Arese Ugwu in this book explained how it is very possible for a woman to gain control of her finances and become financially independent through the life of the main character, Zuri Guobadia.
BROKE
In chapter one, Zuri, a senior manager at a real estate firm who earns six hundred thousand a month after taxes, finds herself in a financially unstable situation. She realized that in time, her lifestyle had acquired her an almost empty bank account and with it, debts which worth more than her monthly earnings.
She considered the idea of having a rich boyfriend to help with her finances, like her best friend Tami suggested, but the memories of her previous boyfriends were enough to turn that idea down. Afolabi, one of her ex, his arrogance, and lack of direction had put her off. Another was Paul who was extremely ambitious but lied easily. She then resolved in her heart to start a journey to figure a way out of the financial mess she was in, by herself. And not to depend on a man, unlike the idea culturally engrained in African women that states otherwise.
SMART-MONEY LESSON ONE
1. Broke means the inability to maintain the lifestyle accustomed to when the primary source of income is lost.
2. Wealth is measured by how much you keep, not how much you spend. That is how much of your money you are able to convert into assets.
3. Your active income is the income you get from services rendered, that is either your business or job. Your passive income is what you get from your investments, that is what you earn without lifting a finger.
4. Financial freedom is when your passive income exceeds your expenses.
MONEY FEARS
In chapter two, a couple of weeks passed and Zuri's money problem was still persistent. In fact, it had given her a cause to worry and have sleepless nights. She had been avoiding Mr. Okeke and Ola, her landlord and mechanic's calls and messages. She was not ready to deal with them yet. And then she had canceled four appointments that were supposed to confront her fibroids, with her doctor because she knew she wouldn't be able to pay for them.
On her uber ride to work, an expense she could ill afford, she considered her options for a potential loan source. Afolabi came to mind, but the thought of using her body for money made her disregard the thought. She was late for work even though she was to run a presentation that morning. She stumbled through the empty presentation, realizing how unimpressive it was at the last minute, and how she was in for it. She got to work and Mr. Tunde, her boss asked to speak with her.
Zuri's boss wondered if he made a mistake keeping her, a returnee. She was a smart girl, but even though she had been working with the firm for three years now, she hadn't reached the superstar status he'd expected of her. He saw a potential in her that was more than just a bit tarnished. And as Zuri's unofficial mentor, he felt invested in her development.
So he decided that this year, he would ignore her weak excuses to turn down attending WIMBIZ, the largest and most substantial women's organization in Nigeria that played a significant role in empowering working Nigerian women. This time, he would ensure that he wouldn't give her an option.
That evening, Mr. Okeke finally caught up with her on her front porch and demanded the service charge fee she had postponed payment for. It ended up with her closing the door in his face after he insinuated that she slept around for money.
That night, her call to ask for half the amount she needed from her mother was met with disappointment. It was then that the truth hit her, she had been careless with her money. She had assumed that as long as she had a job, she would not be hungry. And when push comes to shove, she had her family. But now that her family would not rescue her, she was left without a backup plan.
SMART-MONEY LESSON TWO
1. How we behave about money is deeply rooted in how we think about money.
2. Confronting the fears associated with money in our relationships(with our families, our businesses, our friendships, and our society), is always the right step towards conquering them.
3. Successful people acknowledge their fears but do not let it overcome or stop them from achieving their goals.
WHERE IS YOUR MONEY GOING?
One early Saturday money, the day Zuri had set aside to begin the process of tackling her financial situation, she settled down to go through her bank statements after dancing around to a track from MI's new album blasting from her iPod to 'ginger her'. After sorting and pouring over her financial life, she realized that she spent mindlessly, without reviewing her bank statements because she had been afraid to confront her precarious spending.
A summary of her expenditure which included her annual rent, her utilities, her wardrobe, transport, wardrobe, and others gave her a view of how she had been living a careless financial life, even as a six hundred thousand monthly salary earner.
While still in the process of figuring out how to tackle her imminent debts, the security guard interrupted to drop off a package of Aso-Ebi. Immediately calling Tami to request why a lady she had just met a handful of times would send the Aso-Ebi to her wedding, she made it clear that buying Aso-Ebi was for close friends' weddings alone.
Then she set her big goal. She was going to be disciplined in her spendings and cut them by fifty percent.
Six weeks later, she hosted her friends Tami, Lara, Adesuwa, and Ladun to dinner instead of going out to eat, in a bid to maintain her diet spending lifestyle and still have fun. She was making progress at her goal though she had not yet reached her goal of cutting off spendings to fifty percent.
Ladun, a housewife, was married to Bode who was from an old-money Lagos family and quite snobbish.
Adesuwa, an associate at a top law firm in Lagos and married to Soji, was one who believed a woman must downplay her achievements to accommodate a man's ego.
Lara was an oil and gas trader, who earned well enough, but since her father's demise took on the responsibility of her mother and siblings.
Tami came from a wealthy family. And her lifestyle depended on her father and boyfriend.
Zuri and her friends had never really discussed money. They could talk about every other thing but money and that unsettled her a bit.
SMART-MONEY LESSONS THREE
1. Track your expenses.
2. Learn to control money, instead of letting it control you.
DEALING WITH DEBTS
Lara upon Zuri's guilt trip conversation over the phone reluctantly made an appearance at Banke's Son first birthday party. She noted down the extravagant constructs in the garden, amused at the thought of how much the one-year-old boy's birthday party would cost.
On sighting Zuri, talking to Chinasa, a lady Lara believes to be a fake and gossip, she convinced Zuri to accompany her to the bathroom. It was there Zuri informed her off about the gossip Chinasa told her concerning Banke.
On return to their table, a few guys had joined Chinasa and they were deep in discussion about Banke's money woes, with Chinasa playing an innocent routine just as Lara told Zuri she always did.
That was what made Zuri reflect on everything she'd heard that day about Banke's money problem. She wondered if her own matter had traveled round as well. Realizing that her debts still existed, she started forming a plan in her mind that started by listing all her debts and prioritizing them. Then she set a realistic timeline for when she could afford to pay off each loan. Offloading her designer's bags and selling her car would have to work for raising the money to clear her debts. Her best friend, Tami, would do in her transportation to work for now.
And she finally placed a long overdue phone call to her Doctor Emeka to finally address her health issue.
SMART-MONEY LESSON FOUR
1. Only borrow to acquire an asset that will appreciate in value.
SURVIVING EMERGENCIES
As early as 4:25a.m, Zuri had, had six missed calls from her mother's sister, Aunty Uwa. A call back gave her the news that her mother's house was partially burnt and a suggestive tone that demanded she travels to Benin that weekend.
At work that day, an urgent all-staff meeting was called to let twenty-five people go. Zuri half expected her name to be called and appreciated the narrow escape to almost losing her job. Mr. Tunde made it clear to her that she was on probation and needed to up her game if she did not want to get fired as well.
At night, after her effort to put together a presentation for a private equity firm, Zuma capital, she reflected on her day and the financial consequences if her mother's house had burned down completely or she had lost her job. Grateful for her narrow escape, she knew that next time, she might not be so lucky.
SMART-MONEY LESSONS FIVE
1. A smart woman does not wait for financial surprises but systematically saves her emergency fund.
2. An emergency fund is to act as a financial cushion that protects your long term investments from short term unexpected expenses.
MONEY GOALS
The rain that caused immense traffic had Zuri late for her presentation that morning. She had already done her research on the three delegates from Zuma capital; a woman, Folake, and two men, Tsola and Ebuka. The three were impressive individuals but she found Tsola attractive.
As she felt Tsola's gaze on her, she knew tried to sound upbeat and confident but she knew she sounded almost nervous.
Isola could read through her actions and tell that she was nervous. He felt irritated by her tardiness and summed her up as someone who got away with a lot because she was hot. So he interrupted her introductory explanation to skip right to the details.
Zuri felt irritated, figuring out what he assumed of her and smiled to show that she was ready to face him head-on.
Later that day, she made it in time to hear that her flight to Benin had been delayed. It was on her way to the departure lounge that she spotted Tsola approaching her. She took his invitation to sit with him in the lounge upstairs and that birthed a conversation that involved her pouring out her money problem.
Their conversation continued during the flight. And when they parted ways later after their arrival to Benin, she was smitten by his talk of ambitions and dreams.
SMART-MONEY LESSON SIX
1. Articulate the vision you want for your life.
THE SPENDING PLAN
Now at home, Zuri's mother received a visitor, aunty Grace. Who ended up leaving after collecting some money. Zuri had to admonish her mother, knowing fully well that aunty Grace will not repay the borrowed money.
The day she arrived Lagos, Lara made plans for lunch with Zuri. When Zuri arrived at the venue, she spotted Tsola having dinner with three other others. After a moment of hesitation, she approached him and they chatted for a few minutes before meeting Lara on her table.
Tami joined them and for the first time, they had a discussion centered about money.
SMART-MONEY LESSON SEVEN
1. Develop the habit of budgeting.
2. The smart money budgeting involves dividing your income into three parts:
1.Long-term financial goals: At a minimum of twenty percent and it is set aside towards improving your net worth.
2. Short-term financial goals: The proportion of your income set aside for treats.
3. Living expenses: Your monthly contribution to your rent, health insurance, cable/satellite, television, petrol, etc.
THE POWER OF NETWORKING
Zuri was able to convince Adesuwa, Tami, and Lara to attend WIMBIZ, a two-day conference at Eko hotel. Her skeptical idea about the conference got changed by the end of the third-panel discussion.
She met with Ijeoma at the restroom, who was another WIMBIZ participant who specializes in selling ogi. From there, a conversation sparked and she introduced Zuri to Tara Fela-Durotoye and Bolanle Austen-Peters. Before they parted ways, Ijeoma informed her of speed mentoring to which Zuri and her friends signed in shortly after.
That evening, Zuri arrived at the office just in time for the last meeting with Zuma capital. She sneaked out early though due to exhaustion from her day after the deal had been sealed by both parties.
It was then Tsola approached her and asked her out for a drink. She gisted him about the conference and he promised to set up a meeting with Omosede Ighodalo. Zuri could not get to talk to her after the conference about investments.
SMART-MONEY LESSON EIGHT
1. Your network is your net worth.
2. Building an organic relationship with a mentor is an awesome way to build your network.
3. The business or job opportunities you will have access to will come from your ability to harness your network into opportunities.
LIFE HAPPENS
In chapter nine, a couple of months passed. Zuri and Tsola now an item, made their way to attend the Ladun's father burial. Over the phone, Zuri and her mother based their conversation around how the relatives were quarreling over money. But ended with a question of when she was going to start preparing for their wedding.
Ladun looked gaunt, troubled by the thought of bankruptcy her family was facing. She knew that even though they threw the big funeral party they couldn't afford, for the sake of keeping up appearances, their family couldn't afford their accustomed lifestyle.
She approached the Zuri table with Tsola by her side, where a conversation was spawned. Leading to Adesuwa blurting out the money problems happening between her and her husband, Soji. Obviously, she was still in denial that Soji was with her for her money. That was until she drove home that evening, to find out that Soji had cleared up their joint account.
SMART-MONEY LESSON NINE
1. The conversation about family finances must be had.
THE LONG-TERM INVESTING
In chapter ten, Zuri finally gets to meet with Omosede Ighodalo. They had a conversation about the possibilities of investments, one that had Zuri admitting to herself that this was the best thing she had ever done for herself.
Later that evening, she drove over to Tsola's for dinner. It started as a romantic gesture and ended with an argument on Zuri's idea to buy a car.
SMART-MONEY LESSON TEN
1. There are a few things to consider before you start investing.
1. Know your types of investments: They include Stocks, Real estate, Mutual funds and Money market instruments (i.e Treasury bills)
2. Establish your investment goals.
3. Develop an investment strategy.
4. Determine your risk profile.
5. Pick an investment firm.
2. There are the major key points to consider when asking your investment advisor questions.
1. Investment strategy: what is their asset allocation strategy?
2. Risk: Talk about how much risk you are willing to take on.
3. Profitability: What are your expected returns on the investment?
4. Liquidity: How much access do you have to your money invested.
5. Tenor: How long is your money locked in for?
EARNING MORE
In chapter eleven, Zuri reminisced about how life had dealt with her and her friends, particularly Adesuwa and Ladun, as she waited for the girls to arrive for their brunch. Adesuwa had eventually transformed herself into a wonder woman in a matter of months, taking charge of her own destiny. Ladun had also handled her situation with surprising grace.
Tami arrived, interrupting her thoughts to the gist that Soji's new babe was Chinasa. Lara joined in shortly after.
Back at home, Zuri recalled her conversation with Mrs. Abafo-Williams, who poked holes to the summary of business ideas that she had presented to her. Mrs. A advised that she does not necessarily have to be an entrepreneur, but just needs to be entrepreneurial in her thinking. This inspired Zuri to approach Mr.Tunde about her idea of value-add online marketing he complimented as a good initiative.
She was ready for the new challenge and all she wanted to do was share her excitement with Isola. They hadn't yet spoken after the last argument.
Just shortly, Tsola came over to apologize with a bouquet of flowers and a ticket to Cape Town, South Africa.
SMART-MONEY LESSON ELEVEN
1. Maximize your earning potential by focusing on finding your purpose.
2. It centers around your skill-set, passion, and earning potential.
3. As Africans, there are three things we should probably reconsider.
1. Selling the idea that entrepreneurship is the ONLY guaranteed way to success.
2. Whether we are choosing entrepreneurship for the right reasons.
3. The myth that good ideas are the key to business success.
BECOMING A SMART MONEY WOMAN
In chapter twelve, Zuri stood at her balcony at the One and In Only resort in Capetown with her money journal in hand that had helped her track her spendings. She couldn't help recalling how her relationship with Tsola had come a long way in recent months. She admired his goals and his passion for work and the way it drove her as well.
She thought about how the past months had been for the people she loved as well. Her mother had settled back into the family's home, and even though her friends had been through different degrees of changes, their bond remained powerful.
She had also learned to handle the project at work to make it the success it was. She felt happy that she was finally, prioritizing and controlling her money. She finally understood that building wealth was about creating more options for herself long-term. And that she was her own hero.
THE DEFINITION OF A SMART MONEY WOMAN
The Smart Money Woman—she is the woman we should all aspire to be, financially!
She is a combination of the best parts of African women who the author respects. She has an entrepreneurial mind and sits on several boards like Ibukun Awosika. She is a pioneer of the industry and creates jobs like Tara Fela Durotoye and Yewande Zacchaeus. She is fearless like Mo Abudu, who had the guts to pursue a dream of owning her own network regardless of how impossible it seemed. She is committed to raising the next generation of female leaders like Osayi Alile. She shapes the narrative of new African culture like Bolanle Austen-Peters. And, she has the financial mind of women like Nimi Akinkugbe, Arunma Oteh, and Bola Adesola.
She is a woman whose hustle has a purpose and has learned to make money, keep money, and grow money.
She doesn't worry about whether there's money in the new fad industry. She has found her calling in life, something that matches her passion with her and, regardless of where she is in that process, she is excited and confident that she will make money because she has positioned herself for success and she knows this is where she can maximize her earning potential.
Ultimately, improving her net worth is more important than upgrading her wardrobe. This mindset helps her reason when she's spending. Buying a designer bag becomes a reward for reaching a long-term financial goal as opposed to buying one just because there's money in her account. She derives the same amount of joy from investing in assets as she does spending on her lifestyle expenses. She would rather live like a princess forever than live like a queen for a few years.
She is the sort of woman that we are all capable of becoming. The author described who she is to her, and wants every woman who reads this book to create and become her own version of the Smart Money Woman.
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