Owo lo n boju ore je – money spoils relationships between friends — Yoruba proverb
For starters, my late dad used to quote the above proverb while we were growing up. Heard it from several people as well and I just thought to drop that before proceeding.
More importantly, in the edition of the week beginning, Monday, June 26, 2023, yours truly’s piece for this very newspaper was: “Don’t Take Your Personal Finance Cue from The US Public Finance”. Just thought that is equally worth referencing.
While unwinding and flipping through the Metro Newspaper outside a Starbucks cafe, on Thursday, October 2, a report about the shutdown of the United States government made me bin the piece I’d initially lined up for this week. I couldn’t just ignore what seems to have become the Achilles heel of US public finance. There’re three things to take away for the purpose of personal finance.
According to the story, “Trump’s revenge threat as government cash runs out,” (p.9), “Donald Trump has vowed to ‘do things that are irreversible, that are bad’ in revenge, as Democrats failed to reach a deal with Republicans to finance the US government.” The shutdown of the world’s biggest economy means “some 750,000 federal workers face being furloughed and possibly fired.” That is better imagined, though. The multiplier effects will be too painful for comfort.
But what’s in the shutdown of the US government for us? The first is to not live beyond our means. Anyone that doesn’t desist from living beyond their means is definitely going to get grounded just like the case with the government in Washington. Rather than impress people by splashing out tomorrow’s income, stay on ground zero. Forget going to Dubai on holiday for your golden jubilee like your colleague did.
Secondly, learn to negotiate and come down from your high horse if a money matter is going to drag you on the floor. For instance, if you owe the bank or any lender or individual, do your utmost best to let them give you more time to pay. If they can’t give you six more months to pay, for example, and can only grant three months, agree to the compromise. It’s better than being humiliated like the US government is being globally made to look.
The Republicans ought to have done horse trading by pleading with their Democrats’ counterparts and offering to support any future bills they too put forward. Rather than eat humble pie, they’re making their country look bad and being grounded.
Finally, never run out of cash, as cash is king. If you run out of cash, your card won’t work. There won’t be anything to wire to meet your obligations. Just take a look at the seat of government in Washington.
So folks, let me reiterate the title of the piece I wrote for this newspaper in the edition of the week beginning, Monday, June 26, 2023, “Don’t take your personal finance cue from the US public finance.” They’re not running it well, as they’re living beyond their means.
Live within your means and if that translates to eating bread twice or thrice daily for now, “just do it” as Nike says.
Tunde Oyedoyin is a London-based personal finance coach and founder of Money Intelligence Coaching Academy, a specialist academy of personal finance. He can be reached as follows: +447846089587 (WhatsApp only); E-mail: tu5oyed@gmail.com
