FROM DEBT TO WEALTH IN FIVE STEPS

A young American businessman was walking down the street with his wife sometimes in the early nineties. They came across a homeless man and our young businessman said to his wife, “that man is richer than I am”, “I don’t understand” said the wife, then our young businessman responded: “that man is worth Zero, he is richer than I am because I am worth -$900,000,000” referring to how staggeringly indebted he was. Today, Donald Trump is worth over $9billion.

On the average, seven out of every ten people are indebted one way or the other. In the Nigerian economy where there are huge economic challenges, the ratio seems even higher. However, in spite of these mounting debt issues, everyone still aspires to wealth. We have unfulfilled dreams and visions. How then do we make the leap from indebtedness to wealth like Donald Trump did? 

 

STOP DIGGING: If you wake up one morning and find out that you have dug yourself into a big debt-hole, the first thing to do is to stop digging. It is commonplace to see people borrowing more to settle previous debts. This approach will only get you deeper into debt. If at the time of reading this you are in debt, resolve to stop borrowing. Be responsible, go to your creditors , own up to them and ask them for a fair period of time to settle your debts. Create and show them a loan repayment plan. Thereafter, work your socks off. Do whatever you have to do (within legal bounds) to make sure that you pay back within the set timeframe.

CHANGE YOUR ORIENTATION: Understand that money is only a measure of value. Become value-oriented instead of money-oriented. Begin to think about ways by which you can help others, think about problems you can solve with little or no financial cost. Doing this will help you spot some of the numerous opportunities that exist in your environment. Do not let your ego derail you; use whatever opportunity you get to create value for others. Always remember that “money only goes out in exchange for value”.

LEARN ALL YOU CAN: In order to maximize your potential to create value and prepare for bigger opportunities, learn as much as you can about the things that interests you. Read books, subscribe to blogs, attend seminars, or go and intern with someone who is already doing what you want to do…and do it for the education. One thing that worked for me here is that I stopped listening to music and listened to audiobooks and podcasts instead. This can help you learn more about opportunities which you can explore for free.

SAVE AND INVEST: Money will never be enough. Therefore no matter how little you earn, save some. A practical thing to do is to save 10% of all your income. Be faithful to this and you will be surprised at how much you have saved in a short period of time. In addition, keep track of your expenses to the last penny, record them so as to trim away excesses overtime. Finally, at regular intervals (6months, 12months...depending on how much you are able to save), invest your savings; make your money work for you. Again, if you have been faithful to learning, there are tons of ways you can invest your money, no matter how small.

BUILD STEADILY: Patience is the key. Wealth is not a windfall, neither is it a jackpot; it is what you have been able to build by way of assets overtime. There is no shortcut. Your ability to maintain a value-oriented approach, work hard, work smart, save and invest while thinking big is vital to your success. No one said it was going to be easy, it was never easy for today’s billionaires, and it was never easy for Donald Trump either. Don’t quit when it gets tough, be persistent, and you will get there.

That it has been done before is proof enough that you can do it too; even better”. To the determined mind, anything is possible.

“Idea is cheap, Knowledge is costly, action is scarce” is the mantra I live by. The only way by which you can make the leap from debt to wealth is by taking action. When? Now! Keep at it, don’t quit, because it is possible. DO