Speaker 1: Hey guys, good evening, Welcome to you all. Welcome to
Speaker 1: another space, money space with me caylu Aja. Of course,
Speaker 1: on this space, we're talking money, the economy, and finance.
Speaker 1: Want to take all those topics every week, make it
Speaker 1: easy for you guys to follow, for you guys to understand.
Speaker 1: So of course you become a better investor, you know,
Speaker 1: better taxpayer and the riots and all that. So yeah,
Speaker 1: so welcome to the session with me. This week, we
Speaker 1: are continuing our episode that we started last week when
Speaker 1: we talked around the financial health check. Essentially, what we're
Speaker 1: doing is trying to review your finances in twenty twenty
Speaker 1: five and of course setting you up for twenty twenty six.
Speaker 1: That's what we're trying to do this week. Last week
Speaker 1: we talk around the income and expenditures, and we talked
Speaker 1: around the entire your plan for you, how you want
Speaker 1: to essentially set up your entire entire financial plan, not
Speaker 1: just how to make money, but how you structure it.
Speaker 1: There's a structure to follow. You just can't save without
Speaker 1: doing certain things, so we give you that structure. We're
Speaker 1: gonna do a reveal of that structure again at this space,
Speaker 1: and then we're gonna then go into assets and liabilities. Right,
Speaker 1: last week we did income and expenditures. This week we're
Speaker 1: gonna go back and talk around just a summary of
Speaker 1: income and expenditures, and then we're gonna go into assets
Speaker 1: and liabilities, guys, so we can see how we're going
Speaker 1: income and expenses and then assets and liabilities. So if
Speaker 1: you're on YouTube, you are able to follow. And I
Speaker 1: did share the YouTube link earlier on Twitter, so if
Speaker 1: you're on YouTube, you can follow visually. But what I
Speaker 1: want to do is just to go over the what
Speaker 1: we talked around last week. Right, I'm gonna move this
Speaker 1: out of way. We talked around last week how you
Speaker 1: want to set up your finances, right, and like I said,
Speaker 1: bring the notepad because we're gonna do a lot of
Speaker 1: note writing which you can full up with when you
Speaker 1: get back home or look at the recording. So YouTube
Speaker 1: does the visuals, but you can just write down yourself
Speaker 1: on audio. So last week we said there are five
Speaker 1: stages to your financial plan. They are going to be
Speaker 1: five to your financial plan. The first is going to
Speaker 1: be you have to plan. You have to say what
Speaker 1: you want to achieve because everyone doesn't have a plan
Speaker 1: that it's going to be similar. If you are, for instance,
Speaker 1: fifty years old, you have a different financial plan from
Speaker 1: someone that is twenty five year old, So you cannot
Speaker 1: invest as if you are the same, even though you
Speaker 1: might be in the same country and have the same currency.
Speaker 1: But you've got to invest relead that you are fifty
Speaker 1: five years old, you have less time to retirement and
Speaker 1: the twenty five year old has more time to retirement.
Speaker 1: So your plan encompasses who you are, what you are,
Speaker 1: what's your risk profile, and how long you want to invest.
Speaker 1: That's the whole idea with your plan, right you want
Speaker 1: to say who you are, how old am I, how
Speaker 1: long do I have to invest? What's my attitude to risk?
Speaker 1: You've got to see that in the plan because what
Speaker 1: you're determining your plan determines the entire thing you're going
Speaker 1: to do going forward. So again, if you're older, your
Speaker 1: pad's going to be different from a younger person. You
Speaker 1: don't invest according to the instruments or are going to returns.
Speaker 1: Let me say it again, you don't invest according to
Speaker 1: the returns that are available. You invest according to your plan,
Speaker 1: So very very important. The first thing you do is
Speaker 1: to plan, Hey and say, hey, this is what i'd
Speaker 1: like to do with my investments. You want to write
Speaker 1: down the amount you want to be kind of specific,
Speaker 1: I would like to achieve x amount of money in
Speaker 1: my savings account by X amount of time. Then you
Speaker 1: want to put why at the end of that plant.
Speaker 1: When you put the why, if you can only answer why,
Speaker 1: you want to say, of course, just to wish, you
Speaker 1: just take it off because you're just saying I'd like
Speaker 1: to do this. When you put why, it all gives you.
Speaker 1: It gives a mental back into what you want to do.
Speaker 1: So you plan out. You say, this is what I
Speaker 1: want to achieve by this time, put a monetrit figure,
Speaker 1: and put a why. That number one plan. So again,
Speaker 1: if you're on YouTube, you can do follow and you
Speaker 1: can see we're talking about the second haund that your
Speaker 1: plan is to buy insurance. So what kind of insurance
Speaker 1: life insurance. But remember you can't ensure your life, there's
Speaker 1: nothing like life insurance. What you are ensuring is the
Speaker 1: loss of income. The loss of income if you lose
Speaker 1: your life. Why because you have dependence, right, So if
Speaker 1: you have dependence, you want to buy life insurance. That
Speaker 1: should ending happen to you your dependence will have the
Speaker 1: means to continue to enjoy that income that you would
Speaker 1: have lost. So the next thing you want to do
Speaker 1: after you plan is to buy life insurance. So if
Speaker 1: you don't have dependence, you don't have to do it.
Speaker 1: But once you have dependence, you've got to buy life insurance.
Speaker 1: And how do you buy life insurance? You buy life insurance,
Speaker 1: of course, probably the lab but this is that you have.
Speaker 1: So let's say you have a daughter you want to
Speaker 1: take to the school to have it, right, and you
Speaker 1: may you also have a mortgage. Right, what you want
Speaker 1: to do is to then buy life insurance that corresponds
Speaker 1: to the how much you owe your mortgage, for instance,
Speaker 1: or how what you will cost your daughters to go
Speaker 1: to university. Right, that's going to be your solmuch shut
Speaker 1: what you want to ensure against. You're gonna say, hey,
Speaker 1: I want to buy life insuranceports to twenty million or
Speaker 1: fifty million because they send anything happens to me, I
Speaker 1: want my folks to take that life insurance money and
Speaker 1: then pay for the mortgage or to pay my daughters
Speaker 1: go to school. So you ensure that obligation if anything
Speaker 1: happens to you, the insurance company pays you or pay
Speaker 1: to your estates or bays to your trust. The last
Speaker 1: week to mention a lot about trust, we said it's
Speaker 1: best to do a trust if you can go to
Speaker 1: a copy trustee, do a trust account and get your
Speaker 1: trust account to be your beneficiary. So you buy life insurance,
Speaker 1: you put a copet trustee as a beneficiary. Then you
Speaker 1: have a trust deed with the copy with the trusted
Speaker 1: say hey, with this is basically what I am going
Speaker 1: to do. This is who I want to take my
Speaker 1: fund shera gent didn't happen to me. That's what you
Speaker 1: do with insurance. Right, it's not like insurance. It's loss
Speaker 1: of income to your dependent students didn't happen to you,
Speaker 1: but your emergency fund. So number one is planned, two
Speaker 1: is insurance. Three is your emergency fund. You want to
Speaker 1: have an emergency fund of three to six months of
Speaker 1: your necessary expenses. You don't want to save or invest
Speaker 1: without having an emergency fund. And the magency fund is
Speaker 1: to watch a fund that you set up to pay
Speaker 1: for three months of your expensive student didn't happen to you.
Speaker 1: So let's what are your expenses? The necessary ones, food, right,
Speaker 1: those things that you must do. Even if you don't
Speaker 1: have money, you won't have a fund to pay for that. Right,
Speaker 1: it's going to be in cash or aar cash. You
Speaker 1: don't want to save, you don't want to invest by bit,
Speaker 1: kind of buy stocks with that money for your majesty
Speaker 1: fund three to six months. If it's fifteen million, of
Speaker 1: course I'm not going to have it one day, but
Speaker 1: have an account called fund. They want to save in
Speaker 1: that account. Right, so number one is planned to is
Speaker 1: insurance cre a magency fund for is going to be
Speaker 1: your retirement. You've got to plan for your retirement. That's
Speaker 1: the most important financial goal that you have because when
Speaker 1: you get older, you can't work. So it's not a
Speaker 1: question of I will kind of work when I'm one hundred. No,
Speaker 1: when you get to a certain age, you can't walk. So
Speaker 1: that's not going to be held enough to work. So
Speaker 1: you've got to plan for that retirement. Right. If it's
Speaker 1: going to be your four long key or your retirement
Speaker 1: Service account or your IRA, your roth IRA, whichever it is,
Speaker 1: you've got to have a retirement plan. If you want
Speaker 1: to buy a property and that property is going to
Speaker 1: pay you rental income, as a retirement plan, fantastic. Good
Speaker 1: do it. But you've got to plan for a retirement
Speaker 1: before you invest, so retirement is more of the long
Speaker 1: term investing. Right before you buy a bit coin, you're
Speaker 1: investing for your retirement. So then we recap. You be plan.
Speaker 1: You buy insurance to pay for your dependence. You buy
Speaker 1: take an emergency fund, then you do your retirement. If
Speaker 1: you have worked for a company, you go to the company,
Speaker 1: you do the match. You make sure you do the match.
Speaker 1: That means the company is saying, if you contribute five percent,
Speaker 1: we're gonna match five percent. Make sure you're doing five percent.
Speaker 1: Don't leave more on the table. It's only after you
Speaker 1: have gone one, two, three, and four that you can
Speaker 1: consider investing. So don't rush and invest. If you don't
Speaker 1: have an RSC account. Let me say it again, don't
Speaker 1: open an investment account at that buy and shares if
Speaker 1: you don't have a retirement service account, or you don't
Speaker 1: have a full one K, or you don't have an IRA.
Speaker 1: It's starts not how you do it, because I when
Speaker 1: then it happens to you. You be forced to sell
Speaker 1: your investments at a loss or at the price you
Speaker 1: don't want to pay for your emergency. So you've got
Speaker 1: to go through that process. One you plan, so you
Speaker 1: do insurance to you don't know what to say, fund
Speaker 1: for your retirement. Then five you invest. That's all we
Speaker 1: talked around last year, last week, and last week again.
Speaker 1: We then said, how when you want to do that,
Speaker 1: let's just do a quick cap on investments. Right on
Speaker 1: the income and exponentis we then want to talk about
Speaker 1: the income and exponentials in detail. You want to track
Speaker 1: every single coble. This is now your income side all
Speaker 1: talked about last week, just to really recap. On the
Speaker 1: income side, you want to track every single every single expense.
Speaker 1: You track all the expense, then you categorize that number two.
Speaker 1: So if you track all your expense, you say I
Speaker 1: bought to do your I'm want to mister Biggs. You know,
Speaker 1: then I enter home. All that is feeding, but you
Speaker 1: can categoriate it into feeling outside and feeling inside right
Speaker 1: off or heir at home. So you track the expenses
Speaker 1: and your income you categorize right. Then you basically want
Speaker 1: to say which is my active income, which is my
Speaker 1: passive income? Last week I told you guys, you have
Speaker 1: to have four categories on that income and expend shows
Speaker 1: four categories. The first category is going to be your
Speaker 1: active income, which is income you make when you are
Speaker 1: actively engaged. So you go to work. That's active income.
Speaker 1: That's easy. You get your paycheck, that's active income, but
Speaker 1: it's only called passive income. Passive income is you're not
Speaker 1: at work, but you get paid. For instance, your your rent,
Speaker 1: your own rent, you own a building, the day your rent,
Speaker 1: you're not there per se, but the building is in
Speaker 1: an income for you. Or you've bought a bond and
Speaker 1: the bond is essentially giving you a coupon income, or
Speaker 1: your bought the share is paying your dividend. Other passive income,
Speaker 1: so you're active and your passive iototal income right, active
Speaker 1: and passive. Same with expenses. The expenses you must make,
Speaker 1: which are your necessary expenses, is what we call non
Speaker 1: discretionary expenses. But they also expenses that you can decide
Speaker 1: not to make, for instance going on a holiday or
Speaker 1: just buying a new dress. The idea, your entire reason
Speaker 1: why you are working is you want to convert active
Speaker 1: income to passive income. So the point I'm making this
Speaker 1: if you work for a company that paying your salary,
Speaker 1: the whole idea is for you to convert your salary
Speaker 1: active income to passive income income from your own investment.
Speaker 1: So I say you work for a company A, they
Speaker 1: pay your salary, you buy shares, you buy bonds, you
Speaker 1: buy land, you buy property. The whole idea is you
Speaker 1: can only retire when your passive income, not passive income,
Speaker 1: can pay your expenses. That's what retirement is, when your
Speaker 1: passive income and pay your expenses. So look at Bill Gates,
Speaker 1: look at a lot of mask. They are rich because
Speaker 1: they get passive income. If they decide not to go
Speaker 1: to work tomorrow, they can still pay their expenses from
Speaker 1: your investments. So the reasoning is if you are if
Speaker 1: you can't pay your expenses from your passive income, you're
Speaker 1: not yet middle class, you're not yet rich. That's your objective,
Speaker 1: your generatal not passive income from your active income that
Speaker 1: then pays your expenses. That's a whole idea of what
Speaker 1: we're doing today. So if a passive income does not
Speaker 1: meet your expenses, it's not about a meeting in the
Speaker 1: day one. That's your goal, that's your financial goal. How
Speaker 1: can I go from passive to active? Right? You don't
Speaker 1: want to say, Okay, this year I'm going to grow
Speaker 1: my passive income by five percent, not to returns out
Speaker 1: to volume. I want to grow my volume returns by
Speaker 1: five percent. And that becomes a go for you a
Speaker 1: year in year out right because if you grow your
Speaker 1: passive income, that means you are able to retire. So
Speaker 1: as I hope you can see the plan setting up
Speaker 1: right now for us, we've talked around your five step
Speaker 1: plan right where you have to plan. You have to
Speaker 1: buy insurance, then you have to then go and buy
Speaker 1: the retirement before you talk around investing. That's the plan
Speaker 1: you want to follow. Then when we now go to
Speaker 1: the investment side, you have to do it that way.
Speaker 1: You've got to record your income and expenses. I ear
Speaker 1: of capture your active income, your passive income. Then you
Speaker 1: capture your expenses, the discretionary expenses and the non discretionary expenses.
Speaker 1: Those non discrissionary expenses are the important things there, because
Speaker 1: you've got to have your passive income, the money you
Speaker 1: make when you're out there paying your income. That's your
Speaker 1: financial goal. That's your overall financial goal. That for everyone
Speaker 1: listening to me, everybody, even a most that's your goal.
Speaker 1: Make enough passive income to pay your expense. That means
Speaker 1: you're rich. That means you can retire. So this week
Speaker 1: when we're talking about the second side of the balance sheet,
Speaker 1: which is going to be our balance sheet right where
Speaker 1: we're not bringing in assets, our bringing liabilities. And we
Speaker 1: also have a chat for that for our income side.
Speaker 1: For that is for our asset side. So the same thing, guys,
Speaker 1: but the asset side. You want to draw up a
Speaker 1: little line that there's going to be four characters also
Speaker 1: on our assets and liabilities. And I don't worry, guys,
Speaker 1: if you have a question, just ask. Once I get
Speaker 1: through our you can you can request to speak. I
Speaker 1: do just put you on qu If you have a
Speaker 1: question again, ask on the DM or just because for
Speaker 1: the MIC, and I'll ask you to speak. I prefer
Speaker 1: you ask because I don't have to read it. That
Speaker 1: sort of makes me slow down to the read. So
Speaker 1: if you want to ask a question, just request to speak.
Speaker 1: I'll queue you up the ones. I'm done, but not
Speaker 1: five minutes. That just makes you speak and then you
Speaker 1: can just ask the question. So, for instance, on the
Speaker 1: asset size is going to be the same thing. We
Speaker 1: have four characters. Four characters of the asset side. Number
Speaker 1: one you want to have what you call the income
Speaker 1: generating assets, income generating asset, and of course the non
Speaker 1: income generating asset. So any asset you own today, you
Speaker 1: want to classify it as an income jining asset or
Speaker 1: as a non income gaining asset. So you have to
Speaker 1: ask yourself it's your car an income generating asset. We're
Speaker 1: not talking accounting accountant to say your car is an
Speaker 1: asset end up story. We're talking for a short plan.
Speaker 1: If I plane, it looks at how that asset affects
Speaker 1: your cash flow. So if you have a car and
Speaker 1: you spend more money on the mechanic on that car,
Speaker 1: that has a liability not only an asset to you
Speaker 1: to your cash flow. So you want to ask yourself,
Speaker 1: is that car an income jainting asset or a non
Speaker 1: income chanting acid. That's why you want to spasify that car.
Speaker 1: It's still going to be an asset, but it is
Speaker 1: it giving you income or not giving your income. That's
Speaker 1: the classification. So you take your phone, you take your car,
Speaker 1: you take your stocks, you take your house, everything you have.
Speaker 1: For instance, you have a house in your village. You're
Speaker 1: from this tiny village, callbably your half here in abvious state.
Speaker 1: You have a home in our half here, so that
Speaker 1: home is worth in an accounting set. Used fifty million
Speaker 1: miles to build that home. Fantastic. That's an asset in accounting.
Speaker 1: But for us in financial time, I want to ask
Speaker 1: you a question. Is that how generating income for you?
Speaker 1: Or is that how saving you expensive? Which is the
Speaker 1: same thing. If the answer is yes, is an income
Speaker 1: chanting asset, so you put it on your incombregating asset side.
Speaker 1: If it's not, it's a non income jutent as just
Speaker 1: keep it aside so it's not it's not an asset,
Speaker 1: but it's not generating your income. Similar liabilities, there's an interest,
Speaker 1: interest bearing liability or a non interest bearing liability. It
Speaker 1: has to be one of them. So if you want
Speaker 1: to start a business and you go to the bank
Speaker 1: and the bank gives you a loan of fifteen your error,
Speaker 1: that's an interest bearing liability. You have a loan on
Speaker 1: the bank because it's an interest bearing liability. But what
Speaker 1: if your partner gave you that money and your partner
Speaker 1: said you have to pay me interest for the next
Speaker 1: ten years. It's a liability you still owe your partner.
Speaker 1: But if you're not paying your partner interest, there's a
Speaker 1: non interest bearing liability. So again, if you're a YouTube,
Speaker 1: the visual is there, But if you're a YouTube, just
Speaker 1: have those four columns. All you want to see is
Speaker 1: that you want to match your income generating assets with
Speaker 1: your interest bearing liabilities, which means if you borrow money,
Speaker 1: you want to only buy assets that generates and income.
Speaker 1: So if you're going to build a house in your
Speaker 1: tiny village you know healfiare, and that home is going
Speaker 1: to be a non income or non expense saving asset,
Speaker 1: then you don't want to borrow money from that. You
Speaker 1: want to build a house with your savings. So your
Speaker 1: savings to build you a house that it's not going
Speaker 1: to generate you interest liabilities. On the flip side, you're
Speaker 1: going to build a house in a pot city. You
Speaker 1: want to be built a warehouse and a pot city,
Speaker 1: and you want to go borrow money from the bank.
Speaker 1: The bank is going to charge your interest income. That
Speaker 1: interest income should then be tied to an asset that
Speaker 1: is generating income. So the interest bearing liability is going
Speaker 1: to be tied to an asset generating income. So your
Speaker 1: IgA your income generating assets is tied to your ib
Speaker 1: hell interest bearing liabilities. The problem most people have on
Speaker 1: their flaendship plan is that they borrow interest bearing liability
Speaker 1: is like a credit card, and then they use that
Speaker 1: credit card on a non income generating activity. So if
Speaker 1: you take your credit card and you go on a
Speaker 1: holiday to Spain, right, you are generating income interest on
Speaker 1: your credit card, so it's an interest bearing liability, but
Speaker 1: the holiday doesn't give you income, so you're mismatching your
Speaker 1: income your interest bearing liability with sometimes not going to
Speaker 1: generate any income for you. I give a better example.
Speaker 1: If you have a company you want to go buy
Speaker 1: a car, the MD wants to go buy a card
Speaker 1: to use. If the empty buys a card like a
Speaker 1: merced is better to taking to home, taking back to work,
Speaker 1: that's an interest bearing liability being used to buy an
Speaker 1: asset that does not generate income. He does bother may
Speaker 1: say this bands to go home and back, But what
Speaker 1: if you bought the delivery van in this case has
Speaker 1: taken a loan and interest bearing liability to buy an
Speaker 1: income generating asset. So that's fantastic because the income from
Speaker 1: the van, the liverly van will pay off the liability
Speaker 1: from the bank to buy the van, you want to
Speaker 1: match it that way, that's what you want to do.
Speaker 1: This is not accounting. This is your cash local financial planning.
Speaker 1: You are trying to business under. Say that any liability
Speaker 1: I have, any loan I have, has got to be
Speaker 1: tied to an income that is generating assets. That's all
Speaker 1: we're saying. I'm not asking to go change your balances
Speaker 1: for your company. Keep that, but your own personal financial
Speaker 1: health check. This is what you're doing the same way.
Speaker 1: If you want to go on a holiday, you should
Speaker 1: have saved enough so you are not incurring an interest
Speaker 1: bearing liability to pay for a non generating asset. It's
Speaker 1: to the point. So with income, we're talking about your
Speaker 1: passive income paying for your expenses. With your balance sit here,
Speaker 1: we are talking about that your income generating assets should
Speaker 1: pay for your interest bearing liabilities. Of course, with the
Speaker 1: balance reet it has to balance, so it depends on
Speaker 1: your assets, and your liability is going to be your networth.
Speaker 1: If you have more liabilities, then you have a negative
Speaker 1: net worth. That's what accounting would say, right, But the
Speaker 1: financial planet is a bit different. We understand in financial planet,
Speaker 1: when you are younger, it is okay to have a
Speaker 1: negative net worth. Why because when you are younger, you
Speaker 1: have no IgE, you have no income generating assets. Imagine
Speaker 1: twenty five year old boy in Nigeria, he has no assets.
Speaker 1: He just got a job in a bank, he's in
Speaker 1: a salary. They have no assets. Well, how is he
Speaker 1: going to buy a house a car? How he's going
Speaker 1: to borrow to buy that land to buy that car.
Speaker 1: So what's he gonna do? Is it going to go
Speaker 1: take interest bearing liabilities to buy his asset? He does
Speaker 1: inconcurating or not incompurating, we don't know yet. Because he's younger,
Speaker 1: with less income, he's going to borrow a lot. But
Speaker 1: when he's borrowing, he has to remember that if it's
Speaker 1: paying interest on that loan, he should divert that loan
Speaker 1: to an asset that generates income or saves expenses. Borrow
Speaker 1: to go on off some other in Greece, that's not
Speaker 1: an our chat here. If he does that properly, as
Speaker 1: he gets older, answers to earn more, he then gets
Speaker 1: more assets. The asset he bought when he was younger
Speaker 1: now start to generate income for him or appreciate in value. Right,
Speaker 1: so he then can use that asset to pay down
Speaker 1: his net his negative network. What we mean is as
Speaker 1: the assets generate income, it pails liabilities, his networks not
Speaker 1: begin to go positive. That's the plan, that's the goal
Speaker 1: in the asset balance sheets. We want to buy going
Speaker 1: to negative network. We're allowed to go to negative network
Speaker 1: at the very very beginning of our careers where we're
Speaker 1: any variability, but that's the only you can buy an asset.
Speaker 1: But as we start to transit towards the end of
Speaker 1: our term in investing, investment, working life, we can no
Speaker 1: longer borrow moneies to invest because we now have a
Speaker 1: shorter compounding period. Let me see it again. The older
Speaker 1: you get, the less debt you should have because you
Speaker 1: have a shorter compounding period to pay back. So twenty
Speaker 1: five year old guy can borrow for thirty years issued
Speaker 1: a thirty year bond. But if you are fifty five
Speaker 1: you have I want a you going to retire, maybe
Speaker 1: sixty five, maybe seventy. You have shorter times to compound
Speaker 1: your income to pay back. So it's very, very important
Speaker 1: that you start to invest early in income generating assets,
Speaker 1: and when you do them, they might not be income
Speaker 1: generating assets when you do them. That's why you have
Speaker 1: to have that long term plan to say, hey, my
Speaker 1: long term planning twenty five years is to retire. Where
Speaker 1: am I going to buy land today? In twenty five years?
Speaker 1: It will retire. That's why you come back. It's all linked.
Speaker 1: Your plan is liks, your income taatement, that thing to
Speaker 1: you about. Let me stop here, because there's a lot
Speaker 1: to talk about, the whole lot. But let me take
Speaker 1: a few let me pause, take a few questions, and
Speaker 1: then we'll just go on to it again. Guys, if
Speaker 1: you have the time, try to get my book. All
Speaker 1: this stuff I'm talking about are all in my book Planning, income,
Speaker 1: balance sheet, They're all in my book. I will try
Speaker 1: to do a screenshot of the book balance sheet I'm
Speaker 1: talking about my book, so we can also follow visually.
Speaker 1: Let me just take a few questions. I've got she
Speaker 1: she's a varm MP. How are you doing? Thanks to
Speaker 1: hanging in there with me. What's going on? Mh, she's
Speaker 1: about how you doing? I'm doing. I'm doing fine, Thank
Speaker 1: you very much. I'm transit. When I get down, I
Speaker 1: was fantastic. All right, gotcha, let's do let's do into integrified. Integrified,
Speaker 1: don't get that right, integrified. How you doing, sir, fantastic?
Speaker 1: What's in your mind? Oh?
Speaker 2: I want I wanted to give it.
Speaker 3: No, Yeah, planning the future for your children? Yeah, are
Speaker 3: you there's something in the area of life of both.
Speaker 1: Is something that happened only when you're dead.
Speaker 3: And again, I think they're.
Speaker 1: Just a kind of lisplace.
Speaker 3: So if I want to plan, what's.
Speaker 1: Plan?
Speaker 4: And I can't think if if.
Speaker 1: I don't want to plan itself, I want to.
Speaker 3: Plan?
Speaker 1: Is that okay? If you know me that they getting
Speaker 1: love to have more comprove over you to here. Yeah,
Speaker 1: that's a great question. So again, so last week we
Speaker 1: talked around life insurance and I said life insurance is
Speaker 1: a very very unique investment because it's the only investment
Speaker 1: you have today where you can put in one nyra
Speaker 1: and you automatically have got a million the summer shot.
Speaker 1: If you go to lifsurance company, you say I want
Speaker 1: to buy life insurance for five million, and they tell you, okay,
Speaker 1: we're going to sell life chants for five million, but
Speaker 1: you've got to pay us a thousand dora every month.
Speaker 1: Once you pay the first one thousand hora, you are
Speaker 1: worth five million immediately. You don't have to accumulate five
Speaker 1: millions to be worth. Once you pay the first premium,
Speaker 1: you're worth five million. So it's the unique in best
Speaker 1: and I don't want to use your advantage. So your
Speaker 1: question is how can you then use that? Like how
Speaker 1: can you plan for your kids? I like life insurance
Speaker 1: because what you do is this. You have to go
Speaker 1: to a lawyer and write what's called a trust deed.
Speaker 1: It trusted is just your instructions. You say, if anything
Speaker 1: happens to me, I would like my money to go
Speaker 1: towards the payment of my child's education in this school.
Speaker 1: After my child has graduated, I like the rest of
Speaker 1: the money to go to my church, or to my
Speaker 1: grandmother or to my auntie and all that. You can
Speaker 1: specify your instructions in that trusted. Now, when you do
Speaker 1: that trusted, you then go to a corporate t trust.
Speaker 1: You have festuties, you have aarm trustees there, you have
Speaker 1: that many of them. Just go to sec and google
Speaker 1: trust companies in Nigeria. You go to that trust company
Speaker 1: and say I would like it to be my corporate trustee.
Speaker 1: You will pay them a fee to be a corporate
Speaker 1: trust So you give them that trusteed. Then when you
Speaker 1: buy assets The beneficiary of your assets will not be
Speaker 1: your children or your nextorf king to be that corporate trustee.
Speaker 1: So look at what we've done now. If you buy
Speaker 1: insurance company, if you buy insurance policy, or you buy
Speaker 1: a building, the building is owned by your trust. The
Speaker 1: beneficial of the trust is a corporate trustee, inventing hassles
Speaker 1: to you. The corporate trust is simply then pays the
Speaker 1: education of your child or runs that company building. They
Speaker 1: will rent out the building, collect their fees, make sure
Speaker 1: it is nice, pay the rental, pay your education, give
Speaker 1: your kids an allowance. That's why you hear trust babies.
Speaker 1: Trust funds like the use off shore the same thing.
Speaker 1: You were complicated about it. So it cost you some money,
Speaker 1: but it gives you a peace of mind. Because when
Speaker 1: you write your will, your will can be challenged, but
Speaker 1: you can really challenge a trusted You can't challenge an
Speaker 1: insurance company. Beneficiary and benefit for insurance company is out
Speaker 1: of your probate. It's not debatable. If you put something
Speaker 1: aside and your trusted it's not only going to be
Speaker 1: part of your asset because not owned by you anymore.
Speaker 1: If you put a building that you own and a
Speaker 1: trust deed, it's no longer owned by you. Because it's
Speaker 1: not owned by you can have a challenge just to
Speaker 1: the point. And also the new tax laws, if you
Speaker 1: earn income manuity, that income is not taxable. So if
Speaker 1: I want to give my daughter money, I just buy
Speaker 1: her an annuity. The annuity pays he annuities like an insurance
Speaker 1: company paying you a fix of money. If she's getting
Speaker 1: money money from insurance company, she's not paying tax on
Speaker 1: that income. So it's a lot of vales for me.
Speaker 1: We're not really taking that virtue of the insurance company
Speaker 1: in Nigeria. So it goes to insurance company and say,
Speaker 1: I heard this. Please explain to me what this guy
Speaker 1: is saying. Give you more details. How what does it
Speaker 1: cost me to give you specific information? Then you can
Speaker 1: roll with it. Does that make sense? Great? Any follow
Speaker 1: up questions on that? You're fantastic. Thank you someone I've
Speaker 1: got that high.
Speaker 2: I'm going I want to ask a question. I operate this.
Speaker 2: My groupings back and they recently told me that my
Speaker 2: eligibility with them is for melia and use that as
Speaker 2: an emergency for.
Speaker 1: Not actually not really, because you can if what if
Speaker 1: you go to Marin, tell you it's not canceled. You know,
Speaker 1: it's not your money. Yes, you have to take that
Speaker 1: loan for it to be in your possession. And when
Speaker 1: you take that loan, your pain interest so it can't
Speaker 1: get a majesty fund. Your majesty fund is what you
Speaker 1: have that is cash or near cash that you can
Speaker 1: use to cover immediate emergencies. Someone calling to that and says, hey,
Speaker 1: come to the village tomorrow. Something's happening. You can't go
Speaker 1: to a microphone and say how to take that loan.
Speaker 1: Then they give the loan, then pay to your card.
Speaker 1: Then you have to wait for a manager to sign no.
Speaker 1: So it's a goal for you to build three to
Speaker 1: six months out as your as your amenity fund. But
Speaker 1: I wouldn't say loan, it's what you use any fund.
Speaker 1: I wouldn't say that. Thank you, You're very welcome. Do
Speaker 1: you have an amenity fund right now? Okay, So that's
Speaker 1: gonna be a key to go for Like we said,
Speaker 1: the firstest plan right then. Of course, second is the
Speaker 1: what we do your insurance? Do you have an insurance?
Speaker 1: Then you don't have to really answer if you don't
Speaker 1: want to both. Second is you want to have an
Speaker 1: insurance scheme set up for your family attendance. You want
Speaker 1: to make sure you have an insurance scheme set up
Speaker 1: for them, not for your life. Both fully lack obligations
Speaker 1: you have. So if you have a house, you want
Speaker 1: to make sure that you are buying insurance that can
Speaker 1: pay off the mortgage of that house. Then but the
Speaker 1: true you won't of course, buy your immediacy phone. Get
Speaker 1: that set up three to six months of your necessary expenses.
Speaker 1: Of course before I get to retirement. Do you have
Speaker 1: an RSA four? Okay, you have all that? I'm yeah,
Speaker 1: so you have a lot of goals in six in
Speaker 1: it you have a lot of goals. Yeah, exactly, fantastic.
Speaker 1: So I appreciate you calling and yeah, get that done.
Speaker 1: It's don't wait, don't see if I don't have money,
Speaker 1: won't do it. Get it, stand on it, you know,
Speaker 1: early enough, and then see what happened. Yeah, appreciate you.
Speaker 1: All right, fantastic, Thank you the guys on YouTube. Let
Speaker 1: me see get Yeah, so I gotta slow down and
Speaker 1: read the question here. That's why I prefer the audio,
Speaker 1: just to emphasize. Could you just emphasize on the non
Speaker 1: interest bearing yes, So let me just put that up again.
Speaker 1: So just to just to summarize the asset side we're
Speaker 1: talking about, we haven't got to the network. We're saying
Speaker 1: that on your asset sides. We're not saying a car
Speaker 1: is not an asset. The car is an asset. But
Speaker 1: is that car income generating asset or in non income
Speaker 1: generating asset. That's the question. The car is always an asset,
Speaker 1: but is that car generating income for you or not
Speaker 1: chinting income for you? There's no problem if it's not.
Speaker 1: But if it's not, tag that car as a non
Speaker 1: interest generating asset so that you match it with non
Speaker 1: interest bearing liabilities. You have to target because when you
Speaker 1: do your balance sheet in accounting, they don't only care
Speaker 1: if it is to just do your total income, this
Speaker 1: is your total liabilities, and then they give you a
Speaker 1: network of But in personal finance wants you to separate
Speaker 1: the income or the asset that I've given from the
Speaker 1: asset that I'm not giving you income. When you do
Speaker 1: it that way, what you're going to find is that
Speaker 1: you can tell how much of your assets are being
Speaker 1: funded by liabilities. And I think, like we said, there's
Speaker 1: no problem if you are in debt as long as
Speaker 1: the debt is generating or will generate assets for your
Speaker 1: income for you in the future. So if I borrow
Speaker 1: money today to buy a house in Lecky, no problem,
Speaker 1: because I'm in debt. So I have an interest baying liability,
Speaker 1: but that interest bare liability is tied to my income
Speaker 1: generating assets. So for ten years of my life, I
Speaker 1: might have a negative network because I have more liabilities.
Speaker 1: But that's fine because the liabilities that is funding the assets.
Speaker 1: You know, my interest liability is funding my income asset.
Speaker 1: That's fine. As I get older, the asset appreciates in value,
Speaker 1: the value of the assets, the income from the asset
Speaker 1: now starts to pay down that loan because I no
Speaker 1: longer pay rent, So the funds I would have used
Speaker 1: to pay rent will then go to pay down the liability,
Speaker 1: so that my balance sheet or my income state and
Speaker 1: then looks better. So it's not a question of debt.
Speaker 1: Debt itself is not a problem. The problem we have
Speaker 1: with debt is that we are borrowing interest being labilities
Speaker 1: and attaching them to non income generating assets. So it's
Speaker 1: a good place for us to surgerate into debt management.
Speaker 1: Every time we talking around assets and liability. Is the
Speaker 1: main problem with asset is how to accumulate them, And
Speaker 1: we can talk We're going to have a separate space
Speaker 1: on how to accumulate assets? Which assets told you, But
Speaker 1: we're gonna do more of assets and location. What should
Speaker 1: you buy if you have a goal today of retiring
Speaker 1: in five years? What should you buy than if you
Speaker 1: have a goal to retire in fifteen years. That's going
Speaker 1: to be assets a location. We'll talk around that. But
Speaker 1: what about debt management? How can you manage your death?
Speaker 1: Because now, if you have built up a balance sheet
Speaker 1: that has more interest being in blities than your assets,
Speaker 1: your income bearing asset, you're going to have a problem.
Speaker 1: So what should you do if your balance sheet is
Speaker 1: more in debt? Of course, you've got to reduce those debts, right,
Speaker 1: You've got to bring down those debts. So how can
Speaker 1: you manage your debt? So let me give you the
Speaker 1: way you do it you're supposed to do it. Let
Speaker 1: me just real quick, Tnaji, you want to ask a question,
Speaker 1: real quick enough, I'll talk around debt management. Can Ju?
Speaker 1: I know the talk is kind of unstable, can Jo? Yep? Yeah,
Speaker 1: I'm not sure I can hear you too. Well, a
Speaker 1: little bit of audio, but trying to see, uh, what's
Speaker 1: the question is? Okay?
Speaker 5: So I was trying to find out about something we've
Speaker 5: been debated in my household. So it's uh getting another
Speaker 5: property right or paying down or paying off the debt
Speaker 5: of the part what we have.
Speaker 1: Are you gonna.
Speaker 5: Classify paying down your debt as you know, financially bring
Speaker 5: your move or getting another one so that I can
Speaker 5: have someone read that and you know have that.
Speaker 1: Yeah, I hear you, good, great question. It's gonna go
Speaker 1: back to really how is the what are the numbers? Saying?
Speaker 1: If you can get a tenance that can pay your mortgage,
Speaker 1: it's always a good idea because now you have the asset,
Speaker 1: but you have no liability, in which case, if you
Speaker 1: go back to our table, it's like saying you want
Speaker 1: to get a new income generating asset without the corresponding
Speaker 1: liability because the liability is not going to be taken
Speaker 1: over by the tenant. So, if I understand your question,
Speaker 1: you already have one interest bearing liability, which is your home.
Speaker 1: Are you guys living in that home, the one the
Speaker 1: one you're paying you guys pay a mortgage in your
Speaker 1: current home right now? Yeah, so it has canceled out
Speaker 1: your your your interest bearing liability with your mortgage is
Speaker 1: being canceled out with your income. Right this new home
Speaker 1: you want to get, the simple question for you is
Speaker 1: that can you get a tenant that can pay the liability?
Speaker 1: That's what you want to ask yourself. If you can
Speaker 1: get a tenant to pay that liability? Fantastic because you've
Speaker 1: got a new liability.
Speaker 4: Yeah, I mean we.
Speaker 5: Can get Or the question where you don't you reliable?
Speaker 1: Which is which is the answer? Which is the exactly
Speaker 1: answer I say, if you can create an asset without
Speaker 1: creating a liability, it is always the answer is always yes,
Speaker 1: Which is not the problem you now have, because the
Speaker 1: problem is that you cannot you you are you are
Speaker 1: unable to create that asset without creating a liability. You've
Speaker 1: got to make sure if you don't do it this way,
Speaker 1: you're gonna lose that house because you can't pay the liability,
Speaker 1: so you lose that asset. You see what I'm saying.
Speaker 1: The answer really it comes down to if you can
Speaker 1: get a tenant that can cover that liability or if
Speaker 1: it goes south, you guys have got to have an
Speaker 1: emergency fund of at least six months of that tenant,
Speaker 1: that mortgage. You've gotta have it in a bank sitting
Speaker 1: somewhere to say, e, anything goes wrong, we can pay
Speaker 1: six months of this house mortgage without waiting for a tenant.
Speaker 1: If you guys have that sort of savings, it might
Speaker 1: be a good idea. Because again, remember in the West,
Speaker 1: I was talking about the West, I was talking about Nigeria.
Speaker 1: What are we talking about now? So because in the
Speaker 1: West they do non non recourse loans, right, So you
Speaker 1: can walk away from the property if you can't keep
Speaker 1: it anymore. So if it's a non recourse loan, you
Speaker 1: don't you don't have any liability of it, you don't
Speaker 1: have any continent libriies. Idea might come after your after
Speaker 1: your building. Right, So what I would say, think about
Speaker 1: setting up an LLC to buy the property. Right, set
Speaker 1: up an l l C to buy the property, then
Speaker 1: get a tenancy to pay rent to the l So
Speaker 1: that way it's an arms length transaction. If the tenancy fails,
Speaker 1: walk away, close the company, declare bankruptcy on the company,
Speaker 1: move on. So the bank ticks, the bank takes the building.
Speaker 1: You start afresh. I'm gonna do risk management for you yet. Okay, fantastic, man.
Speaker 1: I know someone joined. I don't know where it is.
Speaker 1: I know someone just joined. I'm not sure if it's
Speaker 1: Gabriel Death. I'm not sure. Did you just join?
Speaker 5: Yes?
Speaker 1: I just yes, I can hear you.
Speaker 6: Go ahead, okay, please asking whether I can give you
Speaker 6: the copy of your book or and.
Speaker 1: I get it. I don't know. And you said that, yeah,
Speaker 1: I'm sorry. I mean I'm in a hotel, I'm in transit,
Speaker 1: so the network is really slow. I'm not able to
Speaker 1: download the book and share just I'm I'm on YouTube.
Speaker 1: It's just struggling. So what we're going to do right,
Speaker 1: send me a d M. First of all, the book
Speaker 1: can be gotten on Amazon. It used to be at
Speaker 1: It used to be the local bookstore in Nigeria. But
Speaker 1: we've printed three three editions. It's alsold out. It's sold out,
Speaker 1: so it's easier on Amazon because it's just easier on Amazon.
Speaker 1: The prices have gone up and all that. So if
Speaker 1: you go to Amazon, it's Christmas, people are coming home.
Speaker 1: Just don't get it for you. Is the prices aren't
Speaker 1: change in dollar terms. It's a good present for you.
Speaker 1: They can get it for you and just deliver it
Speaker 1: to you on an Amazon For the other screen shot,
Speaker 1: I wish you could if you send me a d M. Right,
Speaker 1: just send me a DM. I will try to send
Speaker 1: you a screenshot of what we're talking about. I do,
Speaker 1: I do, I just I want the network kid is
Speaker 1: really slows. I'm able to do all that stuff. Yeah,
Speaker 1: work for you, Gibril. If you can hear me, do
Speaker 1: you hear me?
Speaker 3: You?
Speaker 1: All right? I will try to once I get to
Speaker 1: a place that's got like fantastic internet, I will try
Speaker 1: to send you a huge screenshots. But Amazon is also
Speaker 1: going to be weareh the best place for you to
Speaker 1: get that, right, fantastic. Thanks for hopping and I appreciate
Speaker 1: it all right. Yeah, So I was talking around debt
Speaker 1: management before we took the call. Debt management. This is
Speaker 1: a big, big, big issue. We've done a lot of
Speaker 1: space on death management. My book has a chapter specific
Speaker 1: on death management. So how do you manage death? And
Speaker 1: what is this debt we're talking about? If you go
Speaker 1: back to our financial plan, debt is when you have
Speaker 1: accumulated interest bearing liabilities and you have no income generating
Speaker 1: assets to cover. Remember, debt is not the problem. The
Speaker 1: problem is that you have generated that income liability with
Speaker 1: no with no interest assets. That's what the problem is.
Speaker 1: So let's say you have a debt problem. How do
Speaker 1: you get out of it? So Number one, make sure
Speaker 1: this down, guys. Number one, you want to list out
Speaker 1: every loan that you have, every loan. List just list
Speaker 1: everything out. What I mean every loan, I mean every loan.
Speaker 1: Your brother gave you money, that's the loan. Write it down.
Speaker 1: The bank gave you a credit card, that's the loan.
Speaker 1: Write it down. You borrow money from your corporative. List
Speaker 1: every single down that you have. That's number one. Number
Speaker 1: two you want to then attach a cost to the loan.
Speaker 1: So let's go back. Your brother give you money. He's
Speaker 1: not charging your interest, so you put zero percent. The
Speaker 1: bank gave you a credit card, they are charging you
Speaker 1: interest twenty five percent, you put twenty five percent. Your
Speaker 1: competitor give you loan, but it's not subsidized with it's
Speaker 1: five percent. You put five percent. So now you have
Speaker 1: your brother zero percent, you have your bank twenty five percent,
Speaker 1: you have your cooperative five percent. So number one, you
Speaker 1: listed all your loans down. Number two you attach the
Speaker 1: cost to it. Number three you then attach the cost.
Speaker 1: I'm after you wrote them number four. There are two
Speaker 1: ways to do it. There are two ways to do this.
Speaker 1: It's aver called the avalanche. That's aver called the snowball,
Speaker 1: and forgive me, I'm not sure which is which. I
Speaker 1: missed them up a lot. They're the avalanche method, and
Speaker 1: there's a snowball method with the avalanche. And again, forgive me,
Speaker 1: I believe, I hope I'm not wrong with the avalanche metal.
Speaker 1: What you are trying to do is to pay the
Speaker 1: loan with the lowest amount first. It could be the
Speaker 1: other way. You can forget me. So let's say you
Speaker 1: flisted your loans out. Remember you have your loan from
Speaker 1: your brother. Maybe he's charging you zero percent. The loan
Speaker 1: from the credit card is charging you twenty five percent,
Speaker 1: The loan from your corporative charge in your five percent.
Speaker 1: You list the loans out in order of the ape
Speaker 1: r i e. The cost of the loan. You pay
Speaker 1: the loan the one Metal says, pay the loan off
Speaker 1: that has the lowest amount. So let's say your brother
Speaker 1: is when you own your brother five thousand, then you
Speaker 1: owe the bank ten thousand, Then you owe the corporated
Speaker 1: twenty five thousand. It says you pay your brother first
Speaker 1: the five thousand. Why you want a quick win. When
Speaker 1: you pay your brother five thousand, you take that same
Speaker 1: money you used to pay your brother and you can
Speaker 1: start to pay the other guy off. You pay the
Speaker 1: bank of so you pay the loan the dollar amount
Speaker 1: that is lower first, you pay that love. Then you
Speaker 1: instantly trying into paying the second loan. Then you then
Speaker 1: go find to pay the head loan. So you pay
Speaker 1: in terms of the lowest amount first, because you want
Speaker 1: to start to get rid of them. Have quick wins,
Speaker 1: and you don't stop. When you pay the lower amount
Speaker 1: of you simply take the money and you go back
Speaker 1: to pay the next one. So you have a plan
Speaker 1: to say, I'm going to pay this off, and you
Speaker 1: said to move to the second one and mostly retired one.
Speaker 1: That's one metal. The other method is you pay the
Speaker 1: war loans that have the highest cost of first. So
Speaker 1: let's say your credit card you are only fifty dollars,
Speaker 1: but you are only your competitive fifty thousand, but your
Speaker 1: credit card is charging you twenty five percent. Your corporative
Speaker 1: is charging you five percent. This method says you pay
Speaker 1: the credit card of first the fifth because it's a
Speaker 1: higher ap R, higher interest, it cost you more to
Speaker 1: keep that loan open. So you pay that credit card
Speaker 1: or first before you go pay the cooperating which is
Speaker 1: five percent, before you pay your brother, which is a
Speaker 1: zero percent. Why because it costs you more. This is
Speaker 1: the preferred mental. Pay the loan that costs you more
Speaker 1: than to pay the loan that I have the lower amount.
Speaker 1: The problem is that the lower amount gives you a
Speaker 1: quick wing, so you can see. Instant gratification is good,
Speaker 1: there's nothing wrong with it. But the pay off the
Speaker 1: load that has the higher APR is going to give
Speaker 1: you your balance sheet a bigger, bigger boost. So number one,
Speaker 1: write out the loans. Number two you attach your cost
Speaker 1: to loan. Number three you rank them either by amount
Speaker 1: or by the cost. Then you just start to pay
Speaker 1: them down. You basically just say, I'm going to go
Speaker 1: back to my budget. I'll cut out an xpense from
Speaker 1: my budget that I don't need. I'll cut out a
Speaker 1: non discretionary expense that I don't need, or many discussion
Speaker 1: esp maybe i'm buying it, maybe I watch DStv. I'll
Speaker 1: cut out d STV. Use that DStv money to pay
Speaker 1: the principle. Remember, guys, the trick is to pay the principle.
Speaker 1: If you owe credit cards and you simply pay the
Speaker 1: minimum on your credit card, you're not gonna get anywhere.
Speaker 1: It's gonna cost you years to pay that credit card off.
Speaker 1: You've got to pay the principle. If you own a car,
Speaker 1: bank will tell you pay us on the fifteen, on
Speaker 1: the twenty fifth, and inter the payment. When you make
Speaker 1: that payment, the bank will take some money to the
Speaker 1: principle and some to the interest. All financial institutions will,
Speaker 1: fest of all, take their interest first before they paid
Speaker 1: the principle. So that means when you pay a bank,
Speaker 1: you are paying more to interest at the early loan
Speaker 1: than you are paying to the principle. So how do
Speaker 1: you counter this? Pay two times if you pay the
Speaker 1: bank their own Go back and say I like to
Speaker 1: make a payment. I want to make principle. Only tell
Speaker 1: them principle only. That money you're paying goes to the principle.
Speaker 1: It doesn't change your monthly payment, but it reduces the
Speaker 1: loan ten you know, from say five years to four
Speaker 1: point five years. This is all you need, right, you
Speaker 1: want to reduce the tenure. So when you have a
Speaker 1: fixed loan and you make a principal payment, you are
Speaker 1: reducing the term. But on a credit card, when you
Speaker 1: make a payment to the principle the credit card, you
Speaker 1: are actually cleaning off the loan on that credit card,
Speaker 1: because you are cleaning off what the credit card is
Speaker 1: charging you. Every month. The credit card looks as what
Speaker 1: you owe. It will calculate your your APR once every
Speaker 1: month and charge your very expensive rate. So when you
Speaker 1: make a credit card payment, try to make it twice.
Speaker 1: You pay the bank, then you pay again, and you
Speaker 1: tell the bank credit card is automatic. Once you pay,
Speaker 1: it goes to principle. But with the other fixed loans,
Speaker 1: you've got to tell them principle only. So you go
Speaker 1: to the principle and they can't pay up the loan.
Speaker 1: That's how you want to do a desk management, right,
Speaker 1: You identify and you pay off with a plan and
Speaker 1: with a purpose. Don't leave it to chance. Don't say
Speaker 1: I'm going to pay this loan when they call. Have that.
Speaker 1: It's very simple and need to work for you. Right.
Speaker 1: So this we're talking income. Well, so we're talking assets
Speaker 1: and liabilities. We're focusing now on the libry stub, which
Speaker 1: is your debt, How to pay off that debt, that debt. Yeah,
Speaker 1: so now when we want to do as we're going
Speaker 1: to have a whole new space because that's a whole
Speaker 1: new topic. Are talking about asset allocation. I'm not do
Speaker 1: as a location a separate space for you guys, because
Speaker 1: that's very, very important. How to invest. So many of
Speaker 1: us are investing wrongly. We're investing according to returns, not objectives.
Speaker 1: You don't invest because it pays you more. You invest
Speaker 1: because your objective is this or debt. For instance, if
Speaker 1: your rent is due next year, there are certain investments
Speaker 1: you cannot invest in with the excess money you have
Speaker 1: for your rent. You can't buy crimptal with your rent money.
Speaker 1: You can't buy stock with your rent money. It doesn't
Speaker 1: mean crypto and stocks are bad. It simply means that
Speaker 1: your duration is too short for you to make any
Speaker 1: any any any compounding return with because it's just one year,
Speaker 1: and stocks do better over an extended period of time,
Speaker 1: not one year. So there is no better investment. Stocks
Speaker 1: are not better than fixed income, but those stocks have
Speaker 1: going to be attached to your objective. So many times
Speaker 1: we'll say there's a federal goverment bond and the feedogment
Speaker 1: bond pays lower than infficient will say, oh it's paying
Speaker 1: lower than inficition, I'm not gonna buy it. That's not
Speaker 1: how you look at it. If you are a retiree, unfortunately,
Speaker 1: that's the only thing you can buy. You can buy property,
Speaker 1: you can buy fixed income, but you can go buy
Speaker 1: crypto as the retiree. Also with stocks, you'll be very
Speaker 1: careful we buy stocks as a retiree because you have
Speaker 1: no compounding period to recover from should those stocks fall.
Speaker 1: Last week the market scrypto has gone from twenty six.
Speaker 1: It's not a bad eighty five. Imagine if you bought
Speaker 1: crypto in your retirement account, how would you have recovered It.
Speaker 1: Doesn't mean crypto is bad, but crypto is for younger
Speaker 1: people that can afford to sit on a loss for
Speaker 1: a longer period. Because when your crypto goes from one
Speaker 1: twenty five to eighty five, the worst thing you can
Speaker 1: do is to sell. You don't want to sell. You
Speaker 1: want to stay here in the market until they recover it.
Speaker 1: But if you are not selling and you are eighty
Speaker 1: five years old or seventy five years old, how do
Speaker 1: you eat? You have to sell to eat, So you're
Speaker 1: going to sell that crypto at a loss. That's the point.
Speaker 1: You invest according to your objectives, not the returns that
Speaker 1: are being offered. Kid that in mind, guys, don't ever
Speaker 1: invest because the returns are high. You want to ask
Speaker 1: yourself what type of investment is this. If it's a
Speaker 1: longer investment and you have a retirement plan, of course
Speaker 1: you invest. But if it's your rents money. You have
Speaker 1: rent money today, but it's due next year, you don't
Speaker 1: buy crypto with your rent money. You don't buy stock
Speaker 1: with your rent money because it's not guaranteed. There is
Speaker 1: fixed income, which is guaranteed. There's variable income, which is
Speaker 1: not guaranteed. Variable income always has a better return that
Speaker 1: fixed income because the risk factor inheriting it. All right, folks,
Speaker 1: let me just read a few messages here so I
Speaker 1: can just get the party going. Yes, I'm investing in
Speaker 1: my four Yes, so that's exactly what I'm saying. You said,
Speaker 1: which I should not invest in. I should not buy
Speaker 1: investment unless I have a retirement savings account. Please, can
Speaker 1: you explain more on this because I'm investing that's my retirement. No,
Speaker 1: look at what I'm saying. If you are investing. It's
Speaker 1: always a good idea. It's always a good idea to
Speaker 1: invest when I s in your honest account or in
Speaker 1: an investment fund. But when you put money in a America,
Speaker 1: which it's called for one K or the individual retirement
Speaker 1: account eirah in Nitia, we call it the retirements in
Speaker 1: this account. Those accounts are what we call tax advantaged accounts.
Speaker 1: With any funds you put in that account, you don't
Speaker 1: pay taxes. Not only do you not pay taxes, those
Speaker 1: accounts grow tax deferred. What that means is that when
Speaker 1: you put when you put money in that account, it
Speaker 1: will compound without putting, without you paying taxes. So you
Speaker 1: are able to then grow that portfolio faster than an
Speaker 1: account where you're in withholding taxes and the rest. So
Speaker 1: long term, long term, having money in the retirement since
Speaker 1: account that is tax deferred has a huge advantage because
Speaker 1: you're not paying taxes. So the first you want to
Speaker 1: invest is not your own personal investment in the retirement
Speaker 1: simis account that the company is offering you because it
Speaker 1: has a tax advantage. So if you live in America
Speaker 1: and the company offers you for one K, they will
Speaker 1: tell you if you contribute to one nur will contribute
Speaker 1: or if you compute to one dollar, will contribute fifty
Speaker 1: cents of ten cents or one ten. You want to
Speaker 1: take advantage of that because that's the that's an salary
Speaker 1: increase to you seem in Nigeria, if you contribute eight percent,
Speaker 1: your company will pay ten percent. Eight percent of your
Speaker 1: busy coutunal transport, your company will contribute ten percent. So
Speaker 1: why would you not firstiform maclimize your retirement simmeters account
Speaker 1: and get the ten percent on your company before opening
Speaker 1: up your own. You can open up yours after you
Speaker 1: have done the company's retirement accounts. You don't do yours
Speaker 1: and not do the company retirement sentens accounts. You have
Speaker 1: to do the service account for the company that is
Speaker 1: tax deferred first max it out, then you can do yours.
Speaker 1: It's very important and if in America, the best investment
Speaker 1: you can have, it's called the health savings account. Where
Speaker 1: a health savings account, when you put money in, it's
Speaker 1: tax tax tax exempt, so you put money in, you
Speaker 1: can write what you're put in from your tax from
Speaker 1: your income, so it's you take that off your income
Speaker 1: when it grows. It is tax free tax free. So
Speaker 1: you put money in, you don't pay taxes. The money grows,
Speaker 1: you don't pay taxes. When you take the money out,
Speaker 1: you also don't pay taxes. So look at it this way.
Speaker 1: You are twenty five years old, they are very very healthy.
Speaker 1: You open up a retime a health invni's account. Every month,
Speaker 1: put twenty five dollars into that Hilton's account every month.
Speaker 1: It's going to grow tax free for every year that
Speaker 1: you are working. Every year you just put it in.
Speaker 1: When you retire, all that money you have built up,
Speaker 1: you can withdraw that money for health related expenses tax free.
Speaker 1: You can buy shoes, sneakers, you can buy drugs. You
Speaker 1: can fly to get a massage on a Greek island,
Speaker 1: which is healthy. You can go and get a mud
Speaker 1: path in Turkey. Thuse are all health related transactions. You
Speaker 1: can buy vitamins and not gay taxes when you take
Speaker 1: it out. There's no other investment gives you a three
Speaker 1: tax benefit when you put it in GRUS and take
Speaker 1: it out is tax differred. So if you're in America
Speaker 1: and you're listening, you want to make sure you go
Speaker 1: open up a health savings account. Ask your employer most
Speaker 1: and plus or offer that to you with a high
Speaker 1: deductible plan. Actually, if it's a health serves account, make
Speaker 1: sure it fits your objective and you want to go
Speaker 1: get it. So that's start for for that. Yeah. Yeah, Instagram,
Speaker 1: you have a question, Please go ahead, Integrified, go ahead
Speaker 1: your question. Just go read this. Okay, that's so example,
Speaker 1: you have.
Speaker 4: Magency from, you have your I mean idea, you have
Speaker 4: your emergency from, you have your your more because it's
Speaker 4: your place in harrass your health small that supports.
Speaker 1: You if you want to. I can't resent your money,
Speaker 1: you know, I have a trend walking around is how
Speaker 1: am I going to be?
Speaker 3: How am I going to agree gise my investments? Okay,
Speaker 3: present goes to stock so percient real estates because I'm
Speaker 3: very I have affinity for a reask because of my age.
Speaker 3: Both I took this and its compas as well as okay,
Speaker 3: just throwing money around the little days.
Speaker 1: I how much because none of them I wanted to.
Speaker 3: Understanding.
Speaker 1: I can't agree this and also I don't know who
Speaker 1: is actually to do really to.
Speaker 3: You know have been posted.
Speaker 1: Yeah, so the question you're asking is how to do
Speaker 1: with what we call it as a location. That's what
Speaker 1: we'll do on our next space. Essentially, what you what
Speaker 1: you talk about it as a location, you say, this
Speaker 1: is who I am, and I want to invest money.
Speaker 1: What should I buy? And that's where multiple feel it.
Speaker 1: So when you do your as a location, the way
Speaker 1: you do it is essentially going to be It's about
Speaker 1: ninety five percent of the successful plan comes from your
Speaker 1: as a location. But I try to cent so if
Speaker 1: you get that right, and then is an example, how
Speaker 1: how old are you? How are you like below forty, below, thirty,
Speaker 1: below fifty okay, okay, So if you're take two years
Speaker 1: old right, just on the age of load, that tells
Speaker 1: me you have about let's say you want to retire
Speaker 1: when you're sixty five. That's how many compounding periods you have.
Speaker 1: You have a very long compound that you can afford
Speaker 1: to invest. When do you think if you invest, you
Speaker 1: want to take money out? Where do you think you're
Speaker 1: going to You're going to retire? I want to okay,
Speaker 1: I want to start working for somebody within maybe and
Speaker 1: I want to stop working for money maybe.
Speaker 3: Mom.
Speaker 1: Is okay, So I like that plan. So if you
Speaker 1: have forty five years and you are twenty five years
Speaker 1: to the what you attend me? What I hear you
Speaker 1: saying terms that you want to build up your passive
Speaker 1: income in ten years. That's what I hear you saying. Yes, okay,
Speaker 1: So look at the matt Yere right, if you want
Speaker 1: to get let's see, let's ass your interest rates at
Speaker 1: ten percent. Just to make it easy for us, let's
Speaker 1: as interrate at ten percent. Right, Let's say the answer.
Speaker 1: Let's say, what do you what do you end? Right now?
Speaker 1: Do you end below one million, below two million, below
Speaker 1: twe million, below four million below? What do you end?
Speaker 1: You end? Give me like a range? What do you earn?
Speaker 1: It sounds okay, Let's say you and let's all say
Speaker 1: you end even five, just to make it to match easier. Right,
Speaker 1: So let's say you end five million, right, So what
Speaker 1: you're saying that you want to end, so half of
Speaker 1: five is two point five right, you want to end
Speaker 1: two point five million. Let's assume that's no inflation. You
Speaker 1: want to end two point five million in ten years.
Speaker 1: Let's do the mass, So two point five percent is
Speaker 1: the end FIGO. Let's say return on asset is ten percent?
Speaker 1: What should I put in front of two point five million?
Speaker 1: That if I'm multiplied by ten percent, I'll get two
Speaker 1: point five what's that first figure? It's very it's very easy, mats,
Speaker 1: So what should I put that? If I multiplied by
Speaker 1: ten percent, I'll get to point five percent? What was
Speaker 1: that first field? How much would that be?
Speaker 3: Okay?
Speaker 1: Oh, excellent? Twenty five million? Excellent. So what you are
Speaker 1: saying is that you want to go from three million
Speaker 1: active income to twenty five million in savings. That will
Speaker 1: generate your passive income of two point five million every
Speaker 1: year in ten years. That's what you're saying. You're gonna
Speaker 1: go from your current Your current income today is you're
Speaker 1: saying about three million. I moved it up to five lets,
Speaker 1: So right now you earn income today for you is
Speaker 1: five What your plan is that you want in the
Speaker 1: next ten years? And when we say ten years, what
Speaker 1: take it to two periods? So ten times twelve. You
Speaker 1: are saying you want to have in one hundred and
Speaker 1: twenty compounding periods, you want to make twenty five million.
Speaker 1: That's what you want to have in one hundred and
Speaker 1: twenty compounding periods. At one hundred and twenty compounding periods,
Speaker 1: you want to have twenty five million. That if in
Speaker 1: fished its ten percent, it will direct two point five percent.
Speaker 1: What do you think in Nigeria can give you ten
Speaker 1: percent today? What do you know? Something like.
Speaker 3: Like oh from what that say?
Speaker 5: You did.
Speaker 4: What?
Speaker 1: I Yeah? So it's like okay, so fantastic, I hear.
Speaker 1: I like how you say? So you're business. Now you
Speaker 1: see you're looking for the investment that can give you
Speaker 1: that you want to invest. I will give you into
Speaker 1: five in teny years. That's what you're doing, right, Yeah,
Speaker 1: of course you know it's for example, I need to
Speaker 1: quify very that was that was that was your plan?
Speaker 1: I does I does? I just give you your plan
Speaker 1: out in numbers on now you see? Now you see
Speaker 1: how your plans start to fall apart because you yourself,
Speaker 1: I now agree with that two point five is not
Speaker 1: going to be a lot. You see the point when
Speaker 1: you put it on paper, when you do you want
Speaker 1: to say you want to stop working for someone in
Speaker 1: ten years, that's what you said. So if we wear
Speaker 1: the black and we put those numbers and figures for
Speaker 1: you can see now see what are your plan is?
Speaker 1: That means you didn't want to in five million? If
Speaker 1: you want to have passive income or if you want
Speaker 1: to retire, you want to have passive income that can
Speaker 1: cover your expenses. So what you want to do today
Speaker 1: to say what are those expenses that I have? Then
Speaker 1: number two, what is my passive income today? Your passive
Speaker 1: income cannot cover your expenses, your active income can. So
Speaker 1: you have you said in ten years you have one
Speaker 1: hundred and twenty compounding periods to start to convert huge
Speaker 1: amount of your active income to passive income. That in
Speaker 1: ten years you want to pay at least x amount
Speaker 1: of your income from passive income. It is possible. It's
Speaker 1: not about the fastest way to get to that number, sir.
Speaker 1: It's a start business, not to invest. If you start
Speaker 1: a business today, then that becomes active income, but it
Speaker 1: generates you more income to invest in passive assets. You
Speaker 1: hell what I'm saying. If you work for this, If
Speaker 1: you start a business, you generate more active income. That
Speaker 1: active income allows you to them by the passive assets
Speaker 1: that cantribute you fifty percent of your expenses. Number that
Speaker 1: as you get older, you're expense is going to go up.
Speaker 1: Maybe today you go to holiday in Ghana. In ten
Speaker 1: years time, I own to go about in Greece, So
Speaker 1: your expers are going to go up, so it's a
Speaker 1: toll order for you. That why financial planning is a
Speaker 1: very very delicate topic. You've got to have your plan
Speaker 1: on paper. When you put numbers and then see it
Speaker 1: doesn't make any sense either I'm in the wrong job,
Speaker 1: or I need to change my country or change mind,
Speaker 1: change mind what to call my assets so or change
Speaker 1: my decor anything. Because if you do it that way,
Speaker 1: then it makes sense. If this if you were if
Speaker 1: you are in America and you want to retire in Nigeria,
Speaker 1: your whole cognition changes because now you're bringing dollars back
Speaker 1: to Nigeria that if you convert, can give you sufficient
Speaker 1: income to live out your passive income. Like do you
Speaker 1: see what I'm saying? So investing is about looking at
Speaker 1: all those all those and what we say options and
Speaker 1: then basically saying this is what I would like to do,
Speaker 1: and using those options to then do your financial plan.
Speaker 1: Because it's it's not like you said, it's easy to
Speaker 1: say I like to retire in twenty four in ten
Speaker 1: years when you look at the figures, it's very very daunting.
Speaker 1: But the suppose don't change is how you want to
Speaker 1: achieve those principles that change. Yeah, alright, thanks again. I
Speaker 1: really enjoyed using your example, really really do. Yeah, should
Speaker 1: regard me to me honestly, honestly, sir, it's best to
Speaker 1: just send me just also ask me a question of
Speaker 1: the timeline and respond yeah. I get a love requests
Speaker 1: sometimes things I don't go there. Just ask it because
Speaker 1: of the time and I respond yeah, tag me ask
Speaker 1: me a question of response. So question from YouTube how
Speaker 1: easy is it to get the money from the ARRESSA
Speaker 1: want retirement? Which is the ARSS bands to be trust
Speaker 1: ANSWERD Yes, it's rather easy to get your money from
Speaker 1: your retirements in miss account. They give you watching to
Speaker 1: bring in documents, documents into bringing once you're about to retire,
Speaker 1: I tell them to tell you what to bring in.
Speaker 1: You bring it into, the company will pay you. I
Speaker 1: build the pay half of your money as boxed, some
Speaker 1: in cash and they pay the rest as an annuity
Speaker 1: to you. Yes, you can put any trustee as your beneficiary.
Speaker 1: So that's what they can receive those pension assets. That's
Speaker 1: I see what you're going with that. Yes, you can
Speaker 1: do that. Most people don't are not using the arresses
Speaker 1: the right way. Right, you have a guaranteed stream of
Speaker 1: income that's going to come to you when you retire,
Speaker 1: when you have your financial plan, do you take that
Speaker 1: into consideration when you want to go buy that mortgage.
Speaker 1: You want to tell the mortgage company, I have this
Speaker 1: guarantee stream of income coming to me in the next
Speaker 1: twenty five years. Can you give me a ALP today
Speaker 1: and I will look for a way. I'm not going
Speaker 1: to tell you what to do to attach that stream
Speaker 1: of income to paid on that mortgage. Your retirement series accounts,
Speaker 1: your long term savings. It's going to guarantee you a
Speaker 1: stream of income guarantee. But the felleral government not taxable.
Speaker 1: It can be Stolen's in your biometric name. It's in
Speaker 1: your name. Not know the company, it's in your name.
Speaker 1: That's a huge asset that you want to take advantage of.
Speaker 1: Very few leisuras are in that scheme. Less than ten
Speaker 1: percent of national workers on nagial level forces in that scheme.
Speaker 1: So they have the bit of wall of about ten
Speaker 1: to fifteen million raised ninety Nians. But they have the
Speaker 1: non informal sector. That's where you have to go after.
Speaker 1: Many informal folks not in a salary and do not save,
Speaker 1: so you have to make sure that you are saving
Speaker 1: in retirement this account. You don't have to go to
Speaker 1: a PF. They have micro PF now that can enroll
Speaker 1: you as a small business and you can enroll in
Speaker 1: those corporations. Start to say, because it's a compounded return,
Speaker 1: you get professional management into those accounts, and it might
Speaker 1: be the only things that are available for you that
Speaker 1: is separate from your business. Your business cannot be your
Speaker 1: retirement scheme. Your business cannot be your retirement scheme. That's
Speaker 1: just your business. You've got to separate your business from
Speaker 1: your income. Your business pays you an income, Your business
Speaker 1: not your income separated. So if you own a business,
Speaker 1: the income should come to you. So that way you
Speaker 1: can transit the business of somebody else and still get
Speaker 1: the income shares. When you incorporate equity, you hold equity.
Speaker 1: The business. Equity is owned by yourself, and the business
Speaker 1: then pays diffidence to the equity, which you then own.
Speaker 1: You don't have to work twenty four seven because you
Speaker 1: own a business. You can own the business, get the
Speaker 1: income and not walk to the four seven. That's why
Speaker 1: passive income is the bull, not active income. Passive income
Speaker 1: all right, I had this gentleman here amid hi, do
Speaker 1: amid high. I'll be go ahead, I can hear you.
Speaker 1: Let me go back to to to DM. Yes, so yes,
Speaker 1: the most of the questions that get repetitive, but yes,
Speaker 1: we're stressing. How many do you just put me? When
Speaker 1: you speak? I'm going to mute you when was ham
Speaker 1: just some mutay and then we can speak Oh jeez, yeah, okay, yes, well,
Speaker 1: well we're really focusing on the topic of Pacific. You've
Speaker 1: got to understand that that's the whole goal. If you
Speaker 1: are rich, that's because of pasidic. We're not telling you here,
Speaker 1: go and buy X or Y. This is the structure
Speaker 1: that you want to follow. You know, you can't say
Speaker 1: you want to retire. We just had a conversation with Instagram,
Speaker 1: and I just walk you through how this is done
Speaker 1: in real life. If you go to a fuanship and
Speaker 1: you say I like to retire, I'm going to ask
Speaker 1: you when do you want to retire? What they want
Speaker 1: to get from you is your compounding period, and ask, okay,
Speaker 1: what is your goal when you retire? I just want
Speaker 1: to go to an island and live on that island.
Speaker 1: What want to get from you is also your expenses
Speaker 1: when you retire, but where are you going to retire?
Speaker 1: You know retire United States, are going to retire in Nigia.
Speaker 1: Why is that questioning important? Inflation? If you retire in
Speaker 1: the United States is easier to plan because inflation there
Speaker 1: is really easy to plan an organized around. In Nigeria,
Speaker 1: we've gone from forty percent inflation two years ago or a.
Speaker 1: But if you say effected about ten percent inflation to now,
Speaker 1: where've been told the invasion is sixteen percent in less
Speaker 1: than a year. So would you believe you if you
Speaker 1: go from ten percent to sixteen percent in less than
Speaker 1: two years, it's simply tell it can go back right up.
Speaker 1: And again, why is the interest rate still high if
Speaker 1: the inflation rate has come low? But if you are
Speaker 1: in Nigeria, the plan is a bit more difficult because
Speaker 1: we can't we can't know, we don't know where in
Speaker 1: future is going to be in the next year. So
Speaker 1: you've got to save more if you're in Nigeria. But
Speaker 1: save what you can't save in naira because naira is
Speaker 1: very very unstable store of revenue or sort of ink
Speaker 1: of asset. If you hold a narra today, you are
Speaker 1: losing officially sixteen percent. Just holding ir in your hand,
Speaker 1: you've lost sixteen percent, which is infliction rate. If you
Speaker 1: hold a dollar in your hand, you've lost two to
Speaker 1: three percent, which is inflation rate. To which one do
Speaker 1: you want to basically hold It depends on where you
Speaker 1: want to retire and where your expenses are meant to
Speaker 1: be the best investment scheme or retirement scheme I have seen.
Speaker 1: It's a guy that walks or ends in dollars that
Speaker 1: want to retire in Nigeria. That's perfect because you're getting
Speaker 1: a dollar, you're bringing it to Nigeria to spend. The
Speaker 1: dollar is stable, Nara is on the stable. You can
Speaker 1: afford all your expenses in Nigeria. But not everyone's in
Speaker 1: that class. But then again, if that's where you are today,
Speaker 1: you want to start to them broaden your investment horizon
Speaker 1: and seen I want to buy more dollar investment not
Speaker 1: because Nayra is bad, but because you want to get
Speaker 1: access to a currency that is more stable. Inflation is
Speaker 1: the problem if there was no inflation or women having
Speaker 1: this zoom class, because all we do is when we
Speaker 1: end money, we take tempts on that money, dig the ground,
Speaker 1: putting the grid cover it and then we're good. It's
Speaker 1: because of inflation that we're worried about talking because if
Speaker 1: you save today and it doesn't beat inflation, you're wasting
Speaker 1: your time. Right, But we have still safe, right, we
Speaker 1: still have to say fantastic. Guess let me go back
Speaker 1: to DMS. Yes, we've spoken about inflation. Were passing income?
Speaker 1: YEA mean who talked a lot about that. If you
Speaker 1: just go back, it's it's going to be recorded. It's
Speaker 1: on YouTube. It's also on the podcast. If my podcast
Speaker 1: is the way I see it, it's also on the
Speaker 1: on my DM. There you can get the podcast to
Speaker 1: record it and to be released. We have talked about
Speaker 1: fifty more minutes and we're gonna call it off because
Speaker 1: just because I'm in transit so I'm really getting good
Speaker 1: put download speeds. I want to share a lot of stuff,
Speaker 1: I cannot do it. So we have to call this
Speaker 1: early and then we'll call the day and then next
Speaker 1: week we should have to then do more of the investments.
Speaker 1: We'll start it off from income and expenses that will
Speaker 1: not move to as the liabilities. We've taught us spend
Speaker 1: a little bit today about debts. I said that that
Speaker 1: with this, you want to do your categorization and pure
Speaker 1: of you that cut into your to the highest debt
Speaker 1: amount or the highest debt percentage. I prefer you pay
Speaker 1: the higher e p R. Because I will take off
Speaker 1: your what's it called. It will make it easier for
Speaker 1: you to pay pay to the principal principle only it
Speaker 1: works in your in your in your favor right. And
Speaker 1: then next week we're going to do more of as
Speaker 1: the location with a lot of visuals for that, and
Speaker 1: we'll make sure I have my visuals up and then
Speaker 1: we can share that together because that would show you, guys,
Speaker 1: essentially how to invest me because I invested for returns
Speaker 1: as it's not the way you do it. You won't
Speaker 1: invest for your objectives. And if you're younger, you have
Speaker 1: you that's different Fermi. If you are older, right and
Speaker 1: waiting for em Lots of guys want to speak, but
Speaker 1: I cannot add them. Emrys to floating America. Can you
Speaker 1: hear me? I can see you struggling to look in there. Yeah,
Speaker 1: I heard you, guys, but it's not it's not going
Speaker 1: I think it just in network. Let me get all
Speaker 1: we'll add all that. And I also sent you that request.
Speaker 1: I think it was a network. Let's see what happens. Yeah, oh,
Speaker 1: I hire you all bottom okay, both, I'm doing very well.
Speaker 1: I already got your book. I'm lazy your book. Okay,
Speaker 1: I'm doing an audio version very soon for the day,
Speaker 1: like I am listening to already those two audio books. Books.
Speaker 1: You have been You have been a leader. God bless you,
Speaker 1: and I appreciate that I'm missed.
Speaker 6: So I'm actually living a miss last Sunday about Sundays,
Speaker 6: I don't know if there's any way you do so
Speaker 6: for me, I'll listen and reading. H So you're saiding
Speaker 6: a lot of things, and honestly, I wish there's a
Speaker 6: way you can do, like in transcripts before something that's
Speaker 6: on you that you can even sell long you can
Speaker 6: make money, so you can really make a lot of money.
Speaker 6: I know I live in Nigeria, so I am a
Speaker 6: Nigeria pasting, but my family they live in America.
Speaker 1: So if you can airport if for me, I want
Speaker 1: to do.
Speaker 6: Investments in Nigeria in terms of love, insurance and all
Speaker 6: of those things. If you can set up things that
Speaker 6: would you so, because I see that walk around if
Speaker 6: you are and America, finish your systember Nageria, you know,
Speaker 6: coming up with this our law that's taking up in January,
Speaker 6: I think we'll begin to transit to global space. But
Speaker 6: my point is to say that your book you said,
Speaker 6: oh someone sho you go and read it page and
Speaker 6: when I was jumping between my room, monk okay.
Speaker 1: So if you can do something that will help us
Speaker 1: in the.
Speaker 6: Now, begin to do now that we're class sitting into
Speaker 6: a more like UK that system, things that can help
Speaker 6: us and decomplaints. But please do not advertise. And I
Speaker 6: appreciate it, Thank.
Speaker 4: You, sir.
Speaker 1: Yeah, we've done a lot, so you said a lot.
Speaker 1: So the last space is recorded, so if you go
Speaker 1: to the I think that we do on we do
Speaker 1: a podcast recording and I made sure I did the
Speaker 1: YouTube recording as well, just to have the visual things.
Speaker 1: So both are recorded. I think I have a channel
Speaker 1: on YouTube trying to find me. Also on the podcast
Speaker 1: handle you can still recording there. Make sure I post
Speaker 1: everything up so you can see there. It's very I'm
Speaker 1: trying to bring the language very very you know, Suppo
Speaker 1: can follow. But like you said, it was a page
Speaker 1: I put up last week and it was it's summarized
Speaker 1: everything this is also been recorded as well as regards
Speaker 1: to the book by book. I wrote the book with
Speaker 1: the Nigerian language and Nigerian palance. I tried to use
Speaker 1: as many niger examples. The investments ARECA. I talk about
Speaker 1: their ass talk Nigerian stock market investment funds. There's a
Speaker 1: whole page in Niger on my book around ponds where
Speaker 1: I picked a particular phone and I'll say this is
Speaker 1: the font for this. I say, if you want to
Speaker 1: get long term investing, use this font. If you want
Speaker 1: to buid inflation, use this font. If you want to
Speaker 1: do good, use this fon Nigerian phones, not US phones.
Speaker 1: So even when we do the budget we talk about generator.
Speaker 1: There's no drinks in America. There's no generator to express
Speaker 1: in America. That's why I always talk around the book.
Speaker 1: It's all my experience Nigeria the US managing money for
Speaker 1: rich people, for pensroon phones, for trust. I knew that
Speaker 1: an Islamic fond at the time in my life. All
Speaker 1: that I wrote in the book and I put it
Speaker 1: there very very rich. So it's in all the get
Speaker 1: the book and keep it right, and there's gonna be
Speaker 1: an audiobook coming very soon, so you can listen to
Speaker 1: people like, oh I just listen. You're driving home, just
Speaker 1: listen to it. It's very very rich. All that you
Speaker 1: can go ahead, all that amazing. You're taking a lot
Speaker 1: of people.
Speaker 6: How people, so people who have resources, and then you
Speaker 6: know how to turn it around.
Speaker 1: God bless you, and I just wish you keep open us.
Speaker 1: God bless yourself. Thank you. I'm trying. So the one
Speaker 1: thing that I see nice and I'm not coming the
Speaker 1: one out. If you make something free, people don't really
Speaker 1: value it. So I always tell people, like my day
Speaker 1: job is what I did my day job. People come
Speaker 1: to me and say I want to do this, and
Speaker 1: I tell them this is how you do it, and
Speaker 1: then they pay me or they paid the company that
Speaker 1: I work with. All that so this this is, this
Speaker 1: is this is my probomum, especially to Nagerians. So if
Speaker 1: you notice that page, I talk a lot of Nigerians
Speaker 1: and I try if it's possible not to charge you,
Speaker 1: like to do a master class. If I did a
Speaker 1: master class on this exact same space, I would have
Speaker 1: double number of people on the space and they will
Speaker 1: all be paying. So I'm not saying people just have
Speaker 1: to understand that the money thing is not like if
Speaker 1: you have a dent if you have a opinion your too,
Speaker 1: they're gonna pay a dentisty to get out. If your
Speaker 1: car is bad, they're gonna call them I can take
Speaker 1: it out. But people with money, that's a saying that
Speaker 1: it's my money and I can manage it. That's that's
Speaker 1: kind of wrong. Money has a certain way it has
Speaker 1: to be managed. They are certain principles you've got to follow.
Speaker 1: If you get it's wrong, it's very very it's costly.
Speaker 1: If you lose money, you have to make more money
Speaker 1: to just recompense it for the inflation and for the
Speaker 1: time a lot. I'm not telling you to go buy
Speaker 1: the stock on that stock. I'm giving you how you
Speaker 1: want to arrange your finance, life right plan, insurance, retirement
Speaker 1: before you invest. If you don't do this stuff this way,
Speaker 1: it's going to cause you problem with that line. So
Speaker 1: this is the point I'm making universal principles. It's not
Speaker 1: a Nigerian principle, the investal principle. If you do your
Speaker 1: financial help check, like I said, this is a new
Speaker 1: year coming wherever new year are coming, you track your expenses,
Speaker 1: you track your income. You categorize both of them. You
Speaker 1: know what is passive, you know what is active, you
Speaker 1: know what is non discussionary expenses, you know what the
Speaker 1: discussion of expenses. Then you don't ask yourself this year.
Speaker 1: This year, I mean twen twenty five, how much of
Speaker 1: my passive income can pay my expenses? The answer might
Speaker 1: be one percent. Maybe you have the expenses of a
Speaker 1: million ira and you only have passive income of ten
Speaker 1: thousand ira. So today your passive income can pay one
Speaker 1: percent of your total expenses. Okay, what will your goal
Speaker 1: in twenty six? Can I move that one percent to
Speaker 1: five percent? You see how simple this is. Simply move
Speaker 1: that one percent to five percent. I say in twenty
Speaker 1: twenty six, by December twenty six, I would like five
Speaker 1: percent of my passive income to pay for my expenses.
Speaker 1: That's the great goal for you. That means that means
Speaker 1: you're going to have to go back in and number one,
Speaker 1: increase your investments and number to reduce your expenses. That's
Speaker 1: a goal that everyone can agree with. Then twenty twenty seven,
Speaker 1: can you make it six percent? If you keep on
Speaker 1: doing this way in twenty years, you find out by
Speaker 1: in twenty years time, twenty five percent, twenty percent of
Speaker 1: your passing income is able to pay for your expense.
Speaker 1: And that's the entire goal of retirement. You can't say
Speaker 1: you want to retire retirement. It's when your passive income
Speaker 1: can you pay your expenses. That point where your passive
Speaker 1: income grap with that can pay you're expensively, just like
Speaker 1: a straight line goes like that. That's when you carry tire. Guys.
Speaker 1: So I appreciate you guys hopping in here. Like I said,
Speaker 1: the network really is not allowing me to share. Really
Speaker 1: a lot of stuff I like to share. So we're
Speaker 1: gonna end a bit earlier than we would have normally ended.
Speaker 1: Normally we're here for three hours. Let's see how long
Speaker 1: we can. Just next time we do meet, I ssure
Speaker 1: you to have all these visuals and will show it
Speaker 1: together across to you guys. So part of you, guys,
Speaker 1: we're gonna just shut it down. A lot of DMS,
Speaker 1: I hear you, but minority gets a lot of them,
Speaker 1: and I'm gonna use you talk about protect the book.
Speaker 1: Get the book on Amazon. It should be in the
Speaker 1: Nigeran bookstop. I think now there's gonna be Amazon for now. Guys.
Speaker 1: What else and just look a quick look at the
Speaker 1: dms and seen there's anything that is interesting. I like
Speaker 1: this song I have. I have a house in Legos.
Speaker 1: I have a house in Legos, but my family is
Speaker 1: living in the house in Legos. I have a second house.
Speaker 1: So he has two houses in Legos. His family is
Speaker 1: living in one house. Would I classify that house as
Speaker 1: an income being assets or a non income paying asset?
Speaker 1: If ready to answer the question, it's your family paying
Speaker 1: income if your family is not paying income. Again, like
Speaker 1: I said, we're not talking to the accounting definition here.
Speaker 1: There's the reason why we're making it income assets and
Speaker 1: non income assets. If your family is living in that house,
Speaker 1: I don't think they're paying you income. Right. The question
Speaker 1: for you is are you paying interest liability on that home?
Speaker 1: That's the question for you. That's the question for you.
Speaker 1: If you've got that home, there's no mortgage and all that. Fantastic,
Speaker 1: it's an asset for you and there is nobility gender
Speaker 1: the size, so it's fantastic for you, but it's not
Speaker 1: makes sense on a financial planning basis to go borrow
Speaker 1: money and have a home and then give it out
Speaker 1: to family members that do not pay you in the
Speaker 1: rent because in what you've done that you've created an
Speaker 1: asset and incured an interest bearing liability. But you've got
Speaker 1: created a corresponding income, creating an assets. So your net
Speaker 1: what is not just negative? There is no opportunity for
Speaker 1: that network to become positive. I hear you don't confuse
Speaker 1: income and value. I hear what you're saying that the
Speaker 1: house value will rise. That's not what worried about here.
Speaker 1: You can't go to a restaurant and tell me the server,
Speaker 1: my house is worth one million. Give me a plate
Speaker 1: of rice. No, you've got to pay for the plato rice.
Speaker 1: So the house has got to generate income, that is income.
Speaker 1: The value of the house is the asset. Remember we
Speaker 1: are comparing income generating assets assets. It's not an asset
Speaker 1: to interest bearing liability. It's the liability. You will not
Speaker 1: saying that the income from the house makes it not
Speaker 1: to be an asset. No, it's still an asset. But
Speaker 1: what sort of asset is it? Is it giving you
Speaker 1: income or is not? Follow your example and following yourself,
Speaker 1: follow your example. The house is not giving you income,
Speaker 1: But you've got a loone buy a house that is
Speaker 1: not giving you income. So your network is going to
Speaker 1: not only be negative, but you're not giving your network
Speaker 1: any opportunity to generate income to pay off the lability.
Speaker 1: There are two things there. The network itself is asset
Speaker 1: less liabilities. But below that that asset will buried income
Speaker 1: that goes to your income statement that should pay off
Speaker 1: the liability on this asset is we're not worried about
Speaker 1: the income or the liblist on our balance sheet. Don't
Speaker 1: just put it up. We're not worried about the income
Speaker 1: on the balance sheet. What we're asking is that is
Speaker 1: that asset itself generating income. We're not asking the income
Speaker 1: on the balance sheet, but we're asking is that asset
Speaker 1: generating income? If it is fine? If it's not fine,
Speaker 1: match then if you have an overload of interest bareing
Speaker 1: liabilities your network. Our issue here is network, not liquidity.
Speaker 1: Our issue here is network, then you would have a
Speaker 1: negative network and not just a negative networks. On your
Speaker 1: income side, you have no income to service this interest
Speaker 1: bare liability. So you're going to be an asset reach
Speaker 1: and cash just like Nigeria is. Nigeria has tons of assets.
Speaker 1: We have oil fields, we have gold in Kebby, we
Speaker 1: have palm oil. In Abia, we have cocoa in the oil,
Speaker 1: but we are cash poor. We are borrowing one trillion
Speaker 1: a month in Nigeria, but we have billions of barrels
Speaker 1: of crude oil. So in Nigeria's case, Nigeria has got
Speaker 1: a huge interest their reliability. At two years ago, Nigeria
Speaker 1: was paying nearly ninety percent of her income to service
Speaker 1: her debt ninety percent nearly today is down about forty
Speaker 1: five forty four percent. So the income on the income
Speaker 1: steans that that's making we're paying almost forty four percent
Speaker 1: here to service our debt balance sheet. So the question
Speaker 1: is now, is the ink the assets Nigeria gen written?
Speaker 1: The assets Nigi genity with this debt? What's the asset
Speaker 1: the railways, the roads, that's the assets, the education people,
Speaker 1: We are the assets of Nigeria. So are the assets
Speaker 1: and Nager wating out? Is it being funded from this?
Speaker 1: Can we pay taxes? This is where the attax from
Speaker 1: his past. Can the assets of Nigeria pay taxes to
Speaker 1: coper the places of Nigeria. So it's the same principle everywhere.
Speaker 1: Don't confuse income and assets. The point is on the
Speaker 1: balance shifts that were worried about the net worth. What
Speaker 1: are you worth? But on the income side, we're asking
Speaker 1: you that asset and that liability are generated. What are
Speaker 1: they bringing in? Because you need cash to eat. You
Speaker 1: can't retire with assets. You retire with income passive income.
Speaker 1: When you go to the hospital, you tell the doctor
Speaker 1: has to pay my bill. You don't tell him I
Speaker 1: have a house down the road. You say I have
Speaker 1: a credit card or have cash at your check to
Speaker 1: pay for my health. So you retire with income. The
Speaker 1: business can generate income. If you have a business not
Speaker 1: generated income, that's a problem. Help that clesant up. That's
Speaker 1: a good question. Out that clean up. Yes, don't mix
Speaker 1: two of them. It's still an asset, but it's an
Speaker 1: asset generating income. That's our question, right, and the income
Speaker 1: goes to the income statement. Fantastic, All right, fye, guys,
Speaker 1: I do just a quick check. Not other questions here.
Speaker 1: I love back A good way for to summarize. Let's
Speaker 1: start wind down the space. So guys, who walk this
Speaker 1: week around assta liabilities. Last week we're talking about income
Speaker 1: and expenses. So what we're gonna do now is that
Speaker 1: when I'm going to sort of set the stage up
Speaker 1: for next week. Next week, we're gonna talk around asset management.
Speaker 1: What we're going to gogle to say, Okay, we want
Speaker 1: to invest. We've seen that we have we have to
Speaker 1: make passive income. We've seen that we have to grow
Speaker 1: our asset size to feel for our lab this side.
Speaker 1: What sort of investments should we make to generate passive income?
Speaker 1: What should we invest in? That's what I'm going to
Speaker 1: talk around next week. How can we have an investment plan?
Speaker 1: Where should we invest, how long? How should we do it?
Speaker 1: How should we select investments? That's maybe be a great
Speaker 1: topic for us to do next week. So again we'll
Speaker 1: be here next week. Will we've been a good internet situation,
Speaker 1: so we can share all our pages and you guys
Speaker 1: can follow you wonderful and I drew up with you guys.
Speaker 1: Last point, guys, please to get the book. It's it's
Speaker 1: it's it's a fantastic book. I wrote it, got tons
Speaker 1: of experience in this field. Ily want to just pass
Speaker 1: that information across you guys, like I said, and that
Speaker 1: book can really help because all these topics are out there.
Speaker 1: We're just to pay twelve and we can't talk around
Speaker 1: page twelve whilst the recording an audio version I will
Speaker 1: say before the end of the year, which had the
Speaker 1: all division our just in time for Christmas, so you
Speaker 1: guys can get that as the Christmas give shp your
Speaker 1: friend's gonna be way cheaper and we also listen to
Speaker 1: the book. And also then all right, folks, on that note,
Speaker 1: my name is Calu. Actually, thanks for journey with me,
Speaker 1: spending your Sunday with me. Let's just say to end,
Speaker 1: we're just in a prayer for the continent Materia. It's
Speaker 1: our country, not an agi, and we don't have enough
Speaker 1: nitty to the country. We just want to want safety
Speaker 1: for all those that have been taking for their parents.
Speaker 1: We just pray that Lord the Lord will bring them
Speaker 1: back to their families in one piece. We know we
Speaker 1: can return the emotional stay these kids around, but physically,
Speaker 1: if we can just give them back to their parents,
Speaker 1: that would be a big, big boost. Not for the nation.
Speaker 1: We've got to pray for the nation. Lots of bad
Speaker 1: actors going around. We're just going to make sure that
Speaker 1: nations stays strong, united and of course solid. So that note, guys,
Speaker 1: let me let you guys go. We have a fantastic
Speaker 1: rest of your Sunday, and I'll see you guys next week.
Speaker 1: Thank you so much and bye.