Until you make wealth creation a summation of who you are, you will definitely find it difficult creating and managing wealth. I used to think wealth and financial management is a passive activity that would just happen, i never knew, you have to make it a life style. You can create wealth if and only if you can manage the little penny, cent or naira you make.
Creating and managing finance is a function of expending your income or better still, it all depends on how you make consumption decisions. It's so amazing that we spend so much time learning elementary economics and we practice little of it. Back then in high school we were thought how to make choice, outline all our wants or make a scale of preference in the face of limited resources and conflicting and pressing needs. The irony is we hardly practice any of these, we buy whatsoever appeals to us without putting it to reason if we actually need the item or not.
If i can visit your house today i will be able to identify most needs you don't need at all that you bought because it appeals to you or your friends are buying or using same. We need to come to that point whereby we are very conscious of how we use our money. We need to ask ourselves this few questions before spending on anything.
- Why am i buying this item or paying for this service?
- Do i need this item or service?
- What is driving/influencing me towards this item and service?
- What are the alternatives to this item and service?
- Whats the durability?
- Will a fairly used be ok if you are not going to use it for long?
Many people are living above their means unknowingly because they are not conscious of how they spend. For you to create wealth you have to check how you spend what you have because wealth creation and financial management is hinged on expenditure i.e how do you spend?
