TIPS: Keep RISING Despite the Global Financial CRISIS.

Reading through this is pretty WORTHWHILE!!!

FORECASTS:
For once, both optimists and pessimist agree on one thing:2009 would probably be one of the challenging times in living history for most people.
Even those who predict that Nigeria was too detached from the global economic crisis have all reversed their positions. Warren Buffet (arguably the greatest investor of our time) says: The secret to making money is to be cautious when everyone is greedy and be greedy when everyone is cautious. But a lot of questions are on our minds:
Have the Nigerian stock market reached its bottom? Should I average down by investing at these low prices? Is there a real estate bubble? Will naira depreciate further? What else can I invest in? Will I keep my Job in 2009? Will there be a banking crisis or consolidation? How best can I survive in 2009? This is our attempt to answer all these questions and more.
Many experts on the Nigerian economy agree on the following predictions:
Foreign exchange rate will depreciate further to between N145 to N155 per US$1 by the end of the year 2009; Nigeria’s foreign reserves may have halved by 2009 ending, from about US$52billion in December 2008($63bn in September 08);Prime lending rates would range between 20% and 25% depending on CBN’s willingness to print money and the mode of financing our N1trillion deficit budget; crude oil prices range between $25 to $55 per barrel depending on weather conditions and events in the Middle East; Real Estate Prices would adjust downwards between 10% to 50%(especially in Ikoyi, Lekki and Victoria Island);Nigeria’s cocoa exports would drop significantly.
There would be huge swings in share prices (Upwards and downward) with an average slow trend upwards; Unemployment would rise (especially amongst bankers);Consumer confidence would drop and crime rate would rise and the foreign exchange black market would re-emerge and trade at a Premium of between 5% to 10% above the official exchange rate.

Generally, all you need in 2009 are the 3 C’s: CASH, COURAGE and CALM।

CASH - To survive and take advantages of all the golden opportunities which will arise.

COURAGE - To aggressively implement all the highlighted recommendations/tips and

CALM - To remain steadfast।

Other tips include;
Determine and Monitor your Net Worth: Net worth is what is left after you add all your Assets and subtract all your Liabilities।
Assets include Shares which have been dematerialize into CSCS at current market prices; Real Estate with other title documents; Cash in bank, Gold and any assets with a high probability to appreciate and determine market values.
Please note that items like cars, cloths and furniture are deliberately excluded and are considered dead assest.Liabilities include: Loads, mortgages and anything guaranteed to cause consistent cash out flows in the future. Your aim in 2009 is to measure and increase your assets/net worth consistently on a monthly basis.
Form a Cash Backed Family Reserve: In 2009 we recommend you have a cash backed Family reserve in your savings or fixed deposit account. This can be calculated by estimating your savings or fixed deposit account. This can be calculated by estimating your total family expenditure for 6months assuming you and your spouse lost both Jobs today. If you do not have this reserve, sell what you can and cut all unnecessary expenditure until you can form this reserve.
This amount should be left unused until 2009 ending. Once you have your cash reserve you can stop saving and start investing. Every additional inflow after your cash reserve forms part of your investable funds.
Avoid debt: with astronomical interest you should be very careful before you use any debt in Nigeria.
Live below your means: If you cannot save/invest at least 10% of your income you are living above your means. To live below our means you should save/invest 20% of your monthly income, every other expenditure should be cut off or suspended.
Take a Health insurance and Life Insurance: This eliminates 2 major risks you and your]
Dependants may face.
Invest in Real estate using Investment club: With the proposed decline in real estate, small investments in different real estate ventures, with minimal debt would be preferable to large investments. This form of investment is usually available using an investment Club.

For 2009:
Invest in equities; invest with a 2 year perspective in selected high quality company equities with higher dividend yields and lower P/E ratios compared with their pairs। But gradually, buy what you understand and avoid stocks known to have manipulated prices. In addition you may invest in trusted Mutual Funds.

Investment in private Equity can be very profitable if done via experience managers. We recommend about 20% of your investible funds should be allocated to equities.
Invest in Fixed Income: Invest in commercial papers, Bonds, Guaranteed investments, Treasury bills, and foreign currency can be easily liquidated to take advantage of interesting opportunities. We recommend that about 60% of your investible funds should be in this form.
Like Buffet सीक ONLY “DEALS”: In 2009 a lot of once-in-lifetime deals would emerge however only those who are ready with cash would be able to take advantage quickly। Make it a point not to part with your cash unless it’s a deal of a life time… Don’t be in a hurry to invest। Always walk away if you are unsure। More deals would come subsequently। The opportunity cost of spending your cash is high.
Reconfirm the status of your pension (PFA) contribution: Those little monthly contributions could amount to a future.
Safeguard your assets and yourself: This includes enhancing your immediate security as crime rate is expected to increase. Also insure your House and any major asset.
Do a Will or a Trust: As morbid as it may sound, this would make a world of difference to your dependants, just in case the unfortunate happens.
Form the habits now and continue updating the Will as you increase your net- worth.
Set2 major Financial Goals: i.e. Education for you and your kids and Housing for the family. Invest towards them aggressively.
Remain Motivated and seek opportunity aggressively: This is the time to remain motivated and violently seek opportunity. No gentle man survives the war front.
Do a Budget and stick to it meticulously: To manage your expenditure you need to measure them continuously.
In conclusion aggressively preserve your cash। This would give you more options in 2009।most importantly, be OPTMISTIC not necessarily about the future which you cannot control, but about your ability to make the best out of whatever the future present at you amidst this uncertainty, most of the traditional assumption that determine the industry boundaries/rules would have silently changed. Now more than ever, a Game Changing Idea will work.

Leaders OR Looter’s?

My heart bleeds every morning I wake up to see that Nepotism, Tribalism, Ill-Capitalism etc still runs in the vein of our so called Spokesman in government। My soul swings like the pendulum of public opinion and I wonder as every second counts if this position is really about Servant Leader or the people are the Leaders Servant। And the next question that rings in my head like the city bell is Leader’s or Looter’s?The Head of states step up and speak about Corruption, his vice follows and choose to use Moral Perversion। One after the other, each government official and other parastatal choose to use the word suitable to them such as Perversion of Integrity, Debasement, Susceptibility, Depravity and Putrefaction। From my little corner I screamed Why the Grammar? Because right before us Mama - Nigeria Lies in coma, with our eyes open we watch as the canker worm eat deep into her heart। Yet we are aware that her death is our death। The problem on ground is no vocabulary.Leaders or Looters I ask myself a million times, as they talk the talk and promise to walk the walk in the process of getting the crown but afterwards the story change.Due to our system the previous head of state has just eaten up the cake of all aspiring president from South West until 2047 simply because we are six zones. Its is not our fault some will say, it is our institutional problem. PDP says it must be rotational. Lets ask why rotational the position of leadership? If not rotation to LOOT because if you miss your turn once, then you will be disenfranchise forever because you are waiting for next generation when it will get to you again – What a Barbaric Democracy. What are we passing around? Is the position of leadership meant for mediocre?There must be a Change – we all hear the call for a change. From my little cranny I get busy trying to sort things out and put a Change through. But it still done on me that without Capitalism, Democracy and Socialistic leaning towards upliftment of the poor, No Change will happen, and then what will be the outcome of my effort I asked as I breathe profusively.Nevertheless, I Have a Dream: That we will have Leaders and not Looters in rightful places and that our leaders will accept the position of a Civil Servant.

PLANTING YOUR OWN MONEY TREE!

Its evidence that principles that have enduring success clearly follow the seed principle – Sowing and Reaping.Those who plant maize or bean seeds reap in about four months. They would need to plant these seeds every year to reap though. But those who sow mango seed would need to wait for about five years before reaping. Once reaping starts, its continues for several years.John Osuoha, Chief executive, Bringforth Investments Limited and author of Financial Intelligence for Youths, says “Every one naira is a seed with the capacity to grow into a tree. Like a grain of corn can produce so many other grains of corn, so is money.”

WASTAGES
Osuoha cautions against wastage, saying “When you waste one naira, you are actually wasting millions of naira. The death of a seed is the death of a tree and the death of a tree is the death of a forest. This is because the power of compound interest makes it possible for a small amount to grow into a large sum of money.

WAY TO WEALTH
Quoting Benjamin Franklin, Osuoha says, “If you really desire it, the way to wealth is as plain as the way to the market. It depends chiefly on two words, Industry and Frugality, that is wastes neither time nor money but make the best use of both.”
He also cites George Clason’ book, The Richest Man in Babylon, Which says “The way to wealth is to realize and practice that a part of all you earn is yours to keep.”Anyone who sincerely wants to be wealthy is therefore advised to save at least 10 percent of all that he earns.He also quotes Alga mish, a wealthy man who observed that Wealth like a seed grows from a tiny seed. The first copper is the seed from which your tree of wealth shall grow.The sooner you plant the seed, the sooner the tree shall grow. The more faithfully you nourish and water that tree with constant savings the sooner you will bask in contentment beneath its shade.”
William beaver observed that: “Making money is learning a new way of thinking about money that people need”Summary of the timeless principles of wealth building by wealth creation experts as

# Start with the little money you already have
# Spend less money than you make
# put the difference to work making more money
# Protect your assets and your money making abilities.

Napoleon Hill says, “Knowledge paves the road to riches when you know which road to take.”Just like an ignorant farmer may experience losses or low harvest if he does not acquire the necessary knowledge, an ignorant person desiring to acquire wealth may not make it. That is the point William Beaver, Napoleon Hill and many other wealth creation experts always make.

STARTING OUT
Osuoha says “Just like a journey of a million miles begins with a step, we must begin with a step, we must not despise the days of small things.A year of 365 days is built up by seconds and accumulates into minutes then to an hour, days, weeks and months. Everything big starts with little beginning, so begin today no matter how small .the best time to begin is now.Procratination is dangerous. It is the grave where opportunities are buried.”


.......... culled from a Mentor.