MANAGING BONUSES PRUDENTLY

The word bonus evokes happy thoughts and feelings among workers whenever it is to be paid. This is because it is extra income. Bonuses are additional entitlements employees earn aside from their normal salary and allowances. In other words bonuses equate to more money coming in.

Now there are different types of bonuses, the commonest of which are Performance bonuses, paid out after performance appraisals at the end of the Company’s financial year; and Thirteenth month Year-end bonuses, usually an additional month’s salary paid in December. Bonuses vary from organization to organization, and depend on what is stated in your employment contract.

Most employees tend to see these bonus payments as additional spending money, meant to be ploughed into meeting your living expenses. Nothing can be further from the truth. Bonuses rather, are meant to be invested into profitable ventures that can generate wealth.

Your bonus is a lump sum of money, paid in addition to your monthly entitlement. Don’t mix your bonus with salary and proceed to spend all on your living. This strategy will not lead to wealth. Bonuses should be added to what you have saved for investment and correspondingly deployed.

BEYOND GOAL SETTING

 One cannot overemphasize the importance of setting goals if you want to be rich and successful. Those who succeed go beyond merely wishing, hoping and praying to carve out a written list of things they want to have or become. In fact those who have written goals are ninety percent more likely to achieve them than those who don’t.

Now these goals must be SMART (Specific, Measurable, Agreed, Realistic and Time Bound). Take time right now to run your goals through this checklist. Amend your goals accordingly till they conform. This will bring clarity and add drive and energy to their pursuit. For example, “I want to lose weight,” as a goal is not ideal. Instead your goal could be, “I want to weigh fifteen kilos less on the last day of this year.” This is a much better statement of intent.

Many people fail to achieve their goals because they are ignorant of the additional steps needed. They set goals and do nothing about it; expecting to achieve. This will only lead to frustration. In order to achieve your goals you must go beyond goal setting and incorporate the following activities and efforts as part of your routine:

Firstly the road to achievement starts with looking through your written goals at least twice daily. This can be once in the morning and once at night. Take a few minutes out of your day for this process of daily renewal. Don’t be like most people who read through their goals when they set them, and afterward neglect to check it again. Your goals take on a life of their own when you constantly study them.

BEYOND WEALTH CREATION

Bill Gates has for the last twenty years been amongst the richest men on the planet. Currently worth Eighty Billion Dollars he has also earned the distinction of being the planet’s greatest giver. Bill and Melinda Gates Foundation havegiven to date more than Twenty-Nine Billion Dollars to worthwhile causes.

One of the most touching aspect of this extraordinary individual is that he has created another passion and hobby that drives him. This drives him even after he made stupendous wealth; the desire to make this world a better place.

Warren Buffet, in his citation for the Forbes Philanthropy Award to Bill Gates recently remarked that the Gates’ work long hours on their foundation. In fact their foundation is not just a whim; they manage it just as they would their business, spending long hours and putting in lots of effort.

STOP BEFORE YOU TAKETHAT BANK LOAN…

If there’s one thing that I wish that I could have, own and control in this economy, it would be a Commercial Bank. Owning a bank opens one up to a whole load of opportunities and possibilities when you are in the business of providing finance to people.

Now banks exist to provide people with financial products and services in order for them to meet their goals. Giving loans is just one of the services they provide. Loans stimulate the economy because access to finance helps business ventures thrive.

Now the reason for my headline above is not to scare you away from taking loans, rather it is to ensure that you consider several things before you decide to finally take a loan. Have you ever wondered why most loans require you to commence payment immediately, even without a grace period? Loans signify a period of servitude to the financial institution so you might as well ensure you have all the bases covered before taking the plunge.

PROCRASTINATION LEADS TO POVERTY

The scourge of poverty, akin to the manifestations of a virus or incurable disease has plagued many individuals the world over. It has many symptoms but one of the major signs that an individual is infected is when he/she procrastinates. To procrastinate is to delay, to postpone what should be done now for later.

Procrastination is a mental block that deceives you into believing that there is still time to do what should have been done long ago. It manifests itself with statements such as, “I will do it tomorrow,” “There is still time,” and “it’s not too late.” The problem with this mindset is that every day time is going by which once spent cannot be retrieved. Each and every day you are supposed to be making steps toward the achievement of your financial goals; we’re now in May and you might be wondering what happened to the first four months of this year? The truth is you are seriously procrastinating.

MONEY PRINCIPLES YOU MUST TEACH YOUR KIDS

Starting now, starting today your kids if they are five years old and above need to have an understanding of money. Money is integral to their future success and well being, they cannot afford to be financially illiterate!  Financially illiterate children grow up  to make reckless financial decisions and end up retiring broke and depending on their own children to take care of them.

Does this cycle sound familiar? This is what happened to most of our parents’ generation, and will also happen to ours if we do not urgently undertake to do two things – first completely educate ourselves on sound money principles and two, teach the same to our kids.

The following principles below must be taught to your offspring with a view to getting them to understand money for what it is, and what it can do for them. You should never stop teaching them up till the day they leave home:

LESSONS LEARNED: ADNAN KHASHOGGI

-          Adnan Khashoggi made the bulk of his fortune brokering arms deals between Western firms such as Lockheed Martin and Arab governments. For each deal he was paid Millions of dollars as commissions 

-          In the early 1980s he was worth $4 Billion and considered one of the richest men in the world

   

-          A string of financial losses and unethical business practices where he fronted for dictators and regularly laundered money was his undoing

-          At the height of his fortune Adnan was spending a Quarter of a Million Dollars daily

-          He had to resort to selling his properties like his famous yacht and real estate to fund his lavish lifestyle

-          He once threw a party that lasted 5 days

-          Adnan sold his $70 million yacht to Donald Trump for $30million when he needed funds