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Personal Finance

How not to worry about money in retirement

Today, we bring you tips on three things you can do to never worry about money in retirement again.

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How not to worry about money in retirement

There are two key elements that will determine how fast you run out of money in retirement. These two elements are the keys to lasting financial success.

The first element is Income and the second element is Savings. Income is the element that brings money into your life, while savings is the element that keeps money in your life. And it is also the seed for Financial Independence.

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Yet millions of people every year give savings the least attention during their active career years. It is as though they forget that their saving is what they will depend on in retirement. These people spend their lives working hard for other people and do little on their savings. They end up struggling in retirement.

If you want to experience a restful retirement, you must keep big portions of your income as savings for yourself. And do so early enough so you can gain financial freedom and help other people.

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So how many people do it this way? Only a few. The majority of people prepare for retirement in the exact opposite way. They focus their resources and attention on other people and work on projects that last as long as their active career years, only to run out of time and money, when they are ready to focus on themselves. It is the abandonment of savings until later that makes retirement a dreadful experience for many people.

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So what can you do?

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The answer is, it depends.

It depends on where you are right now, how hungry you are for success, and whether you are ready to take immediate action. But regardless of where you are right now or what you choose to do today, know that millions of people have gone ahead of you. And at least 95% of them have lost their high-quality life in retirement. They have descended from a prestigious life to a life of financial pain scrambling for a meager monthly stipend.

READ: How foreign exchange risks and others affect the Nigerian pension industry 

If you do not want to end up this way, you must brace up for success and create the kind of life you desire in retirement.  Almost all success stories that I know, started when someone reached that point of “enough is enough.” So, maybe right now is your enough moment. Let me show you how you can take the steps forward.

There are three things you can do to never worry about money in retirement again;

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  • The first thing is to replace your retirement income. While your job can retire, your income must never retire.
  • The second is to identify and focus on the 20% action, that will make a dramatic difference in your retirement life.
  • The third is to find the money you need, to fund your dream retirement life.

READ: Spending strategies to help you live within your budget

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Let me explain each of these points explicitly.

First, you must replace your retiring income with a non-retiring income. There are two kinds of income that do not retire. The first is Investment Income, and the second is Business Income. Replacing your retiring income with an investment or business income is important, because the major difference between you today and in retirement, is the absence of a high active income. If you replace this income with a non-retiring income, you will have a smooth transition into retirement.

Unfortunately, the majority of people only have their pension incomes to depend on. The income from pension is less than 20% of your current salary, and depending on pension means crashing the quality of your life to fit into a small budget in retirement. Pension as of today does not last for a lifetime, you are likely to run out of money if you live longer than the pension managers envisaged. If you are lucky to have a few other investments to depend on, you must make sure these investments mimic some of the characteristics of your current active income. They must be stable, consistent, regular, and difficult to lose. The key to success in retirement is to find ways to replace your retiring income and to do it in such a way that gives you peace of mind.

READ: 10 ways to save and make more investments

The second thing you must do is focus on the 20% action that will give you peace and independence the fastest. There are three areas to focus on if you want to experience a blissful retirement. The first area is Income. You need both short-term income security and Lifetime income security. Short-term income security will take care of your needs and emergencies, and long-term income security will sustain you for life.

The second thing you need is a residential home of your own or some sort of rental provision that does not stress you. One of the biggest capital expense that frustrates most people is rent. The sooner you take care of this expense, the more stable and stress-free your retirement will be.

READ: 5 Money Mistakes You Might be Making in 2020

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The third area is Health. Health crises can destroy any amount of wealth. It is in fact the biggest destroyer of wealth. Knowing what to do to heal your body, stay healthy, fit, and productive, is critical for success in retirement.

Finally, the third thing you must do is find the money to fund your dream retirement life. It is rare that you find a person who already has all they need for retirement. Often, four things are in short supply for most people. The first is time; most people are already out of time and must find ways to achieve their retirement goals within the limited time that they have. The second is money; which is always in short supply for most people, and they must find ways to generate more income for themselves. The third is relationships; some money problems can be easily and quickly solved with the right relationships. Most people lack the kind of relationships that will take them to the next level. The fourth and final thing is business skills.

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Shifting from employee to business owner requires growth in three key areas. First is the ability to solve problems with little resources. The second is the ability to inspire and convince people to give you money, in exchange for your goods and services; especially when you are not known or popular, and do so at zero or little cost. The third is the ability to find, initiate, and nurture the critical relationships you need to move to the next level in your financial life. These three skills are critical if you must succeed in life and business.

READ: This is why you should make voluntary contributions to your pension fund

Perhaps you are thinking to yourself, “How can I do all these? I need a blueprint to start.” We can help you. To learn more about us and how we can help you, send an email to [email protected]

Retirement is a continuation of life and not the end of the good life. You have invested your whole life making the lives of other people work. It is time to make your own life work and enjoy a blissful retirement.


About author

Grace Agada is The Senior Financial Happiness Director @ Create Solid Wealth. She is an Author, Column Contributor in Six National Newspapers, Writer at BellaNaija, and Trainer with a mission to help working-class professionals and CEOs become more financially successful. To learn more about Grace and how she can help you, send an email to [email protected]

Nairametrics frequently publishes articles from experts such as financial analysts, economists, researchers and investors. We also feature articles from guest writers and bloggers who wish to push their views and opinions through our platform. To get your articles on Nairametrics, kindly send an email to [email protected] and we will publish it within 24 hours of approval by our editorial team.

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Personal Finance

How to make more money solving problems

If you want to become more financially successful, you must figure out how to solve problems for other people.

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How to make more money solving problems

One of the reasons anyone in the world who is not your father, mother, or siblings will give you money is this; your ability to solve a problem that is important to them.

That is how all the wealth in the world is created. The Rich Make Money by solving problems for other people. They solve problems in exchange for money. And if you want to become more financially successful this is what you must do regardless of where you are or who you are.

READ: The greatest tech solutions spring from most regular problems

But before I show you how to make more money by solving financial problems, let me first tell you what it means to solve a problem satisfactorily. You solve a problem when you remove pain, obstacles, or challenges from people’s lives. And when you help them reach their desired end or destination.

So there must be two elements in every problem-solving equation. The First is the pain a person is trying to escape from, navigate, or change. And the Second is the pleasure a person is trying to gain or achieve. So now that you know what solving a problem means what are the kinds of problems to solve if you want to be wealthy?

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The Kinds of Problems to solve if you want to be Rich

There are many kinds of problems you can solve in the world but since you want to make more money let’s focus on the type of problem that can give you the most money. There is only one problem in the world that carries the most potential for wealth. This problem is the Financial Problem.

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Financial problems carry the most potential for wealth because they are universal in nature, everyone has them, and they cut across different countries, tribes, and nations. So if you want to make more money fast in your life focus on solving financial problems. To solve financial problems there are four people you must focus on.

READ: CBN lists major constraints affecting businesses, as borrowing rates projected to rise 

The Four People to Focus on if you want to make more money.

The first is you. The second is other people. The third is Businesses and the fourth is the Government. When you solve your own financial problems you do not make much money because money only comes from helping other people. But the benefit of solving your own financial problem is this. It gives you the knowledge, skill, and experience you need to help other people.

When you gain this experience you become a valuable resource to other people. So make sure never to waste any financial mistakes or decisions you have made in the past. Reflect on them to know what worked, what didn’t work, and what you would do next time. This is critical for refining your problem-solving skills and for helping other people.

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READ: Konga’s CEO discloses secrets of firm’s huge growth

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If you want to make the most money in the world you must focus on helping other people solve their problems. Part of the other people you must help is business owners. Business owners like individuals have financial problems and they are looking for people to help them grow their business revenue.

The beautiful thing about helping a successful business owner is that they are the richest people in the world and have the most capacity to pay you. But to succeed with business owners you must solve problems that are dear to their heart. This, keeping their businesses alive through the constant flow of cash is one of the most important things in the world to them.

READ: FRC orders banks not to lend money to states without approval

The last set of people you should strive to help if you can is the government. The government also needs financial help like individuals and businesses. But their kind of help requires a certain level of expertise and global application to reap a high reward. The more difficult the problems you solve the higher your chances of reaping a high reward. And the more financially related the problem is, the higher income you will earn.

So now that you know the kinds of problems you should solve and who to focus on to earn the most money. Let’s now see some of the factors that determine how much you earn when you solve a problem?

READ: Dealing with financial emergencies

Factors that determine financial success when you solve a problem

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There are three factors that will determine how much money you earn when you solve a problem.

The first factor is the type of problem you solve. The second factor is the Number of people you solve this problem for and the Third factor is the financial capacity of the person paying you. Let me explain these three points in more detail.
First the kind of problem you solve. Not all problems are created equal. Certain problems command high income while others command low income. A small or big problem is determined by two factors. First is the level of importance a person places on that problem and second is how that problem is related to making money, saving money, or saving time.

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READ: Nigerian Treasury Bills drop to 2% per annum

Problems that are pain-related, connected to making money or saving money, and also urgent in nature will command more money than problems that are preventive, future-oriented, or pleasure-seeking in nature. This is because most people are short-term in their thinking and will be open to help when they feel the heat. So focus on urgent problems that have a clear relationship with making money, saving money, or saving time for an individual, business, or Government.

Second is the number of people you solve a problem for. Solving a problem for just one person is the fastest way to end up in financial struggles. One of anything limits your opportunities and this is why employees struggle financially. They can only serve one employer at a time. The key rule for making more money is this. Find ways to solve a problem for more than one person.

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If you solve a problem for one person you get paid by one person and the amount you get paid is dependent on how close your value is to the bottom line. If you solve a problem for some people you get paid more money from a few people. And if you solve a problem for a lot of people you get paid a lot of money by a lot of people. The ability to help a lot of people at the same time is the advantage that business owners have over employees. So if you want to earn more money you must find ways to help a lot of people.

The third factor is who pays you. Who pays you determines to a great extent how much you earn. This is because people can only pay you according to their financial capacity. For example, when you solve a problem for a peer you get paid income at a peer level no matter the amount of value you provide. But when you solve a problem for a business owner you get paid at a business owner level depending on the success of the business owner.

Business owners are the richest people in the world and they have the highest capacity to pay you. All you need to do is ensure you solve a problem for more than one business owner at a time. And the only way to do this is to help a few business owners generate more revenue through sales.

So now that you know the factors that can determine how rich you can get let’s look at the fastest way to make more money through problem-solving.

The Fastest way to make more money through Problem-Solving.

The fastest way to make more money through problem-solving is to do two things. The first is to choose to focus on financial problems, which is the most critical pain for many people. And the second is to focus on helping business owners who are the people with the most capacity to pay you for solving their problems.

Business Owners spend a tones of money advertising and marketing their products. They are tired of the high marketing cost that produces a low financial reward. Most business owners are willing to share a part of their profit with you if you will help them sell their products through word of mouth and referrals.

And many of them pay up to a 6-figure commission on such sales. If you can help them connect to a new buyer, you can earn a juicy financial reward for it. Thankfully, everyone can help at least one or two people connect with products or services that can help them. The goal here is to only recommend products and services that you are passionate about.

Preferably Products and Services that you trust, have tried, and or tested. This is important because you do not want to jeopardize your important relationships on the grounds of making money. You must truly want to help people and not just sell products to make money. When you do this correctly there is no limit to how much money you can earn.

The Skills You Need to Solve Financial Problems

To successfully solve the revenue problems of business owners and help other people you need three skills.

The first skill is creative skills. You need the ability to come up with creative ideas that will help you sell a product.

Second, you need networking skills. Remember the only way to make money is by helping other people so you need many more people in your network who like you and trust you. This means that you must be a leader and an influencer within your circle. And be able to serve as the connecting bridge between the people who need help and the companies that can help them.

 Third, you need sales and marketing skills. That is the ability to educate, convince, inspire, or influence people that a product or service can help them solve their problems. Developing these three skills is the fastest way to make more money in your life and without the added stress of additional workload.

So If you are looking to make more money in your life and want to become a high-demand problem solver reaping 6-7 figure financial rewards we can help you. To learn more send an email to [email protected]

Your financial success is hidden in the problems you can solve for other people.


About author

Grace Agada is The Senior Financial Happiness Director @ Create Solid Wealth. She is an Author, and Column Contributor in Six National Newspaper. She is a contributor at BellaNaija, Nairametrics and Proshare and she is on a mission to help working-class professionals and CEOs become more financially successful. To learn more about Grace and how she can help you send an email to [email protected]

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Personal Finance

The five hidden secrets for investing success

These are the five main differences between making money, saving money, and investing money.

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How young Nigerians invest

One of the popular questions I get asked all the time is this; how do I invest for financial success or how do I make wise investment decisions. Today I will show you how to invest for long-term financial success. There is the right way to invest and there is also a wrong way to invest. The right way leads to financial success and the wrong way leads to financial failure. This means that the same investment vehicle can make you rich and it can also make you poor. I know this because there is virtually no person that I know today who has not lost money in investing before.

READ: Here is how much you should save at every age

To achieve financial success you must know how to invest without losing money and you must also master the three abilities necessary for investing success. The first ability is the ability to make more money and earn high incomes. The second ability is the ability to save big portions. And the third ability is the ability to invest your savings without losing it. These are the three secret formula for investing success. Unfortunately, only a few people know this formula or even thrive in all three areas. Many people are good at making money. They make a lot of money and save little or nothing. Some are good with savings. They save a lot of money but then lose it all through investing. And others are good at investing. They invest well but have little savings to make any significant progress. If you want to achieve financial success, you must thrive in all three areas. You must also know the key differences between them. There are five main differences between making money, saving money, and investing money. And these five are the hidden secrets for investing success. Let look at each of these five components in detail.

READ: Where to invest $10,000 right now

Secret No 1. Money making, saving money and investing money are different

Making money is a money-producing activity. Saving money is a money preservation activity. And Investing money is a money growing activity. To make money you need to solve a problem for other people and earn money for the problem you solve. To save money you need the discipline to live below your means and the self-love to pay yourself first. And to invest money you need some money and the right investment vehicle. Making money thus requires problem-solving skills, saving money requires the right attitude, and investing money requires money. So why you can make money from scratch with your skills. You cannot save from scratch or invest from scratch. To invest you need to save. To save you need money, and to get the money you need money-making skills.
Secret No 2. Investing Cannot Make you Rich

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READ: Investing & Gambling: Differences and Where They Intersect

Investing does not have the power to make you rich neither does your savings. The only way to be rich is to solve the problem of many people. The richest people in the world are all problem solvers. They solve problems by creating products and services that meet a need. And their wealth is the reward for the problem they solve. There is no single person in the world today who made their money solely through investing or saving. The fastest way to create wealth is to solve problems for many people.

READ: Financial skills everyone should master (1)

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Secret No 3. Investing is a poor money maker but a rich wealth creator

Investing and investment vehicles are poor money-makers but rich wealth creators. While they can make you wealthy and increase your Net-worth they are poor income producers. Many people in the bid to make up for their lack of money-making ability try to force the responsibility of making money on their investments. They become aggressive, take unsafe risks, and put pressure on their investment to produce high returns. They are lured by “get rich quick schemes” and make erratic investment decisions. They do this in the hope that their investments will produce the income they need to be rich. But this is a recipe for failure. The purpose of investing is to grow your savings and produce passive income and not to make you Rich. Your job is to refine your skills, build rich relationships, learn about sales and marketing so you can make multiple streams of income. As you produce more income and invest more money your passive income begins to build up to the point where it can carry the weight of your bills. This is the point where you can begin to relax a bit. Until then, keep refining your ability to earn multiple streams of income.

READ: Big mistake: Ripple’s CTO sold his Bitcoin for $750

Secret No 4. Investing can do five things for you

Investment vehicles have five capabilities and can do five things for you. The first capability is protection. Certain Investment vehicles can protect you from risks and emergencies. The second capability is passive income. Certain investment vehicles can produce passive income for you. The third capability is principal appreciation. Certain investment vehicles can grow your invested capital. The fourth capability is gambling. You can gamble with certain investments and lose all your money. And the fifth is sales income. You can get back your money with interests when you sell a profitable investment.

Secret No 5. Investing is easier than making money and saving money

Investing is easier than making more money and saving money. When you want to invest all you need is a clear understanding of where you are going, how to be safe on your way, and how to get there. It is like a car, you don’t need to know all the component parts in your car bonnet. But you need to know the fundamentals of driving a car, how to be safe inside a car, what to do to get to your desired destination, and who to call when your car has a problem. With this critical information, you can successfully drive a car. Similarly, you can invest successfully by just knowing the fundamentals of investing and collaborating with advisors and investment experts who know the tiny little details about investing. Only a few wealthy people in the world are investment gurus. They simply know the basics and surround themselves with experts that can help them. This is what you must-do if you want to achieve investing success. But when it comes to making more money and saving money the story is different. While you can learn how to make money and save money from other people. No one will make money or save money for you, you have to do this by yourself. Also, nobody’s skill or expertise will work for you. You have to develop your own skills and expertise to make more money and save more money. This makes making more money and saving money more difficult than investing. Nevertheless for you to be successful you must focus your energy and attention on making more money and saving money. You can always get help with investing and succeed in investing without being an investment guru.

READ: 10 ways to save and make more investments

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Investing for financial success is the dream of most people. However, there is the right way and the wrong way to invest.  The key to success with investing is to recognize the difference and understand the five secrets we have discussed in this article. The truth is your salary will never be enough to achieve all your goals. Your Investments will also not make you rich. You need to increase your ability to earn more income and save a major part of that income to thrive.

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If you want to learn more about how to invest with total financial confidence or how to make more money and save more money we can help you. To learn more send an email to [email protected]

Great investing success is not about the amount of time you put in it but the knowledge and principles that govern your investing.

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About author

Grace Agada is The Senior Financial Happiness Director @ Create Solid Wealth. She is an Author,and Column Contributor in Six National Newspaper. She is a contributor at BellaNaija, Nairametrics and Proshare and she is on a mission to help working-class professionals and CEOs become more financially successful. To learn more about Grace and how she can help you send an email [email protected]

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Personal Finance

Budgeting on a fluctuating income

Today, we discuss strategies on how to plan one’s budget, especially when you do not have a stable income.

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SAVE, LIABILITY, FINANCIAL, EXPENSES, BUDGET

One of the best ways to keep a lid on one’s finances is to have a budget and stick to it. It takes a superhuman effort to set up a budget and insist on not spending outside of it. Budgeting becomes much easier, especially when you know what your monthly income is.

But what about individuals who are either self-employed, freelancers, or those whose earnings are commission-based? How do these people budget on what they do not know? How can they budget on an unpredictable income and cannot be planned on as it depends on lots of variables beyond them?

Truth is budgeting can sometimes be assiduous, but budgeting on an income that is not stable will be more technical and more brain-tasking as one would have to be creative in his planning.

In this blog article, we would be filing out free strategies on how to plan one’s budget, especially when you do not have a stable income.

Always estimate that you will be earning very low

When your monthly earnings are irregular and depend on circumstances mostly beyond you, you would do well always to envisage that you will be earning a very meagre amount every month.

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By basing your budget on the probability that you will be earning very low, you will be able to fathom items that should be at the top of your list. This way, you would be budgeting for the necessities, and you would have no room to think of items that would only be consuming your funds.

Calculate your monthly least expenses

You already have envisaged that your earning will be low; you must also calculate the barest minimum of your monthly incurred expenses.

Your monthly expenses would cover items like groceries, transportation, health emergencies, insurance, and other essential services you must cater to every month.

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Calculating your minimum monthly expenses would also help you know how much you must earn to keep body and soul together on month by month basis.

Always have an emergency fund

One piece of advice that is even tenable with those earning a stable income is for everyone to have an emergency fund somewhere ready to be used when the need arises.

This fund could be used to handle health emergencies, house repairs, or any other kind of crisis that might occur during the period.

Without an emergency fund, you will most likely run into debts to keep up with handling these necessary expenses. You should always make room for an emergency fund in whatever you earn during the month as it could be a lifesaver in the long run.

Pay yourself

After labouring for a month, it is only right that you pay yourself a monthly stipend for all of your efforts. This fee would help you to be able to save more money than you would be able to ordinarily.

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Paying yourself monthly would help you to keep a leash on what your expenses are. In months when you can earn more than you might have envisaged, you quickly would be able to know what to do with such earnings rather than in periods when you never paid yourself, and you allowed undue expenses to eat the bulk of whatever you have earned.

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Avoid debts

Anybody who earns an unstable income has to do well to avoid debts. Debt is spending your future earnings now. And in your case, you don’t know what that future earning would be.

You might have gone ahead to over-borrow when you could be earning less. It would be best if you remembered that your earnings depend on so many factors, and they are not all in your control.

A client may decide that he does not need your services again, or he could choose to defer his payment or even cut your pay. If you had gone ahead to borrow, thinking that you would be making a refund with what you earn from that client, and any of the above situations happens. You would have ended up creating an avoidable mess for yourself.

So, if your earnings are not stable, try as much as you can to avoid debts.

Budgeting on a fluctuating income can be frustrating sometimes but if you follow the strategies discussed by the book, you should be able to confidently set a budget for your irregular income and live happily and without fear.

Explore Data on the Nairametrics Research Website 

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