Wednesday’s edition of the Effective Living Series gave listeners some key tips on planning for their financial independence.
According to Kofi Otutu Adu Labi, both the rich and poor could face financial problems as managing one’s finances effectively was the key to attaining financial independence.
He stated on the Citi Breakfast Show that one key attribute to achieving that level of financial security is wisdom.
“You need to have wisdom in planning your finance and life. You also need to know the value of the smallest thing in life,” he said.
He added that it was important for people to understand that you have to start small to win big.
“You need to know the value of little things, You have problems because you don’t respect little things, you want to get to a point where all of a sudden you have a big amount of money, you have a big house, you have a big car, but life does not operate that way. You need to start from the very basis, so you need to respect the little things,” he said.
In emphasizing his point about the importance of wisdom, Mr. Adu Labi said “a wise person has his or her eye on the next generation. A wise person maintains a routine, and a wise person studies the protocol. A wise person [also] concentrates on the things that matter.”
He explained that financial independence is freedom from worry, from being a borrower as well as from having to rely on people.
He believes that often people become dependent on others financially because they are either not content with what they have, are always in debt, are not disciplined in the way they handle their resources, while also leading a money-centered life.
He advised that the 10-10-80 rule by John Edmund Haggai, is the best way to ensure that you lead a financially independent life.
“You can save the little you have. It doesn’t have to be a huge sum of money. And after you have done saving, put your savings into an investment,” he said.
According to him, a person can start investing as little as 50 Ghana cedis, and once they are a bit more financially stable, they can gradually increase that amount.
Understanding the “power of the list”, is another thing the richest people in the world have learned to do which has worked perfectly for them up to now, according to Mr. Adu Labi.
“Power of the list is basically writing out what you want to buy and making sure you do not get anything aside that,” he said.
He also emphasized the need for a person to have a budget which would guide them to spend within their means.
“If you are able to follow these little details, you will be financially independent before you know it,” he concluded.
By: Farida Yusif/citifmonline.com/Ghana