5 Things To Know Before You Are 18

(By Yoma Victor)

We go through school for years: 2 years in pre-nursery, 3 years in nursery, 5 – 6 years in primary school, 5 – 6 years in secondary school, and between 4 – 8 years in university. Actually in this day and age, it happens to be at least 18 years of schooling, and at the end of it, we cannot point to a time when we learn about money. We never encounter financial intelligence.

This anomaly wouldn’t have been a concern to me except that when you think about it, all your life revolves around money. You start spending money before you know what it means. To ensure that you are well equipped to be truly wealthy, there are a few things you need to get figured out.

1. MONEY: Money is not the paper, the paper or coins we see is a representative of value. Money is a reward for value you have generated. The origin of money is from trade by barter; where I want a phone, and there is someone who wants rice and I have rice, we can both exchange what we have and move on. But it got to a point where it was difficult for the value of things being exchanged to be determined. And then money came in to bridge the gap. So understand that the paper is not money, money is a representation of value! Money is the benefit you possess as a result of value you have created.

2. INCOME: this the in-flow of money into your life. What you get per time as a result of work done or value generated. There are 2 types of income. There is active income, which is the in-flow that comes as a result of your activity; then passive income, which is in-flow that comes when you are not working. Life starts out with active income, but passive income should be the goal. The process is that you work to generate income actively, and then put it into areas that will generate passive income, so that you don’t have to work all the days of your life.

3. EXPENSES: this is the outflow of money from you as a result of your need, upkeep, wants, etc. Expenses are the first skill many learn with respect to finances, but this is where your potential to succeed is revealed. How we spend money defines our financial intelligence. You need to ensure that you are in control of your expenses; do not spend at will, budget your expenses, and learn to save before you spend.

4. WORK: I once heard one of Nigeria’s bank owners say “work is the rent you pay for living in this world”. You should not expect money without work. Food without work is corruption. Being hard-working is a virtue that you must develop. The diligent (hard-working), will bear rule over the slothful (lazy). You won’t be wealthy without work. The wealthiest people prioritize work. You must understand that work is the medium through which God will bless you with wealth. The poor work when the rich are working, and when the poor stop working, the rich are still working. Never run away from work, but note this – wealthy people choose their work, poor people are given their work. Choose your work!

5. INVESTMENT: wisdom is the natural manifestation of long-term thinking. You must know that your hard-work today should be providing for you ease in the future. It is irresponsible to eat all your income today, also you must learn to manage your expenses so that in the future, your income today will be providing income for you whether you work or not. There are different investments you will need to make. Investment in time, work, career, idea, reading, personal development, financial intelligence, business, properties, assets of different types.

These 5 things are factors you want your minds to be connected to and you must begin to get a clear understanding going forward.

Yoma Victor is a student of God, Love and Life. He is very passionate about Development, Financial Intelligence, Leadership, and believes that entrepreneurs build nations, families, cities & lives. He started d-xtreme unit in 2004 with friends of like minds to advance personal development among young people and their work has expanded from Sapele where it began to other parts of Delta state and beyond. He continues to partner and support social initiatives across Nigeria and beyond. Connect @YomaVictor on Twitter