FINANCIAL LITERACY FOR ALL- BUSINESS OPPORTUNITIES IN GHANA

“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty”

Ghana is a country blessed with many good resources. God has blessed Ghana beyond our imaginations.

Much as there are great business opportunities in this country, Ghana is still bedeviled with many nasty things, like filth, unacceptable road accidents, illegal mineral mining and the pollution of water bodies, maltreatment of patients at various hospitals, indiscriminate cutting down of timber and other trees, unacceptable post-harvest losses, deadly application of chemicals on farm produce, usage of dirty water for watering vegetables in the cities, especially. There are also unacceptable bureaucratic practices in registering businesses currently in Ghana. Go to the Registrar General Department and you would experience what I am saying.

What are regulatory the authorities doing to stop and discourage all these practices? I don’t know why these authorities exist in the first place, because many of them are not really functioning.

I don’t need to mention these authorities, though I could, without fear or favour. They know themselves and they need to wake up from their sleepless slumber. As Bob Marley said “Rise from your sleepless slumber” These authorities are not sleeping yet they are not awake too. This lukewarm attitude cannot help. Wake up or just sleep!

Ghana is a land full of milk and honey, yet many Ghanaians are not able to take the opportunities and even where they have the potential to take the milk and honey, they would be denied, but in many cases people just refuse to see the opportunities before them. I must also add that, some few try to take up these opportunities, but get frustrated along the way by people, who seek for their personal gains without thinking of the greater benefits for all in the long term.

Today, in Ghana business opportunities abound in many sectors, small or big. These business opportunities can be taken up by Ghanaians as well as foreigners, but it seems it’s only the foreigners’ mind’s eyes that can see these opportunities, or is it because they have the purchasing power? Well, not in all cases. The other thing is that Ghanaians have the attitude of helping foreigners to succeed rather than their own brothers and sisters. Ghanaians give preferential treatment to foreigners and frustrate or even sometimes deny their colleague Ghanaians. This is very bad. Why not give the same treatment to all human beings?

Business opportunities that we should consider can include:

·        Kenkey factories and modern large scale kenkey business- we all know that kenkey, being that of the Fanti’s one or the Ga’s one is being patronized by many Ghanaians all the time and I believe strongly that is a great market here. Innovative, healthy ways of preparing and serving kenkey could be another big business added to the fufus, bankus, rices, etc, served at restaurants and hotels.

·        Brewing of Pito- another good business is the local drink brewed mostly in northern Ghana, especially Upper East and West Regions and mostly by the same northern people in southern Ghana. Every time, you see many people gather at pito houses to drink pito and you wonder, what at all does pito have? Some spend hours there drinking and discussing businesses and other issues.  One thing is that all these pito houses are small-sized and mostly don’t meet standards, though I don’t know if they are being regulated, I believe they should be.  My brothers and sisters from the north, this is a good business opportunity that one can take up and add innovation and more creativity to it in terms of branding and packaging and lo and behold, one would be on one’s way of getting rich right there in northern Ghana. I’m from the Upper East and I take only the unfermented one as it is called it but I have heard people hail pito as a good local drink that has some health benefits. Again, though, I don’t really go many places but I’m yet to see any modern pito house of that high standard, where dignitaries and big men and women could go and sit down and drink pito like they do with beers, wines, at decent spots and restaurants. Why not brand pito and package it well so it could be sold at the big restaurants and hotels?

I have also heard that these days, some unscrupulous pito brewers have been adding some strange or foreign substances to their pito to make it “stronger” or “harder”. I believe this should be checked by the authorities that are supposed to regulate pito brewing, so that the real pito made up of just millet and water is brewed for people to drink. The health of the Ghanaian should be the concern of all and as a responsibility of those paid to protect the Ghanaian from consuming unapproved substances added to pito when it’s brewed.

Natural pito prepared and served could become a big business venture for entrepreneurs, who would to go into it. It just has to be branded and packaged well.

·        Road Accidents in Ghana, I have written a long article  on road accidents in Ghana and you can read from this link: http://g-xavierayeebo.blogspot.com/2010/07/road-accidents-in-ghana.html

It is one issue which is very dear to my heart. I hate the way many people are dying on our roads and nothing is really being done about it.

We have what we call spiritual money, (see link: http://opinion.myjoyonline.com/pages/feature/201104/64649.php) which is not really about money but just about doing God’s work that eventually results in making you rich. I believe there is spiritual money in road accidents in Ghana. Individuals and organizations that would dedicate their resources to fighting road accidents in Ghana to almost a zero-level would experience phenomenal riches in the form of spiritual money. I believe world class professional training and education of drivers, auto mechanics and other professionals connected with cars and vehicles and also with collaboration developed among the Ghana Police, DVLA, Road Safety Commission or Authority, various lorry stations and terminals and other stakeholders can help reduce road accidents in Ghana.

I would urge individuals and organizations to take this up and help, if possible eliminate road accidents in Ghana.

·        Medical Tourism, I have also indicated my desire that part of the oil revenue (see link: http://g-xavierayeebo.blogspot.com/2010/07/oil-revenue.html?spref=bl) should be used to create medical tourism in Ghana. How long would our dignitaries continue to travel outside to seek medical treatment any time, they fall sick?

 It is disgusting, how Ghanaian patients are being handled and treated at the various health centres in this country, especially patients at the so-called government hospitals, clinics, health centres, etc. Sick people are maltreated and not catered for very well and nobody dear talk. Let’s have stiff competition from foreigners coming to set up big modern hospitals with their business acumen and care and let’s see if the those Ghanaian medical professionals, who don’t not value their patients can continue to do that and let’s see if that Ghanaian medical professional would continue to be in demand and be in business? There is so much business in this sector and I urge foreign investors to come and invest in the provision of world classes medical facilities and to provide medical services to compete away the super normal profits made by the clinics and also teach those Ghanaian medical professionals, who do not value their patients.

Just, August, this year, 2012, one of my nephews had a motor accident at Atebubu and was eventually transferred to Komfo Anokye Teaching Hospital (KATH) in Kumasi. We first went to the Polyclinic department and we were taken by an ambulance to the Accident Emergency Unit (AEU) and when we got to the AEU, it was 4pm and as at 6pm we had not been attended to, meanwhile, the Doctor, who was supposed to attend to us, was over there roaming about doing nothing. Initially, I complained to one of the nurses, who was actually hardworking that day, at least I saw attending to patients and being nice to them, but there was this other dark coloured diminutive nurse, they described as a mistress or so, who over heard me complaining and she just exclaimed, “Ah, you came at 4pm and you are complaining!” Later I complained to the Doctor and it didn’t take that long, he attended to my nephew. I know that it was not my complaint that made him do his work, but why did they have to wait and wait and wait without attending to the sick people at an even an emergency unit, though it was at the minor treatment section, does it matter? I had experienced similar treatment at the same hospital in 1998 on two different occasions when two family members were not well and got admitted over there. One of them my direct elder brother even died over there in 1998. Around, the same time, there was this great, kind, and real professional doctor Called Dr. Aboah. Dr Aboah at KATH was and I believe if he is still at KATH or wherever he is, he would continue to be loved by all his patients. He is a kind of a medical professional Ghana needs not those, who insult their patients.

Ghana therefore needs real humane medical professionals to come and help take good care of its greatest assets, the human resource. It is true that Ghana has many kind-hearted medical professionals, the majority especially many of the nurses don’t treat the patients well at all. Most of the kind-hearted Ghanaian medical professionals are found at the private hospitals and clinics. Why, can’t that be replicated at the Government or public hospitals and clinics?

Ghanaians would be prepared to pay appropriate commensurate medical fees for treatment and not complain when the services provided are satisfactory. 

·        Waste Management, Zoomlion, a Ghanaian waste management company is really doing well in this sector since its advent and has not reneged, but I believe Zoomlion is over burdened by the filth that has engulfed Ghana. I would encourage indigenous Ghanaians to take up this opportunity to help Zoomlion clean Ghana.

Few days, ago I heard the Minister of Local Government on Joy Fm talking on new government initiatives on sanitation in Ghana. I hope it would not be a nine day wonder. He said many good things as usual, but thing that I want to share with you is that he said, if you see your colleague Ghanaian throw some rubbish into some drain, or gutter, tell that person, that his/her should use his/her  brain not the drain. “Use your brain, not the drain” . I hope this phrase would catch up with many Ghanaians, especially the dirty intellectuals. This was from the Minister’s mouth. We should be shaming people in public when they throw trash into the drain.  

·        Islamic Banking-This is currently not practiced in Ghana. I would therefore urge Asian banks that are practicing Islamic banking to come to Ghana and I believe they would be overwhelmed by the customer base they would build within a short time.

·        Agriculture & Farming- It is true that everywhere in Ghana, one can sow seeds or plant seedlings and one is very sure the seeds or seedlings will blossom and bear good food or fruit. I don’t understand why governments, especially those that call themselves social democrats are not practicing commercial or large scale farming to feed the citizenry. Farming in the southern or northern Ghana can be in mango trees, teak trees, avocado trees, pea trees, cola trees, pineapples, guavas, cassavas, yams, potatoes, millet, maize, beans, sheabutter trees, black berry trees, grapes, peppers, garden eggs, okras and all vegetables, cotton, cocoa, coffee, timber, bamboo, rice, rubber plantation and many others. Other related businesses in farming are transportation, warehousing and other storage facilities, farm inputs and implements, provision of irrigational facilities, like dams, pods, pipelines connected to lakes, rivers, streams and other water bodies for watering farms. Each identified above could be taken as a business venture.

·        Transportation- This is also one of the biggest industries, looking at the provision of sea, land, rail and air transport services. In Ghana, today, almost all travelling is done by road with very little in air transport. The rail line system has collapsed and there is nothing when it comes to travelling by sea or on any water body, canal, river, etc, meanwhile, there are rivers and streams everywhere in this country. One sad thing is that car and lorry drivers are fleecing Ghanaians and at the same time killing Ghanaians through reckless driving on the high ways. Better modern transportation alternatives are needed in Ghana to help make these reckless drivers reason and sit up.

·        Herbal Medicine- The good news is that Ghana has almost all the medicinal plants to handle any ailment, yet we have been conditioned to believe in only the efficacy of orthodox medicine. I believe the government of Ghana should enact stringent good laws to protect and promote herbal medicine and practitioners and also help promote herbal medicine for local consumption and export. We should protect our dear herbs and make profitable use of them.    

·        Oil and Gas – The oil should be refined in Ghana eventually and all the by-products should be enjoyed by Ghanaians first. Every business minded person knows the good businesses in the oil and gas industry. To begin to give a list would be time-consuming.  It is crystal clear.

·        ICT-This is good a business sector that will be booming in Ghana, because ICT usage is still very low in this country. Access to the internet is very low and I believe the internet service providers currently operating in Ghana are waiting for a new service provider to come and connect the net to all houses in this country before they begin screaming. We saw it when it happened to the then Ghana Telecom, one needed plenty Ghanaian cedis to buy the chip and even at many times, people had the money and wouldn’t get the chip to buy because they were hoarding them to make supernormal profits, in the end they made losses and sold off Ghana Telecom to Vodafone.

Access to the internet should be like electricity make available to everybody on prepaid or post basis and people would patronize it. If one needs internet service in one’s house, the workers of Vodafone would tell you stories to scare one away and then think they are smart. Well, let’s wait to see, very soon the same workers would be laid off for redundancy and they would turn around to accuse someone of their own bad deeds.

Ghanaian needs internet services in all their homes and the service provider that will take the lead would not regret venturing into it.

Ghana, a peaceful country with lovely and lively people is a country that abounds with many business opportunities for the small, medium and large business persons and entities.

I would like to urge and encourage the Ghanaian and foreign business men and women to invest their resources in Corporate Ghana as they would reap bountifully.  

“Entrepreneurs are simply those who understand that there is little difference between obstacle and opportunity and are able to turn both to their advantage”

©2012, Godwin-Xavier Ayeebo

Email: gayeebo@gmail.com

Blog: www. g-xavierayeebo.blogspot.com

THESE ARE TRYING MOMENTS

The abrupt silence of Tuesday, 24^th July 2012 still humbles all and sundry, young or old.

The sizzling waters of the Ekumfi Otoum still wail and lament unabated.

Trees fall but this great tree has fallen indescribably. Lakes and rivers dry up and the rains stop falling but this drought is unspeakable. The oceans ebb and come in but this flowing-away of the mighty ocean is ineffable.

The beautiful flowers from the stunning valleys of the Central Region cannot blossom any longer; they have become stand-still and thirsty of the morning dew.

 The silence of the waters of Ekumfi Otoum is not understandable. The quietness of the voices of the fishermen of the Central Region cannot be explained. They are thirsty, though soaked in the abundance of water.

The stillness of the atmosphere and the gloominess of the firmaments were a clear announcement of the departure of a great son of our land, but who could understand this in the hours before your going home on 24^th July 2012.

Academicians remain dumfounded and speechless. They cannot explain this theory. They don’t even understand it. They are now trying to learn the lessons of theory that cannot be explained by man. 

Politicians have been become stationary. They are at a fix. They have lost their leader. They have no political words to describe this one. 

Professionals have mixed up figures and words together trying to define and calculate your death.

Students stand with their mouths open ajar confused with the news they have just heard, their former lecturer is gone forever.

Generations have been deprived of your memoirs. Can they imagine what you were going to write?

Ministers, Deputy Ministers and all your appointees stamp their feet in disbelief. Their beloved president and father had left them without saying goodbye.

Physicians stand helpless. They don’t have cure for this one. They wished they had, but it was beyond them.

Priests and pastors prayed but God prevailed.

Pupils yearned for better Ghana classrooms, uniforms and books but you gave them memorable lessons of your life on earth.

Security personnel were awake, but couldn’t wake you up. They provided adequate security yet you could not come out of your 37. You slept alone in there. You communicated to nobody, but your Creator.

The eyes of your vice president are still swollen and when and how would they dry up? Time cannot tell. Wisdom of men cannot discern. Knowledge cannot even try to guess why?

God, your Creator and your good Father can explain better, but whom would He explain and why should He explain?

Lessons have been learnt but the hard way. Unity seems commonplace after your death.

The songs of the beautiful birds of Regimmanuel Estates have become discordant in the ears of the residents. They cannot even listen. They are perplexed and dumfounded. They have lost a great neighbour.

The growling voice of “sweetie pie” cannot be heard by Her Excellency, the First Lady, Dr. Mrs. Naadu Mills, your wife, any longer. Her throat is chucked with grief. Her eyes are filled with undying tears. Her feelings and emotions can explain. Her husband, her life companion her president has left her in the middle of this life full of meaninglessness.

Her voice cannot say it, her eyes cannot blink or wink, they are weary and weak. Her emotions and feelings cannot explain it. Her wisdom might seek from God.

Her heart bleeds blood of tears. Her heart bleeds grief and everlasting sorrow. Her heart doubts the news in ears and her eyes were yet to see.

The thumb of the Ghanaian electorate has paused to rethink and decide fast whom to thumb print for in the December 2012 elections. Your party cannot tell whether it will gain or lose votes. It shall be hope for history. Only time will tell.

The insolence of all who insulted you will now continue to haunt them. You have been vindicated by your good, indeblible transparent works.

The insulting sharp tongues of your opponents and enemies within or without have remained silent and shamed. How are they going to say it again? Where are they going to say it? When would they say it again? Why must they say it again?

The indolence of non-performing appointees has come to an end.  Their torpor will drive them away in the new Ghana after your departure.

Your beautiful smiles, laughter and humour will be missed forever.

Your humility and peace-loving nature has brought unity to mother land, Ghana.

Your humble life style is on the lips of all even those who wished you death.

Your peaceful kindness is being preached every second today by all and especially those who were violent against you.

Your love for all has already manifested.

Your selfless nationalistic nature and true love for your country and your hard work brought you down on your knees and now you lie supine. You refused to take some rest even at a time you were supposed to.

It is no wonder. It is no wonder. Why, didn’t your Creator know you inside out?

Why question the wisdom of God?

Why question the time of God?

Why question the place chosen of God?

24^th July, 2012 at 37 Military Hospital, you decided to meet your Creator in peace.

Ah! It is not coincidence at all that you left on 24+07+37 = 68.

Ah! You had agreed with your Creator already. You had known your time already, yet the military at 37 wanted to follow and guard you. I know you smiled at them and told them this time you were alright to be left alone in freedom, but they had no vision to understand the works of your Creator.

Your soul rejoices in freedom in its rightful place and today you are happier than before that you came to this world and served God and mankind.

The veins of my knees felt your departure when they knelt to pray for you immediately I heard the news of your death on Joy FM Breaking News.

The saliva of my tongue became thicker and stood sluggish when my mouth tried to open to say a prayer for you.

The arteries of my heart run faster when they heard the news of your death.  

The international community and the whole world remember you for your democratic credentials.

Ghana your beloved country, honours you for your humility.

Ghana your beloved country, remembers you for your hard work.

Ghana your beloved country holds your candle burning and truly alight.

Professor John Evans Fiifi Attah Mills, I salute you.

 Damirifa due! Damirifa due!! Damirifa due!!!

 Till we meet again, safe journey and sleep well.

©, 2012, Godwin-Xavier Ayeebo.

Email: gayeebo@gmail.com

www.g-xavierayeebo.blogspot.com

FINANCIAL LITERACY FOR ALL-CASH FLOW & CAPITAL GAIN

  FINANCIAL LITERACY FOR ALL-CASH FLOW & CAPITAL GAIN

The neighbourhood is quiet. Today, 8^th February 2012, Ghana lost one goal to nil in the semi-final football match against Zambia in Equatorial Guinea where they are co-hosting the African Cup of Nations (AFCON) with Gabon. This was a match Ghana should have won but lost because we had no better strategy. Ghana even had a penalty in the first half and it was saved by the Zambian goalie.

This is the third consecutive time; Ghana has lost to its opponents in an African Cup of Nations’ competitive football match. We lost one nil to Cameroun in a semi-final match on our own soil in 2008 when Ghana hosted the tournament. We lost one nil to Egypt in the final match in Angola 2010 and again we lost one nil to Zambia in a semi-final match in 2012. Interestingly, all these goals against Ghana were scored by substitutes by those winning teams. The Ghanaian coaches had no ideas. They watched the games but they could not see any way out. The other coaches saw and then took advantage and won. Tournament after tournament Ghana loses painfully but does Ghana learn any lessons?

Ghana has won the cup four times and all these were won by Ghanaian coaches. Ghana is the only African country to have won the Under-20 World-Cup and that team was coached by a Ghanaian, Sellas Tetteh. Why can’t Ghana have a Ghanaian coach to get us the cup again instead of foreign coaches, who keep disappointing us? Does Ghana learn any lessons?

It is our tax money and it is the footballers’ tax money that Ghana is not investing properly.

Investment should be made with a strategy to gain having known and tested the terrain and many others factors taken into consideration.

Every investment made should bring returns in the form of cash flows and or capital gains.

Every investor has an objective whether they are investing for cash now or for capital gains in the future. Capital gain is dependant on future economic trends and factors.

In a football match like Ghana played today, the result was needed now not tomorrow, if the players won they would have won instant cash, .i.e. winning bonuses. The returns of their investment at this level of the tournament are instant cash rewards. They win a match and get paid bonuses. If they were to get to the final and win the ultimate then their returns will be in the form of instant cash flows and maybe capital gains.

Most great investment products should provide both cash flow and capital gain or capital appreciation. Where both are not possible, then cash flow is better than only capital gain, which is expectant on future happenings and many other factors. The gain might even not happen at all. Inflation could even erode the value of the gain in the future. Cash received today is better and can be reinvested else where on other cash flowing assets.

Capital gains are got mostly from paper assets like shares, bonds, mutual funds, insurance, savings and others.

Most valuable investment assets should bring cash into our pockets today whiles its value keeps appreciating or increasing. We therefore get cash now and get capital gain in the future too.

Cash is always king and should reign supreme unless it’s heavily taxed and capital is also really assured and is tax free.

      

Cash is King

Cash ‘consists of cash in hand and deposits repayable upon demand less overdrafts.’ ‘This includes cash held in foreign currency.’
Cash flow is best because:

·         Cash on hand now is always better and more valuable than uncertain cash to be received tomorrow or in the future

·         Cash can be spent now on any investment and get more cash back.

·         Cash on hand is not depreciated against future inflation; its value is worth more now than in the future.

·         Cash is needed every day for daily expenses, hence cash is king and more important than future uncertain gains

·         Businesses are run with cash on hand not cash expected. All businesses would collapse if they don’t have enough cash on hand for their daily expenses. 

Capital Gain

“Capital gain is an increase in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold. A capital gain may be short term (one year or less) or long term (more than one year) and must be claimed on income taxes. A capital loss is incurred when there is a decrease in the capital asset value compared to an asset's purchase price”

Capital Gain

·         Capital gain is about gambling into  the future with uncertainties for a gain

·         Capital gain time value for money is not better as cash is ready for spending today

·         Capital gain investment is all about capital appreciation. In other words expecting a gain on the investment in the future which is equal to gambling that the value of the investment will go up, if it is sold. The gain might not come at all. Where it comes inflation would have also come for its share, thereby devaluing the gain.

·         In some tax regimes, a capital gain could be disincentive as tax takes a big part of the gain away.

·         Most capital gains are from investments on the stock market, which is not perfectly efficient and ruled by world economic factors.

·         Capital gains, however, on real estate could be slightly taxed in some tax jurisdictions but heavily taxed in some countries.

·         Most capital gains are from investments managed by asset management companies or individuals called investment professionals. This means, you, the investor does not have much control on the movement and management of your own money. The gains or loss is determined when you, the owner are not involved.

Valuable investment assets should bring us both cash flow now and capital gain in the future. Where these two are lacking, then you want o reconsider the investment decision and channel it through another investment opportunity where the two are possible to get.

© 2012, Godwin-Xavier Ayeebo

Email: gayeebo@gmail.com

Blog: www.g-xavierayeebo.blogspot.com

FINANCIAL LITERACY FOR ALL-FREEDOM & SECURITY

“Money makes possible the enjoyment of the best the earth affords” George .S. Clason, Author of the Richest Man in Babylon

As I was putting this piece together, a Ghanaian Health Campaigner, Oheneba Ntim Barima at Oman 107.1 FM in Accra was also sharing the awful and unjust experience he had at the hands of Ghana Food & Drugs Board, (FDB) which got him into Police cells for a night at the Ghana Police Heaaquarters in Accra. I have been listening to him for some months now and as I write this, he has already finished with part 4 of “Oheneba at Police Cells” and the things he saw, heard there at the cells, you won’t believe, but he is not the first person to have given a vivid description of what happens at Ghana cells yet, day in day, year in year out nobody cares, things are still the same yesterday and today. When will Ghana get civilized? I strongly believe that Oheneba is one of the greatest human assets given to Ghana and he should be allowed to have his freedom to help educate, cure and “liberate” the Ghanaian society and the world at large.

Why should a country like Ghana has its motto as “Freedom and Justice” written boldly on our Coat of Arms yet there is never true justice for the innocent ordinary Ghanaian at all levels of  our administrative, socio-politico and economic and even religious setups. A Ghanaian, who would truly get justice, is the Ghanaian who has the power to change the rules to suit his or her way(s), if not then forget it. It’s hell. It has been so for uncountable years, yet nobody seems to act on it. The society is full of injustice and there is no freedom for the ordinary person in the street.

A nephew of mine, who was a student at Bolga Polytechnic, innocently, got rusticated for two years for no wrong done.

He was attacked and stabbed at the loin and got injured seriously by another student, whose elder brother is a lecturer at the Polytechnic. The student, who stabbed my nephew, is still walking freely on the Polytechnic campus. My nephew, who was the innocent victim, was framed up and got punished while the wrong doer is going about on campus attending lectures freely. The committee that met on the issue didn’t give my nephew chance to explain or even defend his part of the story. The Doctor’s and Police reports were never used as part of the committee’s investigations.

The Commission for Human Rights and Administrative Justice (CHRAJ) offices in Accra and Bolga were informed officially and even some Human Rights Activists were contacted and the story narrated to them, they promised to fight for the innocent boy but up to now nothing has been done. No compensation whatsoever for him. Stabbed free of charge?  No justice for the innocent boy yet. Is it because he does not have money to fight for his rights, so he ended up getting punished?

There are questions left unanswered by the Polytechnic, was the Doctor’s report used as part of the evidence? Was the said Doctor contacted by the committee or the Police? What was the Doctor’s response? Can the Doctor’s response be made known? Where is the original Police report?

How can we live in a country where only the advantaged have the power and the “right” to justice?  Somebody, would ask, what has this got to do with the topic under discussion?

It’s a world wide platform.

There cannot be freedom without justice. There cannot be financial freedom without just financial education for the people. People are struggling to make ends meet but still things are falling apart. Without financial knowledge in the 21^st Century and beyond, people will continue to enslave themselves for meager pay cheques that would not bring them financial freedom.

There is no complete meaningful life on earth without financial freedom and job security alone without financial knowledge is like a pocket that is leaking and the owner has no idea.

Freedom is a complete world of fullness of every need and of every luxury and has no limitations.

·         Financial freedom enables man to get access to this world of fullness. Financial freedom is only available to those, who are financially educated and financially intelligent.  They have the financial knowledge to get what they want without cheating anybody.

·         I want freedom all the time. I would only need maximum security if I were to become the president, even there if I would have my own way I would walk to my people freely without the aid of the security.     

·         Financial freedom allows one to get what one needs or wants without begging or even working physically for it. Don’t be deceived if you are an employee and you have millions sitting in your bank account now and you don’t make judicious use of that money now, very soon inflation will eat it up for you and you would be penniless. The rich don’t work for money, their money works for them.

·         If you are financially free, you would not need a day’s job to survive life, you would rather hire somebody to work for you, and then you pay the person.

·         You buy what you want with own money. You can have the highest level of any type of education from any place of learning in the world without looking for financial scholarships. Financial freedom allows you to have enough time for yourself, your family and your businesses. You can travel around the world with your own money freely. Job security does not give you this, you need to ask for merited permission to be absent else, you lose your pay, okay?

·         Financial freedom means your money is working for you, whilst job security means you are working for your money. If you are financially free, you can experience the luxuries of earthly life without limit.

Security is a bad world a world full of limitations. It is a world of no choices.

·         All over the world, many people are fighting for job security, what they want is maximum job security. They are like prisoners, who really need that maximum security, so they don’t escape.

·         If their company collapses, or if they are fired, they are in real trouble, because they don’t have the financial knowledge or wisdom, boldness and fortitude of making money as the financially free do.    

·         Job security means you cannot stay at home and be paid, unless you are on leave, else you get sacked. You cannot freely buy what you want; your salary won’t be enough for that and for you and your family. Luxury could be a mirage.

·         Job security means you working to retire on a defined contribution person scheme, (Social security in Ghana) i.e. 401(K) in USA, other countries have theirs. This is likely going to be a peanut for you as you age and need more money for your upkeep.  You cannot necessarily meet your old-age expenses with defined contribution pension schemes.

·         You are likely going to depend on your children, if you have any and or the government for support and where they fail you, then you get “imprisoned”. No freedom for you.

·         Job security is good but should be backed by sound intelligent financial knowledge so you know what to do with your earned income.

·         People know how to go back to school get MBAs. People know how wickedly to fight their colleagues in offices for positions. People know how intelligently to lobby for positions in various places and people know how hard to study in order to pass an exam, but many people have never made any attempt to study financial literacy though they use money every day, yet they don’t know anything about money. Like Ghana and other countries fought for political independence, so must everybody fight for financial independence .i.e. financial freedom. You need to work for it; you can’t sit down and expect it to come.  

Financial Literacy is not Finance neither is it Accounting. It’s a complete subject that teaches everybody including Accountants and Finance Professionals real life financial lessons when it comes to money. The Accounting and Financial Professionals, who have just classroom Accounting or Finance knowledge, are NOT Financially Literate. They are taught to go and work as employees and this has no argument. It is plain truth. I have been a student of Accountancy since O ’level and I have studied both Accounting and Finance up to the professional level and NOT a single lesson taught me real personal finance.

From O’level to ACCA, I have been taught to go and work as an employee or a self-employed.

I have been learning Financial Literacy for over five years now and still counting and the lessons I have learnt are not taught in any school, here in Ghana yet. It’s not in the West African Examinations Council (WAEC) syllabus, but that is what we all really need when we are in school or when we finish school.

Financial Literacy goes beyond mere classroom Accounting and Finance and explores deeper about the human financial life and aims at financial freedom rather than job security.

“Money is the medium by which earthly success is measured” George .S. Clason, Author of the Richest Man in Babylon

 

 ©, 2012, Godwin-Xavier Ayeebo

   Email: gayeebo@gmail.com

  Blog: WWW.g-xavierayeebo.blogspot.com

FINANCIAL LITERACY FOR ALL- SOWING FOR GENERATIONS

About two or three years ago, Pastor Mensa Otabil, a renowned Ghanaian Christian Statesman, delivered his annual 31^st December night Message, what he normally calls the “Crossover” and called each and every Ghanaian and every human being to be a generational thinker. What he meant was that we should think about the future well-being of our children, our grandchildren, our great-grandchildren. That we should think about the future of our environment, about the future of our water-bodies and think about the future of everything that will make our existence as human beings bearable, worth living and more enjoyable. If we refuse to think about the future of all that affect us and our children and begin to act with the end in mind and to do things that will prolong the enjoyable longevity of life, then we will be sowing seeds that will wipe away our existence on earth.

For us to be generational thinkers and to sow for generations we first need to realize that there is a future for generations after us; we can then do these below for them:

·        Knowledge management is “the process of storing, managing and providing access to the store of knowledge within an organization.”

The organization here could also mean your house or home or home office or your own organized recordings and storage of knowledgeable materials. Future generations can benefit immensely from present generation and past generation if knowledge is stored and made more accessible to them, they could then add or amend and improve upon what has been passed unto them. This means education is one number for the present generation to pass unto the future generation. Current younger generation can use classroom education as well as very practical education to equip themselves for the future. The classroom education alone does not provide enough preparation and do not equip people for real life situations. It is the day-to-day real life situations that people need to live life on earth not abstract unrelated life education. Education for current younger generation should therefore be like how the medical professionals do it, classroom plus fieldwork. All students should be made to face and endure practical real life experiences to condition themselves for the unexpected real life “weather conditions”.

If you are an entrepreneur, a business owner, a medical professional, an accountant, an architect, a lawyer and so on and your children or one of your children or your friends’ children or your nephews or nieces or your colleague human beings want to learn from you because they know very well you are good and that you can impart something knowledgeable unto them, it is always better to teach them the practical real life situations in the profession. These are what they will need when they get out there. They would need some theories, but they can learn those themselves if they so desire.

When the current younger generation has experienced the real life education plus the real life experience, everything else would follow. They would live happy. They would live life being well-informed and well-educated and experienced in real life situations.

They would then continue with sustainability development and the world shall continue to be a place to live in.

·        Business Ownership, after the children and younger generation have gotten the education from present older generation, we need to know that they might not have the opportunities to practice what they have learnt and get the real life experiences; present older generation should therefore own businesses and other money-generating ventures that younger and future generations could use for their future benefits and well-being. Education alone is not enough, if people get the education but don’t have systems and places where they could apply what they have learnt, they wouldn’t get the desired real life experiences, and they would be ill-equipped and not fully prepared to take life opportunities. Supposing, you just decide to give only education to your son or daughter in accountancy, but you don’t have an accountancy firm, and no one else has an accountancy firm, where would your son or daughter apply what he or she has learnt and get the necessary experiences to face life? If you set up a water factory and someone else also sets up a meat factory, etc, now, then eventually, future generation will come and add to these having learnt from you and your organizations.

·        Real Estate Investment, the value of land always appreciates and never depreciates.

Future generation would be in better positions to take life opportunities and turn them into achievements, inventions and discoveries if present older generation thinks about the future of future generation and prepare for them places where they could lay their heads and working tools.

If they are left to come and fend for themselves by paying so much rent to other land owners for their residential and business purposes, then present generation would have not thought generationally. Present generation would have not thought about the future of future generations. Future generation will then have to start from the scratch before they struggle to achieve their aims and objectives and if they are not able, then the cycle may continue unabated.

Investment in real estate could be in any part of the world, just that tax and other legal issues are different in all countries, the issue is to invest in real estate and when future generations come and take up the mantle, it would be up to them to change designs, directions, styles, locations, colours, types, etc for their own tailored made, all they need is continue for generations after them also to continue, till Thy Kingdom comes.

·        Portfolio Investment, to think generationally means to invest in other areas apart from business ownership and real estate now for future generations. Diversify your investment into other income generating ventures and activities. Invest in treasury bills, unit trusts, mutual funds, shares, bonds and others for future generations. It is not only the rich, who should invest, the poor and the middle class can all invest. Portfolio investment is good, because everybody could invest in mutual funds, treasury bills, unit trusts, shares, etc. You need just small amount like Ghc5.00 or more to start to invest in mutual funds and unit trusts in Ghana and it is like that in many countries. Once you start small, you build on it till you have a storey building of those products, you were buying, you could then leave them for your children, for charities etc but making sure to teach how and why it is good to invest, so they too would continue to play the game. You would all be winners from generation to generation.

·        Philanthropy, the younger present generation should be taught how to give back to society cheerfully and wholeheartedly. For me, money is worthless if it is not shared. That is why I belong to those, who define money as the ability to give. Therefore to be able to give more, then you need more of it. If we need more of it we can only get more of it if we give back to society at large. Money is gotten from societal setups and therefore once you get it from them, then you should be philanthropic more than enough to give back to them in various ways. Society would then continue to make you rich, else society will shun you one day, one time and the future will look bleak and doom.

Long term sustainable financial prosperity is maintained when there is philanthropy and the rich and even the middle class learn to give back to society.

·         

Think generationally, think about the future needs of humanity and do something now that will sustain the natural beauty of life.

©, 2011, Godwin-Xavier Ayeebo

Email: gayeebo@gmail.com
Blog: www.g-xavierayeebo.blogspot.com