The concept of cost is something people have over the years seen to be attached only to expenditures made when making purchases, the sum total of money that is required to own something or just get a leisure, but Cost is far beyond these walls.
Growing up as a kid back then life was pretty much easier in the sense that all we ever needed was provided, our bagpack stuff with whatever we need for launch break, back home there is always good on the dining table and in the evening too, so with this picture in our minds we never gave much thought about the real world outside our home, until we began some form of independent living on our own when we got admitted into college, by these time the funds were coming in every once in a while some time not, and so we have to go look for some part time job to be able to get bye everyday.
Meanwhile I’ve never given a deep thoughts about it until I attended a seminar and the guest speaker said something profound like …do you know you spend everyday?.. it’s not about money once you get up in the morning you began spending money whether you have it at hand or not, I didn’t actually realize this until it began to down on me the truth in his words, that when you pay your rent whether post-paid or prepaid the cost of that house will begin in the new year so every night is a cost accumulated until it makes a round, so whether you sleep in that house or not the cost of it is counting on you..
It is the Simple analogy to these that makes people fall into the trap of these so called scammers, and in one form or the other in seeking the easy way out to make money, even I just recently understood this fully like absolutely there is nothing that is free in life you’ve got to pay for it, say if you received something say a gift or a package delivered to you someone somewhere paid for that thing, which got me thinking like there is an absolute cost attached to everything in life.
Like one time I was heading to the bank and I saw these group of people sharing flyers and I stopped by so they said they are LYIP an NGO that supports people to startup their business and stand strong financially to live their dreams and so I opted in, when it was a date for the seminar which I attended, hoping to get some sort of support for my business it was the other way round , they needed me to invest in theirs…. I just got up and left not blaming them tho, but failing to realize that would someone just invest in me without any motives
THE CONCEPT OF NOTIONAL & ACTUAL COST IN FINANCE
What’s a Notional cost: Notional means something that is Imaginary or speculative, it’s a cost you incur not directly but having it at the back of your mind, to help you make better decisions see it like a student who’s on a scholarship program with everything paid for, should take his studies seriously as if he’s actually paying for he’s tuition fees with this in mind it would helped him than been carefree cause his not paying for the tuition.
Meanwhile on the other hand Actual cost is the real cost of purchasing an item with real monetary value the value here means the thing must be worth that amount of money spent on it,
The Simple Logic Behind the Concept
If there’s a cost attached to everything then that means one should create a counter Mechanism to reciprocate the out flow of cash the resultant effect of this is spending more and earning less, of course with many streams of expenditures than streams of income would definitely tend to poverty, all most all humans fall into these category, realizing that you spend money everyday should prompt you to make sure you create something nice to fill in the gap, if not in no time your vault will be empty
One of the key principles that I have created for 2023 is to adopt the multiple streams of income model were I earn from different unrelated sources at least Up To 5, right now I have 2streams with intentions of creating more streams, building more streams of income to counter our continuous spending whether intentionally or not should be the main goal.
