Diary of a mad black woman…mad money!

Gone are the days when a woman’s biggest goals and aspirations were to be “wifed” and bear cute little rascals that would occupy all the days of her life. Today’s woman aspires to be wealthy, to bear a wide and deep network of assets and acquisitions in the journey to building an empire….well, at least that’s where I’m at right now.

You guys ever watch that movie “Mad Money”? A hilarious comic drama which stars Queen Latifah and Diane Keating. The plot is based on the women Spotting a weakness in the federal reserve bank’s security system, “Diane” convinces her two new friends Nina (Queen Latifah) and Jackie (Katie Holmes) to help her steal a fortune in worn-out bills that have been earmarked for destruction. I like this movie having watched it several times and now having read Robert Kiyosaki’s “Rich Dad Poor Dad” I’ve become even more “Mad about Money”.

The “lessons” from the movie and from Kiyosaki are fundamentally different, of course I don’t promote any stealing of Federal Reserve money, lol – so scrap that one. What I do “promote” is having a financial goal and taking the necessary steps no matter how hard) to attaining this goal – (which I hope leads you to financial freedomJ). I’ve started my journey to financial freedom, it is long damn road there are very few overnight millionaires and it is important to know that wealth is BUILT.

There a few things that really hit home for me when reading Kiyosaki, and some really fundamental lessons from “Mad Money” and these top lessons I what I would like to share with you- some you may know, some not….but if they are not in play in your life; maybe they are worth reading again.

  1. Get Started! –simple right? get off your ass and start doing something about your desires. Simple as it sounds it’s not if you don’t have your goal set. No pressure to set a final goal of “being a millionaire in a mansion home”; set short term goals that you can work towards. These multiple short goals build up, give you experience and confidence to set even bigger ones. Kiyosaki prides himself in Passive income- money that works whiles you’re asleep- he gained passive income through real estate investments, shares, forex etc. Get started on investing in means for passive income, start small and identify that gap in the “federal reserve bank “you can squeeze into. I have a friend who has been working for about three years now and during all this time drove his parents hand me down Toyota Tazz- that is a strong car guys?  he recently bought a new car, not for himself to drive though, he continues to drive the low cost Tazz and jumped on the UBER band waggon using his new car. He has in effect turned his liability into an income generating asset. The car pays for itself, the driver and give him some nice income weekly.

2. Don’t be afraid to lose.I don’t know about you guys but I am a perfectionist- often to my detriment. As a young black woman in the corporate world I want to have a certain image. An image of professionalism, being great at my work and inspirational; as a result I used to avoid making mistakes. I found i second guessed myself before I asked a question, voiced my opinion or in correcting a senior. After reading “I write what I like” by the late South African Activist Steve Biko I found a new profound way of looking at situations and reacting to them. I genially started appreciating and having 110% confidence in myself and in the same breath leaving room for learning for when I am wrong, and accepting this. I rose to being a Black female, I rose to learning and empowering myself; I rose to self-BUILD! This is the same mentality I take to some investments; the 110% confidence must come from the fact that you have done your homework about the investment and the “room for being wrong” comes with experience and the willingness to learn. “The most successful people in life are the ones who ask questions. They’re always learning. They’re always growing. They’re always pushing.” – Robert Kiyosaki

“In the real world, the smartest people are people who make mistakes and learn. In school, the smartest people don’t make mistakes.” –Robert Kiyosaki

3. Hedge! Hedge! Hedge!Truth is hedging is simply knowing when you will block/stop a losing trend and having a backup. This allows you to reduce your risk. In stock trading you find people buying stocks that have inverse correlations to the other- so you buy dollars but you hedge this forex against buying oil so when the dollar value decreases often the value of oil increases and your loss is minimised. Now to bring that home in more practical sense I like to think of it as “PLAN BnC” – (Buckle up and Control). When you make an investment (plan A), always consider the worst case scenarios for that investment. That will stimulate you to think creatively about plan BnC. It’s good to have this BnC in your back pocket, you may never need it, heck you may not even implement it the way you planned, but it’s a starting point when things get rough. Knowing how you will buckle up and control the loss to minimise the loss will put you at an advantage.

This strange word they use in the financial sector that sounds like it was created for us non-financial people never to understand…hedge!

I truly believe hard times bring the biggest opportunities, when we are going through a recession and inflation is at its highest that is probably the best time to be investing and ironically the hardest time to get funding (but that’s a tale for another day)….these are the times when property Is cheaper (bless those who fall short on their payments – it is to an investors advantage). Stocks are also cheaper, I remember in March 2013 the Stocks of a SA blue chip Oil and Chemical company SASOL were selling at R330, by May 2015 these stocks were around R690 a share, that was massive growth in the short term and I saw people rake it in by selling, those waited and were forced to sell after July 2015 possibly made loses as the oil price dip dropped shared to below R400 a piece, this and the 2013 price were the opportune moment to start buying shares and NOT Sell. Kiyosaki says if it’s not making you money, it is NOT an asset, it is a liability. The house/flat you live in is technically a liability, it only becomes a true assets when you sell it at a profit- I’m currently trying to creatively find a way to get my apartment to make me moola …can you say “AIR BnB” J

“The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth in what seems to be an instant.” – Robert Kiyosaki

Invest in yourself first, ladies, gone are the days we depend on a man to look after us our whole lives. Invest in your financial education and be “Mad about Money”

By: Nwamara. Obiike

Rich Dad Poor Dad was discussed at our last book club session on April 24th. It dawned on a lot of us more than ever that we need to get our finances in order. The current economic climate does not make it any easier. Most of those in my age group would have been working for roughly 2-4 years and now realise that the time has gone by so quickly. What do you have to show for your hard work? In just the last two weeks since the book club session, I have made some quick changes in how I handle my money. I hope this post inspires you to do the same!-Lee Nyenyedzi

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