FINANCIAL LESSON FROM THE PARABLE

In every fruits there is a seed which can reproduces more fruits, if properly sowed ,so is every money that is in your hand there is a seed that can reproduces more money if you will sow (invest) with it.
The parable of the talents as given by Jesus Christ in matthew 25:14-30 tells us the storythat is valid today as it was two thousand years ago.
The principles of financial transactions employed by the first and second servants to double the amount given to them by their Lord are canvassed now by financial advisers.
Their master gave them the talents according to their ability,so your ability can give you financial breakthrough.
The financial lesson from the first and the second servant is that money 'talent' traded or invested will multiply and increase while the third servant ,a lazy one shows us that talent bury or not use will depreciate and taken from you.
The two srevants who traded with their talents took some calculated risk to increase their talents,risk -taking creates increase and we should learn how to manage our risk in business.

In every money we have now ,we are left with three option,
a)To hid our money
b)To put our money in the bank for interest
c)To trade or invest with our money for more increase.

Considering these three options trading and investing is the sure way advocated by financial expert for financial freedom.
From the lesson we should note the following insights: That increase comes through ability,risks don't kill, they sharpen ones reflexes,seizes opportunities of investment when they come your way,seek knowledge,be faithful to your cause and be discipline.

THE MAGIC OF COMPOUNDED INVESTMENT

YOUR SURE WAY TO FINANCIAL BREAKTHROUGH

Money saved is nothing except when it is invested to generate more money .One of the surprising facet of financial management, is what many people call “the magic of compound interest”
Now most people think that to invest or save, that you really need a lot of money .The answer is no, all you need to build a financial independence is the right ingredient put in place, which are;
A) Income
B) Time and consistency
C) Discipline and understanding “The magic of compound interest”
Let me elucidate on the compound interest. Compounding is the reinvestment of the interest you receive from the money you set aside or invested.
If we consider 150days investment plan at different three category of amount invested; $3000, $5000 and $10,000 @ 1.4% compounded every day for 5 days a week in the table below. For the share class of premium, after 37days.

FIVE MONTHS INVESTMENT PROGRAMME @ 1.4% COMPOUNDED EVERY DAY FOR 5DAYS A WEEK FOR THE SHARE CLASS OF PREMIUM AFTER 37DAYS.


0/MONTH, $3000 , $5000 , $10000

1. 1552.43 , 2815.21 , 5630.67

2. 4066.69 , 7215.66 , 14431.76

3. 8045.62 , 14093.77 , 28188.61

4. 14265.02 , 24844.90 , 49691.61

5. 23986.4 , 41649.8 , 83302.65


At the end of 150days you will receive $23986.4, $41649.8 and $83302.65 of the different category of amount on investment and your initial capital deposit will be return to you.
All these happen through the power of regular investing and a simple –but –powerful concept called Compounding.

FINANCIAL PRODUCTIVITY

Financial productivity in life is achieved by growing your productive assets and cash flow by 100%-120%.

Productive asset ” are those assets or anything that put money in your pocket” by Robert Kiyosaki. example, Bonds, share, investment Real Estate, stocks, saving Account, kingdom Assets.

The seven laws of Financial Productivity

1). Accumulation by Investment and saving:

Investment and saving are financial seed that grows to financial tree (freedom) in future? True wealth comes from the ability to take something that has little value & convert it to something productive. Investments in the postponement of consumption. Investment proves a faster track to accumulation than saving.

2). Accumulation by Diligence:

Diligence involves Persistence & consist application of talents to create value for commercial advantage –Prov. 22 vs. 29

Lazy hands make a man poor, but diligent hands bring wealth. Prov. 10 vs. 4.

3). Knowing the difference between Asset and Liability:

An asset is anything you own that puts money in your pocket and a Liability is something that takes money out of your pocket.

- By Robert Kiyosaki

4). Accumulation by passion:
Passion releases the energy to succeed in life.

Passion means strong feeling toward a thing, and money making required passion.

5). By Self Discipline:

The profile of a wealthy person in this, hardwork, Perserverance & most all self-discipline → Zig Ziglar.

6. Personal Integrity:

It taken a character based foundation to make good decision which will impact us.

- To satisty customers.

- To establish trust

- To obtain God’s favour.

7). Right Choice

(a) The Choice to be rich or poor is in every cent in our hand now.

(b) You are what you are today because of the choice you made yesterday. So make that choice now to rich.

The rich acquires assets, the poor only have expenses & the middle class acquire liabilities, they think it’s an assets.

To be rich build your assets column first.

THE IMPORTANTANCE OF HAVING PERSONAL FINANCIAL PLANNING

Planning is the process of making a proper lay down procedure of doing things and following them to achieved the expected objectives or targets.It is both general and specific, longterm and short term.

The personal financial planning is a proper financial management to achieve your goals.
Mary Ann Pafa defines Personal financial management as applying the corporate theories and techiques of money management to your personal finances.

Some people live their life like tomorrow will never come, and when tomorrow comes it meet them unprepared. Most of the time the reason they neglect financial planning is that there income is low, procastination and lack of financial discipline.

There is a wise saying that “he who does not plan actually plans to fail.” So there bear some of this cost – unfulfilled life and career, loss of opportunity in life, bitter Retirement life,unfulfilled destiny and exposure to financial risks.

These are some of the importance of the need to have personal financial planning.

(a) To meet financial goals and obligation
(b) A good financial plans will help you to retire in comfort.
(c) It help you to achieve financial freedom
(d) It help you to make a rational financial decisions.
(e) To take advantage of financial opportunity.