Showing posts with label Personal Finance. Show all posts
Showing posts with label Personal Finance. Show all posts

Wednesday, August 1, 2007

House slaves and field slaves

Sphere: Related Content


In the days of slavery, dark complexioned slaves were put to work on cotton farms while light skinned slaves were handpicked to work in the "Massa's" house. Sometimes the females were made unofficial concubines to the Master of the house. House slaves enjoyed privileges field slaves did not enjoy such as better living quarters, food, clothing and sometimes education. Field slaves on the other hand had poorer living conditions and were hard worn for all the arduous labour on the field. So if you were an African slave in the Americas at that time, you would have longed for the day when the Master would call you into the house to serve as a house slave. As nice as it would have seemed to become a house slave at the end of the day, a house slave was still considered as much a slave as a field slave.

Why am I writing about slavery? I see an analogy between slavery and employment. Most employee are slaves as long as they remain in employment. You have little or no control over your time and resources. You are paid whatever the Master wants you to earn (the Master in this case being your employer). You are also subject to other masters like the Government, Tax authorities and other bodies that have a claim on your salary whether you like it or not. You temporarily surrender your vision and time to your employer and adopt your employer's vision and time.

Employees that work in good paying jobs such as Oil and Gas, Banking and Telecoms may be considered house slaves as they are better paid while most civil servants may be considered as house slaves. A lot of people dream of working in Oil and Gas companies with the hope of a brighter future. All you are doing is moving from the field to the house albeit still as a slave. You could also argue that senior and executive management staff are house slaves while junior personnel are field slaves. But at the end of the day, they are all slaves.

I know this line of thought seems extreme but it's closer to the truth than you think. An employer can summarily dismiss you without any explanation even after serving for 20 years. That isn't freedom. That's slavery. So what's the alternative to this form of modern day slavery?

Self-employment. The Forbes list of the world's richest men doesn't have any employees because you can never be richer than your employer. Take a look at your CEO today... go on take a look because that's as rich as you will ever be doing that same job. So am I saying, quit your job and start your own business right away? No, but we all need to think about it at some time or the other and have a plan for doing this.

As for me, the countdown has begun.

Friday, July 27, 2007

HYIPs and the greedy Nigerian

Sphere: Related Content

I've been listening, watching and reading a lot about HYIPs (High Yield Investment Programmes) in the last year or so. Two years ago, the only HYIP in existence was NOSPETCO with monthly interest payments of N40,000 on a N450,000 investment giving an annual yield of 107% . Then all of a sudden, all sorts of HYIPs from Ibadan and other obscure areas of Lagos sprung up claiming to be able to pay up to...10,000% in 10 weeks (Penny Wise Royal Heritage promised N250,000 within 10 weeks of "investing" N2,500. There are so many others which I'm sure you all know:

Hazonwao Ventures Limited
Brickfield Associates Limited
Treasureline Interlink Limited
Wealthzone Limited
Sefteg Nigeria Company
Wealth Solutions Limited
Nospetco Joint Venture Management Services
Flagship Specialties and Investment LTD
Nomex Micro Finance
Beraca Oil
Greenminds Investments
UpHenry
Wealth Spinners
Generis Financial Solutions

We also know about Uncle Charles Ponzi.

His ghost never seems to leave us.

I did a quick calculation using Penny Wise and Wealth Solutions as an illustration. The results show that Wealth Solutions will return 24,300% of whatever you put in while Penny Wise will return 1 trillion % if you continue to roll over for a year. Did I hear you say 419? Magic? Juju? Incredible?



Yet everyone keeps putting their money into these investments that claim to invest in Oil and Gas, global stocks, and anything else that seems so far removed and mysterious that most Nigerians will not ask questions. Some people are aware that this is a scam and that the last investors are the ones that will lose their money.

One of my colleagues said that history has shown that risk adverse investors are always the last ones to invest and will always lose money once the bubble has burst. He told me that he had "wisely" invested and quickly pulled out as soon as he made his money back. In other words, some suckers are going to lose and I'm going to gain.

There lies the moral dilemma. Should I invest in a programme that could be illegal or unethical knowing fully well that it's going to crash some day. Should I just say "some poor mugus have lost their money! At least I made mine back before cashing out. This is the same IBO (I before others) mentality that has left Nigeria in this state. You might be the sharo guy today but you can be sure that your turn as "mugu" will soon come. It's just a matter of time. If everyone was a smart guy there will no mugus. You might even be the mugu right now.

For more information see Should I Invest In HYIPs- by Tayo Odukoya, High return investments in Nigeria by Deolu Akinyemi and NOSPETCO! by Dipo Tepede. Deolu seems to think we should invest in HYIPs since he runs one, Tayo thinks we should do what I mentioned above which is to go in quickly so you can be a smart guy and not a mugu (if you go in late) and Dipo is completely against them.

As for me, I will become wealthy through clearly legitimate means. Do you think anyone on the Forbes list of the world's richest people got there by investing in HYIPs? Use your head!