How to Avoid Being Financially Stupid in 2018. Fabre` demonstrated this unusual behaviour with a simple experiment. He took a flowerpot and placed a number of caterpillars in single-file around the circumference of the pot’s rim. Each caterpillar’s head touched the caterpillar in front of it. Fabre` then placed the caterpillars’ favourite food in the middle of the circle created by the caterpillars’ procession around the rim of the flowerpot.

Each caterpillar followed the one ahead thinking that it was heading for the food. Round and round went those silly insects–for seven days! After a week of this mindless activity, the caterpillars started to drop dead because of exhaustion and starvation. All that they had to do to avoid death was to stop the senseless circling of the flower pot and head directly toward the food-less than six inches away from those ever-circling crawlers.

However, the processionary caterpillars were locked into this lifestyle and couldn’t extricate themselves from this mindless behaviour

Do you know that a lot of us still suffer like caterpillar and die while they are just few inches away from their food but because they can breakout of the comfort zone. They never realized their potential. Despite the fact that untold wealth lies within reach, they acquire very little of it because they blindly, without question, follow the crowd in a circle to nowhere. They follow method and procedures for no other reason than its always being done that way.

I have been managing small businesses for several years. I have had privilege to interact with individuals who want to change their financial position. Many of them have full time job with a steady pay cheque average of N1.5m ($15,000) per annum.

As we discuss their options, I can see that they want more money, financial security, but not total financial freedom. I asked the strategies they have for their money before and I  get answer such as I  don’t have any strategies for making money, I just save certain portion of my money in the bank and fixed deposit for interest. This situation is not uncommon in our society today.

Segun (not his real name), a banker was in our office for small loan some time ago. We exchange pleasantry and I asked what he wanted to do with the money, with full smile, he said business of course. ‘I want to start small business and I need loan’ he added. I pressed further to ask for his simple business plan but to my surprise he said he had not even given it a thought.

The truth is that people want to start business. They want something better than 8.00am to 5.00pm syndrome yet they are not ready for it.

Each time i discuss with people who want financial freedom or want to start business, i ask what strategies do they have in place that we give them the life they desire? Most time they stared at me.

More often than not people like segun are everywhere in all the continents of the world. They have few thousand in saving account, may be fixed deposit account and mutual fund.  They turn everything to their bankers and investment advisor or business brokers.

They want the easy path. It is easy to give your money to an investment advisor and it is easy for the advisor to put the money in a mutual fund.  It is not nearly as easy to gain the knowledge necessary to work in real estate, business or the stock market.

Financial freedom is closer to you than you think but not until you take action to unlearn your previous philosophy about turning your hard-earned money to financial advisors who are not better than you. A few financial advisors will understand your financial needs and those who are out there want to sell you their products instead of helping you plan financially. Before you call your financial advisor pick a book today about business, stock market real estate and read from cover to cover. You will be better equipped than just turning your hard- earned money to financial advisor

Don’t be financially stupid in 2018. Start developing the Can Do attitude toward financial education. Read financial books and take a baby step. Stop relying 100% on what your advisors tell you. Know that the expert can be wrong but you will be the loser. It’s your money not theirs.


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