You know how you can’t save money you don’t have? But you can spend money you don’t have! That’s a slippery road towards debt; not easy to brake and not easy to turn back. In that very situation, a certain woman called Sekai Magaya, turned things around by a system of channeling resources.
You may want to read Saving Money By habit(1)
Knowing the truth set you free
Sekai remembers a time when she was so depressed that she couldn’t even fathom herself enjoying financial liberty. Reluctantly, with encouragement from supportive relatives, she sat down and roughly drew a monthly budget. To her surprise her income was overwhelmingly higher than her expenses. She immediately realized one thing; she wasn’t managing her finances well. Even though there seemed to be people who were not paying her on time, it dawned to her that she wasn’t doing the follow ups.
Yes, the budget paved way for a new chapter in her financial management but there was still a lot to be done. You see the budget sort of helped her audit her affairs but developing a strategy and getting out of old habits was an uphill task. As she set out to take control, she bought a lot of groceries that she would stock in her small tuck-shop. In my opinion, the tuck-shop doubled as her own personal pantry and a small business. This meant she always had food for her household. Profit; not so much. But the debt was reduced.
With the tuck-shop began her system of channeling resources towards a goal. The tuck-shop was set up for the sole purpose of ensuring groceries lasted for a full month. It forced her to keep stocking. However, there were still challenges. A business is meant to be managed properly. As such, it is a demanding establishment. With so little profit, the day to day running of the tuck-shop began to defeat its purpose. As a result she continued to seek new avenues. In her entrepreneurial spirit she extend the tuck-shop business with a takeaway which sold chips and burgers.
I think the expansion of business was brilliant but it doubled the resource requirements. As would be expected, Sekai became overwhelmed by the pressure. However, she was not undone. all this proved to her that the system of resolutely committing resources towards a goal worked. When I talked to her, she often told me that prayer kept her going. Even now, she is a prayerful person. This keeps her spirits high. With that motivation, she tried many other things. The most rewarding was when she established new passive income streams.
A system of channeling resources
With the revenue she generated she did what I wrote at the beginning. She turned things around. You know how you can’t save money you don’t have? Well, Sekayi decided not to receive her money so that she wouldn’t have it. Why? Because; You know how you can spend the money you don’t have? It’s called debt, Sekayi decided to pay up and to avoid more debt. She confronted her overdue bills, made a payment plan and committed to it.
The system worked like this. Instead of debtors paying directly into Sekayi’s account they would pay anyone who Sekai owed. This meant that a person who rented any of Sekayi’s asset would contribute to Sekayi’s goal instead of her disposable income. She also developed a habit of not spending money she didn’t have.
In short; audit yourself, make a plan, commit to it and appraise it. Stay motivated, and keep the right company. Develop progressive habits.