First Gentleman with Wilson Orhiunu
Email: babawill2000@gmail.com Twitter: @Babawilly
For those who possess an income, there is a financial thermostat that hovers around the brain. This invisible device is usually set somewhere between 20 to 200 per cent of the income figure.
Those who live above 100 per cent of what they make have some debt to make up the difference.
Living above your means has a few short term benefits, namely:
You can keep up with the Jones. Since personal money is not a factor in decisions about spending, people are able to rely on unassuming friends and family for loans. Once a name has been made as one who does not repay his debts, the person can move onto the banks and credit card companies. When those bridges have all been burnt, it would be time to build new bridges and develop new lines of credit.
The latest clothes can be bought on credit and since most people judge you on appearance when they meet you rather than asking to see six months worth of bank statements, the façade of ‘prosperity’ continues to be perpetuated.
Lies and exaggerations are needed for this kind of lifestyle for if you are not economical with the truth no one will throw you a line of credit.
People love the guys who live out the mantra “money is no object”. They are fun to be around (so long as you do not loan them money), they are well travelled and attend the hottest parties and have the best stories to tell. These are the ones living in rented accommodation and married to wives who believe their husbands own the house. They are the ones who wear a Hublot Big Bang on their left wrist and look down on your Timex. They bore you silly with long talks about The Patek Philippe Caliber 89 and the Rolex Submariner but they do not have two landed property title deeds to rub against each other.
These big talkers ask you why you are still driving ‘that car’ and still living in ‘that neighbourhood’ and then next minute are squeezing you for a loan to be paid back at the end of the month when their ‘mega deal’ pays off. Don’t be surprised to see an article in a glossy magazine about these guys. Local musicians might even sing their praises but the local bank managers and EFCC officers do not rate them highly.
These guys will always be in a job and just keep on moving along till they get a bit wise with advancing years. If their grey hair fails to bring financial wisdom, there is always the option of sucking the life out their children’s financial plans.
Living according to your means
This is the common sense approach to life and most people would fall into this category. Nothing flashy or earth moving, but plain old cutting the cloth according to the material available. Might appear dull at parties for we all know that “we just cannot afford it” does not make for exciting conversation.
The good thing about this sensible life is that debt never comes unless illness or job losses occur. People in this group have good credit and would easily obtain loans form family friends to see them through difficult patches.
However, don’t expect these sensible people to throw lavish parties. However, they might attend these parties and sit in the corner wondering how everyone else is able to afford to look so glamorous. (Na debt na)
Living below your means
These are people who have crunched the numbers and know what their exact expenses are. They live on anything from 20 to 50 per cent of what they make. These are the ones that always have money and never spend money. They invest money. Everything is premeditated when it comes to money. Of course they would throw no parties and even if they did, I would not like to attend for these lot are not out to impress anybody. These are people who would buy everything except toothbrushes and underwear from second hand stores. Everyone calls then stingy and boring.
This group is the ones to emulate. They are the secret millionaires. They never flaunt what they have and they know all the good investments. One should have a few family friends in this group so that one can learn how to do without.
These are the type of people who would go into a shop, and be amazed by the new must have product which the shop attendant presents to them for one hour. They think for two seconds and say “let me get back to you”.
They never come back. They go online and buy shares in the company that makes the exciting product.
Most people say it is too hard a task to live below your means. Money in the wallet begs to be spent and advertisers beg you to visit their showrooms to see their must have products. How then do these stingy people resist the urge to buy?
Well, the answer might be simpler than we think.
We all have areas in our lives where we do not perform to our full potential. Take exercise for instance. Few people ever push themselves to the max. We all feel we need to leave something in reserve. Reading is a good example of an activity that we all agreed is good for our continuous development and yet we hardly read to our maximum capacity.
That ability to do even the good things in moderation is a transferable skill. Some people just feel that they cannot and should not spend everything they make. Some cash should be left in reserve.
Nations behave like people sometimes. Some nations definitely live above their means boasting of grand projects they cannot afford to pay for. This leads to loans that come with interest payments. This usually ends in tears.
