Money Management Tips

There are times in a man’s life when stuff like Motivational Speaking, Money Management and Credit Crunch all take back-seats.  One of those times came yesterday when i received the news of the passing away of my beloved mother Mrs Folasade Abeke Adeoshun. She had been ill for a few days but went peacefully into glory from her sleep in the  afternoon.

I have a lot to thank God for right now: my mother lived to be over the age of 80 years; she was born again; she was able to see her grandchldren including my own children; she even saw her great-grandchildren; enjoyed life and died peacefully.

My mother was responsible for many aspects of my life from as far back as i can remember. I remember when i was in Primary School and had to learn any song, my mother used to provide me with the alto part of those songs so i could enjoy the process of memorising them. I can’t begin to tell you of all the sacrifices she made for me during my growing up years. I am just grateful to God that she enjoyed the fruit of her labour.

Thank you Mama for everything. I will greatly miss you. Rest peacefully in the arms of Jesus till we meet again.

It has emerged that the financial giant HBOS wrote to its cardholders informing them that, with effect from 1 October, their MMR would be reduced from 2% to the greater of:
1. 1% of the outstanding balance; or
2. an amount equal to the interest and insurance premiums charged, plus any penalty fees, plus £5

At first glance, this looks like a positive step - a lower monthly repayments can help to reduce financial stress in the Money Crisis the world is in at the moment. But on a closer look you will find that this step can transform modest debts into a lifetime of slavery because at 1% MMR (Minimum Monthly Repayment), a £1200 balance can take almost 2 decades to clears completely.

Don’t lend yourself to slavery. Make your own plan, follow it through and get out from under your credit card burden. If you want to pay your cards off quickly, pay a lot more than the MMR.

Two robbers hijacked a security van carrying about £700,000 but had to abandon more than half the cash because their getaway car was too small to carry all the loot.

Police chief Shakaruddin Che Mood said the men who carried out the robbery near Kualar Lumpur were ‘quite stupid’.

While i (nor the Bible) don’t advocate robbery as one the ways to become debt-free, these showed the lack of wealth mentally which is usually shown by lottery winners. Having lots of money in your hands will not suddenly make you financially-intelligent. The lack of planning that lead many people into debt is what these robbers showed during this bungled ‘job’.

Due to the Credit Crunch, it was reported that for the first time in more than 50 years British families are raiding their savings to balance thier monthly budgets.

For the past 40 years most families have been saving about 8% of their disposable income. but in the first three months of this year, household & fuel bills rocketed and the flow of cheap credits have been cut-off  by banks.

This, in my opinion, is not all bad news; at least people are able to fall their savings as a cushion - as opposed to the usual trend of using credit cards or personal loans for daily living. That is what the emergency fund is there for - assuming you have it set aside.

Even right now, if you haven’t established your emergency fund account, do it becuase as long as you are alive, emergenecies WILL happen.
“The ants are not a strong people, But they prepare their food in the summer”
- The Bible (NASB)

A German dentist overpowered a woman in her home, armed with his medical instruments and pulled out tow dental bridges because she had not paid her bill.

According to the police, he knocked on the door of the 35-year-old woman and tied her hands. He then forcibly opened her mouth and removed the dental work costing £320 that the woman’s insurance companyhadrefused to pay for.

If you any conviction of the effects of the Credit Crunch, there you have it. Read the Telegraph article.

A Chef is advertising for donors for his new menu - consisting of dishes made with breast milk.

Hans Locher, who owns the Storchen restaurant in Iberg, Switzerland is offering £8 per litre for breast milk which he uses in dishes including breast milk soup and breast milk lamb curry. He said “the mother’s milk is the most natural thing in the world”.  See the Times article.

I am not a woman and i believe having multiple streams of income but selling breast is one ‘revenue source’ i have never thought of. Ladies what do you think? Even if/when donors are found, how will people feel consuming such dishes?

Have a nice weekend.

A Tenant with craving for fast food crammed his studio flat with more than 1000 empty polystyrene cartons. When the  mechanic moved out, his landlord Chris Dowling was stunned by what he found. “There were McDonald’s  and KFC containers everywhere; I couldn’t get into the kitchen” he said.

It is estimated the tenant munched through £5000 of takeaways during his two-year stay at the flat in Slough, Berkshire in the UK.

This is a fine example of how TOO MUCH of anything is not good for you. Even a couple with no children spending £200 a month will have some change left on food after two years!!

People have asked me why i lay so much emphasis on saving for your children’s college education. My answer is that I believe in giving every child a chance of being the best they can be; by being well-educated to face whatever live will throw at them.

Do you know that you will spend nearly £16000 even in state schools during your child’s compulsory education years? This is the result of a research by the insurer Norwich Union. The biggest cost is transport, with parent paying £366 a year to ferry children to and from classes. The survey also shows that, on average, parents will buy 46 pairs of  shoes for each child during thier school lives. I agree whole-heartedly with this one. My youngest son, David, plays football and he’s been going through shoes, trainers and boots like he goes through shirts.

If the ‘free’ portion of education costs this much, will you be ready to help your children get through College or University - debt free?

If you ask 10 people to define “rich”, it shouldn’t surprise you that you will get 10 different answers. This is because everyone’s perspective of being rich is very different.

This difference showed up recently when the Pastor of Saddleback Church, Rick Warren, sat down with US presidential hopefuls John McCain and Barack Obama and asked them this same question. They both gave very interesting answers. Click below for the clips;

Obama’s answer. McCain’s answer

Myth: I can marry a rich person

Truth: We know ready-made meals are easier and faster to eat than having to cook them from scratch. The drawback is that they don’t taste exactly as you would have liked. If your main reason of marrying someone is because the person is rich, you have already defined how far the marriage can go. Once its foundation (money) begins to get eroded, both the marriage and your financial freedom are doomed for failure.