Financial independence does not result from a jackpot or inheritance. Instead, financial independence results from a lifetime of making prudent financial decisions.
Professor Emeritus Stephen Adei shared these 13 practical keys to financial independence when He was speaking at Springboard Your Virtual University.
He further emphasized that it was possible for an individual to get rich without having to resort to illegal means or through corruption.
Professor Emeritus Stephen Adei shares the following principles;
1. Financial vision; You need to have a financial vision, which is something you want to achieve within 10 years, 15 years or 20 years. You need that vision for you to endure short term challenges.
2. Smart financial goals; Break your vision down into time bound financial goals. You must set time bound smart financial goals.
3. Investment guide; Save and invest systematically using the 10-10-80 principle. For the religious, Pay God 10 per cent, pay yourself 10 per cent, and pay your bills with the 80 per cent.
4. Consumer debt; Avoid consumer debt like a plague.
5. Earning interest; Don’t let your money work for others such as your bankers and other financial vampires. Let your money work for you. Often times, we put our monies in savings and current accounts but that is not the best.
6. Investment vehicles; Invest where money grows in relative safety, like mutual funds and provident funds.
7. Get rich slowly; Get rich slowly. Only two people get rich quickly and these are thieves and corrupt people. The average person requires time to allow their investments and savings to grow.
8. Unsustainable interest income; Avoid anyone who promises you twice more than the returns on the 90-day T-bill. The maximum you can get in a good safe investment will be two times that of the 90-day T-bill.
9. Avoiding setbacks; Protect yourself from sudden financial reverses by creating an emergency fund, buying basic life insurance and preparing a will.
10. Patient growth; Be patient and let time, consistency of investment, good returns, and the magic of compound interest to work for you.
11. Limit the price; Limit the price of financial success. Getting rich at the expense of personal integrity, a good marriage, family life, fellowship and friendship only makes you a rich fool.
12. Start today; Start an investment plan today. The best time to start investing was yesterday, the second best time is today, and the worst time is tomorrow.
13. Have faith in God; It shall not profit a man to gain the whole world and lose his soul. Ultimately it is God who will bless your efforts with favour and prosperity.
