Let’s talk about personal financial hygiene

13 Jun, 2018 - 00:06 0 Views

The Chronicle


Morris Mpala, MoB Capital Ltd
WE all aspire to have financial freedom. Allow me to use Sue Nyathi’s 2018 social media discussion definition. “Financial freedom occurs when your wants and needs are exceeded by your passive income.”

Passive income is income earned through minimal effort such as rental income. Active income is the income you slog for like your salary. You fall into one of four categories: a) expenses exceed income, b) breaking even, where income covers your expenses, c) middle class money flow, where you have a lot of income, which covers expenses and liabilities but you are still poor and d) wealth money. This is where you invest in assets, which generate passive income.

Probably you need a smart spending plan. If you spend more than 60-65 percent of what you earn then you are over-stretching yourself.

Earnings, spending and savings

Never depend on single income. Make investment to create a second chance. If you buy things you do not need, soon you will have to sell things you need.

Do not save what is left after spending, but spend what is left after saving. Savings have to be religious to make sense.
Taking risks

You don’t avoid risk but you manage risk. Above all take calculated risk and avoid stupid decision making.

Diversify your investments, not all eggs have to in one basket. Where it happens that you have one basket please watch that basket closely every day. Be mindful of spreading your investments thin it might not give you the returns you will be seeking for.

Crystallise your thoughts
As a man thinketh in his heart, so he shall he be. Let all good thoughts enter your mind. You can’t prevent evil thoughts from crossing your mind but whether they linger on your mind is your call to make.

Remember the idle mind is the workshop of the devil, so are evil thoughts. Think of insurance. Plan and pursue. Always have a blue print and make vigorous follow ups on that blue print.

Celebrate yourself
Critique yourself always and be happy with who you are, what you do and you can do anything you want. Remember action speaks louder than words. Less talk and be a person of action, action and action.

Speak less, listen more. Be fast in listening but slow in speaking as the Bible says. Listen more than twice you speak.

Only when you listen can you become what you want. Have needs not wants. If you don’t know the difference then my friend you are in big trouble. I won’t lie to you.

Figures never lie, work smarter
Know your figures. Income and expenses will save you a headache. Work smarter. Forget about working harder do it smarter and achieve your financial objectives through smart ways of doing things.

Live a little. Explore the fun side of life. All work and no play made Jack a very dull boy.

Be realistic, read more
Lies will not take you anywhere especially if you are lying to yourself. Always enrich your mind. Feed the mind through resourceful literature. Garbage in garbage out.

Remember you are on your own and the world owes you nothing at all. You have a greater purpose on earth that just being typical, obvious and looking like everyone.

You have to stand out and shine as an individual and all you can do it better because you can only play you better than anyone else.
Like I have said it before whatever you do, do it well to the best of your ability but above all do it as if you are doing it for TV.




Morris Mpala (Mr Brown) is the managing director of MoB Capital Limited, a Bulawayo-headquartered micro-finance institution with footprint across the country.

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