FIVE RULES TO FINANCIAL SUCCESS.

Five rules to financial success content in my book; THE SECRETE OF WEALTH.

These rules express the financial success as function of financial plan; FS(f)FP where financial plan involves investment, consumption and savings functions.

FS (f) FP is a relationship that is based on;                    

·         The knowledge of financial alternative and their associated cost or opportunity cost.

·         Discipline in management (selection, monitoring, organization and execution) of financial plans.

·         Working to create and manage not making money which is a positive sign of effective executing financial plans.

·         Friendships and social connections.

·         Demonstrative knowledge for financial alternatives relative to their attracted cost backed by strong work-ethics and social network to sustain success.

These immeasurable qualities of a financially independent person which cannot be capture or calculated hence the demand for rules which are;

1.       HEAD RULE.

2.       MIND RULE.

3.       THUMB RULE.

4.       LEG RULES.

5.       BODY RULE.

HEAD RULE FOR FINANCIAL SUCCESS; is the direction and foundation for present wealth creation and their future growth through exploiting the space created by our skills and interpretation of such skills which is the value we bring to the workplace, offices, lecture hall and market that is our exclusive unique identification. This is what set us apart, separated for special attention and rewards the very bases for financial success. First to getting your head in the right direction towards acquiring that exclusive unique identification is

·         Knowledge the principle foundation for financial success. It is a function of the amount payable and income chargeable, durability of skills and services and sustainability of financial success. Knowledge is a set of information with exclusive skills and interpretation of such skill (reasoning) only appreciated by it handle but inclusive of others.

·         Sources are the salt for skills and reasoning and a springboard for present and future income growth which is directly dependent your financial success. The size of your source is the secrete of wealth.

·         Leadership is not the ability and responsibility that comes with a position but the size, skills and reasoning of the person in such position. Leaders of thought and opinion wanting to be heard and read more so are leaders in finance needs to create and manage wealth which must have the consistance of a chameleon for change and adaptability which comes naturally not nurtured or acquired to be financial successful.

·         Cloud with crowd of opportunities and space for every shape, size of skills and reasoning to manage and create wealth. Competition is healthy for wealth creation and management while living in the cloud alone breeds complaisant and inefficient utilization of wealth. Scholars for relevant and rewards. Knowledge is power but the knowledge your don’t have makes you powerless to enjoy the privilege of such knowledge so is financial success. To enjoy financial independency demands continuous relevant of skills and reasoning with increasing rewards which is achievable by appreciable scholarship in your choices of careers and area of specialties and expertise. The five rules of financial success continue. If it was helpful please leave a comment.

PAPER PERSENTATION ON THE COST OF EDUCATING NIGERIAN PRESENTED BY OSORIASORIA STANLEY OKOSUN STAFF OF CYMMY ASSOCIATES NIG LTD TITLE; IS THE LOW COST OF EDUCATION (SCHOOL FEES AND OTHER EXPENSE) A PRODUCT OF POOR QUALITY GRADUATE AND UNINSPRING LECTURER?

This question is not a documentation of Nigerian failing education system but a guest to provide solution for a system unwelcome to change and comfortable among the backwaters on the league table of non performing ivory tower in the world which is not

1.       Contributing to national growth and development in relation to investment from private and government.

2.       Build the right human capacity demand for the socioeconomic challenges which are growing by the day and unable to bridge human and physical capacities deficits.

3.       Institution with the same infrastructures for student and lecturers of post independent or since their foundation which haven’t change even with increasing demand for education.

The changes needed to address these challenges would cost more and government been the major stakeholder cannot continuously be saddle with this responsibilities and a growing demand for attention from other sectors even after ten years of private university we are back at where we were before their creation asking the same questions how to provide education for the growing population of Nigeria? Can education be free for all?  At what prices? Who is to determine that prices? (Market forces or government) no answers have yet been found and any solutions have not been well thought-out like the creation of new universities when the old ones are underfunded and under resourced.

The accessibility and quality of education in Nigeria is a function of the cost of education and by product of the quality of graduate produced from uninspired lecturers who are too willing to strike as measures to draw government divided attention for solution to their inability in plugging the financial gap opened by government ownership, intrusive intervention and low investment has made it impossible for institution of higher learning to get the most out of those accessing their services or product thereby loosing the ability to shape the quality of student coming out of such institution to be resourceful, hard work with knowledge. If after 64 year of educating Nigerian the University of Ibadan been the oldest university founder before the country cannot be trusted by government (public) to manage the access for her product thereby shaping the quality of graduates after her rich legacy and heritage of knowledge and reasoning this is an indictment for the economic development of Nigeria. The low cost of education (school fee and other expense) have opened the gate of institution of higher learning to anyone helped by government intervention and investment even Oxford University the second oldest university in the world with endowment fund of 3.3 billion dollar owned by the public having the same legacy as University of Ibadan but has total control over the accessibility by the public so can determine the quality of graduate which is not the same with public universities in Nigeria.

As the former President Olusegun Obasanjo was quoted as saying ‘’education is not for everyone’’ which he was wrongly derided by the media and public but the fact is that government cannot continue to keep access open for everyone thereby increasing the quantity not quality of human capacity needed to address the country developmental challenges. For a qualitative manpower which would tackle these challenges

1.       Government investment should be cut and cap at certain level of gross national income not exceeding private sector contribution and any other intervention must be reduced to providing framework (rules and regulation) for institution and private individual providing education services because to a great extend the failures of private universities to meet the infrastructural deficits created by underfunding of government universities as been the low cost of public university and their open accessibilities for everyone that despites (10) ten year of existences only two private universities offer medical science as a course.

2.       Research then training of Nigerian’s to build appropriate human resources for the socioeconomic challenges while bridging the deficits in skills and manpower availability to meet present economic and development challenges which is not possible with continue government presence and investment in education as evidence of forty year of such investment and intervention had shown.

3.       With less government investment and intervention in education this means appropriates accesses through better pricing policy, provision of scholarship and grant by individual and organization to those with the intellectual capacity to apply research and training acquired for a qualitative manpower with the right skills for national development.

Education as they say is the best legacy any parent can bequest to their children but as a legacy of knowledge and reasoning which the value would only appreciates overtime like land not as water a public goods where access are free for all with quality indifferent. But as land with the quality of scarcity and value among others educating Nigerians towards economic development the cost of doing that must reflects their legacy acquired over the institution existence through training and research by her staff which has creating a wealth of resources needed for the country to manage her developmental process efficiently avoiding the current wastage which is producing quantity not quality educational services and brain drain of the best mind and thinkers. Now one might be tempted to think that quality and cost have no relationship at least in provision of education that is further from the truth. This relationship can be seen with the current trend of Nigerian leaving for Ghana for access to quality education which can be provided here if only public Universities like University of Ghana or Oxford University would be allow to monetization of their legacies of knowledge and reasoning acquired to equip Nigerians for the economical development of Nigeria.                            

HOW TO MANAGER RECOVERY

Economic recovery is on at least in the United States of America the engine of global economic growth while the Eurozone is struggling to pull herself from debt and deficits crisis with the Chinese economic grinding to halt expectation are that European and Beijing economic manager would start effecting policy towards economic growth and recovery so as to return the good times making it timely to understand how to manage a recovery for personal and government since the poor management of the recession wasn’t desirable.

·         DON’T RUSH TO ALTER PERVIOUS PLAN; the crisis management plans that cushion the effect of recession, lost of incomes and wealth to push the economic back to recovery, growth then full employment mustn’t be hastily removed but exhausted for strong recovery which could come after four consecutive gross domestic product (GDP) quarterly growths are recorded. For personal finance the prices of factors and foods which determined the size of income and amount paid for consumption would show what direction for household to alter their spending habits but government should continue contractionary economic policy of reduced spending and increased tax for expansionary policy can only be accommodated with a global economic recovery.

·         A RECOVERY IS NOT A RECOVERY IF WAGES DON’T INCREASE AND PRICES STABILIZED; efficient economic growth should increased wages more than prices not like the lost decade when zero jobs was created.

·         Sign of recovery should be watched beyond the announced positive economic growth figures for tangible measures like prices of factors (labor, land and capital) and foods, numbers of friends and families back to work and the status of their employment is it temporary or permanent and seasonal jobs. Tangible measures are the real sign of strong economic recovery to be watched before changing economic policy and spending habits.

·         The savings pattern of the developed economic which had been net-saving racking up debt this must continue into the future more saving not investment for both household and government.

·         Present consumption pattern must be maintained which should not complement the recovery nor reflect the expectation on continuation of recovery.          

HOW TO WANE SLOUCH OFF SOCIAL BENEFITS.

Rightly or wrongly misunderstood certainly slouch do exist for inclusive system to economic agent at the receiving ends of market failures; inequality, externality and inefficient economic growth but exclusive of market successes for slouch are any entity abusing this system for undeserving benefits such as firms using tax loopholes and state incentive to increase return on investment and profits without the responsibility to environment and economy, individual lingering on benefits even with economic growth; increase investment, employment and income chosen state assistance over jobs and government using taxes to fund inefficient spending programmers. Waning slouch off-social benefits are as followed;

           ·         Skillful workforce with flexible labor market as such the mobility of human capital is driven by     demands for skills, skill acquisition adapting labor to the available demand makes it irresponsible for anyone to be on benefit. Skillful supplies of labor to a thriving economic with the flexibility to hiring and firing makes for highly mobile labor and low social benefits claimant.

            ·         Economic structure greatly determine the size of social benefits claimant and prevent abusive intention of   individual and institution, economic structure of nations that create wealth and manage welfare of individual and institution are open to internal and external shocks creating a cyclical boom and burst to be absolved with adequate mechanism and right policy tools for recovery without the drag of low investment, growth and demand deficiency. Free market economy with flexible labor market, less regulations and government intervention makes for a high mobility of labor and low social benefits claimant.

             ·         Small businesses sustainability and survive are the frontline defense for unemployment this could                                  explained the low level of slouch lingering on welfare in countries were enterprise and entrepreneurial                            venture are encourage to flourish with less burden and regulations making jobs available for those on                            benefits, any that lingered on are the dirt and down-low of society except for economic handicap with age                      and health. 

               ·        Automatic fiscal stabilizer should be proactive to automatically adjust all forms of tax and incentive kick-in effectively during recession to recovery, protecting jobs while boosting economic growth saving the economic from the accompanying unemployment, low spending and investment and high demands for benefits.

               ·      Limited benefits durations is essential to wane potential slouch off benefits and back to jobs, six mouth should be appropriate a measurement of the duration between burst and economic recovery with                                  proactive automatic stabilizer and relevant skills acquisition makes for low benefits payout.

               ·     Business friendly climates allows investments for jobs and sustainable welfare since small businesses are thriving within adequate and effective economic structures such condition makes for less benefits claims.

               ·      Manage population, a right balance between population and economic growth for sustainable wealth and welfare without the pressure of increasing population growth and unbalance economic growth and development that leads to high benefits claims.                  

SUBSIDY WALHALLA.

Nigeria is burning not literally the streets, political and economic space are filled by the people which had been taking for granted are aggrieved for the insensitivity of politician now buoyed by the Arab spring and have had enough of fifty year of political ineptitude, endemic corruption the list of failures, faults and fallings of the giant of African are too long to mention but had the people rarely had enough the protest and strike which shutdown the country for six working days a recorded in Nigeria would make observer say yes but the sad truth is NO. Having listen to both side of the argument and as economist who cannot justifies subsidy and big government both parties are lost in translation most people actually believed that the current subsidized spending is unsustainable but cannot accepted that the government would use the saving for infrastructural development and to improved living standard when the size of government spending does not reflect the same sacrifices the people are expected to bear in the short term. Government cannot cut her size and cost because where the axe could fall might create decent among the corrupts bogus system created for the elites and supported by the people, yes the very people now protesting which have long looked the other way as long as the government continue subsidizing their cost of living see it as the only dissevered benefit would coming out to vote then endorsing, oiling and greasing the system for a corrupt few while the rest have to live on election promises.

The people have short memory would easily forget and forgive the government when government machinery and functionary start using the same old tactics of ethnicity, religion and bribes to divide the protester and sabotages their efforts the only positive from the subsidy walhalla is that people have finally woken up and are calling their elected politician to be fairy, equitable and truthful.               

BLACK BRAND; OBAMA VS TIGER.

Traumatized history of blacks the world over at last had help from two shape and persons, Barack Obama and Tiger Wood to bring back their pride of been black since these assistance is coming from within it well appreciated and welcomed if you know the history or living in the skin then would agreed that the Obama and Tiger brand have both been a portrait of black successes and lesion on how to screw it up. The Obama brand of controlling calmed, collective management with a strong sense of personal responsibility to the American values and enlightening interest to national wealth and welfare has repaired and redeemed the black image more than wpp.com could have while Tiger Wood brand of deceit, dishonesty to public commitment with a dirty private life for a person that earn his living on the credibility of his public face damaging the new black brand as represented by Obama. Tiger was dragging the comity of black nation back to when it impossible to see the potential in a follow black so demanding extra attention from other groups to be judge not on their content but by color of their skin because there substance aren’t durable for the values and principles on which they are based is a deviant from the norms. Thanks to Obama majority of the world population can living in their skin above the cynic and scrutiny of those who cannot see anything impressive about been black which can be infectious and transmitted but in Obama we have the antidote.  

THREESOME AT PRICE OF ONE; DEFLATION.

Threesome of commodities and factors prices with deflation is troublesome for growth in 2012 undermining welfare and wealth of individual, investor and nations having exhausted every monetary tools and options with political ineptitude and reckless rush to fiscal contraction which has compromise recovery from recession, unbalanced global economic fueled by inflationary commodities cost from food to metal with steep steady rising wages for emerging market not marched in the once prosperous developed economies that have seen decade of inefficient economic growth and stagnant wages is creating a shrinking consumer pool once a reliable demands for the mass production now overcapacity hangover from the boom of manufacturer and services provider have to reduce price in accommodation of overcapacity to sustain jobs and wealth.

Increasing prices of commodities and flatly stagnant wages in over saturated market with overcapacity makes falling prices for finished goods and services (deflation) a definite market response, higher commodities prices bring increase revenue for exporting country such as Brazil with steady rise in wages and improved welfare from government spending which increased economic growth while net importer of finished product and raw material such as China, India and Nigeria paid more for goods and services (inflation); disequilibrium in global economies and unbalanced economic growth which has not recovered from recession facing external shock that are disturbing internal price and economic stability with overcapacity in all industry deflations as opposed to inflationary trends in emerging market, this threesome of commodities and factors prices with deflation is conspired to rain on parade of Obama wanting to be reelected on the back of good economic news, Madam Merkel and Monsieur Sarkozy hopes for the new year’s tiding tilting the eurozone economies towards increasing welfare and wealth. Prices stability for commodities with complementary steep rise in factors prices deliveries sustainable welfare and wealth without the uncertainty and loss of confident in market and policy makers to manage the threesome of inflation, deflations and demands that relied on appropriate pricing to recovery lost jobs and wealth with wages falling that price must go down.