Pragmatic Approach to sustaining wealth creation during recession

Pragmatic Approach to sustaining wealth creation during recession

It is no longer a news that Nigeria is already falling into recession with a glaring and wide declines in the GDP, employment, trading, and other vital economic indexes.

However, with the right mindset, financial management, economic knowledge, and discipline on how to create sustainable wealth, one can still survive and live a good life.

It requires a high level of consistency in planting and regularly nurturing of a seed overtime and allowing it generates more of seeds.

The basic principles of wealth accumulation and sustenance is well known by many including casinos players but the will and discipline to adhere strictly is lacking in most of us.

Let us critically look into some of these principles and learn how we can use them individually, business wise and even as a nation.

Budget paralysis

Facing reality, we find it difficult in standing either as an individual business or the government because of financial mismanagement (in some cases – Corruption).

The challenges here are numerous, ranging from.

Lack of Self-control in habitual overspending without considering priorities. Imagine how much is budgeted for current expenditure over infrastructures and social amenities which are the bases for economic growth.

As expected, we are supposed to plan our monthly or yearly expenses but ironically, we don’t, or we falsify the “kangaroo” plans.

Lack of keeping record of expenses, income generated, and its disbursement is also a big problem we always fail to address. A case study of the NNPC account that has not been audited for a long time in history.

Whereas this report is needed for comparing figures at the end of the month (for individual) or a year to make the necessary adjustment for the following month or a year.

Bearing in mind that after this is accomplished, if there is a surplus, it must be reinvested or reserved for exigencies.

Another ticking time bomb is the high debt load the country seems to be dipping into without control.

It is unfortunately that instead of us borrowing to improve our production capacity and investment ratio, we are only borrowing for consumption which is a dangerous part.

It is high time, the nation reduces the rate of borrowing, but try to improve the level of production in some vital sectors like Agriculture, Tourism, Entertainment, Sports, Solid minerals and so on.

In clear terms, let us discipline ourselves by imbibing self-control in spending and borrowing with the mindset of cutting our coat according to our cloth.

There is the need for us to diversify into other sectors of economy aside crude oil that has labelled the nation as a mono economic nation.

In sustaining this challenging period, I want us to consider these principles and make the necessary readjustment.

*Build wealth for a deep cause.

Do not make money your main motivation towards wealth building, but think about freedom, growth, creativity, humanity, passion or charity as a motivating factor to persist and succeed.

*Maintain 100% integrity standard

For a good night sleep, a clear conscience and peaceful mind, you should not compromise your integrity. “Yes is yes”

*Leverage on others

Smartly and sensibly employ other people’s Money (basically by raising funds from investors to execute your business idea), Time (from labourers to professionals), Systems (free app. and software), Network building and nurturing the right relationship), Intellect(mentors).

In conclusion, we should be determined and refocus our mind on how we create wealth by thinking in and outside the box, no matter the situations around us.