I’m not very different from you, I do the writing and you do the reading, and then you do some writing in the comments box and then I do the reading. I hope we enjoy our interactions through these letters, and oh, I hope you are well?
My girlfriends and I were discussing money over coffee the last time we met at the mall (well, not entirely money, the boys as well) and it was pretty great knowing that we could afford a cool holiday at some exotic place when we turn 40 (according to our individual life plans, and girl, you should have one if you already haven’t got it penned down, I’ll probably send you a letter on that soon). It was exciting to know that, for the next few years, I probably would not be receiving any extravagant birthday gifts from them, and that I could return the favour with no hard feelings. Cheers to that!
Well, you weren’t at our little girlfriends’ meet-up, so here’s what you missed. But next time, make sure you turn up okay?
We agreed that you can’t have a financial life exclusive from the rest of your life. It is one huge slice of the pie, yes, but you cannot have a slice of the pie if there is no pie in the first place. So you must get a life plan (gracious, I should send this life plan letter fast!), and in that life plan, you have to have a financial plan. It’s that much of a big deal, believe me.
What other things we said are essentially, some of the things that make up the financial plan and here they are:
So you want to build your financial life? Get income. Do you want to get income? Get a skill. Note, I did not say an education, I said a skill, what your education (formal or no) can enable you to do. I say this because people get a degree, which presupposes they got an education and they cannot do a thing and there are people who learn a craft and they remain just that, people who learned a craft, never becoming crafters themselves. So I, I bake, read, write and occasionally, I do the corporate girl thing. These are my skills and they show what are in my head and in my heart and I earn from them.
Here is what I do with my “banks”. I have two commercial bank accounts which I run. They are two because one literally has no charges so I can keep my money in it till I decide where it goes. In this account, I make a monthly deposit of a set amount of money, or whatever unexpected money comes my way. These later get distributed to various investment instruments in other banks and investment houses in a set ratio, based on their returns and my investment goals. This is done through a standing order that I have issued on that account. The second account, which has the painful bank charges, I run as my wallet, more or less. My budgeted expenditure money goes in there, including the miscellaneous. When the money in that account finishes, I consider myself broke for the period until I get my next regularized income. This is how “banking” works for me.
Investment institutions are particularly dear to my heart because they give your money hope of a brighter future. When you “institutionalize” your money, make sure it spends the most of its time at an investment institution.
Why else would you get a book other than to read. This letter is a good place to start from, you can also join the sheVestor book club as they read to gain financial literacy every month. Some of the best financial advice, and in fact, the best of any kind of advice can be found in books. You only have to go dig them up, then bury them in your heart and mind and work with it.
So this is pretty much what I have to share with you. Hopefully, you wouldn’t miss out on the girls brunch date soon.
Nana Yaa. sheVestor.