There is a big disparity in the quality of life of the average salary worker in active service and in retirement. This gap between a luxurious life made possible by the borrowed wealth of the employer. And the miserable life made possible by the neglected wealth of employees is the reason why many people dread retirement.
The big question though is why does this gap exist?
Today I will show you the one reason why this gap exists, and how you can approach retirement with financial confidence.
So why does this gap exist?
There is only one reason. And this reason is the presence or absence of a Personal Money Making System
What is a Money-making system?
A money-making system is any system that produces income enough to take care of bills, sustain living standard, and seize opportunities
Every organization has its own money-making system that generates income for the organization. Organizations use this income to pay bills, seize opportunities, and fund their luxurious lifestyle. It is also the income from this system that pay salaries and fund employees’ lifestyle. Employees get to benefit from this system and eat from it as long as they are connected to this system. And Employers reserve the right to choose who joins and leaves the system. Retirement is one of the ways employers refine and rejuvenate the system.
The problem however is that most employees are oblivious to this system even though they work in it every day. Over 95% of them do not know how to create their own money-making system or even create one before retirement. They are carried away by the trappings of wealth produced by their employer’s system and neglect their own money-making system. At the end of their career, they are thrown out of the system and cut off from the wealth supply.
It is at this point that employees realize how ineffective their own money-making system has been. For the majority, the only system left to fall back on is the Government system-Pension. Unfortunately, pension is woefully inadequate to sustain employees’ living standards at the same level.
So If you are reading this article and the retirement bell has already begun to ring for you. And if you have not yet created your own money-making system. Now is the time to do so. Be rest assured that you will elevate your pain, suffering, and embarrassment in retirement. If you do not create your own money-making system.
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So how do you create your own Money Making System and maintain the same quality of life?
There are three things you need.
First, you need a Money-making seed. Second, you need the right Money Making Investment vehicle. And third, you need a Profitable work to retire to. Let’s look at each of these points in detail.
The Money Making Seed.
One of the basic things to do while working in another man’s system is to create a certain seed that you can use to create your own system. All seeds are not created equal and certain seeds carry more value than others. Nevertheless, without a seed, you cannot create a money-making system to depend on.
So what are these seeds?
There are generally nine seeds you need to create your own money-making system. You do not need to have all nine seeds. But the more seeds you have the stronger will be your money-making system. Let’s look at the seeds.
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The Nine Seeds for a Solid Money Making System
- The First seed is Savings or Cash Reserves- You need solid cash reserves to build a money-making system.
- The second seed is Income Producing Real Estate. If you have income-producing real estate with accessible funds you can also use this as the seed for your money-making system.
- The Third seed is a Large Pension Funds- Although a large pension Fund is a seed. It is one of the least viable seed. This is because pension is based on the cumulative contribution of just 20% of your income. This means that you will have to shrink your life downwards to depend on pension. Although pension can be diversified to create a lifetime income. Your living standard will still be stuck within 20% zone. The truth is Pension as of today is not a lifetime income and pension’s income is adjusted downwards the longer you live. So depending on pension alone is not wise.
- The Fourth seed is Liquid Investment- Your Liquid Investments depending on the size can serve as the seed for creating your own money-making system.
- The fifth is Lump Sum Payments. Lump-sum payments like Gratuity, 13th-month salary, or special Bonuses can be channeled to create your own money-making system.
- The Sixth is Life Insurance. If you have life insurance investment of any sizable cash value. This can also be used.
These are the six seeds to use if you have money stored up in any of the above options.
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But If you have little money the rest three Options are what you can explore.
- The Seventh Seed is High-Income skills. To make money quickly there are certain skills you must have. I call them the Rich skills and there are only three of them. The First is problem-solving skills also known as innovation or creativity skills. The second is Relationship Building skills also Known as Networking skills. And the Third is marketing skills also known as sales skills. These three skills are the skills you need to make money from scratch.
- The Eight seed is Valuable Relationships. You need other people to deploy your skills and that is where valuable relationships come in. Without the right relationships, you cannot make any money.
- The Ninth seed is Opportunities to Earn Side Income: Even with the right skills and valuable relationships, you cannot earn income without the right platforms and opportunities. Thus finding income opportunities is key to creating a strong money-making system.
If you do not have any of these nine seeds, please know that your only other option is to shrink your life to fit into the 20% budget of your pension. There is no other way.
So what happens after you get the seed?
After you get your seed the next thing to do is to get your Money Making Investment Vehicle. The Goal of the Investment Vehicle is to create a look-alike income for you in Retirement.
2.The Money-Making Investment Vehicle.
One of the worse things that can happen to you is for you to put all your years of hard work inside an Investment vehicle and lose it to thin air. When you are planning for retirement you need Certainty and not gambling. And there are only a few investment vehicles that fit these criteria. These investments are suitable Investments that can create a look-alike income like your current salary.
So how do you know these Investments?
There are 11 characteristics Investments that qualify as Retirement investment should have. Let’s take a look at them
The 11 Characteristics of the Right Investment Vehicle for Retirement.
- They have the capacity to produce consistent and regular income and can perfectly replace salary.
- There are Passive in nature. Passive income gives you the allowance to focus on other income-generating activities.
- There do not fluctuate, reduce in size, skip, or miss.
- There last for a Lifetime and cannot Run Out on you.
- There are strong enough to cover your Bills, living standard, or lifestyle whichever you choose.
- There have Zero to little maintenance once set up.
- There are difficult to Lose.
- The risk inherent in them has a low likelihood of occurrence.
- There are a Proven Investment Option
- There require Zero ongoing expense once set up
- Your Principal investment is not destroyed even in the worst-case scenario
These are the eleven Characteristics of the kind of investment that is suitable for your Retirement Income. If you need help understanding which Investment is right for you at this time send an email to [email protected].
So what happens after you replace your income?
The next thing to do is to find a replacement for your work. The other part of your job that brings meaning to your life.
One of the reasons you go to work every day besides income is the satisfaction you get from your work. Idleness is not in our DNA and your life becomes meaningless when you are Idle. Retirement is thus not an express ticket into a life of idleness and laziness. You must preserve the satisfaction you get from your work.
But how exactly do you achieve this?
To achieve this you need to export the structure that produces productivity, Value and Income in your current work.
Your current job brings you satisfaction because there is a structure to everything you do. There is a big agenda that runs the organization. There are processes and systems. You are told what to do, when to resume and how to make each hour count. And you work in collaboration with other people each thriving in their areas of strength. Retirement marks the end of this structure. You will be practically thrown out from a structured environment into your own unstructured environment filled with idle days and idle time. If you do not plan ahead to create a structure for your day and around the things you love. You will descend from a life of happiness, productivity and meaning. To a life of depression, demotivation and anger. Creating structure in your day, giving meaning to time and surrounding yourself with the right people are the three ways to preserve the satisfaction you currently get from your job.
The problem is while most people can work in a structured environment, only a few people can create their own structured environment. To enjoy retirement, you must create a structure around the work you love. Make the work profitable and surround yourself with the right people.
These are the only three things to do to approach retirement with financial confidence.
Perhaps you are thinking to yourself, how do I start and where do I begin. We can help you get started. To get help send an email to [email protected]/
The best way to enter retirement with Boldness is to create your own money-making system, carry along the things you loved about your job and leave the rest behind.
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]
5C’s of creditworthiness: What lenders, Investors look for in a business plan
Business owners need to be aware of the criteria lenders and investors use when evaluating the creditworthiness of entrepreneurs seeking financing.
Banks usually are not a new venture’s sole source of capital because a bank’s return is limited by the interest rate it negotiates, but its risk could be the entire amount of the loan if the new business fails. Once a business is operational and has an established financial track record, banks become a regular source of financing.
For this reason, the small business owner needs to be aware of the criteria lenders and investors use when evaluating the creditworthiness of entrepreneurs seeking financing.
Will the business that an entrepreneur actually creates look exactly like the company described in the business plan? Of course, not.
The real value in preparing a business plan is not so much in the finished document itself but in the process it goes through – a process in which the entrepreneur learns how to compete successfully in the marketplace. In addition, a solid plan is essential to raising the capital needed to start a business; lenders and investors demand it.
Lenders and investors refer to these criteria as the five C’s of credit.
1. Capital: A small business must have a stable income base before any lender is willing to grant a loan. Otherwise, the lender would not be making, in effect, a capital investment in the business. Most banks refuse to make loans that are capital investment because the potential for return on the investment is limited strictly on the interest on the loan, and the potential loss would probably exceed the reward. In addition, the most common reasons that banks give for rejecting small business loan applications are undercapitalization or too much debt. Banks expect a small company to have an equity base investment by the owner(s) that will help support the venture during times of financial strain, which are common during the start-up and growth phases of a business. Lenders and investors see capital as a risk-sharing strategy with entrepreneurs.
2. Capacity: A synonym for capital is cash flow. Lenders and investors must be convinced of the firm’s ability to meet its regular financial obligation and to repay loans, and that takes cash. More small businesses fail from lack of cash than from lack of profit. It is possible for a company to be showing a profit and still have no cash – that is, to be bankrupt. Lenders expect small businesses to pass the test of liquidity, especially for short term loans. Potential lenders and investors examine closely a small company’s cash flow position to decide whether it has the capacity necessary to survive until it can sustain itself.
3. Collateral: Collateral includes any asset an entrepreneur pledges to a lender as security for repayment of a loan. If the company defaults on a loan, the lender has the right to sell the collateral and use the proceeds to satisfy the loan. Typically, banks make much unsecured loans (those not backed up by collateral) to business start-ups. Bankers view the entrepreneurs’ willingness to pledge collateral (personal or business assets) as an indication of their dedication to making the venture a success. A sound business plan can improve a banker’s attitude towards venture.
4. Character: Before extending a loan or making an investment in a small business, lenders and investors must be satisfied with an entrepreneur’s character. The evaluation of character frequently is based on intangible factors such as honesty, integrity, competence, polish, determination, intelligence, and ability. Although the qualities judged are abstract, this evaluation plays a critical role in the decision to put money into a business or not.
5. Conditions: The conditions surrounding a funding request also affects an entrepreneur’s chances of receiving financing. Lenders and investors consider factors relating to a business’ operation such as potential growth in the market, competition, location, strength, weakness, opportunities and threats. Another important condition influencing the banks is the shape of the overall economy, including interest rate levels, inflation rate, and demand for money. Although these factors are beyond an entrepreneur’s control, they still are an important component in a banker’s decision.
The higher a smaller business scores on the five C’s, the greater its chances of receiving a loan.
Written by Chukwuma Aguwa
Don’t be fooled by COVID-related scams
Always consult the institution in charge of health-related matters to confirm any fishy information you come across.
The nature of and the manifestation of the Covid-19 disease is such that there’s only a little time available to remedy the situation before it gets chronic. Although the infection begins by exhibiting mild symptoms, if you do nothing in a short time, it could lead to death in a matter of days.
This whole picture has caused many to become desperate about Covid-related issues, launching into panic mode at the sight of any information. As a result, such people are not far away from falling for fraudsters.
With the different kinds of news flying around, you mustn’t be fooled by Covid-related scams.
The Coronavirus threatens the health of millions of people around the world daily, also killing thousands along the way. To curb the spread and remedy the situation, bodies like the CDC, WHO, and every country’s local health organisation like the NCDC, frequently circulate information around communities. However, it has also led to fraudsters taking advantage to provide fake news, and even asking for donations.
Each day, there seems to be a new account or NGO asking for donations into the health sector, and though some are legit, many are just fraudsters posing to take advantage of innocent citizens. So far, numerous complaints about scams have been recorded, especially with people who are looking to support the health cause in any way they can.
Channels used for COVID-related scams
There are three major ways scammers take advantage of the haziness of the situation to dupe people. To start with, they appeal to the emotions of humans, who see the high death toll and suffering. As a result of what is happening, people have been willing to donate funds for medical supplies, isolation centres, and financial compensation for medical workers.
Scammers take advantage of this by posing as charity organisations and solicit for funds. Most times, as soon as their target is met, they clear their footprint without leaving a trace behind.
Another way they scam people is by manufacturing and selling fake or low-quality health products. Everyone wants to get their hands on a cure, or something that can at least protect them from the virus, and scammers are meeting their needs by providing just that.
The World Health Organization currently approves only one vaccine, and any other thing outside it is outrightly fake or just a supplement that will help your body. Currently, only the Pfizer vaccine is clinically tested and approved to work. Be sure to not throw your money in the wind by purchasing some of these fake drugs around.
Lastly, scammers create systems to extract a patient’s personal information, thereby having access to the person’s true identity. It could be in the simple form of opening a registration portal where you supply all your details.
Therefore, only give information to approved bodies and not any random online site that appears legit. These fraudulent individuals can do a lot of damage to your identity. Stay vigilant, only communicate with approved bodies, and always ask questions if you are not sure or suspect foul play.
The place of electronics in COVID-related scams
These fraudsters usually reach out to you through the digital sphere. Hence, watch out for cold calls, text messages, or emails requesting donations to certain bodies. The best way to confirm the legitimacy of such a message is to visit the organisation’s official website in a different browser. Never follow the link in the mail or text directly, as it can be easily embedded with spyware. Therefore, a single click could see them extract all your personal information, including bank details.
Also, please stay away from those who claim to have a cure, and accompany it with testimonies of people who have used it. They are low graders desperate for your money. Vet them by searching online and see what people are saying. In all, always look out for suspicious messages, and opt out if you are sceptical.
In a nutshell, you should not believe any cure, vaccine or supplement that the World Health Organization does not approve of.
The government or legit health institutions do not cold call citizens to request donations or coerce them into making one. If you receive a call out of the blues, chances are it’s a scam, which is why they mostly try to hurry you to donate before you realise it. Always consult the institution in charge of health-related matters to confirm any fishy information you come across.
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