I'm not religious. But a take a cue from what Oyedepo once said. "if u borrow to eat, then you eat too much".
What I think it means is that.. If you do find yourself in constant series of debts, maybe there is a part or parts of your life that u spend too much with respect to the amount of money you earn.
Tailor your rent, clothing, food, children's school fees, and other aspects of your life to match your salary or profit.
I'll also add on a personal note instead of paying tithe, have an account or box where you rather save that tithe as emergency money. In case of emergency, instead of going to borrow, u take it from that 10 percent savings

Just try as much as you can to stay away from loan facilities

masterP042:
I'm not religious. But a take a cue from what Oyedepo once said. "if u borrow to eat, then you eat too much".
What I think it means is that.. If you do find yourself in constant series of debts, maybe there is a part or parts of your life that u spend too much with respect to the amount of money you earn.
Tailor your rent, clothing, food, children's school fees, and other aspects of your life to match your salary or profit.
I'll also add on a personal note instead of paying tithe, have an account or box where you rather save that tithe as emergency money. In case of emergency, instead of going to borrow, u take it from that 10 percent savings

Question I always ask is what is you guys problem with the 10% we give to our maker? Why can't you guys talk about the other 90%?

What you just did is exactly how the Media of Today Works. Why did you cut out some part his Statements.

He didn't say people don't make money online. He said "
Spend less time online if you ain't making money there

kenbee:
Sure!

Nice write up. But to keep it simpler, there are only two basic principles for staying debt free;

make more money,
spend less than you earn or
both at the same time.

Everything else is just icing on that cake.

Why do you guys like copying and pasting articles written for American readers. Do you spend dollars in Nigeria?

Can a fixed income earner execute a capital project without a loan.

Nice thread... very informative and enlightening.

Good point. Having a buffer/emergency funds to cater for your needs at least for the next six months or one year without any income source is very important.

I learnt the hard way because of multiple projects I engaged in without having any emergency fund. I was carrying out multiple physical projects and investments with hope that the income pipeline would keep on flowing without any atom of savings.

I was using 95% of whatever came in for all my projects and the remaining 5% for family expenses. All of a sudden, COVID came with a bang, and the income source abruptly stopped without any warning sign. I was in a fix and for the first time, had to borrow money from a friend to support ordinary family expenses.

Buffer/emergency funds is good in case of unforeseen circumstances even if you are involve in multiple projects and you are so sure of your income source. I was over ambitious with multiple projects and took an un calculated risks with my finances. Something akin to over trading because when your income stops, some of your projects may not have started yielding fruits. I had options of selling off some projects to get back cash but was advised to shelve the idea. At least when money comes, all the projects could continue again.

Save! Save! Save!

adioolayi:
Hmm....In Nigeria of today, if you are an average earner, it's difficult to do certain capital projects without taking a loan.... cooperative, banks e.t.c.

I think studying the terms and conditions of such loans with repayment plans that will not affect your basic spending is key. Don't collect loans that will hook you. Be disciplined and ensure you use the loan for that capital projects you collected it for.

Make we no lie for ourselves, when will someone earning #100,000 for example build a house He needs to join a cooperative society or take some little bank loans to start off.

Loans sometimes make you stay truthful to your envisaged savings plan. Most people on their own cannot be discipline about savings. So when you collect the amount you intend saving to get some project done, use same to do the project and pay without stress.


Key word: Don't collect more than you can repay at stipulated time.

Your head dey there.

You are talking about a country where unemployment is rife, where the majority of people that have jobs are low Income earners, coping with a weak currency and high inflation.

It's good and fine to give motivational talks and promote financial discipline but, it is also important to identify the major causes and application as to why; the majority are in debt in a country like Nigeria.

People are not necessarily living beyond their means, a lot are trying to live up to their financial responsibilities and this warrants incurring debts to meet those unavoidable responsibilities.


Let's be more realistic and factual in our analysis rather than just being academic.


Cheers!.

I have cancelled loan this year entirely, just pay up d remaining balance off I go, loan makes one not having savings

Taking a loan you can pay back is awesome too. Don't let nobody tell you nada.

Same people who will insult or ignore you when you need their help will come online and open their mouth waaaaah.

Some needs are very urgent and there's nothing wrong taking loans as long as you're capable enough to pay back.

Stressful but Worth it if it's an important task.

Thank you brother

.....

Good write up...But the economy is not friendly to increase in income,and high cost of goods and services isn't even helping..plan are delay,dream are shattered.. We only have hope in God, and change in economy variable.. In order to see opportunities,that can achieved plan and dream..it painful Bros.. Me that,I don't like debt..I don't enter.. Na pay be my problem..but God no go shame us..

One should be wary of taking loans especially on all these loan apps that are just springing up with ridiculous interest rates. In no time,you will discover that all the money you are supposed to save goes out as interest thereby enriching the owners and impoverishing yourself.

Bevic1:

Question I always ask is what is you guys problem with the 10% we give to our maker? Why can't you guys talk about the other 90%?

Does God spend physical money? I thought Jesus has already paid the price for u guys, so now your 10 percent dey stronger than the blood of jesus wey suppose rebuke devourer from your finances?
The account you pay your tithe into. Shey the bvn dey link to your pastors name? Abi your pastor don turn your maker?

When u keep saying 'have more then one income'


person wey never get one income before go just dey look u....

That's why they go into crime, income na income afterall

kenbee:
Spend less time online if you ain't making money there

Stop impressing everyone!

kukuma show me how to make money online

Having accessed credit from lending institutions a coupla times before 2020 and having regard to the fact that I successfully navigated those periods, I have a bit of a problem with not taking a loan to repay one that's subsisting.

Basically, a borrower who aims not to be in the debt dragnet for a period longer than necessary should pay particular attention to the lending rates, the repayment period as well as penalties for default on repaying his loan while also honestly factoring his cashflow and its capacity to pay back his debts without substantially disrupting his lifestyle and wellbeing.

Let me buttress why it isn't entirely bad to repay a loan with another, other things (caahflow position), being equal: assume you borrowed #xy from a MFB at 60% interest rate p.a and later on found an opportunity to borrow same amount from a cooperative society at 10% interest rate p.a, after some months, who says it's not wisdom to borrow from the cooperative to clear your balance with the MFB?

Anyone seeking loans, except they originally set out to defraud/stress their creditors, should be clear with the terms and ensure they have the capacity to repay so everyone can have peace!

A well articulated, properly crafted and succinctly presented piece!!

Point N0. 7 and the conclusion are particularly imperative!

However, I'm worried that we live in an economy where government workers are not even convinced that the next salary will come.

Still wondering how the indebted but mostly unemployed or underemployed Niggeriens will get out of debt!!

All the same, a good piece I must confess!!

Can a fixed income earner execute a capital project without a loan.

Great piece

bestman09:
Make as much money as you can and you won't need to borrow from anyone

so true

Number 4 is the solution to living a stress free life.

Build an emergency fund.

I learnt it last year.

I built an emergency fund in December 2019, not knowing that Corona was warning up for 2020.

Emergency fund should be up to 1 year, for this Nigerian economy.

Nice

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TheWalkingMind:
Run away

This one is mad....

If sokoloan is on your case, it's worse. I just wish Central Bank will intervene.

9) Don't get married unless you have a steady source of income. 10) Don't marry a financial liability.

Your steps to get out of debt... Its a good read but what about those that have no source of income not to talk of havin multiple source of income..

Its quite myopic to say people incure debts to show off..
People that take loans to do business and fails nko, no one prays for a bad businness but things happens

What about the families that took the loans to feed or pay rent, should they die?
A living dog is better than a dead lion, aviod debts yes but you also need to understand not all fingers are equal..

Not everyone is born With a silver spoon talkless of wooden spoon.. People like me wey no get spoon, wetin make we do?

If you must owe, owe debts that will be used for production or for business transactions.

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