Writers 
7 THINGS TO KNOW ABOUT MONEY
MY thought was that making money would solve most of my problems.
I once believed that once I earned enough, life would automatically become easier, I focused on earning, spending, and trying to look like doing okay.
Years later, I discovered something important,
Making money and understanding money are two completely different things.
Here are seven things I wish I had understood about money.
1. LOOKING RICH IS NOT THE SAME AS BEING WEALTHY.
One of the biggest financial mistakes is spending money to convince people that you have money.
Buying expensive cloths, phones, cars, restaurants and vacations can create the appearance of success without creating actual financial security.
Wealth is often quiet.
It can look like savings nobody sees, investments nobody knows about, a business that is growing slowly, or an asset that continues to increase in value.
Spending trying to impress people in the present.
2. YOUR INCOME IS NOT YOUR WEALTH
A person earning N3 Million a month can be financially unstable.
Another person earning NGN5,000,00 can be building substantial wealth. The difference is what happens after the money enters the person’s account.
HOW MUCH IS SAVED?
HOW MUCH IS INVESTED
HOW MUCH IS CONSUMED?
HOW MUCH IS USED TO ACQUIRE PRODUCTIVE ASSETS
Your income tells you how much money you receive.
Your financial habits determine how much you keep.
3. LEARN TO PAY YOURSELF FIRST
It is easy to spend everything and promise yourself that you will save the remains. The problem is that there is usually nothing left. A better habit is to treat saving and investment as obligation rather that leftovers. When money comes in, set aside a portion before lifestyle expenses begin. Even if the amount is small, consistency matters.
Don’t wait until you earn more before learning how to manage what you already have.
4. COMPOUND GROWTH NEEDS TIME
I wish I had understood earlier that time can be one of the greatest financial advantages. Money that is consistently saved and invested over many years can have an opportunity to grow. This why starting early can matter more that starting with a large amount.
5. DON’T BORROW MONEY TO FINANCE AN IMAGE
Debt can be useful when it helps acquire something productive or when it is carefully managed. But borrowing to simply maintain a lifestyle can become a trap. Buying things, you cannot comfortably afford because you want people to believe you are successful can leave you working for yesterday purchases. Before taking a debt, ask yourself, “ is this helping me build my future, or am I simply consuming my future income today.”
6. LEARN ABOUT ASSESTS BEFORE YOU CHASE MORE INCOME
Increasing your income is valuable, but learning what to do with that income is equally important.
· Learn about investments
· Learn about business
· Learn about property.
· Learn about financial planning
· Learn how taxes, inflation and interest risk affect your money.
· Most importantly, learn to distinquish between things that produce value and the things that merely consume money.
The more financially literate you become; the better decisions you can make with the money you earn.
7. YOUR GREATEST INVESTMENT IS YOURSELF.
Money invested in yourself can produce returns that aren’t immediately visible.
Develop skills, Read, learn from experienced people, improve communication, build relationships, become more disciplined, Develop expertise in something valuable. Your circumstances can change, business can fail and markets can fluctuate. But the knowledge, skills and character you develop can continue creating opportunities.
IT IS NOT WISE TO SPEND YOUR ENTIRE YOUTH CHASING MONEY, BUILD THE CAPABILITY OF CREATING, MANGING AND MULTIPLYING IT.