The Smart Money Woman is a book by Arese Ugwu, founder of Smart Money Africa. It follows the lifestyles of middle-class and middle-aged women in Nigeria’s commercial centre, Lagos, Nigeria. There is so much to learn from Arese Ugwu’s bestseller, The Smart Money Woman, which has now been adapted as a series on Netflix.
Here are a few take home from the book:
- Debt can be useful in attaining financial success.
Wealthy people use debt as a tool to leverage their investments and grow their cash flow, but poor people use debt to buy things that make rich people richer. Only borrow to acquire an asset that will appreciate in value.
- Articulate the vision you want for your life.
The most successful people are the ones who are able to articulate what they want for their lives. Success is deeply rooted in having a solid plan that is tailored to what you want.
- Budgeting is not scarcity of reduction in station of life
The reality is, a budget is something that tells you how to allocate your resources and it should reflect what you value.
- Control your money, not your money controlling you.
If you don’t treat the money you earn with respect, it will leave you with no respect. We have to learn to spend with intention by allocating our resources to reflect the lifestyle we want and are able to sustainably afford. This all starts with having a clear idea of where the money is going in the first place. You have to give up the excuses and learn to control money instead of letting money control you.
- Track your expenses
Most people don’t know where the money they earn goes. What percentage of your income goes to food? Transportation? Clothes? Just like in any successful business where you track the revenue and costs periodically, it is also important to track the expenses in our personal lives
- Your network is your net worth
Having an extensive network allows you to maximize your potential. A person’s ability to attract wealth is tightly linked to how well they are able to grow and leverage his or her network to take advantage of opportunities.
- Do not invest in things you do not understand
The cardinal rule when you invest is, don’t invest in anything you don’t understand. You should always do some research, ask some questions