2 Kobo by Koboline is a newsletter providing insights for Africans to thrive in a world where finance can be overwhelming and where money is hard to earn and easy to lose.
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Are you one of those who daydream about becoming a billionaire or a multi-millionaire, living a life of power and luxury? If so, you're not alone. Many people cling to the desire to attain extraordinary wealth. However, how many of us are truly ready to take the journey to financial prosperity? Do we understand the process, or are we merely in love with the results?
When I first embraced the idea of becoming rich, I took a simple yet transformative step—I wrote down the exact amount of money that represented "rich" for me. It was a defining moment that set me on a path towards my financial goals. Am I there yet? Not even close. But I've been on a continuous quest, seeking valuable lessons that can aid me on my journey to wealth while trusting the process. Today, I want to share with you my favourite lessons I come back to when I think about becoming wealthy.
Lesson 1: Be Mentally Tough
Where I come from, in Nigeria, many people face personal turmoil early in life, where security and stability are scarce. Fear becomes a constant companion. However, it's crucial to recognize that most fears are irrational. When you fear something, you retreat, hold back, procrastinate, and miss out on opportunities. To get ahead, ask yourself a simple question: What do I have to lose? Most often, it's just a quickened heartbeat and a bruised ego. By conquering irrational fears, you'll distinguish yourself from the crowd.
Lesson 2: Live Within Your Means
Don't make the mistake I once did and many people did—being reckless with money. Spend money that advances your goals, not on appearances. In business, don't prioritize superficial expenditures like fancy office furniture. Make sure you have a financial runway to see your ideas through. Instant gratification may lead to financial ruin. Resist the temptation of shiny toys and be fiscally responsible.
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Lesson 3: Focus on Making Money, Not Just Saving It
While saving is essential, it won't make you wealthy. To accumulate wealth, understand how business, the economy, and the world function. Follow the money and be inquisitive about the financial aspects of encounters you have. Making money is about adding value and selling it at a higher price than the cost. Learn to assess opportunities and be realistic about your abilities.
Lesson 4: Understand the Difference Between Speculation and Investment
Investing involves putting effort or capital into a business that generates sustainable cash flow. Speculation relies on buying low and selling high without generating cash flow. Be an investor, not a speculator. Assess the long-term value of your ventures and purchases.
A business or asset that consistently generates cash flow is classified as an investment because it continues to provide returns over time, even if you don't sell it. It's crucial to reflect on this when you're considering your next venture. Are you engaged in a venture to build long-term value, or are you simply speculating? This distinction also applies to personal purchasing decisions. For instance, that flashy car, boat, or mansion you're eyeing—will it contribute to your income in any way? If not, it might be wise to reconsider your enthusiasm for such purchases.
Many of us daydream about striking it rich, but often these dreams revolve around get-rich-quick schemes. When you fall into this mindset, you unknowingly become susceptible to schemes and frauds created by others.
Lesson 5: Learn How to Scale Yourself and the Business
Develop leadership skills by delegating, motivating, and organizing. Organizing events with friends is a good example of a form of leadership. The effort of organizing, and telling people what to do is the most basic form of management. The more you do this on a small scale, the more you gain experience, and you'll have the authority to lead on a larger scale.
Lesson 6: Learn All the Time
Reading is a powerful tool for self-improvement. Learning from different disciplines allows you to see the essence of various issues. With today's abundance of information, reading is more accessible than ever. It's an investment in yourself.
Lesson 7: Learn from History and Previous Successes and Failures
Biographies offer insights into the lives of successful individuals who overcame adversity and failure. Apply their lessons to your life. Understanding historical figures' attributes can be inspiring.
Lesson 8: Ask a Lot of Whys
Use the "5 whys" technique developed by Toyota for problem-solving. Asking 5 whys in a row will help you dig out the truth of the matter.
Embrace curiosity and critical thinking. Asking questions leads to valuable insights.
Lesson 9: Work with Smarter People Surround yourself with intelligent individuals. Seek opportunities to collaborate with talented people, which can lead to personal growth.
Lesson 10: Laugh at Adversity and Have Fun Life can be challenging, but maintaining a sense of humour and perspective is essential. Adversity is a part of life, but it's not the end of the world. Get up and fight!
In your pursuit of wealth, remember that you chose this path. Embrace the journey with a positive attitude and a sense of humour. By following these ten lessons, you'll be better equipped to navigate the road to financial success.
So, are you ready to take the first step? Reflect on your financial goals, and let's embark on this journey together. Wealth is attainable, but it requires commitment, resilience, and the right mindset.
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Until Next time,
Chris from Koboline.