Pay Yourself First: The first law of wealth building

Many people desires great wealth, but the question is 'How many of us desiring wealth are actually working toward acquiring the wealth we wanted'? Few, very few. Many desired wealth greater than that of the wealthiest man who ever lived (King Solomon), but hardly do they work toward acquiring their dreams. 

Mandela said it in one of his quotes that wealth and poverty are two different choices from which we choose. Wealth is like a profession that you must have adequate knowledge of - you can't become an Engineer without being trained as one, you can't become a Pilot without passing through the school of aviation, neither can you become Geologist without having adequate knowledge of solid or liquid matter that constitutes the earth. 

The same goes for wealth, you can't simply be wealthy if you don't have adequate knowledge of how to create wealth and sustain it.

What is Wealth?

Lot of people have shallow knowledge of what the word "Wealth" means. Some desires to be wealthy just because they think their life will be better of, without understanding what it means to be wealthy. I'll start with the dictionary meaning of wealth.

Wealth is defined as:

Noun:-  A great quantity or store of money, valuable possessions, property, or other riches.

Economic:- Anything that has utility and is capable of being appropriated or exchanged. Utility an economic term referring to the total satisfaction received from consuming a good or service. Or the state of being useful, profitable, or beneficial.

Wealth is more than the amount of money you have in the bank(s) or at hand, it extends to all the valuable things one has and even far beyond the objects one can see. King Solomon is regarded as the wealthiest not only because of his riches, he was very intelligent and wise.  Having adequate knowledge or skills to earn, is wealth as well, as long as you can exchange your knowledge or skills for money. Robert T. Kiyosaki defined wealth in his own way, he said, 'Wealth is not the amount of money one has but the duration of time it spends in your possession'.

Am not an expert or wealthy yet, but am one of those learning how to be wealthy beyond monetary aspect alone. Leaving good legacy behind, to me is also wealth.

How do I start building my Wealth?

This article can't teach you all you need to know about wealth creation but will be another eye opener for readers. Many of us have read several books on how to make money or how to become a millionaire, billionaire etc. Some authors do advice readers to pay themselves first while others do skip this piece of advice. I myself do wonder what it means to pay myself first and kept asking how do I pay myself? I got the answer and the concept of paying oneself first shortly after reading 'The Richest Man in Babylon'.

The Concepts of Paying oneself first

When you ask people if the salary or wages they earn at the end of the month or work done is 100% theirs, their answer will be yes. But they are wrong if they don't pay themselves first. Let me break it down and tell you why the money you earn isn't yours until you start paying yourself first.

When you receive your salary at the end of the month or your wages at the end of the service you rendered, the next thing that comes to your mind is payong your bills or satisfying your wants. You will settle the electricity bill, water bill, school fees, go shopping, replenish your wardrobe, fix damaged furniture, etc. The money you spent doing these things are not going back into your pocket, you sure know that, at the point of exchange it belongs to someone else. 

The rest will surely be spent on transport and feeding until nothing or little is left before the next payment is done. Even if you save some of the money in the bank or using other savings method, you still didn't pay yourself if at the end of the day you exhaust it.

You will pay yourself first by saving nothing less than 10% of the amount you earned either on monthly, weekly or daily bases. This method may seem impossible because of the stack of bills you have to settle, it is however, the best you pay yourself first before settling every other bills. Paying yourself first is the first bill you must pay. 

Some do wait till the end of the month before saving the left over, am not condemning this act, but it has its shortcomings - you won't have anything to save when there is no left over, and it will become more difficult to save when expenditure increases.

Paying yourself first is very beneficial, and the benefits are as follows:

1.  When you pay yourself first, you are mentally establishing savings as a priority. You’re telling yourself that you are more important than any other thing. Building savings is a powerful motivator — it’s empowering.


2.  Paying yourself first encourages sound financial habits. Saving regularly makes you plan the way you spend your earnings wisely. Paying oneself takes a long time to develop as an habit because it has no immediate gratification.


3.  By paying yourself first, you’re building a cash buffer with real-world applications. Regular steady contributions are an excellent way to build a nest egg. Paying yourself first gives you freedom — it opens a world of opportunity.


4. By paying yourself first, you are saving for the future. When you start paying yourself first, you start making plan for the future when you won't be able to work anymore.

How do you pay yourself first?

The process of paying oneself first has been made easy in this era of technology. These processes offers the best method in such  painless manner, invisible and automatic. Many companies include retirement plan in their employees payment plans. One thing you must not forget is that your savings should be tied to goals - either immediate goals like buying a car, a house, studying, re-investing it into your business etc. or long term goals like retirement plan, establishing your business, planning for your children future, etc.

Here are three ways to start the process of paying yourself first:

1. If your employer offers a retirement plan (most companies now offer compulsory retirement plans) — enroll as soon as possible, especially if the company matches your contributions.


2. Open a high interest savings account at a bank - Set up automatic transfers into this account, either directly from your paycheck or from your regular bank account. Treat these transfers like you would treat any other financial obligation. This should be your first and most important bill every month.


3. Direct depositing is another way to go. For those who are self-employed, it's hard to determine the amount to pay from month to month because the income is not fixed. There are times that they will earn much in a month and other times that they will earn very little. It should be at the back of your mind that no matter the amount earned, you must pay yourself. So, such person should have a bank account where he deposits his payment.

If 10% will be too much for you as a starter, you may start with an amount that is convinient for you. What you shuold not fail to are - never fail to save and never forget to increase the % as time goes on. And in case of those who earn big, you may save more than 10% and if at the end of the month you have something left you may save that as well. It will serve as a booster to your savings.
Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this. –Dave Ramsey

The Benefits of Yam Farming and Production

Yam farming is obviously one of the most rewarding farm business in Africa for many good reasons. Yam is one of the most popular food staple in most African countries and beyond. It is prepared in our kitchens in many forms - pounded yam, porridge, friend yam, yam with vegetables - mention just a few. Without yam in the market, millions of African families may starve. 

Yam is a source of huge income | WealthResult.com

Apart from feeding our stomach, yam has other nutritional and health benefits. Yams' complex carbohydrates and fiber slows the rate at which sugars are released and absorbed into the bloodstream. In addition, because they're rich in fiber, yams fill you up without filling out your hips and waistline. 

Yams are also a good source of manganese, a trace mineral that helps with carbohydrate metabolism and is a co factor in a number of enzymes important in energy production and antioxidant defenses. That's how mother nature works; when She brings forth a food, She makes sure it integrates everything needed to contribute to your health and vitality. 

The Opportunities in Yam Farming

Yam is quite pricey in the market and no amount produced that will be enough let alone saturation. Yam can be exported too other countries to earn foreign currency and improve the economy of Africa. In ancient time down to very recently, the wealth of a man in Igboland is measured by the quantity of yam he harvested. Yam is a symbol of wealth in Igboland - likewise many other places. Has this changed? The answer is no - it is our recent acquired poor orientation towards farming that is trying to change it.

Ghana is the third largest yam producer in West Africa after Nigeria and Cote d’Ivoire, but when it comes exportations, they are the leading exporter of yam accounting for over 94 percent of total yam exports in West Africa.


The big question is: How come Nigeria is the largest producer of yam in West Africa but Ghana is the largest exporter of yam in the same West Africa? Nigeria and Ivory Coast's eyes are still blind to the opportunities that exist in their hands. About 90 percent of Ghana’s yams are exported to the US, UK and the Netherlands.

The Profit in Yam Farming 

Do you know that 50,000 tubers of yam could make you N10 million in a year? And what does it take to harvest 50,000 tubers of yam in a year? A hundred meters of yam ridge takes 100 yam if spaced 1 meters apart which is the standard recommended spacing. That means that five hundred by five hundred meters of farm land can comfortably give you 50,000 tubers of yam in a year.

The problem we have in this country about farming is that we are not used to thinking big, we only think of farming as means of feeding our extended family in the village. No, farming is far beyond that, it can make you millions of dollars.

To cultivate 500 x 500 meters of farmland for yam, you will need N3-4 million and after harvesting and selling, you make N10 million selling locally, making a profit of N6 million in a year. How many of you makes N6 million in a year in your hustling in Oshodi and Alaba and other markets and streets in Africa? Why would you prefer to languish in poverty and hardship when there is plenty opportunity in Yam Farming? The season is about to begin, prepare now!

In the next article, I'll explain step by step how to start yam farming in Africa.

How to Start Generator Rental Services

Generator rental services is another viable business opportunity that is waiting for your taking. Few people know about it and those who do are making a kill from the business as we speak, hiring out their generators to prospective clients 

50 KVA Singfo Diesel Generator | Image credit: SZ

for money. The ideal generator for this business is the big diesel generators and starting the business is quite simple.

A 30KVA soundproof diesel generator generates about $50-$80 (N10,000 - N15,000) daily. And considering the fact that it always goes for bulk time hire, consistent income for months is quite feasible in this business. Therefore, N10,000 - N16,000 x 30 could earn you N300,000 - N480,000 monthly for the time being!

This business is real and currently working for those who knows how to go about it.

What Does it Takes to go Into Generator Rental Services?

Locate your target customers - Who are your target customers in this business? Anyone in need of big generator but don't want to buy one at that time. 

Your biggest target market is construction. Construction companies make use of these generators big time, and no matter how many they have, they can never be enough for them, especially at the peak of construction period, usually during the dry season.

Others are Oil servicing companies, government agencies, etc. Get creative in your marketing and make sure you talk to as many prospective customers as possible.

Buy Generators - Acquire two or three Diesel Generator for a start, maybe two soundproofs and one non soundproof. I got one recently for my office use at the price of N1.7million. So budget N1,700,000 x 3 = N5,100,000. Open body (non soundproof) is quite cheaper. You can further get it cheaper by ordering from China through Alibaba.comyou many get the whole three for N3m.

That's all you need for now. Once you have your generators in place, approach the companies with your marketing proposal and make a advertisement of generators for hire. Cool business, cool money!

How To Start Fast Food Restaurant In Nigeria

You will agree with me that the food business is one of the most lucrative businesses in any country. This is because, food is a necessity and at such no one can do without it. Fast food restaurants have become very popular in Nigeria because of the quick nature of their service and varieties in food menu. A lot of local restaurants are upgrading to become fast food restaurants by the day.

Mr Biggs Restaurant, Ikeja City Malls | Photo credit: UAC

Fast food restaurants, otherwise known as quick service restaurants (QSR) or eatery, are specific food outlets that specialize in the fast and efficient preparation of foods that are always ready for take out at an affordable price. They also provide seating arrangements for customers who want to eat their food in the restaurant.

Like the name implies, one of the benefits of fast food restaurants is that, it is fast and efficient. This means that people can get food on-the-go, without wasting time and the food can be packed and ready for takeout at any time. It is convenient and affordable. You don't have to go through the stress of preparing your own meal if you don't want to, all you need to do is locate the nearest fast food restaurant, and you can get varieties of food that you may not even be able to prepare by yourself at home. 

People working at a far distance have to leave their homes very early in the morning and by this time they cannot do any cooking of their own, they resort to buying food from fast food restaurants, which is a plus for you as a business man or woman. Running a fast food restaurant business in a strategic location will boost patronage and grow your business exponentially.

The president of the association of fast food and confectioners of Nigeria told newsmen that fast foods contribute up to N200 billion in the growth of the economy annually and that all its members pay up to N1 billion in taxes and levies. This is proof that the business is vying. Let us take a close look at some of the popular brands of fast food restaurants in Nigeria and how they came to be.

In 1985, United African Company (UAC) launched a fast food restaurant chain in Nigeria popularly known as "Mr. Bigg's" (one of Nigeria's first and biggest fast food restaurant franchise). Prior to that time, the fast food industry was dominated by  multinational companies like Leventis, Kingsway and UTC, whose set-up was mainly for the elite and mostly located in big cities like Lagos, Ibadan and Port Harcourt. The majority of Nigerians who found the UTC snacks and Leventis stores too expensive had options of local restaurant settings commonly called, 'mama put' or 'buka'. 

Mr. Bigg's brought a revolution into the fast food industry in Nigeria. It made cultural and local dishes as well as pastries available to the average Nigerian at an affordable price. So that, low income earners too can have the fast food restaurant experience as much as the rich do. So far, Mr. Biggs have up to 130 outlets across Nigeria controlling about 45% of the fast food industry and currently has two outlets in Ghana.

Kehinde Kamson, the founder of Sweet sensation confectionery limited, was a full time accountant when she established a confectionery business which she called "citicate-city caterers". She would wake up early in the morning to make and distribute her pastries before heading to work. As the business grew, her pastries became very popular, especially in Unilag and her customer base increased tremendously. She had no choice than to quit her job as an accountant and run her confectionery business full time. 

After four years of supplying pastries to big companies like UTC and Mr. Bigg's, she started Sweet Sensation at a backyard shed in her family home and since then, her company has moved up the ladder with a number of outlets in Victoria Island, Ogba, Opebi and other parts of Lagos. She drew inspiration from one of her big clients, as she said, "Mr. Biggs inspired me beyond Imagination". Amidst the influx of new brands in the fast food industry, consumers still consider Sweet sensation as a market leader in African cuisine. 

These and many more are success stories of fast food restaurants in Nigeria. The good news is; you can start your own fast food restaurant with your business name (small or large scale), you can also buy popular fast food franchises.

Fast food restaurant business, like any other business requires that you study the terrain before you start the business. The following are some of the things you need to do when setting up a fast food restaurant in Nigeria.

Draw Your Business Plan

Everyone knows that the first thing to do when starting any business is to plan, and fast food restaurant business is not an exception. A business plan is like a to-do-list, where you have all the steps you want to take in starting your business written down.

Your business plan will include where you want your business to be located, which should be somewhere open, easily accessible and spacious. You must also make the location accommodating and comfortable for your customers. Nobody wants to eat in an uncomfortable environment. Good sitting arrangements, entertainment facilities like flat screen TVs connected to cable networks, Air conditioners (AC) at all angles of the restaurant to keep the atmosphere conducive, these are some of the measures you can use in making your restaurant conducive for your customers.

When you have considered the cost of putting all the measures discussed above in place with estimates of how much you will be needing to start the business itself. This will bring you to the next question, which is; how much capital you will need for the business and how do you intend to get it? You are lucky if you already have enough money to cover the start-up costs, but it is always advisable to play it safe by sourcing for more funds, either by obtaining loans from banks or borrowing from friends and family. This is to ensure that whatever miscellaneous expenditures that may arise along the line are sufficiently covered for.

Let's not forget the fact that you have to register your business, in line with the provisions of the Law in Nigeria. You can choose to register as a business enterprise or as a limited liability company with the corporate affairs commission (CAC). It is also important that you register your QSR with the association of fast food and confectioners of Nigeria (AFFCON).

Buy a Popular Fast Food Franchise

Buying a franchise is one of the best ways to become an entrepreneur. In Nigeria here, most of the successful fast food brands are franchises. You might want to ask what a franchise is, a franchise is a legally binding agreement between two independent parties (franchisor and franchisee), in which the franchisor authorizes the franchisee to market a product/service in the trade name and brand of the franchisor.

Buying a fast food franchise will make the business boom quickly, unlike when you are running the business with your own brand. This is because, the brand you are buying a franchise from is already renowned. So, customers do not need extra canvassing because they already know the brand name and can easily relate with it.

Some successful franchise fast food businesses in Nigeria are the United African Company of Nigeria PLC's "Mr. Bigg's", KFC and so on.

Choose Your Style Of Service And Menu

If you are not buying a franchise, then it is important that you choose your style of service.What type of food will you specialize in? Will you be making continental or local dishes? Will it be a combination of local and continental dishes with pastries and confectioneries?

Whether you are buying a franchise or not, it is equally important that you make a list of foods (menu) that will always be available in your restaurant with their prices.

Employ Good Chefs And Staff

A good chef makes a great restaurant. It's not enough to have a big brand name and a huge outlet, the cuisines have to be up to standard and more. Therefore, before employing a chef, make sure that he is a great one and that he or she has had training in the preparation of different types of food.

You also need to employ the service of attendants or waiters and waitresses, depending on the style of service you have chosen. Ensure that you make varieties of food available at all times.

Run a Take-out/Delivery Service

This is another way in which fast food restaurants in Nigeria are upping their game. You don't have to wait until customers come to your outlet to purchase food, you can as well take it to them. This works well for bankers and corporate entities, all your customers need to do is make their order known to you and you can take the food to them wherever they are.

You can also run a mobile outlet, where you have your foods in a van that bears your brand name, going from one place to the other. It will help customers buy your foods anywhere they find your mobile outlet without necessarily having to come to where your business is located.

It is important to note that as much as the food business is lucrative in Nigeria, there are a lot of competition. Therefore, after you have put all of the measures I have discussed in place, you need continuous market research and development to keep your business going in the right direction.

How to Start Furniture Business in Nigeria

 Today, I want to discuss with you what it takes to start the sales of imported furniture in Nigeria and other African countries.

Standard Furniture Showroom | Photo credit: Briers.ca

You and I knows the value of furniture in our households, offices, restaurants, hotels, and other places like that. They are like the internal organs in every house. Without it, the housing could never be complete.

Furniture business is yet to develop in Nigeria as it is in other developed countries. Apart from the Alaba traders and some other few furniture dealers here and there in Nigeria, you can hardly see any serious furniture showrooms within the cities. This means great business opportunity exists in this sector.

Take a walk into Bedmate's showroom anywhere in Nigeria, you'd think the furniture there are custom made for them. You'd think that those furniture you see there are hard to find? Never! There are very easy to source for. Those furniture you see there are imported from China, Taiwan, Turkey, Indonesia, and other Asian countries. Majority is from China.

I was so surprised to see Bedmate tag N185,000 on the very same office chair I bought in Alaba for N75,000 -  the same quality, the same make! Now is the time to break the monopoly and take this business to the next level.

What It Takes to Start Imported Furniture Business in Nigeria.

Once you have the requirements, starting is not difficult at all. It's a straight forward business that you may never need any help or spacial knowledge to get started. Below are some of the things needed to get started. 

1. Big Showroom - Furniture is space consuming, you will need a very big showroom if you want start something substantial and attractive. Visit places like the Bedmate in Ikeja City Malls to see example of what I'm talking about.

Space is everything in this business and once you have it, you have everything. Make sure you get your showroom in a decent neighborhood, don't go for a slum. 

2. Experience Furniture Technician - I don't know another name to use for this. The furniture technicians do the setup. All the imported furniture comes in packages. Unpacking and setting it up the way it should be is not a small task. It takes someone who is experienced in this to do very well. 

A carpenter who tried to setup my imported wardrobe ended up leaving it in shamble and almost damaged completely. Send some guys to Alaba to learn how to setup the furniture and make sure they mastered it very well before putting them in use, else, they will help you incurs damages.

3. Logistic - I mean the means of transporting it to your customers and means of bringing from the market. You need to get a big truck for this purpose. But if you can't, then you make use of hired truck which will be more expensive in the long run.

To setup the furniture business of the magnitude I'm trying to explain, you will need good amount of money. Your start up capital must be reasonably high, not less than N50 million. Anything less than N50 million may not be able to do standard furniture business for a start. 

It's a pretty big business and I will be writing more articles on this in the coming weeks and months.
Credit: Omeh