Passion vs Money

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Business, if you had a chance to start your own business what would you do? Would you follow your passion or what’ll make you money?

Often times we go for what works, what makes us money and not what we are called to do or destined to do. There have been those that succeeded in doing any kind of business, and those that succeeded in their passion business, and there are those that failed at both.

If given $100,000 what would I go for? I know I would invest in my passion but I think I’ll also invest into something else that works. Not because my passion won’t work, but because I know I won’t stop going after my passion hence I need something to back-up my passion for those rainy days when funds run dry.

There is no harm in doing what works, but there is always joy in doing what you are passionate about. I don’t think you’ll ever go wrong pursuing your destiny with a passion. In the mean time, do your research, what works right now? Is it a business in swimming pool supplies, door hardware supplies or in selling commercial kitchen appliances? Don’t hesitate, do it wholeheartedly, but don’t forget - when the time is right you should pursue your passion. You may never retire when you pursue a passion.

Always Learn Something New

Remember I had learned about serviced apartments and then went on to write something about it a few months ago? Well I have recently learned about Insurance finance loan which in layman terms means getting a loan from (lets say) a bank to pay parts of your insurance (be in car insurance, home owners insurance, etc) that’s lets unpaid by you. Here’s an example from someone who clarified this term for me, “is when you need to buy (must buy) insurance (e.g. car insurance or fire insurance) but you don't have enough funds. So you pay let's say 20% of the premium (insurance cost) and the bank gives you a loan of the remaining 80%” Mak. 

When I read that explanation, it gave me an idea. Since I am getting myself into this credit card world - why not have some backup funds just in case that way I don’t miss a payment. This is how it will work, instead of taking an actual loan from a bank, I am taking a loan from myself by putting aside a certain amount of funds into my savings, and when time comes to pay off my credit card I will first use funds on my checking account from my paycheck to pay off the credit. But if payment is due when there’s no cash in my checking account - my savings account will kick in and pay off the debt. I felt so financially smart when I though of that idea. Don’t laugh at me!!

Money Money Money

Let's talk about money. I know I am not the only one who is either thinking about it, planning ways to make it or to make more of it, or is being asked by friends or family members to lend them money.

Money is money, period! And we all could use a little more of it. I received a text message from a friend asking me to lend her some money, and I felt sad that I was not able to help her. And my heart feels some type of way when  a single mother is in a financial need. And no, she is not one of those people that just asks for money and does not pay back. She is hard working, juggling between a job that's not paying her well and her own businesses (tailoring and catering) and raising her daughter without any financial assistance from 'the dad'. This is when I wish Tanzania microfinance services were easy to access. People like my friend deserve all the financial help they can get, especially from institutions that are established for hard working small businesses looking to get somewhere in this world and provide for their families and pay taxes.

So as I was feeling bad about the money issues my friend is facing and me not being able to help, I went to a library a few hours later and guess what, the worse money temptation came knocking. And I say worse because I was broke-ish and all of a sudden I came across a wallet with lots of cash in it and I had to debate about my broke-ness vs my morals and spiritual beliefs. 

True story! I was at the library yesterday and decided to change seating position so as to have access to a power outlet to charge my laptop, I dropped my earphones, and as I picked them up I saw a wallet and it looked like it belongs to a man. I picked it up and started looking for the owner's IDs. I found his DL and a school ID, and before thinking any further I pulled out my phone and sent him an email that I have his wallet and he should call me. Then it hit me that I am returning a wallet full of cash and all these cards both debit and credit when I am broke-ish. I literally laughed at myself because I realized I can't cheat my beliefs in this area. And in case you are wondering, I did not take a penny, nada! 

Money man, money is a funny thing. You work hard for it and have no fun. Or have fun but make less money. 

Regardless of how money plays a part in our lives, it does not hurt to know we can reach out to people or financial institutions for a little assistance when in need, just so that we don't feel powerless and stuck. 

Money Management

I have been reading articles and any info that comes my way on money management. And the tips I'm about to share - I have found them so useful. Most them I already knew about but again, there's no harm in being reminded.

Cheers to the author of these tips.
Source: unknown

Money Mistake 1
Never borrow money that accrues interest to start a business (except if you are paying for it through your salary); only borrow to grow your business. This is because business takes a long time to gain ground and begin making profit, yet most loans repayments have to be made within a month of taking the loan or even earlier. Therefore, never borrow money to start a business expecting that the business will generate income to pay back the borrowed money plus the interest.

Money Mistake 2
Never spend money you haven't received. Don't even promise someone money based on a promise you have from someone else. If someone tells you: "Ezra, come to my office tomorrow at 9am and pick K3,000"don't go out to buy items on credit based on this promise, with the hope that you will pay off your creditor when the promised money comes; it may not come as promised and this will leave you in problems with your creditors.

Money Mistakes 3
If you want to save, whenever you receive money, don’t start spending hoping that you’ll save what remains. Normally what remains is zero because as long as money to spend is available, the numerous things you can spend it on are also available. And things to spend on even incite their 'relatives' so that you spend even more than you had planned. When money to spend is not available, we naturally find a way of doing without it. That's why I've learnt to save in an INVESTMENT ACCOUNT. Once I send money there I assume I no longer have it. Before you spend any money, put your savings aside then spend what is left after saving.

Money Mistake 4
When you get an opportunity to meet a very wealthy person, never ask for money. Ask for ideas on how to make money. They may even choose to give you money on their own after seeing that your ideas are great, but let getting money from them never be your objective.

Money Mistake 5
Keeping your seed instead of planting it. Many people stop at saving. It's very, very difficult to save and have all you need to maintain your lifestyle especially after retirement. When you save, your savings are seed; plant it. When you just keep the seed (saving money) some seeds begin to die (eaten by inflation and the like). That's why I recommend that you read about the different types of investment vehicles you can use to grow your savings. I am not necessarily talking about putting the money in a business, because you can easily lose money in  business. I am talking about putting it in an investment.

Money Mistake 6
Never lend someone money you are not willing to lose. By the time you lend someone money, be contented in your heart that should the person fail to pay, you will not die. You should not even lose that person's friendship if they fail to repay the money you lent them. If you feel the person might fail to pay you and this will not affect your relationship with them, then lend them money. If their failure to pay would make you hate this person’s entire clan, please advise the person to go to the bank.

Money Mistake 7
Never append your signature to guarantee someone on a financial matter if you are not willing or able to pay the money on their behalf. Do I have to explain that one? No, it's self-explanatory.

Money Mistake 8
Avoid keeping money you don't intend to use in the short-term within easy reach. For instance, don’t walk with TZS 100,000 in your pocket when all you plan to do in a day costs TZS 20,000. Like I mentioned in Money Mistake 3, there are always expenses available to gobble any money that is within reach, so if you don't want to lose it, put it away in a safe place.

Money Mistake 9
Avoid keeping money in inappropriate places e.g. in socks, under the pillow, in a pit, in the sitting room, in the bra, in a travel bag that you will place somewhere in a bus ... impulse buying is a devil that will keep you busy!

Money Mistake 10
Spending money on an item that you can do without (at least for the time being). These days when I pick money from my pocket or wallet, before paying for something I ask myself: What would happen if I didn’t buy this? If I find I can live with the consequences of not having that thing, I smile and walk away.

Money Mistake 11
Paying an amount for something that's not the minimum you can get that same value for. In other words, if you are at Mlimani City and you pay TZS 50,000 for a shoe that you can get at TZS 30,000 at Bora Shoe shop, that's a money mistake except for those who have achieved financial freedom.

Money Mistake 12
Wanting to be the savior of the world by helping everyone in financial need. My sister, my brother,  you are not Jesus. If you find it so hard to say no to a financial demand, you may think you are practising generosity when in actual sense you are committing (financial) suicide. We are not learning to be miserable here; we are learning to live within the boundaries of reality.

Money Mistake 13
Consistently spending all you earn or more than you earn. It's like having a drum where you have an inlet that's smaller than the outlet. It will never get full. And should the inlet ever reduce significantly the drum will run dry. If you do it the other way round and the inlet is bigger, it will get full and even overflow. Hence, we have to always ensure we are widening the inlet while narrowing the outlet – all the time. Your side hustle comes in handy!

Money Mistake 14
Thinking about short-term only and forgetting about long-term or thinking about the long-term and forgetting about the short-term. For instance, Lydia was told that there's money in land. She saved money over a long period of time and bought 30 acres of land. Now she has the land but she is always broke. She is always complaining. She's disgruntled and she doesn't seem to see herself earning from the land in the near future. Now, let's ask ourselves: Having 30 acres of land and no money to feed your family or take a child to hospital, is that wealth or poverty? I think Lydia only looked at long-term needs and forgot that she has short-term needs that require money. What of those who find they are one paycheck away from salary? Are they thinking about the long-term needs?

Let’s take stock of our finances. How many mistakes are you guilty of?
Do you now feel better-equipped to do better with these tips? Enjoy the journey , savers!