28/04/2024
10 LESSONS FROM ‘4 WAYS OF MAKING MONEY’
When it comes to money, many people say obvious things such as: ‘Work hard, save a lot, budget and invest.” Everyone has heard or read such clichés. But why is it that many people still remain financially struggling even after knowing such truths? There has also been a wave of reading American and European motivational books which have good content but whose applicability to our local African contexts is questionable. The question remains: What is it that successful people in Africa know or do that other people don’t know or do?
Well, the book 4 WAYS OF MAKING MONEY is different. It does not give the recycled information that everyone talks about money. Don’t expect to find what you have read in another book; this book is unique. It gives only the principles and ideas of money and wealth creation that have been tested and proved in Uganda and the rest of Africa. It is rich in examples that you can relate with. As you turn the pages, you will get the feeling that “If these ideas have worked for other people, then they can also work for me.”
Let us now come to the key lessons from the book. It is impossible to summarize a 250 page book in a few lines, but let’s try to pick some mind-provoking thoughts and ideas from the book that can be a good starting point for you to turn your life around. And if you get a copy of the book, you will read in full all the mind-boggling ideas revealed.
1. The 4 ways of earning discussed in detail by the author are: Formal Employment where you have an employer who has given you a job), Self Employment (where you have given yourself a job and you are your own boss), Business (where you have a team and delivers goods or services to customers) and Investment (where your money works for you). Everybody who needs to have a good life must be earning from at least one or more of these 4 ways. If you are not getting money from any of these 4 sources, then you are dependent (a parasite) on someone else (or some other people).
2. In formal employment and self-employment you trade your time, energy, knowledge and skills for money. This is what we call active income – money that you earn through hard work. The day you stop working is the day you stop earning. These 2 ways of earning are very good for everyone starting because they teach you the basics of how the world of work really works. The book gives you a detailed analysis of each of these 2 ways of earning, the advantages or each, the challenges with each and how you can tell when it’s time to move on to another way of earning.
3. In business and investment you mostly earn passive income – money you earn without having to work daily but rather by leveraging on other people’s time (employees), other people’s money (loans, credit, e.t.c), systems, technology and your invested capital. Hence, an investor or business owner can earn income even on days when he has not done any work and is away for a party. The book explains business right from how to choose a business idea, how to develop a business plane, how to raise capital, how to start, what to do to grow big and many things in between such as setting up systems, marketing, customer service, handling business money, building a winning team and so on. He also addresses in detail how to make a good investment for those who are employed, in self-employment or in business and have saved some money. He also analyses various businesses and investments to show you which options you can consider joining.
4. The ultimate goal for every human being should be investment (the 4th way of earning). By the time you reach retirement you should have invested enough to be having multiple sources of passive income because if you don’t have enough passing income to sustain you without working, you will be forced to work (to earn active income) till you die. It’s a pity to find yourself in a state where you must struggle to work for survival in old age. Those who invest wisely can also choose to work in old age, but the reasons for working are different; one works for fun and to feel valuable in society, but not for survival. You cannot read this book and fail to prepare for an enjoyable retirement even if you read if 1 year to the time of your retirement; it will help you make the right decisions.
5. The money you earn from a job or a business should be mostly treated as seed to be planted and not food to be eaten. The author introduces the Food-Seed Principle, a unique idea that he qualifies with numerous examples to show you how to invest. Taking an example of let’s say beans, we realize that mostly food and seed look the same; it’s you to choose whether to plant it or eat it. When you have a goat you can choose to slaughter and eat it or keep it and let it produce for you young ones and when you allow the young ones to also grow and produce for you, the cycle will continue and before you know it you will be having a herd. That’s exactly how money is grown. If you have not yet grounded yourself in the 4th way of earning (investment), you must sacrifice and painfully eat (consume) less of your income and plant (invest) as much as you can. When you plant, remember crops do not mature in one day; it takes time and effort. From planting to harvest there’s need for patience and action such as weeding, watering and watching over your crops.
6. You can be having a full-time job earning from the first way of making money (employment) but choose to also plant (invest) your income (such as in properties, shares, treasury bills and bonds, trees, e.t.c) and hence simultaneously earn from the 4th way (investment). This would be a very wise approach. Those who rely on just saving and hoping to have saved enough money to sustain them in retirement often realize the bitter truth that the moment you start spending money that is not increasing it doesn’t take long for it to get depleted no matter how much you had saved. It is like fattening your goat for a long time and assume that you will one day slaughter it and eat its meet for the rest of your life; the meat will get finished in a few days. While I advise all people with jobs to join investment (the 4th way), I must warn that it’s hard to be having a full time job and simultaneously run a business (the 3rd way). This is because a young business requires the presence and time of the entrepreneur until it has matured enough to thrive and grow on its own. If you are employed, before you put your money in a business make sure you have time to plan for it, supervise and make decisions. But as advised above, if you have a formal job, instead of a business, choose investment.
7. Money follows a 10 year cycle to grow and mature. That is why it is very rare for people to become wealthy overnight. Wealth is accumulated over time and it often follows the 10,000 hour rule which translates to 10 years of practice and hence the 10 year cycle of money. The book beautifully explains why the 10 years are needed. That does not mean that there are no people who break records and become wealthy in less than 10 years. But generally, the majority of those who have become successful in accumulating wealth or in any other field such as singing, playing soccer, acting, e.t.c, it takes them about 10 years of practice to reach the level of mastery. This book will make you understand this perfectly.
8. God does not like poverty. Neither does he hate wealth. It is embarrassing to claim to be a child of God and yet live a powerless and helpless life due to poverty. Money is not evil; it is the love of money that is the root of evil. Loving money means putting money above everything including people and morals; in such a case it’s not money with a problem but rather the individual’s heart. A person who loves money can do anything for money including killing people, dealing in drugs, prostitution e.t.c. NB: Both the rich and the poor can fall into the trap of loving money. If a poor person keeps complaining and grumbling about money, spends all his prayer time asking God for money, feels jealousy in his heart because whenever he sees those who have money, he/she too is guilty of loving money. IN this book, the author dedicates enough time to explain the spiritual side of money – why God wants you to have money and how to engage spiritual laws to create wealth. Have you noticed that some of the wealthiest people don’t work so hard yet some of the most hardworking people die poor? If you do not discover how the spirit realm works you can foil to death and remain poor. Hard work is good, but hard work alone cannot make you wealthy; the spiritual laws must be working in your favor for you to breakthrough.
9. Selling is one of the most underrated skills in this world. When you know how to sell you can survive in any part of the world. If you are not selling anything you should not complain that there is no money in the economy. The book teaches you how to sell your personality, your brand, your ideas, your skills, talents, knowledge as well as products and services in a way that makes you irresistible.
10. Financial independence and financial freedom are different and are both important for you. Many people stop at financial independence which is the ability to live your life without burdening anyone (i.e. you can meet your bills). On the other hand, financial freedom means reaching a level where your passive income (what you earn from the 3rd and 4th way) can allow you to live your desired lifestyle without needing to work. In other words when you are financially free, your money (wealth) is growing faster than you can spend it. This is the only stage where it’s okay to spend on any luxuries that you desire; if you are not yet financially free, you must minimize spending on luxuries and prioritize spending on assets (what brings money to you). Spend on luxuries that you can afford without struggling or frustrating your process of accumulating wealth.
Written by a prolific author and entrepreneur behind WORLD OF INSPIRATION Group, clearly 4 WAYS OF MAKING MONEY is not just a book but a life-transforming tool that you must have in your home. Whichever country you are around the world, we encourage you to have this book either in hard copy or in soft copy (PDF). It goes for Uganda Shillings 49,000 (approximately USD 13). You can reach the author directly on +256757256237 | +256779911844) to purchase your copy (these numbers are also on WhatsApp. Those in Uganda, you can buy physical copies from our Book Stall inside OBUNUZI CAFE & RESTAURANT in Wandegeya – Kampala, opposite YMCA main gate.
This year, purpose in your heart to do all it takes to give your pursuit of success supernatural momentum.
Shalom!
