Financial literacy 101: Cut your coat to your size

Financial literacy is a very important key in maintaining wealth. A lot of people say getting rich is easier than maintaining the rich status. Me I disagree sha, that one is for motivational speaker. I'll use a member of hive for my analogy who perfectly resonates with my topic.

I knew Hive account@k-banti when I first resumed for my Higher National Diploma in Yabatech. I needed something and was redirected to him because he was the course representative. I am digressing.

So when I first knew kayode, he was using a Tecno phone that was not the latest, but is very efficient. It serves his need in terms of storage and RAM. Kayode was worth a few hundred thousands naira according to my assessment at that moment.

Fast forward. After the holiday, I saw Kayode again but this time with a different phone, a Samsung. He mentioned something about the Tecno developing fault and how he had to scrap it aside. I could recall saying to him "This phone is smaller in comparison to your previous phone. Why did you downgrade Kay?" He said nothing. My man is wise. I said downgrade because the Samsung is a 3Gb RAM, 32Gb storage when compared to his previous 4Gb RAM, 64Gb Storage.

Thing is, in the process of building wealth, a person should focus on necessity rather than luxury. Hive account@k-banti could have gone for a higher end mobile, something more flashy and in vogue but he rather went for something that can do the Job, saving a few thousands of naira that will be better reinvested to yield.

Kayode is a paradigm of "pound wise, penny wise". Young, wise and getting it. Can't wait for the day you'll hold a masterclass on building wealth passively.

Cheers kay, my future billionaire.