There is new rules and ways to make money which can be practiced in Nigeria, Africa and all over the world that have outshines the old rules though many people still uses the old rules which does not work currently and this makes them to struggle financially. Making Money requires a lot of things such as time, education, passion, energy, focus and determination but the most important things you have to know is the rules of which you will apply the principles.

There have been many rules and ways of making money and some no longer work considering the volatile structure and the uncertainty of our today’s economy and currency devaluation. In the words of one of my favorite business role model Robert Kiyosaki an American Investor, Entrepreneur, Author, motivational speaker and Financial commentator stated the new rules of money and how the old rules does not work again. I am going to share this to you with my perception of it in Nigeria landscape.



OLD RULES OF MONEY

Prior to 1971, the old rules of money were



Have a good grade
Get a secure Job
Save Money
Buy a house
Get out of Debt
Invest for a long term
Diversify


The worst thing is that these rules no longer works and sadly many people in Nigeria still follow them making them to struggle financially and it has made some wealthy people poor while the rich get richer.

Mostly parents still tell their kids to go to school, get a good grade and you will work for big companies like shell, chevron, Mtn, Glo, Dangote groups but people now needs more education and I have seen some engineers going for MBA so as to know how to manage their money and earn more money. Here are the new rules of making money and staying wealthy.

THE NEW RULES OF MONEY MAKING



1. School

In early 1980s in Nigeria, you could go to school and get a job but today things have changed because there is huge number of graduates and things have changed. One needs more education now than the school provide and the school is very good in academics and being a professional like doctor, lawyer or accountant but that the education that is important now is FINANCIAL EDUCATION because the school system has little or no knowledge about financial education. A lot of people are in financial trouble today because of lack of financial education and you have to invest in this financial education as a new rule of money.



2. Job-Work

One of the most thing that people wants is to secure a job and according to the cash flow quadrant, there is four basic people in the world of business which are

Employee
Self Employed, Small business or Specialist
Big Businesses
Investors

Its one of the reason people get in financial trouble as they don't have financial education as its what our school system currently teaches people that when you become a specialist you are smart and you if you can't work for someone, do it yourself hehehehe. While the employees needs job security. Employees pay highest percentage of taxes as income tax and another is the specialists but the new rule of money is to be a entrepreneur or an investor. Big businesses provide job and investors provide money and this is why the government protects them so much and give them less tax or forward the tax to the final consumer. Without them the economy of a country won't be stable and there will be high unemployment rate in the country, so they works well with the government. There are three types of income which are

Earned income:- Most people work hard for earned income
Portfolio income:- Its a capital gain which means you buy a product for 100, 000 Naira and sell for 150,000 Naira so the 50k above is the income.
Passive income:- This is the income that comes on regular basics and the type of income that I get myself.
What most people go to school to become is an employee or specialists and they mostly have earned income and in Nigeria employee wants job security, specialists wants to do it on their own, big business or entrepreneurs wants to take advantage of opportunities while investors wants profit. So the new rule is to become an investor even if you are an employee as you can invest in stock businesses also or become an entrepreneur.

3. Save

I have heard many people say its important to save but that s ridiculous and the reason is because money loses its value very faster every day. People in Nigeria often save money for long term and think of it, you saw a land or a property that goes for 1 million naira today and in the next 3 years the property will increase in the value while the money you have been saving decreases its value by far so what is the need of saving? You only save or hedge your money to invest, Having enough liquid cash is a huge advantage for any business to grow and outshine its competitor because it will make you to purchase any new technology, hire more people and have more raw materials than others who may stand in the long queue of waiting for bank to approve their loan. Save to invest and not save for a long term as money losses its value always. The word currency means current and you must keep your money moving though saving is better than being poor. Its good for an average investor but in the case of economic crises you will probably become broke or poor.



4. Buy a house

You have to buy a house and live as an employee or small business owner is an old rule of money and does not work again but the new rule is to know the different between asset and liability. According to rich dad poor dad Robert defines the terms as;

Asset:- What brings money to your pocket.
Liability:- What takes money away from your pocket.


Understanding these rule is very important as people often think that their house is an asset while its a liability because it takes money from their pocket through changing fittings, maintenance, insurance etc... When you rent out the same house then it becomes an asset because it now brings money to your pocket. So your house can be an asset or liability depends on how you use your financial education. To determine if something is asset or liability is most important thing in financial education. Though Nigeria banks tends to call your house an asset, well its an asset to them and not to you because it brings money to their pocket when you use it for loan. hehehehe so you have to understand the difference between liability and asset because people are in trouble today because they have more liability than asset.

5. Debt

You hear people say Get out of debt hehehe those are old rules and to be up to date you have to know that there is good debt and bad debt. The reason most people are in trouble is because they have too much bad debt. Good debt makes you rich because it puts money in your pocket but bad debt takes money from your pocket. Good debt makes someone to pay for you and you can use debt to get rich. Such as in real estate business, people tends to flip property as they want to buy and sell immediately for gains and most time sit does not work. Good debts are debts that earn you a passive income such as borrowing from the bank to buy a tenant house, shop outlet etc and then rent it out and earn money monthly or yearly which you will use to pay the debt periodically while you still own the property. in Nigeria I have come across many people that borrow to buy liability or invest in portfolio income and this makes banks to seize or sell their collateral because they could not afford to pay back their loans. You buy and hold rent it out and get cash flow monthly or yearly which is passive income. Understand good debt and bad debt and if you are the old thinking you might think that all debt is bad. When own a debt from the bank and the Naira looses it value, you will still pay the same amount of money that you are agreed to pay as the money worth lesser for the banks so you are the one winning. In these volatile nature of economies, you have to base your investments not on capital gain or appreciations but on cash flows-how much comes in.

Source: http://www.enterpriseboom.com/new-rules-of-making-money-in-nigeria/

ok

This is the kind of education nigerians needs now and not those 16 yrs burnt in school only to earn up in the street.

What can i say...
How about gamble? Win a lottery?

Sandydayz:
What can i say...
How about gamble? Win a lottery?

Lol

Sunnymatey:
This is the kind of education nigerians needs now and not those 16 yrs burnt in school only to earn up in the street.

hehehe You are right. School curriculum appears to be messed up. They need to change their syllables.

a good read I confess

this is a great information. .... real estate and Information worth investing now.

gametalk:
this is a great information. .... real estate and Information worth investing now.

You are very right. Real estate is a big section of the Nigeria economy and so sad there is no yet big real estate development company in Nigeria. Its just individual development who cares little about branding.