Organizing your finances for sustainable wealth creation
As young persons, we think about the future. It might be done consciously or unconsciously, but we think about the future. We often think about the financial status of our future – how rich or wealthy shall we be? Interestingly, this line of thought is focused on how this “status” will be sufficient to meet certain needs such as health care, food, clothing, shelter, etc., at a future time. With this target in mind, we should also go on to think of what to do now to ensure we have what it takes to meet those needs in the future. What about the future after that future? Let us call this our very own “Replacement Theory”: how well will your financial status replace the financial resources that you consume?
“Nevertheless, the rules remain the same. Spend less than you earn, avoid bad debt, invest, and seek ethical opportunities to earn more.”
While the rules remain the same, the application of those rules would vary depending on your country of residence (where you live). Depending on our environment, the rate at which certain economic and social factors affect our financial status varies. In most developing countries, unemployment, and poverty (hinged on more complex measurements that will not be discussed) stall progress. If you are unable to obtain flexible or part-time work, your dream to earn income from which you will carry out savings and investment activities is shattered. If adults you rely on are unemployed, gifts or financial support for your ideas would be impossible. In the end, it seems like a never-ending poverty cycle. If you do break the cycle and all other prior factors remain the same in the lives of those around you, there is a tendency to re-start the poverty cycle if burdened by black tax (payments made to poor members of the family on the basis that you are financially well-off without taking into consideration its impact on your present and future financial health).
Nevertheless, the rules remain the same. Spend less than you earn, avoid bad debt, invest, and seek ethical opportunities to earn more. While at it, rethink how you view your future financial status by taking into consideration that you may not have the physical abilities to provide for yourself someday.
You must explore viable opportunities for investment into or for receiving investments into ideas you may have. You may also seek out advice from sound financial advisors who understand your present position and the economic environment you find yourself in. It may sound outlandish now but leaving a financial legacy you will be proud of should be part of your goals if you are keen on financial health.
Good luck!
