Thread by @taadelodun

Lets talk money this Monday Morning. There is a famous equation of Money,

Assets = Liabilities + Equity

A lot of Nigerians are not exposed to this equation for two reasons.

1. We are too poor, so banks don't offer us credit,
2. We are not familiar with this equation, to full

details.

Asset is anything we own, like a car, a house, a phone.

Liabilities are debt,

Equity is what percentage of that asset is ours.

E.g, I bought an Iphone recently on 0% finance. (they checked my credit score)

That Iphone is an asset. My Equity is Zero, because

I paid no deposit on it. The liability is the total cost of the Iphone.

I have now been given the power to own an asset, but I still have to pay my monthly payment. If I dont, they will take the Iphone from me and damage my credit score.

SME's in Nigeria have rare access to

loans, because the bank sees them as high risk. This is why it is difficult to grow a business in Nigeria.

Some people went further to say, anything that puts money in your pocket is an asset, if it takes money away from you, it is a liability.

I will say a car is a liability, except you are using it for Uber.

If you build a house giving you rent, that is an asset. If you buy stock giving you dividends, that is also an asset.

Another good law of finance says, spend less than you earn and invest the rest.

But in our country, the earnings are not even enough or they never pay.

That is why we must grow side hustle.

Lets have a blessed week ahead.

I will be hosting some clubhouse and spaces this week.

Lets keep working lets keep progressing

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