Welcome to the #GoodMoneySeries on The Spread Media Business Blog. I am Coach Chudi and I will be sharing informative posts on The Personal Finance, Savings and Investment Section on The Spread Media Business Blog.
A quick question, are you ready to win the war against Poverty?? Are you guilty of borrowing money time and time again?? Read today’s post and get thinking. Here we go!
A good man can be in debt but he would never be saved by his virtue when the creditor or the bankers come calling. I like the silent fact that no bank is putting me under pressure rather I am the one putting them under pressure. Reason is that if you don’t decide what you want for your financial future, you will seize from building the financial fortune you long desire.
I would rather die a slave than to borrow…. Reason is that slavery, borrowing and begging are from the same parent. I have tasted poverty and I understand the attribute of poverty, you will find the same attribute in begging, slavery and borrowing. So if you borrowing, it is like you slaving or begging.
This is not what many people would like to hear but it is what enhances the financial future of anyone. It is not by force to wear a suit , you don’t have to borrow to wear it. It is not by force to borrow to buy aso-ebi (ceremonial outfit). You have to come to a point where borrowing is not seen as an alternative to wealth-building It is because you are seeing it like that is what is making you borrow everything.
Financial fortune does not consist of that which you borrow, it consist of that which you design for yourself. Debt is the worst form of poverty. Recently, I met with a banker who contacted me to help him sell some properties.
The price the properties were going for were so ridiculously cheap that a 5 bedroom duplex in Lekki Scheme 1 was placed at N13MILLION, there were several of them in that category. About 350 properties around Ikeja, Surulere, Victoria Island and Lekki were up for ridiculous price. My curiosity got the better of me as I wanted to know why a bank would be giving such ‘give-aways’. It was when I probed that I discovered that these were houses that were used as collateral and their owners could not pay after borrowing money. I felt some kind of concern welled up inside me as I gazed at the documents in my hands. I would not forget when I scanned through to see the house of a close buddy going for sale.
I quickly contacted him and he told me the saddest story. He and the wife were already living in a rented apartment after giving up their 4 bedroom duplex in Surulere. The house was eventually sold for a measly N6Million. Now my friend continues to live in a rented apartment after having gone through an economic downtime. I can imagine the stress and discomfort his family has to go through. There is never a guarantee that all things would be equal when borrowing. It may look like the last resort but it is the last resort for those who don’t want to task their brain for other answers aside from borrowing.
I like engaging my mind for alternative to borrowing money to get what I want. I recall when we have to get our first office in Olonade, Yaba, Lagos. There was heavy pressure to go and borrow some fund but we decided to go for the next available option, which I call ‘The Alternative to Money Mentality’.
This mentality changed the concept of borrowing money and rather engaging in alliances. I find it erroneous for a business person to think borrowing money is the solution to his organization’s problem. I doubt if the problem would ever go away. In fact when you borrow, you have more problems.
I watched how a caterer whom I squatted in her house for a year went bankrupt after she collected loan from a micro-finance bank in a bid to expanding her business operations. Before we knew what was happening, the business dried up… and relocating from Surulere to Sango-Ota and was stagnated for more than a year. She could not pay her rent as the landlord took her to court. It was a horrible experience seeing someone who was helping other Entrepreneurs set up businesses but was held captive after borrowing money. The experience taught me a lesson… every creditor always have better memory than the debtor.
When you are out of debt, you are out of danger. Till today, I don’t understand how debt can cripple a business or a financial destiny but I do know the story of many who are living in extreme difficulties because of borrowing.
Borrowing can be likened to an incurable virus… it lingers and lingers without showing at first, then suddenly start showing and making the skin and the body experience change in color. I have vowed never to borrow to start any business no matter the size. I would work and walk my size until my story change… That is what has kept our real estate empire and taken us far beyond our wildest expectation. It would be erroneous to start doing something contrary to what brought success.
I have debunked the idea of paying or using something I haven’t paid fully for because I would likely lose everything. If it isn’t mine, I don’t want it.
That is my own opinion, you don’t have to follow it.
Like we always say, feel free to share this post, someone you know needs it.