Smart Money Woman: 19 lessons

At the beginning of this year, I made a commitment to rehabilitate my financial life as I had struggled managing my finances.

During a conversation…“Money Talk”… with a colleague (Amarachi Nzekwe) some months ago, she recommended that I read a book on finance ‘Smart Money Woman”. I must say this book enlightened and provided me with useful tips on finance management. Thanks for the recommendation

I fell in love with this book after reading it as it simplified basic financial jargon needed to be understood by everyone. I talked about the lessons everywhere and my friends Michael Okuboyejo and Ọláwálé Lawal encouraged me to write a summary.

Below are some lessons from the book:

  1. You can earn a lot of money actively and be broke. You are broke if you can not sustain your current lifestyle if your job is lost.
  2. Wealthy people convert part of their income to assets capable of providing them a future income.
  3. Active Income is the income gotten by rendering a service. This includes your salary, profit from a business etc.
  4. Passive Income is the money made when not actively doing something. Examples are dividends from stock portfolio, rental income from properties etc.
  5. Our knowledge of money reflects in how we spend it.
  6. Money fears are a result of lifestyles that supersede our income
  7. Money fears can be overcome when you make a financial plan for all income earned.
  8. Financial freedom is when one’s passive income exceeds his expenses
  9. Expenses should be tracked and a budget made for every income
  10. Prioritize your debts and deal with them. Never borrow to pay a debt.
  11. Only borrow to acquire assets that appreciate
  12. Set aside some funds for emergencies…life happens
  13. Knowing what you want from life helps in setting money goals
  14. Have a spending plan, develop a sustainable budget and adhere to it
  15. Your NETWORK is your NET WORTH. Grow it and leverage on it
  16. Have money talks with family and understand their money personalities
  17. Understand your family debts and assets.
  18. Invest (in Stocks, Real Estate, Mutual Funds, Money Market Instruments) and ensure you understand the product you invest in.
  19. Increase your earning power and focus on finding your purpose

Suffice it to say that my financial life has not been the same since I read this book. I have become more deliberate about managing and increasing my finances and I would encourage anyone looking for a finance management book to read this piece.

If you have benefited from this or other books or you know some money lessons which are not included in this article, please share in the comment section. Thanks

Thanks to Jide Oye

Oluwanifemi Omotola

Written by

Imperfect but Graced | Product Manager @ Cotta&Cush

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