First, let me say a Happy New Year to you, may this new year bring you every good thing of life. I wish you happiness in it’s purest and undiluted form.
Year 2020 in retrospect…
I learnt quite a lot in the year, I guess it was the same for most of us. I mean, we all learnt to appreciate the little things of life like hugs and handshake and not take them for granted.
While we learnt those things, 2020 taught me 2 major financial lessons. These 2 financial lessons will never go out of fashion and they’ll do you some good if you take it to heart this year too.
First, I can safely assume that we all know how important the habit of saving is. It’s always great to have some form of value stashed somewhere for the rainy days. While this is true and quite good, 2020 taught me that you cannot save your way up to wealth. In other words, real wealth would not come from your savings.
Many of us made the mistake of thinking wealth would come from the strength of our savings. We save so much that all we have is our savings, nothing more. I learnt quickly in 2020 how untrue this is. I tried saving my way up and it was exhausting, inflation and exchange rate messed with me and almost rendered my savings insignificant.
The first lesson let me into looking for investment to put money into and grow wealth through that. I mean, I know now that investment is a safer bet to growing wealth rather than saving. But the son of man was hasty and made some uninformed commitments. I lost quite some fortune to investments gone bad.
That’s the second financial lesson 2020 taught me; yes investment is great but you must calmly understudy every investment opportunity and have an investment plan/strategy.
The habit of saving will remain evergreen (I still keep kolo till tomorrow), but you must understand that it wouldn’t take you up the wealth ladder.
Investment is perfect for wealth creation but you’ll become poor with the speed of light if you invest blindly.
I’m equipping myself with this information and doing better this year, you should do same.
What lesson did 2020 teach you that could be useful for others? Please share in the comments.
Peace, Love and Cold Zobo.