I tell you, wisdom is better than strength. It is one thing to make money and another to know how to keep it. A very big difference between the rich and the poor is in their money flows. A rich man watches his inflow very carefully and watches his outflow even more. Most poor people are careless about their money outflows. They are more concerned about making money and pay little attention to what happens to the money they have made. You must not pour water into a basket and you must be concerned if your water jar has a leak in it. That’s why you must watch the banks.
In the last decade of economic downturn and depression banks have kept on year after year declaring what many describe as ‘JUMBO’ and ‘MEGA’ profits. You just can’t stop them; everything seems to be working for them. The good news is that you contribute a lot to their MEGA profits. Friends, wisdom is the principal thing and I challenge you, most especially business men and women to learn how the banks operate. The banks are richer because many lack understanding of its operations. I see business people pay avoidable charges and interest every day. I see the low income earners pay a good percentage of their meager income back to banks just because they can’t take the pains to understand how an account operates and should be operated.
Banks operates within the ambits of the law and will normally only take charges permitted by law. So you must take the pains to understand why and when they charge what they charge. You must understand the difference between various kinds of accounts. A good understanding of a savings account and a current account will save you a fortune. Further understanding of different money transfer options will save you another.
Stop paying charges three ways. Why pay money into one charged account and transfer it into another charged account before making a transfer to your client. Why have a fixed deposit of 1million earning interest at 10% and simultaneously be servicing a loan of 1million at an interest rate of 22%. Why leave an overdrawn position on your account and allow interest to accumulate when you could easily have paid it off? Why feel lazy to offset that overdraft just because you can’t get to the bank. Why keep cash in your house for weeks when it could earn you something in your own account. Why take a cheque from your client for cash to be transferred immediately to another client and still pass it through your current account. Are you really sure that allowing the bank to finance that asset acquisition for 6months is really a wise choice? Is the perceived comfort of “easy repayment” not costing you a fortune? What loan options are available to you?
If you use the banks for one reason/purpose or the other, take time to understand how they operate. You will be wise if you did.
God bless you.
emmanuel aladenusi
