Not everyone can govern a state, let alone have the courage to go against the existing norms to show frugality and resourcefulness in managing the affairs of a state, putting key projects and systems in place as well as leaving quiet a handful resources for one’s successor.
With the realities of recession starring in our faces, I believe there are key personal financial lessons we can abstract both directly and indirectly from our proud Governors’ speech. He did show an ingenious understanding of money and its nature.
Here are few of such lessons; you can always add yours;
- It is foolish to allow your expected expenditure exceeds your expected revenue, except capital expenditure far exceeds recurrent expenditure for the period concern.
- Borrowing can sometimes be cool, what you are borrowing for is what counts.
- Spend for growth; in other words, have systems in place that increases your net asset or net worth directly or indirectly. Investment in capital projects such as building a house, buying accruing assets, opening businesses, making sound investment decisions, increasing savings comes in here
- Net asset is the real deal. What do you think you are worth now?
- Never borrow to feed your lifestyle, even if you have streams of revenue to fall back on
- Every extra penny can be put to a valuable use
- Know what is taking your funds. For some people it’s just call credit, for me this is ok if it brings revenue or make provision for revenue to come in
- Cut re-current expenditures when they are killing your capital projects
- Don’t make unnecessary noise about your spending or keep company that makes you spend more if there are no correlation in value whether monetary or not.
- There would always be emergencies, have a system in place to handle that
- It is not about buying items; it’s about getting value when your money exchanges hands.
- Deal with the waste or rather wasters of fund,
- You are responsible for changing your financial status, like Gov. Obi to Anambra, you are the Gov. of your own affairs.
- Changing your financial status can affect your family and relationships greatly.
- Clearly understand your inflows & outflows; not every person keeps or makes a personal budget, but to be able to keep the inflows better than the outflows, there is a need to regularly do a financial check.
- It is foolish to try to impress people with your financial spending because when you are broke, they will really be impressed
Some people have already endorsed Gov. Peter Obi as a potential presidential candidate. On a final note, everyone knows what cool money can do, especially in this material age, but who you are determines what you do with the resources you have or can access.