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.
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?
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.
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.
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.
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.
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?
Factors that determine financial success when you solve a problem
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.
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.
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.
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]
How to invest for retirement
Planning for retirement means planning to reduce obligation in the future by investing today.
“If you plan to retire in five years what should you be doing today?” That’s a question I got last week, and talking with the client, a lot came up which I have decided to share.
First off, What is retirement?
Nigeria’s public service has an official retirement age of 60 or thirty-five years of unbroken active working service, but in financial planning, retirement is a financial, not a chronological event. Retirement can occur when your passive income can meet your non-discretionary expenses.
You start to plan for retirement the day you start to earn an income. Your retirement plan will centre on how to generate passive income and reduce expenses. In Financial Planning, Four distinct stages are usually described in a so-called Lifecycle Chart. These are the Accumulation, Consolidation, Spending, and Gifting stages. Chart 1. Financial LifeCycle seeks to segment investing priorities, recommended asset allocation, and risk profile in a chronological timeline as the person gets older. I will take each of these stages and explain how they are linked to your retirement plan.
Chart: Financial Life Cycle
Early years: Use Your Time and Make Money, (Accumulate)
The first stage is called the Accumulation stage. Imagine a 22-year-old who has just graduated and is a management trainee. He typically has a low credit score and assets and income are also substantially lower. What he has in abundance is time. So it’s important to deploy his time in the best way to make money. Hence in the accumulate stage, the goal is to generate cash flow either from a job, multiple jobs, working longer hours, saving, cutting unnecessary expenses, etc.
The key measure in the accumulation stage is the Savings Rate which is essentially how much of income earned or generated has not been spent. On average, the participants in the accumulation stage have fewer dependents and maintenance needs which should theoretically make it easier to save.
Mid Years Use Your Money To Buy Assets (Consolidation)
In the consolidation stage the focus shifts from saving to investing. At this stage, the income earned and credit scores have improved. This is when the talk of buying a home or starting a business takes concrete shape because, at this stage, those dreams can be funded. Hence capacity to take on debt is improved, and debt is used to invest in assets like a home. Remember debt is simply front-loaded consumption, which means we are taking our future income to invest today, intending to repay with future income generated from today investment.
The key measure in the consolidation stage is the Rate of Return which is essentially how much has been generated from the investments made.
Spending & Gifting Phase; Use Your Assets To Generate Cash Flow and Time (Spending and Gifting)
Why is it called the spending phase? Because that’s what the individual is doing, spending down accumulated investments. The spending will include buying annuities or perhaps relocating to another city, your dependant’s college needs, etc. At this stage, typically very few are still earning “new” income but are rather spending from the return of prior investments.
The key measure in the spending stage is the Withdrawal Rate which is essentially how much of investment can be withdrawn as cash annually to ensure we do not outlive our investments.
Retirement is All About Passive Income
Passive income, which is the income we are making from investing from the accumulation and consolidation stage is now sufficient to generate income and reduce expenses to meet our expenses in the spending/gifting stage.
To give an example, assume we took a mortgage to buy a house in the Consolidation Stage, in the Spending stage, we pay no rent, thus we save cash, which reduces our Non-Discretionary Expenses. In essence, retirement is planning to eliminate your future expenses to the point where you need less income when you retire.
What Should You Invest In Before Retirement Or In Retirement?
Our objective is simple, Income. In retirement, we invest solely to make income to meet our spending needs, Risk profile is also very low because there are fewer recovery options if your investments sink.
The retirement portfolio is an income-generating portfolio that will be overweight in fixed income products. First, determine what the risk-free rate is. In Nigeria, we can take the yield on a ten-year FGN bond as a guide, this means we can have a target of 10% as our huddle rate for the long term. Thus I will recommend an 80/20 portfolio with 80% going to Fixed Income consisting of long term bonds, REITs, and other top-grade commercial paper.
However what happens if we lock in our funds for 10 years at 10% and rates jump to 20%, meaning a loss to our portfolio. To avoid this risk we can create a bond ladder, where we break down the bulk sum and duration of our total bond investment outlay. Let us assume we have N10m in cash to invest, instead of one single lot investment of N10m, we split into 5 equal investments of N2m and place for 6, 7, 8, 9, and ten-year maturities. This means by the 5th year the first N2m will mature, if rates are higher, reinvest, if rates have fallen then reevaluate.
What about Equities
Yes, equities also pay a dividend. In buying equities, we must ensure we are only buying stocks that pay a dividend above our huddle rate of 10% which is the 10-year FGN bond rate. Which Nigerian stock meet that huddle rate?
- GT bank
- United cap
In closing, let us summarize. Retirement is not chronological age. The event occurs when our passive income pays our bills. Planning for retirement means planning to reduce obligation in the future by investing today. Investing in retirement is income-based with a huddle.
Steps to take to bag international scholarships
Here are the steps you should take if interested in pursuing international scholarships.
Studying abroad gives you exposure among many other things, and that is precisely why many Nigerians have been looking for ways to study abroad. However, not everybody is privileged with the resources to study overseas and this is where the international scholarship option comes in.
If you are interested in studying abroad and don’t have enough funds, you should consider applying for international scholarships. This article lists the steps you can take to bag international scholarships but before delving into that, here are some types of scholarships available to you as an international student:
- Location-based scholarships
- Course or program-based scholarships
- Sports-related scholarships
- Research-based scholarships
- University-funded scholarships
- Organization-funded scholarships
- Government-funded scholarships
Having discovered the types of international scholarships available to you, here are the steps you should take to bag any of these international scholarships.
Research: Research is vital if you don’t want to miss out on good opportunities or make mistakes during your application. Research scholarship opportunities available in your prospective college or location and be on the lookout for hidden scholarships.
Check your eligibility: Having done thorough research and discovered the available scholarship opportunities, check to see if you are eligible for them. Many international scholarships have their criteria and requirement, so you should confirm that you are the right fit first.
Get the required documents: After confirming your eligibility, you should get the necessary documents. If the scholarship requires you to write an exam, prepare for the exam, write a good statement of purpose and prepare all other documents.
Start your admission process: Some international scholarships require that you start your admission process and probably get the admission before starting your scholarship application.
Contact past scholarship winners: You might want to contact the previous scholarship winners to know what they did right and how you can learn from them.
Apply for the available scholarships: The last step is to apply to every available scholarship.
The best way to get funds for your undergraduate, postgraduate, or PhD pursuits abroad is by applying for international scholarships. If you do thorough research, you can find fully funded scholarships that won’t require you to pay any amount. One of the essential steps to getting an international scholarship as a Nigerian is staying abreast of current information and this will require you to network with others.
Nairametrics | Company Earnings
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- Tantalizers Plc reports a loss after tax of N422.05 million in FY 2020.
- NASD Plc announces admission of newly demutualized NGX shares.
- Lotus Halal Fixed Income announces dividend of N20 per unit for Q1 2021.
- Friesland Campina Wamco Nigeria Plc announces AGM, proposes dividend of N6.74 per share.
- ETI appoints Akin Dada as Group Executive, Corporate & Investment banking.