This brand-new year - 2022, brings with it a wealth of excitement and opportunities, it’s a
year in which a lot of exciting events is going to happen, especially in the world of business.
From investing to making money, we have a lot to talk about and get into this year. There’s a lot
happening, From Crypto currencies, and NFT’s, all the way to advancements in tech and health care,
this year, to say the least, is going to be exciting. And for those with a keen eye and a
sense for opportunity, you’re bound to make a tone of money. So, if you’re excited, give this video a
big thumbs up and stay tuned, as we go over some of the new rules and tips for money for 2022.
1. Start saving Start the year by saving money.
Have you heard stories from people who bought their dream home, car, appliances, paid for their
college fees, or even went for a vacation all from the savings they made? They simply developed The
21-day rule and started making saving a habit. To start, there are several factors to guide you:
first, be disciplined, money does not stay where it is needed, it stays where it's respected, that
is, don’t squander money just because you have it rather, attach it to recurrent expenses such as
phone bills, rent, mortgage payment, electricity bills or student loans. Make it count otherwise
you will keep paying what we call “poverty tax ‘’. So how am I supposed to start saving? is the
common question. Well, simply start by: • Recording your expenses – figure out how
much you spend by organizing a workable budget for all your daily expenses
from groceries, mortgage to telephone bills among others. Using a digital program or app can help
automate this work such as the PocketGuard app. • Find ways you can cut your spending- Cancel
subscriptions and memberships you don’t use. • Take a bus or a train to school or work – Also
use a bicycle for short distances, which can also be a form of exercise to keep you fit.
• Food- Carry packed lunch to school or work, commit to eating out once a month,
get coupons for foodstuff. • Set savings goals – Think
of what you might want to save for, perhaps planning a vacation,
saving for retirement, getting married or going to college. Then figure out, how much money you
will need. Is it a short or long term goal? • Pick the right tools- use a piggy bank,
it can be for the whole family or personal, throw in your pocket change for small bills or coins.
You can also use swear jars if you want to get rid of that bad habit.
Also, you can open automated checking and savings accounts.
2. invest your money Most of us tend to confuse between saving money
and investing, saving money involves setting funds aside in safe, liquid accounts. Investing involves
buying an asset in hopes of earning a return. Here's a five-step process that can help you
figure out how to invest your money right now: • Identify your financial goals,
timeframe and feelings about risk. • Decide whether you want to take a
"do-it-yourself" or "manage it for me" approach. • Pick the type of investment account you'll use.
stocks, bonds, mutual funds, index funds, exchange-traded funds (ETFs) and options.
• Open an account. Choose an account provider, an online broker or a Robo-advisor. You can set
up automatic transfers from your checking account to your investment account, or even directly from
your paycheck if your employer allows that. • Choose what investments match your risk
tolerance (stocks, bonds, mutual funds, real estate).
3. Better yourself Go back to school.
A recent study found that going back to school to get an M.B.A. can add a full
45 percent to your salary. By the way, you don’t have to step inside a school compound,
you can partake in online classes while in the comfort of your home or workplace,
so in 2022 learn new skills and place yourself in a position for career advancement.
Send the kids to college Spend whatever it takes, save whatever it takes,
borrow whatever it takes. Education is the smartest investment you can make and it's
your children's most valuable asset towards their earning power. College graduates make 80 percent
more than people with only a high school diploma, which adds up to an extra million over a lifetime.
Improve your health Many people tragically die
from work-related diseases and stress due to a lack of proper health care. Use money
to better your health status, visit that spa centre, hit the gym, do yoga, eat healthy foods
and above all relax be it by taking a vacation or travel. let your money take care of you.
4. start up a business Have you always wanted to start your own business?
Before we dive into money matters, first try to answer a few questions: Why do you want to
start a business? Is it for riches, freedom, and flexibility, to solve a problem or some
other reason? What skills do you have? What do you like to do? How much capital do you have to risk?
Will it be a full-time or a part-time venture? If you have answered those questions and assuming
you have conducted market research, (if not watch out for my next video), the next step
it to know your competitors, And remember, the presence of competitors is oftentimes a good sign!
It means that the market for your product or service already exists, so you know that you
have potential customers who are willing to spend money on your product or service.
Write your business plan. A business plan is a necessity especially if you will be seeking
outside financing, but if you plan on financing yourself a business plan helps you figure out how
much money to get started with. Pick your business location.
consider the following: • Price - contemplate if whether
you can afford rental space or even buy one. • Accessibility and visibility – look for spaces
near parking or public transportation. Ensure people can easily find you
• Local, city, and state rules and regulations - Ensure there are no
restrictions that will limit your operations or that will act as barriers to your store.
Fund your business – the main part of starting a business is to seek financing for your venture.
There a various investment and lending options such as:
• Commercial banks • Small business administration (SBA) Loans
• Friends and family • Credit cards
• Venture capital • Crowdfunding, and so on.
5. Prepare for bad times The fourth rule of money
in Robert Kiyosaki's book titled “Conspiracy of the rich’’ explains how important it is to
prepare for the bad times when you will only know good times. Robert gave the account of
the famous story of a biblical character, Joseph. Joseph’s dream and interpretation of 7 bad years
convinced the Pharoah to prepare for the famine. This alone made Egypt the most powerful country.
If we are able to deal with a financial crisis, we will be very profitable in good times.
Start with an emergency fund One way of preparing for unexpected
life events is to have a solid emergency fund in place. Your emergency fund should cover three to
six months of standard living expenses and should be relatively liquid. An emergency
fund is important in the event you lose your job and have a hard time finding another one.
It’s always pleasing to know you have the money there while you are dealing with other issues
such as job loss, illness, or anything that might affect your income.
Obtain life insurance It is important that you have adequate
life insurance to provide for your family. The value of the policy's death benefit should provide
enough money for your beneficiary to pay off debts after you pass away. It is vital that you have
life insurance coverage if you have children which can even cover their cost of education.
Plan for natural disasters In this age where natural disasters are on
the rise, Wildfires, floods, and hurricanes are striking states, straining resources,
and devastating communities already overwhelmed by COVID. They can come upon you suddenly,
and you need to be prepared to deal with them. Consider which natural disasters are common
where you live and talk to your insurance provider about the coverage you may need.
Create a backup budget Finally, you may want to
sit down and create a fallback budget. The fallback budget should leave out the things
you could cut back on or do without if necessary. This fallback will help you
be ready in case you experience an unplanned financial event or a period of unemployment.
If you make the plan now, it will be easier to put it into place when and if the time comes.
At the beginning of a crisis, you may not be thinking clearly, and it helps to have a plan
already laid out that you can follow. 6.learn how to use debt
Debt is a word that many people are afraid of. There are so many television shows, books,
and magazines devoted to teaching people about getting out of debt.
While debt can be seen as a negative measure, it can also be a positive one if used properly.
The primary way to use debt to invest positively is to use leverage to
exponentially multiply your returns. What exactly is leverage?
Leverage is the use of borrowed funds to boost your return on investment. Leverage can enable
you to achieve previously unthinkable returns, but at a higher risk of capital loss. The rich
use good debt to grow their worth, and they invest in cash flowing assets using Other People’s Money
(OPM)—both the bank’s and investors. Many people believe that it is a fantasy world in
which people will simply give you money to invest, but this could not be further from the truth.
The truth is that most people don't have time to look for good deals.
Instead, they rely on individuals with the necessary financial education, skill set,
and drive to bring them deals. This is a type of debt called efficient debt, where the money can be
used to purchase assets that have the potential to grow in value and/or generate income that can be
used to pay back the debt. Examples of such assets include property, shares and other securities
such as managed funds. It’s this type of debt that can help you build real wealth over the long term.
So, there are two ways to manage debt as a means to build wealth over the long-term.
• 1. Remove inefficient debt Inefficient debt will almost certainly reduce your
wealth due to the associated interest and fees. In some cases, focusing on paying down this debt
first – starting with your highest interest/fee debt and gradually paying it off – may be
worthwhile. For example, if the interest rate on your credit card balance or personal loan is
higher than the interest rate on your home loan, depending on your circumstances, it may be better
to pay off your credit card debt first because it has higher interest and fees than your home loan.
Using this method, you should be able to gradually reduce your overall interest payments.
• 2. Date recycling - Debt recycling can be an effective strategy for accumulating
wealth over time by converting some of your inefficient (doesn't generate
capital growth or income, or isn't tax-deductible) debt
into debt that may be efficient (does generate capital growth or income, or is tax-deductible).
One option is to use a lump sum – possibly from a bonus
or inheritance – to pay off your inefficient debt.
If you then borrow the same amount and invest it, you are essentially replacing the inefficient
debt with a debt that is tax-deductible and has the potential to generate wealth.
Well folks, that’s all we have for you today,
thank you so much for watching, give this video a thumbs up and I’ll see you in the next one.