netotse:

@OP
Agriculture is a winner but it requires time (you or someone needs to check up on the investment), got my fingers burnt this year cos I couldn't keep visiting the farm, planning to try processing instead of producing in 2016(one a small scale though)

This entertainment that you're saying has k-leg if you ask me, it's too much of an art to be predicted.

1.
I would never get involved in Agro at the production level. Too much room for losses. there is a huge Nigerian / African Diaspora in Western countries and I hear ABX and Arik have partnered to export NG Agro to Europe. Also NEXIM bank is looking like they have woken up to finance Nigerian exporters.
2.
Regarding entertainment, I still have question marks due to the volatility of the industry. But you can't ignore the forex potential in it o. Especially when you target the African diaspora in the west.
3.
A friend is trying to convince me to go into consumer finance. He argues that the fed govt will never default on paying salaries (not so confident about pensions). So fed workers often take loans from banks at 24 - 28%. He funds the workers co-op @15% for onward lending to staff members at 18%. According to him, the co-op earns 3% while guaranteeing against default. The staff get the loans cheaper than bank (without the long process) and he relaxes and he gets 15% ROI. He has caught my attention but I'm still assessing potential risks.

Finally, the secret is out. Glad you just woke up. When studying in UK, we were all a small club of Nigerian kids. Tribe didn't matter, what mattered was your last name and dad's bank statement. Most of us flew back to Nigeria every two weeks just to run errands.
Today. We rule. Not by choice but because of the precedent laid by our forebears.
@Op please don't whine about it. Just concentrate on laying a solid foundation for your own offspring. This is not uniquely Nigerian, it happens all over the world!
Even now, do you think Obama's kids will be rejected by any US Ivy League college? No, they have an express way in. I'm from the South but some of my best and closest friends are northerners, we schooled together.
No matter the unrest in Nigeria, I'm safe with them and they with me. It's the 'masses' that kill themselves.

Merry Christmas.

Feel free to drop your likely investing route for 2016. Let's share ideas.
So far:
1. Importation: Not attractive due to exchange rate and Forex restrictions
2. T.Bills: Unnattractive due to very low ROI
3. FD: Unnattractive, Banks are doing low single digits
4. Manufacturing: Unattractive as old issues (no power, high interest rates) joined new issues (Forex restrictions, low income per capita, inflation)
5. Stocks: I already took a hammering in 2015, watched my portfolio lose 20% value across board both blue chip and no chip
6. corporate debt: Unnattractive due to current economic headwinds, plus govt policy uncertainty.
7. Oil & Gas: Unnattractive, stocks down due to ever falling oil prices (plus Iran is about to ramp up production and add to the wahala) plus uncertain govt oil and gas policy.

Brothers & Sisters in the Lord I am beginning to look at Entertainment (Africa wide consumption) and Agriculture (Processing for export). But sadly, most coys in these fields don't have solid investable structures.

My ogas, let us look into 2016 and proffer solution for at least 15% ROI. I can't be the only one seeing this bleak outlook.

bloodkiIler:


Nope it's 100 days of dwindling economy insecurity inflatation, no policies and so on just a government of body language.

useless bastard Daura dullard gworo chewing gorilla mumuhamado mumuharii

I suggest syndicated Consumer Financing. Especially of federal and state civil servants. You can fund them at 20% and get repaid via direct salary deuctions or salary standing order.
Any rate you offer them that is lower than that offers by commercial banks or their co-op will make them troop to you.

However, you really must plebe careful not to fund people who are retiring before the expiration of the loan tenure. Ensure you ask them to get you a letter from their employer stating their retirement year and date.

I've found that this is an excellent investment as it pays higher than FD's or TBills (though it has higher risk). Ensure you elimate or minimize risk by doing the following:

1. Ensure that prospective beneficiaries repay you via direct salary deductions or standing order setup at their banks.
2. Ensure they provide at least 1 repayment guarantor who is also a staff of the instituion.
3. Ensure that beneficiaries are not retiring within the tenure they are requesting.

Once you tidy all these up, you are good to go. Also consider doing Asset Financing not just loan. Eg, I provide building materials to staff who are building, i don't lend cash, I lend building materials and they pay for them at an interest over time. Hence in essence, I build most of their houses for them to their specifications but they repay over time. This way, I am sure of something tangible that the money was used for that I can liquidate if they default in paying me.

Before you ask, Yes, I have done my bit so I'm looking for others who might be interested too.

Since Angel Investing is relatively limited or nonexistent in our dear country, I decided to do what I can by making limited investments in credible startups.
I do 5M max in Cash, Guarantees or a mix of both as either Equity or Debt.

Late April, I came across a promising solar energy startup. I was skeptical at first, as I didn't see a mass market appeal for solar due to its high initial cost. However, the recent energy crisis that the country just went through made me rethink my postion as Nigerians struggled to buy fuel at all cost.

Hence I decided to invest.

So far I have provided 2.5M in direct financing, helping them through incorporation, office space, equipment procurement and 3 month working capital for Q3 2015.

The second part of the funding is provided through Guaratees to the tune of an additional 2.5M bringing the total investment to 5M.

Hence,
The startup seeks to acquire a used operational vehicle valued at 4.6M that was repossessed from an auto-loan defaulter and now being auctioned off by the Bank at a ridiculous 2.6M.

Hence, they are looking for a financier. As stated earlier, in line with my funding commitment I will guarantee a maximum of 2.5M to cover any funding they receive (plus interest). I have made it clear that I will not exceed this benchmark hence I advised that they seek funding below this limit to accomodate interest commitments.

SUMMARY:
Funding Requirement: 2.0M
Tenure: 1 Month (30 calendar days from funding date)
Interest Rate: 12% per month (max)
Collateral: Landed Property valued at 2.3M (tendered by startup founder)
Additional Security: Post Dated cheque covering funding plus interest (issued by guarantor for a max repayment of 2.5M)
Timeframe: Interested financiers are welcome to indicate their interest before 18th July. Expression of Interest will terminate once a financier is engaged.

mexxy1:
@YoungExec, I really appreciate your write up and hope you continue it.
I'm learning a whole lot from you and you won't believe what impact you are making with this.
Thank you.

I'm glad it has helped... I know it's tough at the beginning but believe me, if you stick to it, it can literally turn your finances around.

OzReal:
@ YoungExec and other posters on this thread: I must commend you all for your efforts. I started applying this principle about 2 months ago; although, I live outside Nigeria. Applying this principle has been quite tough, but as you rightly said: it takes discipline; however, i'm quite conflicted as to where to start investing funds already saved in Nigeria or in the U.S where I am currently because i'm not versed at all in making investments . I would like to do both, but i would like some ideas as to to balance investing in both countries. After all those in the U.S know the struggle, and those back home know how it is over there too.
Thanks.

You want to start investing saved funds. Let's categorize:
A) you want to invest in Nigeria
1. Minimal Risk, Average Yields
Do instruments like TBills, FGN Bonds, Mutual Funds, FD. You can set these up with with your Nigerian Bank even from th States.
2. High Risk, Great profit or terrible loss
You can invest in Equities, invest in business debt or equity funding (especially as an Angel or through Private equity VC)
B) you want to invest in the US
1. Minimal Risk, Low Yields
Do Us Treasury notes, bonds, credit union pool, state bonds, corporate bonds (fortune 500's)
2. High Risk, great reward or terrible loss
Invest in equties, businesses (via Angel or VC networks), consumer credit

However, you can think of very creative ways to link both countries. One way is to extend consumer funding locally in Nigeria at 15% interest while sourcing the funds from the U.S. at 2.5% interest or less.

Best thing you will ever do. Was in your shoes some years ago.

Thanks.
Glad it has helped someone. So many practice it but never share.

Pardon my intrusion into your sacred APC vs PDP space. Please what is the latest on Arik or Air Peace? I'm getting desperate.
There is no mention of the crisis or a possible resolution on Arik website. Instead, the pay portal is open encouraging people to keep booking!

NoMoreTrolling:
Very nice post.

Learn from my mistakes by not putting all your eggs in one basket and loosing the basket

Yep, wish I had you then, but I was young and aggressive and flamboyant, but the truth is, going broke is beyond terrible.

It just feels like a swift breeze at -10 degrees blowing your bare chest outside in the dark.

Had to start over and diversify, I actually don't spend on wants at all anymore, okay maybe once in a while, but rarely. The plan is to invest it all in low risk ventures like fixed deposits before I turn 40.

If I however decide to go into business again though, I will be following your disciplined WIRE approach, it's awesome.

For now, I live like a hermit and save 90% of anything that mistakenly comes my way, while single and not looking of course.

I know how you feel and am glad you were able to pick yourself up again. You learnt the hard way. In many ways, it's better not to ever have tasted wealth than to have done so and lost it. The psychological trauma is often too much for many to bear but you took a very constructive approach.

Once you have the resources, it seems all the problems in the world present themselves for you to solve. People often make the mistake of taking on too much responsibility forgetting that when they are drained financially, there still will be problems but this time they can't solve them.

I'm glad you landed on your feet.

databoy247:


Hehehehe....such heat is pronounced more on federal contractors. Before elections, i have been channeling my focus on my state (not federal), and i have been smiling ever since cos its still the same PDP in charge and more importantly my "contacts" just got a step closer to the govt. After May 29th i should be closing the access gap to Delta State house of assembly. Cant wait to start partaking in the cake (at the state level).

O boy, I was tempted to play state level o! But I just couldn't ignore the federal pitch. A bone from Abuja is worth more than a whole meal at state level. Plus, state level is far more dangerous and competitive. However, the federal govt is a blanket that covers all.
Anyway, God dey.
My only saving grace now is that I stayed very professional, I was not 'visibly partisan' during the campaigns. This helped me to play both fields simultaneously and subtly.
However, my colleagues are seriously having High BP now. I know a guy that did a 750M job, Fed. Works don tell am sey make I'm come after handover. The guy is on fire now.

It's now a 'connection' contest because the more connected you are, the more likely it is that you will get paid before May 29th.

Buy T Bills

Came across this thread.
Some vital areas have not been covered. In Nigeria, it's easier to broker a deal especially for all the people on the thread looking to join the 'club'.
Someone said it's easier to get small contracts, yes I agree but sometimes it may not be worth it. As long as it's a contract, there is a basic level of stress involved especially for newbies.
Also, avoid the 'bottom up' approach, always try to use the 'top down'. This way you are sure of getting it.

Again, always try to identify the contracts 'point man' I.e the 'unofficial' rep of the vested interests so that you come to an understanding. Without this, your proposals (though wonderful) will likely collect dust or worse, form the basis for someone else who gets it.

By the way:
Gurus in the house, is anyone feeling the heat I'm feeling due to Jona's loss? I had a deal with NERC and seriously pulling all my strings to get paid my balance before May 29th.

Middlefinger1:
And this is so great a news that I should be having multiple orgas* about it. We've been singing songs that is in their language in our own fucking choir since 19... So I don't really give a Bleep.

God Bless You.
This is the bane of the Black Man. Like you pointed out, we've been singing in their language for ages. No one celebrated, now I'm supposed to get super excited over this.
I feel sorry for Black Africans. Stupidity like this keeps me in business as all I do is hire one lazy drug adicted cracker from the streets of London, get him to Nigeria, put him a suit and voila! Contracts start pouring in.
Silly!

I replied your mail.

@OP
Are APC member not Politicians? Won't they be in power? You have to review your post in light of the fact that PDP is out but APC (still a Party of Politicians) is in.

You are getting interesting. will mail you.

The fact that her title is "billionaire wife" speaks volumes about the place of beautiful young women in modern society. They are gradually becoming acquisitions just like vintage art or luxury cars.
I hope this lady strives to use the platform of her marriage to forge her own unique identity instead of "billionaire wife".
I thought she was some kind of ex beauty queen? Everyone seems to have forgotten that so soon because she is very comfortable with the new title "billionaire wife"
Smh

Ok. Let me see if I can run through some of the questions asked.

But first,
I'm sorry that I won't be able to always reply to questions or the time it takes between questions and reply. That is why I sought to make this topic interactive so that each person can bring their perspective. Sorry I'm a bit of a recluse.
As we all have different lives and circumstances, it's important to note that the WIRES are more like guidelines and each person has to ADAPT it to their circumstances.
The WIRES principle is not a product of motivational books or positive thinking it's based on real world experience . This is why I stated that it's gonna take all your strength and discipline to adhere to it.

I will tell you abit about how the WIRES came about:
In my social circle, there are expectations and fierce competition. On the one hand, you have the Old Money (people who over decades continue to remain successful) and the New Money (people who strike it rich suddenly but go boom and often go bust). One thing that is common to both groups is 'EXPECTATION'. You are expected to attend each other's events and are judged by the type of gift you give. The type of car you drive, where you live and where you own property etc. the schools your kids attend within and outside Nigeria etc.

To a lot of you, this may seem vain but to the members of this social class, it determines everything, especially for their kids. Why? Because the school your child attends determines the kinds of friends he / she has and this determines the type of contacts available later in life, even future suitors.

Over time, you see people come and go. The noisiest person suddenly becomes very quiet and hardly socializes because his container has been siezed by customs. You hear that your contractor friend asked his son to return the car he bought for him so they can sell and raise cash for urgent stuff.

People come and go but guess what, some people stay constant. There are those that never ever get broke. Never have to change their lifestyle. Year after year irrespective of the prevailing economic conditions around them, they stay afloat.
I learnt that Old Money people had a technique, an unwritten principle they live by that guarantees that no matter what, they stay afloat. Hence I started getting closer to those of them in my social circle, probing and seeking asnwers. I found that most of them live by the points which I articulated in the WIRES.

by writing about it, I've felt a burden lift off my shoulders. The WIRES does not teach you how to generate wealth, it only serves as a guideline that helps you PRESERVE that wealth for as long as possible irrespective of prevailing economic realities.

@Cmeo
Congrats in running your own business. It's actually the best decision one can make in Nigeria provided you provide sought services or products. I find that Nigerians are very easy to please. However, I will recommend that since you are still a startup you have to do your best to minimize overhead especially with regard to personnel. Invest in a few staff who you train personally at this beginning phase of your firm, few staff who you can adequately cater for financially come rain or sunshine. Now, as your income grows proportionally to your customer base, don't rush to employ more people, take a measured approach, increase workload of existing staff but add something to their pay. This way, you can have a 'Sprout' season in your company before you stabilize. A sprout period is a time in which a young firm breaks even, starts getting profitable and building an initial capital base which serves as a financial buffer before scaling up operations. This is an excellent time for corporate strategic long term planning. In summary:
Keep your overhead low (operational costs such as vehicle etc)
Push to get the best out of your current staff without hiring more.
Actively mark out a 'Sprout' timeline for your firm in which you strive to be as profitable as possible while running very low operational costs. Hence strive to build initial capital buffer of much needed funds for scaling up your operations.

@dtphilosopher
Having your Savings in a Mutual Fund is not bad. I do my savings in an interest yielding bank account by one of the new generation banks. My mutual fund investments are investments. So it varies. However, the most important things are that:
Your savings are easy to access and structured to yield interest (without having to be actively invested)
Your savings are only accessed when you don't have an income source (for example, if you lose your job)
Your savings must not be applied towards anything that has potential to yield income. I.e your savings are not for investing. This minimizes risk of losing it. Rather invest from your Investment or Workimg Capital account.

@mercylicious
Starting a scholarship for 5. My advise is that you evaluate the antecedents of the people. For example, if you wish to provide tertiary education scholarship, then evaluate the WAEC perfomance of the intended beneficiaries. Also, you need to evaluate the intangible qualities that each possesses. You can do this by interviewing the prospective beneficiaries.
Because you don't have all the money in the world, you can't possibly sponsor every Indigent student's education. Hence its important that your limited resources go to persons who are passionate about education, hardworking and determined to succeed. Hence, if you send these ones to school, they will succeed and in Turn assist others, hence there is a multiplier effect.

@mfm04622
Yes, the weakest and most vulnerable need assistance. I agree with you. However, you also said something about willingness and I totally agree too. Empowerment is different from charity. If she wishes to be charitable, of course she can find a way to provide temporary succor to these vulnerable people. However, empowerment is a different ball game. Let me give you an example, a colleague's wife got a very nice househelp who they sent to school. They treated her as their own, she finished her primary and secondary education and they were willing to help her further it to university level. Guess what? Her parents came promptly for their daughter saying that she has suitors seeking to marry her. My colleague and his wife refused but we're flabbergasted when the girl actually agreed, insisting that she will go with her parents.
After this experience, my colleague vowed not to cover school expenses for future domestic helps, rather choosing to pay them fixed monthly salaries.
What I'm trying to say here is that you have to really find people who are passionate about the help you wish to render when it comes to empowerment. So that your efforts won't be in vain. By empowering someone, you expect that person to empower others who will inturn empower others. However, if you waste your LIMITED resources (because you can't possibly solve all the world's problems) on the wrong people, you are doing a grave injustice to those who truly deserve such opportunity.

Again @mfm04622
Like I said, the WIRES are more like guidelines, it is left for you to determine each case based on your unique circumstances. I cannot therefore categorize fuel money and monthly stipends for you. You are the one paying so you know what the purpose is. Let me use myself for example and illustrate how it can vary:
My Working Capital is meant only for generating income or facilitating the generation of income. Hence, knowing that lacking power will affect my home productivity which ultimately affects my work productivity, I will budget a fixed amount for fuel from my working capital. If your family lacks power especially at night, your kids will be restless and your wife will be very irritated. Their unhappiness will inadvertently affect the smooth running of your home which in turn affects your productivity. Once your productivity is affected, your income is threatened. Hence, on the above basis, I will mark out money for diesel for my generator from working capital.
On the other hand, if my generator is put on at odd hours or unessential periods for leisure, I may have to reconsider the funding source for diesel to cover these periods. Hence, I can reach into my rewards account for such because I know that the generator running within such nonessential periods does not affect my productivity, hence, my income is not threatened.
Hence, funding for running my gen from 6pm to 11pm daily may come from my WC while funding for running it so that my wife watches Telemundo from 9am to 1pm on Saturday will come from my Rewards account.

Stipend to parents also falls into the same category as above. If your parents are broke, you will be distracted and if you are distracted, you will be less productive and this threatens your income. Hence I will advise that.
A FIXED monthly stipend comes from your Working Capital Account for your parents.
However, if there is an unplanned expense that suddenly comes up which you have to make on your parents, you must look at other funding sources.
Finally, as someone who is a civil servant without a business, your Working Capital is 40% of your Take Home. It must be applied to facilitate the day to day running of your life. Working Capital is best suited to budgeted month,y expenses that are not sudden such as food, transport etc. Working Capital HATES surprises. You have to evaluate your monthly recurrent expenses so that you can structure appropriately.

Thanks.

Sorry Guys,
Been on a trip and neck deep in work. I'll review ur questions and revert ASAP.

And now the victimization is likely to start.

Say bye bye to the International Airport and Enugu Free Trade Zone Projects.

Finally....

Savings (15%) 37,500.

Your savings is your last line of defense. It must never be applied to ventures, business etc as though it's working capital. Savings must only be applied to self sustenance and by self sustenance I mean NEEDS, NOT WANTS.

Let me illustrate with the following scenarios:

1. Tony has just opened a printing press business and needs to buy equipment worth 10 million. He approaches a bank and they agree to assist but request an equity contribution of 30% (3M) from him. He empties his Investment, Reward and Working capital accounts until he is able to rally this amount. The bank collects it and them makes up the balance of 7 million before getting him the needed equipment.
Now, as a new buisness, it won't yield returns immediately. Even if it does, it would be wrong for Tony to start collecting the initial business profits instead of reinvesting it back until the busness becomes stable and self sustaining.
In the mean time, what fund does he fall back on in order to sustain himself and his family? His Savings.

2. A great once in a lifetime opportunity comes along for an investment, Tony starts mobilizing his resources. He empties everything, all his accounts and raises the 10M he is supposed to invest.
What next? Well, it turns out that the investment needs time to mature, what does Tony do then? Should he and his family starve or go borrowing?
Mind you, if he goes to borrow to survive, by the time the investment matures, he would have to use part of the yield to repay debts hence he won't reap the full value. On the other hand, if the investment fails, he has just lost EVERYTHING.

What am I trying to say:

YOUR SAVINGS IS YOUR ABSOLUTE LAST LINE OF DEFENCE. IT IS YOUR BUFFER THAT ENABLES YOU RIDE OUT DRY SEASONS UNTIL IT STARTS RAINING AGAIN. (hope you understand what I mean by dry season and rains)

A lot of people work for 35 years, retire and hope to get paid their gratuity and pension. Guess what, this is Nigeria, things don't always go according to plan, your gratuity may come late and your pension even later. What happens in the interim period while you wait? Do you starve? Do you sell your property? You rely on your 35 year savings!

Others sink everything into their business, they even take huge loans to invest into their business. Then, (heaven forbid) something goes wrong, the goods are seized by customs. Or there is a delay before govt pays after he has finished the contract. What does he do? He starts running from pillar to post, borrowing up and down with all the attached insults and disappointments. When friends see you coming, they start making excuses and leaving in a hurry.

I'm using real life examples so you can see that this happens all around you. One of my examples will likely fit someone you know or a scenario you have seen play out.

Maybe, Tony is a Banker earning 250k per month. He is a newly wed, buys a Toyota Camry, etc. in all this, Tony wans't setting aside mandatory funds for savings.
After 5 years, he gets a letter one day at work. He has been laid off. At that point, he has cheques he has issued (in advance). He has bills to pay and now he is unemployed.
What does Tony fall back on with his young family. Next you hear is that he has put his Toyota Camry up for sale at a ridiculous price. Why? Because he is under excruciating pressure.
He has responsibilities to his young family, his extended family. He also has a lifestyle which he and his family have become used to. Hence he is under terrible pressure to meet up. Recipe for High Blood Pressure.

You see, we don't pray for crisis to befall any of us but guess what, sometimes it does. In all the above examples, Tony had a period when he was making cool cash (the raining season). He had every opportunity to save up but he didn't. So when the dry season came, he inadvertently set himself up for severe pressure.

The kind of pressure that can drive someone to do irrational things or drive you to sickness.

Because of this pressure, he may even sell his clean Toyota Camry which he bought for 1.7M for 850k. Believe me, when one is under pressure, he does the unthinkable.

Let's start tying up.

Dry spells are inevitable in life, how quickly and easily we pass through them depends a lot on the kind of buffers we have. If Tony has a materialistic wife who is used to a high standard of living, she won't readily adjust to having nothing over night and in turn, she will make life hell for him (sorry ladies, it's true).

What smart rich people do is to save. They save when they have plenty and build up solid financial buffers which can ride out storms, so that when they hit a dry spell, nobody knows. It's kept within the family.

Because of his savings, to outsiders, Tony still looks fresh, his wife still looks good and his kids are still well taken care of. But within the house, Tony knows the true situation of things. He may have lost his bank job but still, he is able to provide for his family hence the pressure on him is greatly reduced. He can still hold his head high in society though he cuts down on all unnecessary expenses.
While spending from his savings, Tony then aggressively goes hunting for new opportunities. A new job or a new business deal. The world doesn't know that he currently has no income. His name won't be the topic of hot gossip anywhere simply because NO ONE KNOWS!

As you can see from the above examples, you don't gamble with your savings. No matter how juicy an opportunity is, DO NOT FUND IT FROM YOUR SAVINGS!

Your savings is strictly for personal sustenance in hard times not for investing or try-your-luck.

A lot of people fail to save and when dry season comes, they go to so called friends to "borrow" often times, they think that these "friends" empathize with them not knowing that information then spreads so quickly that "Oh, how the mighty have fallen". They become the object of behind-the-Scenes mocking.

Keys to Savings;
1. Your savings must not be spent on WANTS, only on NEEDS.
2. It must only be spent on the most basic things you require in order to sustain yourself and your family.
3. Your savings must be in raw cash, deposited in an account which pays fair interest eg the Diamond Bank HIDA, Standard Chartered e-savers
4. Unlike an investment, it must be faster to access, hence you will require discipline to prevent yourself from accessing it for frivolous purposes.
5. NOBODY Should know that you have a Savings!!! Even your wife. Why? Because the things you consider as WANTS may be considered as NEEDS by your wife. Hence you are pressured into spending on them against better judgement! Remember, for you to be using your savings means that you are not in the best of times hence you CAN ONLY AFFORD TO SPEND ON ABSOULUTELY NECESSARY THINGS!
However, if your wife is not too materialistic and can see things as objectively as you can, then you may let her know so that she can also restrain you from unnecessary expenses. Hence both of you put heads together before drawing from the funds.
6. The larger your savings, the longer you can endure a period of dryness. The smaller your savings, the shorter you can hold out. Hence, strive to build a large reserve.
7. Never get to a point where you feel like emptying your savings becaus you feel you can never hit a dry spell. Beware as this is a clear temptation. The moment you do so, you will likely face a crisis in the shortest possible time and then you won't be able to weather the storm.
Eg, Tony gets a contract worth 10 million, he is paid 3 million as mobilization. Becuse he knows the governor's brother, he feels overconfident about getting paid the balance of 7M. Hence he empties his current savings of 3 million on a brand new car for his wife.
Guess what? Something goes wrong, a petition is written against him by some competitors and govt has to review his contract. By this time, chances of getting paid his balance of 7 million is very very remote and he has already squandered his savings.

If someone had told him earlier that this could happen, even with all his strong connections, he would never have believed it. Better safe than sorry.
He could have held tight to his savings, rather than spend it, he could have waited for the balance to come before buying the car for his wife. With his savings also, he could have weathered the coming contract storm until the issue is resolved.

There is a Nigerian saying that goes like this "when a man lacks money, grace departs from him". Your savings is the key to maintaining your confidence, dignity and composure in the face of huge financial challenges. For as long as you can still meet the basic NEEDS of your family, you will have the peace of mind to focus on restoring your income.


From a health standpoint, having a savings is an excellent preventive drug for High Blood Pressure. However, seeing this cash reserve in your bank and not touching it will require all the DISCIPLINE you can muster.


Goodluck!

Moving on...

Empowerment (10%) 25,000.
"Charity breeds liabilities but empowerment breeds assets".
"Strive to follow the middle way in matters of assistance"

I'll begin to discus this in blocks and hopefully string it all together at the end. PLEASE NOTE THAT I AM APPROACHING THIS STRICLY FROM THE BUSINESS POINT OF VIEW NOT THE EMOTIONAL "BE A GOOD PERSON" or "SAVE THE WORLD" STANDPOINT.

So before you continue reading, put yourself in that frame of mind, again use your head and not your heart as you analyze:

1. Why
Why Give? Well, Think of Giving as a unique form of investment? One that yields immaterial but valuable returns. Some of the immaterial retuns you can reap from giving include: Goodwill, Influence, Recognition, Security, Leverage, Contacts etc. However, giving is not mandatory. You can choose not to give.
Now, there are two equally dangerous extremes:
SOFT: where you give indiscrimately and impulsively without due consideration.
HARD: where you give too little or do not give at all.

Both are dangerous and I will illustrate with examples:

Soft:
Tony has 25,000 in his empowerment accounts. He has a young family with needs. However, he is beseeched by relatives for some form of assistance or the other. Giving in to emotion and a need to "save the world" Tony keeps solving all these extended family problems to the extent that he even starts taking out cash from his other accounts to do so. A couple of years later, Tony has an emergence and needs financial help or loses his source of income. Then he realizes the bitter truth that none of those he liquidated himself to assist is now here to help him out.
Also, often times you hear of foolish rich people who spent money all around giving it to anyone who cares only for them to fall flat broke and no one gives them money to even feed.
What happens in these cases is that PEOPLE OFTEN ALLOW THEIR HEARTS GET IN THE WAY OF THEIR HEADS.
Stay with me.

Hard:
Now on the flip side, Tony holds tight to his resources. Not giving a dime or giving very very little. Extended family needs arise and he shys away from all of it without considering where he can and must intervene. As years go by, resentment grows among his relatives against him and his family. With such growing animosity, the security of himself and his family is threatened as some of his relatives will stop at nothing to hurt him or cause him misfortune. Above all, by not giving, Tony loses goodwill and influence which he could have wielded over his relations.

The Ideal Way:
Let's say Tony was never spontaneous in making promises. He checks his Empowement account and thinks very clearly about what he can afford to do. Therefore, he doesn't bite more than he can chew. He weighs the extended family requests, separating them into WANTS and NEEDS. Then he reviews these needs based on PRIORITY and his FINANCIAL CAPACITY before choosing where to intervene. This is the safest approach.
Hence, while he cannot be accused of not being of help, he also is not foolish to over-reach himself. Hence, he still maintains goodwill and influence with little or no resentment.

2. How?
How do you give? You've heard the saying "teach a man to fish, don't give him fish". This illustrates the two main forms: Charity and Empowerment. With Charity, you don't solve the problem. If Tony sends 5,000 monthly to a young friend for upkeep, in a year it amounts to 60,000 but Tony could have provided 60k to his friend to start a small barber shop or business and this is Empowerment.
Often times, rich people prefer charity as that way, they are certain that you can never grow to be as successful as they are. Hence you will always depend on them. However, some very smart ones realize that by empowering you, you can blow up and conquer sectors they themselves have not entered. Hence when they need access to those sectors, they can leverage on the INFLUENCE they have over you to do so.
A classical example of these smart rich people are Politicians. Politicians do charity to their communities but they Empower their political associates. When they come to a village, they share rice, oil etc and the gullible take them. They know that you cannot threaten or be like them. However, when it concerns their political associates, they fight to get them appointments and positions. Why?
Because, it will be to their immense benefit if those associates of theirs occupy govt positions. They will now have control over those institutions becaus of the INFLUENCE they have over their associates.
Hence, when he hears of a 12 Billion Naira contract at NNPC, he quickly calls his "boy" who he got appointed as a Director there. Who is then most likely to get the contract?

Hence you see that Empowerment pays much better than charity. If a politician does not strive to empower his associates, his influence will be marginal or non existent. Influence is an intangible resource, it may not be money in the bank but believe me, it's often worth more.

3. What?
What do you empower? Obviously, so far you have seen that human capital is the core resource I've centered this piece on. No investment is greater than the investment you make in people. However, the mistake some make is choosing the wrong people to invest in.

Look at these examples:
A Soft Tony will pay the school fees of every poor child he comes accross even liquidating himself to do so becuase he wants to be a "Good Samaritan"
A Hard Tony will pay only his children's school fees, even refusing to send his domestic maid to school in order not to pay extra fees.
An Ideal Tony will look at all the kids whose fees need to be paid, select the brightest ones whose fees he can afford to sustain and help them out.

I hope you see the difference. A political godfather often picks up someone, brushes him up, pushes him into Counsellorship, then LGA chairmanship, then State House of rep, then Federal house of rep, then senate, then state gov. At each stage, the associate is groomed, mentored etc.
However, before choosing the particular person, the politician must have seen qualities he is after in the associate. Such as loyalty, kinship, charisma etc.

So let's begin to tie things up.

1. It's good to give because giving is a good investment. An investment that yields intangible benefits that can often be more valuable than money.
2. When giving, it's best you invest in people as people are the best investment. I know some of you are Christians and pay tithes etc. that's great but it's best you do so in a church that is focused on using that thithe to better people's lives. Not buy newer jets for the pastor.
3. Empowering people is better than charity. With charity, they keep coming back, wanting more but with empowerment, they can sustain themselves. In the long run, it's cheaper to empower than to be charitable. If there is chronic poverty in a village and Dangote comes and distributes 100 bags of rice, tomatoes etc. what happens when the food is finished? But if Dangote had provided jobs, then parents can (on their own), send their kids to school and take care of their families.
Also note that with charity, often times people seem to forget that you are not obligated to help them. They keep expecting more and more from you simply because they have no role to play. However, with Empowement, people know that they have a role to play in order to ensure they keep getting help from you. Eg, a student on scholarship knows she can't joke with her studies else she can lose the scholarship.
4. You can give everything you have without sense (Soft) or don't give meaningfully (Hard) but either won't be of benefit in the long run. Rather take the middle path. REMEMBER THAT THE WHOLE WORLD'S PROBLEMS DID NOT START WITH YOU, SO YOU CANNOT BE THE ONE TO SOLVE IT ALL. WHEN YOU GET BROKE, THERE STILL WILL BE PROBLEMS SO BE CAREFUL NOT TO TAKE ON MORE THAN YOU CAN HANDLE.

In conclusion, let me repeat the quotes I started with and hope that now they make sense:
"Charity begets liabilities but empowerment yields assets".
"Strive to follow the middle way in matters of assistance"

So let me leave you with this discussion point:
A Professor in a Federal Institutions is entitled to a certain quota for admission each year in his Univerity. If he retired after 35 years of service, review his Empowerment performance if:
A) He helped every youth from his village get admitted to the institution
B) He helped the best and brightest youths from his village get admitted to the institution
C) He did not assist any youth except his immediate children to get admitted

2. In the long term, when he is quite old, which of the groups he assisted is most likely to excel the most and thus be great assets to the Prof due to the influence he holds over them.
3. Which of the Prof's actions is Hard, Soft and Ideal and why?

Some people, give give and keep giving until they give all they have. They then expect to be given back in return. This is a risk, a very big risk.

Some don't give at all, they hold on to all they have, building high fences around their homes and vaults to store their wealth. Though rich in cash, they often find that some things in life can't be bought with money but with other forms of currency like Goodwill and Influence.

On the other hand, some give with moderation. They are measured and realistic. They weigh it and decide if it's worthwhile. Such are the ones that end up always staying afloat.

Moving on...

Reward (10%) 25,000
I know a lot of you may think you've already figured this one out. The Reward account must be used as the baseline for measuring your financial success or failure and by so doing, it becomes a powerful motivational force. Eg, I want to go on a vacation after 11 months of hardwork and I find that the money in my Reward account won't cover my trip. Do I then empty my savings or WC to fund it? No.
This is where discipline is required.
If you consciously calibrate your mind to focus on building your Reward account, you find that as you keep striving to grow the contents of that account, all other accounts simultaneously grow. If my reward account doesn't have enough cash in it, it simply means that I have to work harder!
For example, Tony needs to buy a brand new 6M Naira luxury car. He already has a functional car that gets him to work so this is purely a want and can only be funded from his reward account. For Tony to spend 6M on the car, Tony has to have generated an income of not less than 60M for such an expense to be permissible.
If he takes money from other accounts to fund this, the HE IS LIVING BEYOND HIS MEANS and that is a recipe for disaster.

Dear friends, have you ever wondered why rich people are often called stingy? Sometimes they are asked to contribute or donate funds and they shy away?
To you, they are wicked, stingy etc but to them, they can't afford it.
Let me explain.
Being broke for a rich person is totally different from being broke for a poor person. For a rich guy, being broke doesn't mean that he can't fuel his car, pay his kids school fees, pay hospital bills or arrest emergencies. For him, being broke is that HE CAN NO LONGER AFFORD TO SPEND ON WANTS, BUT CAN STILL SPEND ON NEEDS.
On the other hand, for a poor person, being broke is being unable to spend on both wants and needs. He won't even be able to feed himself.

Do you now follow my train of thought? If you focus on your rewards account as a barometer for measuring your financial wellbeing, you will find that sometimes you feel poor even when you have 20M in your WC account.

So let's go back to Tony, each month, Tony knows that he just has 25,000 disposable income. Though he has money in the other accounts, he focuses on this and pretends that this is all he has. Such a disposition will turn out to be a lifesaver for Tony in the long run.

So, the next time you want to buy an expensive shoe or spray money at a social event, take a good look at your Rewards account and see if you can afford it. If you can't, you have to work harder.

Personally, at the end of each year, I judge my financial success or failure based on the Net position of my reward account. If after 12 months, Tony has recorded a total input of N300,000 into his reward account, it means that he had a Goss Income of 3M that year. Thus, when Tony records 3M in that same accout , it means he made a total of 30M.

My point is that you deserve to treat yourself to some nice things, however, you must not do so from funds that are meant for other things. Giving gifts, surprising your wife with a brand new car etc are all stuff that you must seriously strive to do from your Rewards Account.

Do not be afraid to admit to yourself that YOU CANNOT AFFORT THIS RIGHT NOW! Irrespective of how much may be in all your other accounts.

I find the Reward accounts to be a very very powerful motivation tool. If I want to go on a 10M vacation, I have to work hard to make 100M before my trip so that I can afford it. If I only make 25M before then, I'll have to SCALE DOWN MY VACATION EXPENSES TO NOT EXCEED 2.5M. Hence I cut my cloth according to my size.

Never strive to live beyond your means, rather strive to increase your means so you can live within it!

I'm trying to make this as practical as possible.

Cmeo:
Answer to Question 1: No, Tony should not draw from WC, he better draws from Empowerment acct or at worst reward acct.

Answer to Question 2: Liquidity of A, B, E, F is low and couldn't meet the 7 days timeline however, C and D can be easily converted to cash within 7 days to meet Tony's need. However F could is close to achieving the result Tony wanted.

Answer to Question 3:
Active - A, B, G
Passive - C, D, E, F

Ranking based on risk:
Highest risk - A
Mid-risk - B, F
Low-risk - C, D, E, F

Thank you for taking the pains and creating the time for this. I will not mind to have your email or other personal contact if you don't mind.

Thanks for trying Cmeo (I'll reply your PM with my mail address).

Now let's do a review:

Q1.
Under no circumstance should Tony tamper with his WC account in order to sort this out. I say this because this is often the mistake that ruins people. Working capital MUST ONLY be applied towards generating more income. He must first access his Rewards account, followed by his Savings and finally liquidate his Investment.
I say this because though a one eyed man in a village of blind people is king, it doesn't mean he sees clearly. Your priority must always be to sustain your income source. You must never jeopardize it. If Tony empties his WC to solve the problem and this ends up ruining his business or income source, how will he respond to future crisis?
Let me illustrate:
Assume that Tony started saving 5,000 each month for his daughter's education, right from the month she was born. By the time she was 17 and ready to get into college, there was a crisis. Should he then sacrifice his child's education fund on the alter of the crisis.
Of course not. This is how important working capital is. You must maintain it at all cost as without it you have no hope of getting income except begging. And you won't want to be reduced to that level. (With all the attendant humiliation)

Q2.
By stating 7 days, I wanted to put you all in the mental frame of mind that one is usually in when under pressure due to crisis. This is exactly why a portfolio that is balanced is essential. By balanced, I mean one that contains investments that are easily and quickly converted to cash with minimal conversion losses.
Let's look at the examples in view of the above I.e speed of conversion and minimal losses.
His House:
Yes, he can sell this in 7 days but the value he sells it at is directly proportional to the time constraint he is under. If he had a month to find a buyer he will be less willing to sell to a buyer who offers him a much lower price. But since he has just 7 days, he will likely sell at a loss.
His used Car:
He will definitely sell this at a loss no matter what timeframe he has. However, the loss will be more due to his time constraint. Plus he has to actively searh for a buyer.
Fixed Deposit:
He can break this within days. However, he will pay a penalty of a portion of the interest he would have earned. Note that he will not gain as much as he would have, had he left the FD to mature. However, he will not lose a dime of his initial principal.
His Shareholding certificate:
Like the FD above, he can liquidate this very quickly but whether he loses or gains is dependent on the share value on the day he sells. If the share value on the sell day is higher than it was when he bought, then he will sell at a gain. If it's lower, he sells at a loss.
His Domestic goods:
These will be sold at a loss irrespective of timeframe. Also, it will be hard to find a single buyer for everything. Hence, since he has to find multiple buyers in a very short time. He is bound to sell at very very deep losses.
His Creditworthiness:
This is a measure of the likelihood or not of Tony paying back loaned funds. In western countries, people have credit scores and lenders use this to determine how much they can lend and the max length of time they can allow for repayment (term). For instance, if Tony has a govt job with a steady salary, he will be judged to be more creditworthy than a colleague working for a small private firm. Hence lenders will be more willing to lend to him. However, the less creditworth he is, the less likely he is to get a loan. If he does get one, it will be at very high interest and very short term. Also, because of his short timeframe, it is very very hard to bank on creditworthiness.

In summary, you can see from the above analysis that some of the assets he has are more liquid than the other and can be mobilized faster in emergencies. Therefore, from the most Liquid to the least liquid, you have C, D, A, B, F, E.

Q3.
Never forget that an investment is not worth it if it makes you devote more than your money. If you have to invest your time and energy then it is no longer passive, it is active. You cannot add active investments to your already active job or business. It's the recipe for an early grave.
Before I classify let me analyze each:
He invests in Business:
He has to monitor and make input in the daily running of the business. This will compete with his primary income source for his time and energy. Hence it is active. Also, he is not guaranteed that the business will succeed, it may fail. Hence this is quite risky.
He Invests in Real Estate:
Real estate monitoring is minimal, he only needs to hire a low cost estate manager who periodically monitors the property to ensure that tenants are paying rents or that there is no encroachment on the land. In terms of risk, this is low risk but not risk free. In the event that there is a land / property dispute, he may lose money by hiring legal representation etc. On the other hand, the rate of property appreciation depends on the location of the property, hence it is possible that after some years, his land may still not be worth much more than its acquisition value simply because developement has not gotten there yet.
He invests in Equities (company shares)
He has to monitor these shares closely or employ a good stock broker who does so for him. In an instant, the share value may either appreciate (he sells and makes money) or depreciate (he sells and loses money). If he is not ready to hire a good broker, he will find this to be a very very active investment. Also, it is risky especially when he does not understand the market motions. Let me explain further, let's say Tony bought shares of an oil company before the advent of US shale oil. When the rumor started of Shale oil discoveries in the US, he then instructs his broker to sell his shares as he anticipates a fall in oil prices, 3 months later, US shale oil production rises to 10M bpd and oil prices crash due to glut (supply outweighing demand) which in turn triggers a fall in shares of oil companies. You see that Tony did not lose money, he sold at the right time. However, if he or his broker did not anticipate this and held on to these oil company shares, 3 months down the line he would have suffered huge losses.
Fixed Deposit with commercial bank:
This has minimal risk except the bank goes into bankruptcy before your FD matures. Essentially, the bank commits to pay you an interest on your fixed deposit at maturity (expiration of term). If you can't wait for the term to elapse, you can break your FD, in which case the bank is obligated to return your principal but may not pay you the agreed interest.
Invests in Fixed income govt. Securities:
These have minimal risk except the country defaults or ceases to exist before your TBills or Bonds mature. Like FD, you can break your investment before it matures with a guarantee of getting back your principal, however you will earn less interest as you did not wait till maturity.
Investing in a Hedge Fund:
This is a high risk but high return investment which requires none of your time or energy just your money. Hedge fund managers manage your investment and make financial decisions on your behalf. If they succeed, you win big, very big. If they don't, you lose but you won't lose as much as you would if you had invested on your own and lost. Some hedge funds guarantee a portion of your principal investment but not all. Hence, if things go wrong, you can be sure of a portion of your investment coming back. On the plus side, Hedge fund managers are very smart and often know long before others, when to jump out of an investment to prevent losses. It also pays well.
Investing in a Mutual Fund:
Mutual funds differ from hedge funds in that your principal investment is guaranteed. Mutual fund managers are not as daring as hedge fund managers. Hence they will only invest your money in very very low risk investments such as Fixed income govt securities. However, the down side is that mutual funds don't pay as much in profits as hedge funds do. Like hedge funds, they are completely passive.

So, I'm supposed to classify based on passive / active and also based on risk but I will leave that for you to do based on my explanations above.

I hope you realize from the examples a over, that it serves you nothing leaving your money idle in your bank account only to smile each time you view your account balance on your phone. it can stay in the bank but in different forms that yield profit while you can access it immediately.

Great! Cmeo. You nailed it!

Working capital must ONLY be expended on pursuits that will either directly generate income or fascilitate the existing means of generating income.

Let's go on.

I - Investment (25%) 62,500.
To invest is simply putting your money to work in hopes of getting returns in the short, medium or long term. The type of investment depends on ones appetite for risk. I will summarize investment based on term and risk. If Tony buys landed property with the hopes of selling at a profit after 10 years, this is a long term investment. On the other hand, if Tony invests in his office Co-Op society that pays dividends every 2 years, this is medium term. Finally, if he had bought Treasury Bills that mature after 3 months, it's a short term investment.
Now let's talk about risk.
1. Tony invests in a friend who is an importer who approaches him to invest some money for the importation of some goods at very high ROI (
Return on Investment) when the goods arrive and are cleared.
2. Tony buys shares in a company
3. Tony invests in Landed property.

Based on the three examples above it is important to note that no investment is risk free. The degree of risk varies. Eg. 1 above is the most risky though it may promise the highest returns. How sure is Tony that customs will not impound the goods, how sure is Tony that the goods will sell at the desired price when imported?? These and more scenarios are possible hence the very risky nature.
If Tony invests in Company shares, his investment risk is directly proportional to the performance of the firm. If the company has strong performance indicators, the share price will appreciate in value and Tony makes money. However if the coy performed poorly, share price falls and Tony looses money.
Finally, Landed property may seem very safe but don't forget that the Govt can always invoke the land use act and take it from you while giving you compensation that may not equate your expected gains from property price appreciation.

Before I summarize investment, let me talk about liquidity. Liquidity is a measure of disposable assets. I.e things you have (assets) that can be converted to cash when needed. Most times, people are illiquid (having no cash or asset reserves) or too liquid (having cash only reserves) either is bad.
You need liquidity when an opportunity or catastrophe comes your way. So let me go back to the examples above.
1. If you've invested in your friends importation and a week later a family member has an accident, you then need urgent liquidity. It's likely that your friend can't return the money immediately as he must have already orders the goods. So you have to wait until the goods arrive and are sold. By which time it may be too late.
2. If you invest in company shares and a business investment comes up that is too juicy, you can immediately call your stock broker and sell your shares, thus creating much needed liquidity.
3. If an urgent need arises, and you need liquidity, you rush to sell your landed property. Often times, the buyer senses your urgency and you sell at a loss.
So from above 1 is slowest while 2 is fasted (most liquid).

So let me summarize and tie everything up. But first the keys:
1. Passive Investing:
Investment must be passive not active, this means that anything that makes you constantly worry or obsess over its running is not an investment. An investment should be passive in the sense that it requires minimal input from you but still yields returns.
2. Maintain a Balanced Liquidity Portfolio:
An investment portfolio must strike a liquidity balance, it must not be completely liquid (I.e you have cash at the bank) because you will be most at risk of inflation and other currency risks. Eg, Tony had 62,500 in cash in an account before currency devaluation. This means that after currency devaluation due to economic factors, though he still has 62,500 in the bank, the money is now effectively worth less than it did earlier before devaluation. This is because, while his money stayed fixed at 62,500 in the bank, cost of living in the economy rose. Hence though with the same 62,500 his purchasing power reduces relative to current economic reality.
3. Risk/Reward Ratio
This balance is important when evaluating a potential investment. If you primarily place more value on Reward (Investment Yield), then you will be a more daring investor as you are willing to take more risk or invest in riskier ventures. However, this is a double edged sword as though you may win big, you can also equally lose big. On the other hand, if you place more value on mitigating risk, thus ensuring that you maximally reduce the chances of losing your investment; then your appetite for risk will be much less as you will not invest in risky ventures. This also is a double edged sword as though you are assured of minimal losses to your investment, you are not sure of big gains in the short term. This is since often times, the biggest potential SHORT TERM gains are tied to the riskiest investment options. In the Long term however, (if you are willing to wait) your investment compounds.

Therefore back to Mr Tony. He has now set aside 25% of his monthly income for investment. Let us now interact on the various situations he could face. Kindly review the following discussion points:

1. When faced with a family emergency, should Tony mobilize funding from his WC (Working Capital ) Account? Why should or shouldn't he do so? Where should Tony draw funding from?
2. If he has just 7 days, analyze how he can mobilize this funding (liquidity) by converting the following assets to cash. Also indicate the likelihood of loss or gain conversions:
a) his house
b) his used car
C) his Fixed Deposit certificate
D) his share holding certificate
E) his domestic goods
F) his creditworthiness
Note that a loss conversion is one in which the asset owner converts at less the acquition value. While a gain conversion in one in which an asset owner converts at higher than his acquisition value.
3. Classify the following investments Tony made in order of the most Active to the most Passive and explain:
A) He invests directly in business
B) He invests in real estate
C) He buys Company shares
D) he invests in Fixed Deposit with a commercial bank
E) he invests in fixed government securities like Treasury Bills or Bonds.
F) he invests in a Hedge Fund
g) he invests in a Mutual fund
Also rank based on risk.

Finally, I know I'm dealing with very smart people. This may seem technical to some but please it was already exhausting breaking it down this much. I have been struggling to limit the use of financial terms. So please bear with me. Google some terms first before you make input as I will not answer any questions asking for definitions.

As you read, please know that nothing worthwhile comes easy, so you need to task your mind.
We all live in the same NIGERIA and it may surprise some that while many rush abroad in search of "greener pastures", some are really getting it good here. They even travel and give financial aid to some of those abroad.

Not every successful Nigerian in Nigeria is a crook.

Sorry I didn't continue. We are all busy so when I didn't get feedback, I just stopped.

I decided to write this primarily because I see a lot of successful people shy away from really giving practicable advice to those who ask. They just tell you "hardwork" "Determination" or something else that is very vague.

I will continue...

Working Capital Continued....
I'll like this to be interactive so I will list a couple of scenarios that are common and ask you to classify them into
A) Working Capital Expense (WCE)
B) Non Working Capotal Expense (nWCE)

Please do not be emotional, use your head not your heart...

1. Spending money to fascilitate a business trip
2. Spending money to fascilitate a vacation
3. Spending money on family needs
4. Spending money on family wants
5. Renting a functional accommodation
6. Renting / Building a luxury accommodation
7. Buying a functional vehicle
8. Buying a luxury vehicle
9. Investing in network relationships
10. Investing in social relationships

I wish to get your responses with reasons and expansions after which I will proceed to breakdown the above examples.

Disclaimer:
I do not work for Channels TV, I was not paid to promote them. I am just a Nigerian that was blown away by how professional they stayed right from the campaigns through to the election and post election coverage.

They refused to air the silly documentaries that NTA and AIT accepted. I was also pleased to note that while other stations were busy with pre scripted coverage of the elections, Channels kept us engaged with smart reporting and analysis.

My shoutout goes to Channels TV for excellence in their Nigeria 2015 coverage! I have never been so prod to be a Nigerian!

Well, you all have shared ur experiences. Now let me talk from the other point of view.

Two things are constant:
1. Often times, we criticize the staff we find most valuable not because we hate them but becuse we expect better from them.
2. We invest time and resources into moulding them up. Often times we hire them as fresh inexperienced graduates and start brushing.

The problem a lot of people have is that they do not bring an air of professionalism to their jobs. They get too familiar or subservient to their bosses. Hence when you want to leave, the boss takes it personal. Sometimes too personal.

You may not realize it but the corporate space is not that big. Every boss knows another boss, who knows a boss that knows your new boss. An employer who feels slighted, who feels they invested a lot in you only for you to abandon them will track you. You will not know but trust me, it happens and sometimes, you may pay big time.

So bottom line is, I cannot employ you into my small company, see potential in you, groom and invest resources in you only for you to take it all and run to Shell or Chevron. That hurts. What happens is as you leave, you close the door of opportunity for the next person coming in to fill your position as I may not want to invest same.

Our HR dept keeps serious tabs on our staff and often let you go long before you decide to leave. How do we do so?
We have what we call the Base staff and the Echelon staff.

Base staff are dispensable, they are the muscles. Easily replaced. The moment a base submits a notice of resignation we do not hesitate to let you go.

Echelon staff on the other hand are the brains. They are the core. They posses full administrative and decision making powers. Without them, we will be out of business.

However, to ensure that we do not lose echelon staff:
1. We make it extremely attractive (Profit percentage pay, expense accounts, globe trotting, housing etc)
2. We make it extremely difficult to attain (high promotion review standards, acceleration for exceptional performance)
3. We make them stakeholders (they get stock options, full executive powers)

So far, it has worked and we have very low staff turnover simply because everyone sees the perks of being an echelon and aspires to attain it so they are willing to endure a lot of stuff until they get there.

My 2 cents.

Just got a wonderful quote from a lady Prof contributor at Channels TV. She said:

"2015 was the year they all said that we'll break up but Hello! We're still here"

#WeAreStillHere