscle to do them whenever you wish is quite desirable. Take note, this is not encouraging seeking those things through wicked and dubious means. I completely distance myself from such knowing their end is always bad. Do not use my writing for such. Better to be contented than to become wicked.

This is actually for the few who have not soiled their hands to get the extra I write about and who will not soil their hands to get it. I understand there are life limitations you have no control over in spite of all your efforts, this is where praying to GOD comes in. Apart from that, there are a few steps you can take to make life more comfortable for yourself.

• Think of how you may increase your income and reduce your expenses, cut down on unnecessary stuffs. One step in this direction is to start thinking of self-sufficiency. Talking about self-sufficiency. Let's be very honest with ourselves. A nation that is not self-sufficient in 80% of her needs and daily requirements as a people is quietly suffocating. It is like locking yourself up in a room with limited space for air. Self-sufficiency in basic daily needs is the ventilation a nation need to run smoothly and easily. To be at the mercy of other nations in many areas is like having control of the living room while others control the kitchen and the dining. You will be at the mercy of only what they offer. They can destroy you if they wish, though you own the house.

• Also think self-sufficiency as an individual. What are you paying for that you can do or produce on  your own ? Are there alternatives to expensive things that you purchase ? Why don't you go for them. Stop buying what you can plant or make. Cut costs.
• Put all your abilities to use. Are there skills you have just lying dormant ? Put them to use. Get all hands in the family to start generating income as soon as they can. Holidays for children can be opportunities for them to pick other skills or run simple business. Set up home family meeting where you all discuss budget and plan how to ensure your income outweigh expenses. You will be surprised at what your kids and wife can do if you simply carry them along. We learnt division of labour in school, put them to use in your home.
• Have a long term plan to achieve your goals. One step at a time.
• It happens once in a while, some good money do come in. Don't waste it. That is an opportunity to turn over that money to generate more. Put them in different ventures that can increase them. Many have had such opportunities and wasted them on riotous living and unnecessary expenses.
• For goodness sake, help people once in a while. It is also good investment.

If your income does not exceed your expenses, you will eventually choke financially. Get up and start running !

Tosin Oke
Global Motivation Speed