By Inok Solomon
How many Politicians and Employees of Government are happy with the situation of their stocks, bonds, and mutual funds in pensions schemes and retirement benefits? Non of course! Capital gains, compounding interest are all nonsense to compounding inflation.
Today, most people spend a lot of time learning how to earn money. We go to school to get a high paying job, spend years working at the job to earn money, do their best to save it. Invest into Capital Gains ventures instead of simple cash flow. And today, all find themselves in financial crisis.
It is more important that we know how to spend our money, not just earn or save it. People who spend their money wisely will always be more prosperous than those who save their money wisely. Our civil service society save money wisely and grow poorer by day. Today, we are worst hit by the economic crisis due to Inflation.
By spending, means investing or converting money into long lasting value. The rich understand that in today’s economy, you cannot become wealthy by sticking your money under a mattress or even worse, in a bank.
We need to know how to spend our money on assets that retain their value, provide income, jobs, adjust for inflation, and go up in value, not down.
A good study of Governor Ayade’s programmes since inception in May, 2015, point to value added, job creation, anti inflationary, income generating and self sustainable.
From the Garment Factory targeted to one basic needs of man, clothing, inflation can not stop us from wearing clothes. The Deep Sea Port, no inflation and economic crisis will stop importation and exportation of goods and services at the sea port. The Rice City for food production can’t be stopped by inflation because man must eat. The Calapharms for Medicine production, we can tell no time, not even war can stop man from taking medications. The superhighway, movement of goods and services including man can’t be stopped by inflation.
These are all investment potential areas that take advantage of crisis periods.
Some critics depended on Bailout Funds so much because they lack the simple knowledge of money. “A Bailout is used when the rich want the taxpayers to pay for their mistakes or their fraud.”
We need no job security but financial security. The difference between financial security and financial panic can be as simple as knowing the difference between capital gain and cash flow.
Inflation eat one to death and the other survive inflation. Its pays to focus on cash flow rather than capital gains because the more we know how to control cash flow the more our capital gains increase, and so our financial security. And it is easier to invest for cash flow during a financial crisis.
It is vital therefore, for us all to start thinking on how to spend on investment rather than invest in savings. Ayade is creating the enabling environments.