Financial HealthCheck: Assets and Liabilities

we talked around the financial health check. Essentially, what we're doing is trying to review your finances in twenty twenty five and of course setting you up for twenty twenty six. That's what we're trying to do this week. Last week we talk around the income and expenditures, and we talked around the entire your plan for you, how you want to essentially set up your entire entire financial plan, not just how to make money, but how you structure it.

There's a structure to follow. You just can't save without doing certain things, so we give you that structure. We're gonna do a reveal of that structure again at this space, and then we're gonna then go into assets and liabilities. Right, last week we did income and expenditures. This week we're gonna go back and talk around just a summary of income and expenditures, and then we're gonna go into assets and liabilities, guys, so we can see how we're going

income and expenses and then assets and liabilities. So if you're on YouTube, you are able to follow. And I did share the YouTube link earlier on Twitter, so if you're on YouTube, you can follow visually. But what I want to do is just to go over the what we talked around last week. Right, I'm gonna move this

out of way. We talked around last week how you want to set up your finances, right, and like I said, bring the notepad because we're gonna do a lot of note writing which you can full up with when you get back home or look at the recording. So YouTube does the visuals, but you can just write down yourself on audio. So last week we said there are five stages to your financial plan. They are going to be five to your financial plan. The first is going to

be you have to plan. You have to say what you want to achieve because everyone doesn't have a plan that it's going to be similar. If you are, for instance, fifty years old, you have a different financial plan from someone that is twenty five year old, So you cannot invest as if you are the same, even though you might be in the same country and have the same currency.

But you've got to invest relead that you are fifty five years old, you have less time to retirement and the twenty five year old has more time to retirement. So your plan encompasses who you are, what you are, what's your risk profile, and how long you want to invest. That's the whole idea with your plan, right you want to say who you are, how old am I, how long do I have to invest? What's my attitude to risk?

You've got to see that in the plan because what you're determining your plan determines the entire thing you're going to do going forward. So again, if you're older, your pad's going to be different from a younger person. You don't invest according to the instruments or are going to returns. Let me say it again, you don't invest according to the returns that are available. You invest according to your plan,

So very very important. The first thing you do is to plan, Hey and say, hey, this is what i'd like to do with my investments. You want to write down the amount you want to be kind of specific, I would like to achieve x amount of money in my savings account by X amount of time. Then you want to put why at the end of that plant. When you put the why, if you can only answer why, you want to say, of course, just to wish, you just take it off because you're just saying I'd like

to do this. When you put why, it all gives you. It gives a mental back into what you want to do. So you plan out. You say, this is what I want to achieve by this time, put a monetrit figure, and put a why. That number one plan. So again, if you're on YouTube, you can do follow and you can see we're talking about the second haund that your plan is to buy insurance. So what kind of insurance life insurance. But remember you can't ensure your life, there's

nothing like life insurance. What you are ensuring is the loss of income. The loss of income if you lose your life. Why because you have dependence, right, So if you have dependence, you want to buy life insurance. That should ending happen to you your dependence will have the means to continue to enjoy that income that you would have lost. So the next thing you want to do after you plan is to buy life insurance. So if you don't have dependence, you don't have to do it.

But once you have dependence, you've got to buy life insurance. And how do you buy life insurance? You buy life insurance, of course, probably the lab but this is that you have. So let's say you have a daughter you want to take to the school to have it, right, and you may you also have a mortgage. Right, what you want to do is to then buy life insurance that corresponds to the how much you owe your mortgage, for instance, or how what you will cost your daughters to go

to university. Right, that's going to be your solmuch shut what you want to ensure against. You're gonna say, hey, I want to buy life insuranceports to twenty million or fifty million because they send anything happens to me, I want my folks to take that life insurance money and then pay for the mortgage or to pay my daughters go to school. So you ensure that obligation if anything happens to you, the insurance company pays you or pay

to your estates or bays to your trust. The last week to mention a lot about trust, we said it's best to do a trust if you can go to a copy trustee, do a trust account and get your trust account to be your beneficiary. So you buy life insurance, you put a copet trustee as a beneficiary. Then you have a trust deed with the copy with the trusted say hey, with this is basically what I am going to do. This is who I want to take my fund shera gent didn't happen to me. That's what you

do with insurance. Right, it's not like insurance. It's loss of income to your dependent students didn't happen to you, but your emergency fund. So number one is planned, two is insurance. Three is your emergency fund. You want to have an emergency fund of three to six months of your necessary expenses. You don't want to save or invest without having an emergency fund. And the magency fund is to watch a fund that you set up to pay for three months of your expensive student didn't happen to you.

So let's what are your expenses? The necessary ones, food, right, those things that you must do. Even if you don't have money, you won't have a fund to pay for that. Right, it's going to be in cash or aar cash. You don't want to save, you don't want to invest by bit, kind of buy stocks with that money for your majesty fund three to six months. If it's fifteen million, of course I'm not going to have it one day, but have an account called fund. They want to save in

that account. Right, so number one is planned to is insurance cre a magency fund for is going to be your retirement. You've got to plan for your retirement. That's the most important financial goal that you have because when you get older, you can't work. So it's not a question of I will kind of work when I'm one hundred. No, when you get to a certain age, you can't walk. So that's not going to be held enough to work. So

you've got to plan for that retirement. Right. If it's going to be your four long key or your retirement Service account or your IRA, your roth IRA, whichever it is, you've got to have a retirement plan. If you want to buy a property and that property is going to pay you rental income, as a retirement plan, fantastic. Good do it. But you've got to plan for a retirement before you invest, so retirement is more of the long term investing. Right before you buy a bit coin, you're

investing for your retirement. So then we recap. You be plan. You buy insurance to pay for your dependence. You buy take an emergency fund, then you do your retirement. If you have worked for a company, you go to the company, you do the match. You make sure you do the match. That means the company is saying, if you contribute five percent, we're gonna match five percent. Make sure you're doing five percent.

Don't leave more on the table. It's only after you have gone one, two, three, and four that you can consider investing. So don't rush and invest. If you don't have an RSC account. Let me say it again, don't open an investment account at that buy and shares if you don't have a retirement service account, or you don't have a full one K, or you don't have an IRA. It's starts not how you do it, because I when

then it happens to you. You be forced to sell your investments at a loss or at the price you don't want to pay for your emergency. So you've got to go through that process. One you plan, so you do insurance to you don't know what to say, fund for your retirement. Then five you invest. That's all we talked around last year, last week, and last week again. We then said, how when you want to do that,

let's just do a quick cap on investments. Right on the income and exponentis we then want to talk about the income and exponentials in detail. You want to track every single coble. This is now your income side all talked about last week, just to really recap. On the income side, you want to track every single every single expense. You track all the expense, then you categorize that number two. So if you track all your expense, you say I bought to do your I'm want to mister Biggs. You know,

then I enter home. All that is feeding, but you can categoriate it into feeling outside and feeling inside right off or heir at home. So you track the expenses and your income you categorize right. Then you basically want to say which is my active income, which is my passive income? Last week I told you guys, you have to have four categories on that income and expend shows four categories. The first category is going to be your active income, which is income you make when you are

actively engaged. So you go to work. That's active income. That's easy. You get your paycheck, that's active income, but it's only called passive income. Passive income is you're not at work, but you get paid. For instance, your your rent, your own rent, you own a building, the day your rent, you're not there per se, but the building is in an income for you. Or you've bought a bond and the bond is essentially giving you a coupon income, or

your bought the share is paying your dividend. Other passive income, so you're active and your passive iototal income right, active and passive. Same with expenses. The expenses you must make, which are your necessary expenses, is what we call non discretionary expenses. But they also expenses that you can decide not to make, for instance going on a holiday or just buying a new dress. The idea, your entire reason why you are working is you want to convert active

income to passive income. So the point I'm making this if you work for a company that paying your salary, the whole idea is for you to convert your salary active income to passive income income from your own investment. So I say you work for a company A, they pay your salary, you buy shares, you buy bonds, you buy land, you buy property. The whole idea is you can only retire when your passive income, not passive income, can pay your expenses. That's what retirement is, when your

passive income and pay your expenses. So look at Bill Gates, look at a lot of mask. They are rich because they get passive income. If they decide not to go to work tomorrow, they can still pay their expenses from your investments. So the reasoning is if you are if you can't pay your expenses from your passive income, you're not yet middle class, you're not yet rich. That's your objective, your generatal not passive income from your active income that

then pays your expenses. That's a whole idea of what we're doing today. So if a passive income does not meet your expenses, it's not about a meeting in the day one. That's your goal, that's your financial goal. How can I go from passive to active? Right? You don't want to say, Okay, this year I'm going to grow my passive income by five percent, not to returns out to volume. I want to grow my volume returns by

five percent. And that becomes a go for you a year in year out right because if you grow your passive income, that means you are able to retire. So as I hope you can see the plan setting up right now for us, we've talked around your five step plan right where you have to plan. You have to buy insurance, then you have to then go and buy the retirement before you talk around investing. That's the plan you want to follow. Then when we now go to the investment side, you have to do it that way.

You've got to record your income and expenses. I ear of capture your active income, your passive income. Then you capture your expenses, the discretionary expenses and the non discretionary expenses. Those non discrissionary expenses are the important things there, because you've got to have your passive income, the money you make when you're out there paying your income. That's your

financial goal. That's your overall financial goal. That for everyone listening to me, everybody, even a most that's your goal. Make enough passive income to pay your expense. That means you're rich. That means you can retire. So this week when we're talking about the second side of the balance sheet, which is going to be our balance sheet right where we're not bringing in assets, our bringing liabilities. And we also have a chat for that for our income side.

For that is for our asset side. So the same thing, guys, but the asset side. You want to draw up a little line that there's going to be four characters also on our assets and liabilities. And I don't worry, guys, if you have a question, just ask. Once I get through our you can you can request to speak. I do just put you on qu If you have a question again, ask on the DM or just because for the MIC, and I'll ask you to speak. I prefer you ask because I don't have to read it. That

sort of makes me slow down to the read. So if you want to ask a question, just request to speak. I'll queue you up the ones. I'm done, but not five minutes. That just makes you speak and then you can just ask the question. So, for instance, on the asset size is going to be the same thing. We have four characters. Four characters of the asset side. Number one you want to have what you call the income generating assets, income generating asset, and of course the non

income generating asset. So any asset you own today, you want to classify it as an income jining asset or as a non income gaining asset. So you have to ask yourself it's your car an income generating asset. We're not talking accounting accountant to say your car is an asset end up story. We're talking for a short plan. If I plane, it looks at how that asset affects

your cash flow. So if you have a car and you spend more money on the mechanic on that car, that has a liability not only an asset to you to your cash flow. So you want to ask yourself, is that car an income jainting asset or a non income chanting acid. That's why you want to spasify that car. It's still going to be an asset, but it is it giving you income or not giving your income. That's

the classification. So you take your phone, you take your car, you take your stocks, you take your house, everything you have. For instance, you have a house in your village. You're from this tiny village, callbably your half here in abvious state. You have a home in our half here, so that home is worth in an accounting set. Used fifty million miles to build that home. Fantastic. That's an asset in accounting. But for us in financial time, I want to ask

you a question. Is that how generating income for you? Or is that how saving you expensive? Which is the same thing. If the answer is yes, is an income chanting asset, so you put it on your incombregating asset side. If it's not, it's a non income jutent as just keep it aside so it's not it's not an asset, but it's not generating your income. Similar liabilities, there's an interest, interest bearing liability or a non interest bearing liability. It

has to be one of them. So if you want to start a business and you go to the bank and the bank gives you a loan of fifteen your error, that's an interest bearing liability. You have a loan on the bank because it's an interest bearing liability. But what if your partner gave you that money and your partner said you have to pay me interest for the next ten years. It's a liability you still owe your partner. But if you're not paying your partner interest, there's a

non interest bearing liability. So again, if you're a YouTube, the visual is there, But if you're a YouTube, just have those four columns. All you want to see is that you want to match your income generating assets with your interest bearing liabilities, which means if you borrow money, you want to only buy assets that generates and income. So if you're going to build a house in your tiny village you know healfiare, and that home is going to be a non income or non expense saving asset,

then you don't want to borrow money from that. You want to build a house with your savings. So your savings to build you a house that it's not going to generate you interest liabilities. On the flip side, you're going to build a house in a pot city. You want to be built a warehouse and a pot city, and you want to go borrow money from the bank. The bank is going to charge your interest income. That interest income should then be tied to an asset that

is generating income. So the interest bearing liability is going to be tied to an asset generating income. So your IgA your income generating assets is tied to your ib hell interest bearing liabilities. The problem most people have on their flaendship plan is that they borrow interest bearing liability is like a credit card, and then they use that

credit card on a non income generating activity. So if you take your credit card and you go on a holiday to Spain, right, you are generating income interest on your credit card, so it's an interest bearing liability, but the holiday doesn't give you income, so you're mismatching your income your interest bearing liability with sometimes not going to generate any income for you. I give a better example. If you have a company you want to go buy a car, the MD wants to go buy a card

to use. If the empty buys a card like a merced is better to taking to home, taking back to work, that's an interest bearing liability being used to buy an asset that does not generate income. He does bother may say this bands to go home and back, But what if you bought the delivery van in this case has taken a loan and interest bearing liability to buy an

income generating asset. So that's fantastic because the income from the van, the liverly van will pay off the liability from the bank to buy the van, you want to match it that way, that's what you want to do. This is not accounting. This is your cash local financial planning. You are trying to business under. Say that any liability I have, any loan I have, has got to be tied to an income that is generating assets. That's all we're saying. I'm not asking to go change your balances

for your company. Keep that, but your own personal financial health check. This is what you're doing the same way. If you want to go on a holiday, you should have saved enough so you are not incurring an interest bearing liability to pay for a non generating asset. It's to the point. So with income, we're talking about your passive income paying for your expenses. With your balance sit here, we are talking about that your income generating assets should

pay for your interest bearing liabilities. Of course, with the balance reet it has to balance, so it depends on your assets, and your liability is going to be your networth. If you have more liabilities, then you have a negative net worth. That's what accounting would say, right, But the financial planet is a bit different. We understand in financial planet, when you are younger, it is okay to have a negative net worth. Why because when you are younger, you

have no IgE, you have no income generating assets. Imagine twenty five year old boy in Nigeria, he has no assets. He just got a job in a bank, he's in a salary. They have no assets. Well, how is he going to buy a house a car? How he's going to borrow to buy that land to buy that car. So what's he gonna do? Is it going to go take interest bearing liabilities to buy his asset? He does inconcurating or not incompurating, we don't know yet. Because he's younger,

with less income, he's going to borrow a lot. But when he's borrowing, he has to remember that if it's paying interest on that loan, he should divert that loan to an asset that generates income or saves expenses. Borrow to go on off some other in Greece, that's not an our chat here. If he does that properly, as he gets older, answers to earn more, he then gets more assets. The asset he bought when he was younger

now start to generate income for him or appreciate in value. Right, so he then can use that asset to pay down his net his negative network. What we mean is as the assets generate income, it pails liabilities, his networks not begin to go positive. That's the plan, that's the goal in the asset balance sheets. We want to buy going

to negative network. We're allowed to go to negative network at the very very beginning of our careers where we're any variability, but that's the only you can buy an asset. But as we start to transit towards the end of our term in investing, investment, working life, we can no longer borrow moneies to invest because we now have a shorter compounding period. Let me see it again. The older you get, the less debt you should have because you

have a shorter compounding period to pay back. So twenty five year old guy can borrow for thirty years issued a thirty year bond. But if you are fifty five you have I want a you going to retire, maybe sixty five, maybe seventy. You have shorter times to compound your income to pay back. So it's very, very important that you start to invest early in income generating assets, and when you do them, they might not be income

generating assets when you do them. That's why you have to have that long term plan to say, hey, my long term planning twenty five years is to retire. Where am I going to buy land today? In twenty five years? It will retire. That's why you come back. It's all linked. Your plan is liks, your income taatement, that thing to you about. Let me stop here, because there's a lot to talk about, the whole lot. But let me take a few let me pause, take a few questions, and

then we'll just go on to it again. Guys, if you have the time, try to get my book. All this stuff I'm talking about are all in my book Planning, income, balance sheet, They're all in my book. I will try to do a screenshot of the book balance sheet I'm talking about my book, so we can also follow visually. Let me just take a few questions. I've got she she's a varm MP. How are you doing? Thanks to hanging in there with me. What's going on? Mh, she's

about how you doing? I'm doing. I'm doing fine, Thank you very much. I'm transit. When I get down, I was fantastic. All right, gotcha, let's do let's do into integrified. Integrified, don't get that right, integrified. How you doing, sir, fantastic? What's in your mind? Oh?

If you go to lifsurance company, you say I want to buy life insurance for five million, and they tell you, okay, we're going to sell life chants for five million, but you've got to pay us a thousand dora every month. Once you pay the first one thousand hora, you are worth five million immediately. You don't have to accumulate five millions to be worth. Once you pay the first premium, you're worth five million. So it's the unique in best and I don't want to use your advantage. So your

question is how can you then use that? Like how can you plan for your kids? I like life insurance because what you do is this. You have to go to a lawyer and write what's called a trust deed. It trusted is just your instructions. You say, if anything happens to me, I would like my money to go towards the payment of my child's education in this school. After my child has graduated, I like the rest of the money to go to my church, or to my grandmother or to my auntie and all that. You can

specify your instructions in that trusted. Now, when you do that trusted, you then go to a corporate t trust. You have festuties, you have aarm trustees there, you have that many of them. Just go to sec and google trust companies in Nigeria. You go to that trust company and say I would like it to be my corporate trustee. You will pay them a fee to be a corporate

trust So you give them that trusteed. Then when you buy assets The beneficiary of your assets will not be your children or your nextorf king to be that corporate trustee. So look at what we've done now. If you buy insurance company, if you buy insurance policy, or you buy a building, the building is owned by your trust. The beneficial of the trust is a corporate trustee, inventing hassles to you. The corporate trust is simply then pays the

education of your child or runs that company building. They will rent out the building, collect their fees, make sure it is nice, pay the rental, pay your education, give your kids an allowance. That's why you hear trust babies. Trust funds like the use off shore the same thing. You were complicated about it. So it cost you some money, but it gives you a peace of mind. Because when you write your will, your will can be challenged, but you can really challenge a trusted You can't challenge an

insurance company. Beneficiary and benefit for insurance company is out of your probate. It's not debatable. If you put something aside and your trusted it's not only going to be part of your asset because not owned by you anymore. If you put a building that you own and a trust deed, it's no longer owned by you. Because it's not owned by you can have a challenge just to the point. And also the new tax laws, if you

earn income manuity, that income is not taxable. So if I want to give my daughter money, I just buy her an annuity. The annuity pays he annuities like an insurance company paying you a fix of money. If she's getting money money from insurance company, she's not paying tax on that income. So it's a lot of vales for me. We're not really taking that virtue of the insurance company in Nigeria. So it goes to insurance company and say, I heard this. Please explain to me what this guy

is saying. Give you more details. How what does it cost me to give you specific information? Then you can roll with it. Does that make sense? Great? Any follow up questions on that? You're fantastic. Thank you someone I've got that high.

come to the village tomorrow. Something's happening. You can't go to a microphone and say how to take that loan. Then they give the loan, then pay to your card. Then you have to wait for a manager to sign no. So it's a goal for you to build three to six months out as your as your amenity fund. But I wouldn't say loan, it's what you use any fund. I wouldn't say that. Thank you, You're very welcome. Do you have an amenity fund right now? Okay, So that's gonna be a key to go for Like we said,

the firstest plan right then. Of course, second is the what we do your insurance? Do you have an insurance? Then you don't have to really answer if you don't want to both. Second is you want to have an insurance scheme set up for your family attendance. You want to make sure you have an insurance scheme set up for them, not for your life. Both fully lack obligations you have. So if you have a house, you want to make sure that you are buying insurance that can

pay off the mortgage of that house. Then but the true you won't of course, buy your immediacy phone. Get that set up three to six months of your necessary expenses. Of course before I get to retirement. Do you have an RSA four? Okay, you have all that? I'm yeah, so you have a lot of goals in six in it you have a lot of goals. Yeah, exactly, fantastic. So I appreciate you calling and yeah, get that done. It's don't wait, don't see if I don't have money, won't do it. Get it, stand on it, you know,

early enough, and then see what happened. Yeah, appreciate you. All right, fantastic, Thank you the guys on YouTube. Let me see get Yeah, so I gotta slow down and read the question here. That's why I prefer the audio, just to emphasize. Could you just emphasize on the non interest bearing yes, So let me just put that up again. So just to just to summarize the asset side we're talking about, we haven't got to the network. We're saying that on your asset sides. We're not saying a car

is not an asset. The car is an asset. But is that car income generating asset or in non income generating asset. That's the question. The car is always an asset, but is that car generating income for you or not chinting income for you? There's no problem if it's not. But if it's not, tag that car as a non interest generating asset so that you match it with non

interest bearing liabilities. You have to target because when you do your balance sheet in accounting, they don't only care if it is to just do your total income, this is your total liabilities, and then they give you a network of But in personal finance wants you to separate the income or the asset that I've given from the asset that I'm not giving you income. When you do it that way, what you're going to find is that you can tell how much of your assets are being

funded by liabilities. And I think, like we said, there's no problem if you are in debt as long as the debt is generating or will generate assets for your income for you in the future. So if I borrow money today to buy a house in Lecky, no problem, because I'm in debt. So I have an interest baying liability, but that interest bare liability is tied to my income generating assets. So for ten years of my life, I might have a negative network because I have more liabilities.

But that's fine because the liabilities that is funding the assets. You know, my interest liability is funding my income asset. That's fine. As I get older, the asset appreciates in value, the value of the assets, the income from the asset now starts to pay down that loan because I no longer pay rent, So the funds I would have used to pay rent will then go to pay down the liability, so that my balance sheet or my income state and then looks better. So it's not a question of debt.

Debt itself is not a problem. The problem we have with debt is that we are borrowing interest being labilities and attaching them to non income generating assets. So it's a good place for us to surgerate into debt management. Every time we talking around assets and liability. Is the main problem with asset is how to accumulate them, And we can talk We're going to have a separate space on how to accumulate assets? Which assets told you, But

we're gonna do more of assets and location. What should you buy if you have a goal today of retiring in five years? What should you buy than if you have a goal to retire in fifteen years. That's going to be assets a location. We'll talk around that. But what about debt management? How can you manage your death? Because now, if you have built up a balance sheet that has more interest being in blities than your assets, your income bearing asset, you're going to have a problem.

So what should you do if your balance sheet is more in debt? Of course, you've got to reduce those debts, right, You've got to bring down those debts. So how can you manage your debt? So let me give you the way you do it you're supposed to do it. Let me just real quick, Tnaji, you want to ask a question, real quick enough, I'll talk around debt management. Can Ju? I know the talk is kind of unstable, can Jo? Yep? Yeah,

I'm not sure I can hear you too. Well, a little bit of audio, but trying to see, uh, what's the question is? Okay?

over by the tenant. So, if I understand your question, you already have one interest bearing liability, which is your home. Are you guys living in that home, the one the one you're paying you guys pay a mortgage in your current home right now? Yeah, so it has canceled out your your your interest bearing liability with your mortgage is being canceled out with your income. Right this new home you want to get, the simple question for you is that can you get a tenant that can pay the liability?

That's what you want to ask yourself. If you can get a tenant to pay that liability? Fantastic because you've got a new liability.

The answer really it comes down to if you can get a tenant that can cover that liability or if it goes south, you guys have got to have an emergency fund of at least six months of that tenant, that mortgage. You've gotta have it in a bank sitting somewhere to say, e, anything goes wrong, we can pay six months of this house mortgage without waiting for a tenant. If you guys have that sort of savings, it might

be a good idea. Because again, remember in the West, I was talking about the West, I was talking about Nigeria. What are we talking about now? So because in the West they do non non recourse loans, right, So you can walk away from the property if you can't keep it anymore. So if it's a non recourse loan, you don't you don't have any liability of it, you don't have any continent libriies. Idea might come after your after your building. Right, So what I would say, think about

setting up an LLC to buy the property. Right, set up an l l C to buy the property, then get a tenancy to pay rent to the l So that way it's an arms length transaction. If the tenancy fails, walk away, close the company, declare bankruptcy on the company, move on. So the bank ticks, the bank takes the building. You start afresh. I'm gonna do risk management for you yet. Okay, fantastic, man. I know someone joined. I don't know where it is. I know someone just joined. I'm not sure if it's

Gabriel Death. I'm not sure. Did you just join?

we've printed three three editions. It's alsold out. It's sold out, so it's easier on Amazon because it's just easier on Amazon. The prices have gone up and all that. So if you go to Amazon, it's Christmas, people are coming home. Just don't get it for you. Is the prices aren't change in dollar terms. It's a good present for you. They can get it for you and just deliver it to you on an Amazon For the other screen shot, I wish you could if you send me a d M. Right,

just send me a DM. I will try to send you a screenshot of what we're talking about. I do, I do, I just I want the network kid is really slows. I'm able to do all that stuff. Yeah, work for you, Gibril. If you can hear me, do you hear me?

on death management. So how do you manage death? And what is this debt we're talking about? If you go back to our financial plan, debt is when you have accumulated interest bearing liabilities and you have no income generating assets to cover. Remember, debt is not the problem. The problem is that you have generated that income liability with no with no interest assets. That's what the problem is. So let's say you have a debt problem. How do you get out of it? So Number one, make sure

this down, guys. Number one, you want to list out every loan that you have, every loan. List just list everything out. What I mean every loan, I mean every loan. Your brother gave you money, that's the loan. Write it down. The bank gave you a credit card, that's the loan. Write it down. You borrow money from your corporative. List every single down that you have. That's number one. Number two you want to then attach a cost to the loan. So let's go back. Your brother give you money. He's

not charging your interest, so you put zero percent. The bank gave you a credit card, they are charging you interest twenty five percent, you put twenty five percent. Your competitor give you loan, but it's not subsidized with it's five percent. You put five percent. So now you have your brother zero percent, you have your bank twenty five percent, you have your cooperative five percent. So number one, you listed all your loans down. Number two you attach the

cost to it. Number three you then attach the cost. I'm after you wrote them number four. There are two ways to do it. There are two ways to do this. It's aver called the avalanche. That's aver called the snowball, and forgive me, I'm not sure which is which. I missed them up a lot. They're the avalanche method, and there's a snowball method with the avalanche. And again, forgive me, I believe, I hope I'm not wrong with the avalanche metal. What you are trying to do is to pay the

loan with the lowest amount first. It could be the other way. You can forget me. So let's say you flisted your loans out. Remember you have your loan from your brother. Maybe he's charging you zero percent. The loan from the credit card is charging you twenty five percent, The loan from your corporative charge in your five percent. You list the loans out in order of the ape r i e. The cost of the loan. You pay the loan the one Metal says, pay the loan off

that has the lowest amount. So let's say your brother is when you own your brother five thousand, then you owe the bank ten thousand, Then you owe the corporated twenty five thousand. It says you pay your brother first the five thousand. Why you want a quick win. When you pay your brother five thousand, you take that same money you used to pay your brother and you can start to pay the other guy off. You pay the bank of so you pay the loan the dollar amount

that is lower first, you pay that love. Then you instantly trying into paying the second loan. Then you then go find to pay the head loan. So you pay in terms of the lowest amount first, because you want to start to get rid of them. Have quick wins, and you don't stop. When you pay the lower amount of you simply take the money and you go back to pay the next one. So you have a plan to say, I'm going to pay this off, and you said to move to the second one and mostly retired one.

That's one metal. The other method is you pay the war loans that have the highest cost of first. So let's say your credit card you are only fifty dollars, but you are only your competitive fifty thousand, but your credit card is charging you twenty five percent. Your corporative is charging you five percent. This method says you pay the credit card of first the fifth because it's a higher ap R, higher interest, it cost you more to

keep that loan open. So you pay that credit card or first before you go pay the cooperating which is five percent, before you pay your brother, which is a zero percent. Why because it costs you more. This is the preferred mental. Pay the loan that costs you more than to pay the loan that I have the lower amount. The problem is that the lower amount gives you a quick wing, so you can see. Instant gratification is good,

there's nothing wrong with it. But the pay off the load that has the higher APR is going to give you your balance sheet a bigger, bigger boost. So number one, write out the loans. Number two you attach your cost to loan. Number three you rank them either by amount or by the cost. Then you just start to pay them down. You basically just say, I'm going to go back to my budget. I'll cut out an xpense from

my budget that I don't need. I'll cut out a non discretionary expense that I don't need, or many discussion esp maybe i'm buying it, maybe I watch DStv. I'll cut out d STV. Use that DStv money to pay the principle. Remember, guys, the trick is to pay the principle. If you owe credit cards and you simply pay the minimum on your credit card, you're not gonna get anywhere. It's gonna cost you years to pay that credit card off.

You've got to pay the principle. If you own a car, bank will tell you pay us on the fifteen, on the twenty fifth, and inter the payment. When you make that payment, the bank will take some money to the principle and some to the interest. All financial institutions will, fest of all, take their interest first before they paid the principle. So that means when you pay a bank, you are paying more to interest at the early loan than you are paying to the principle. So how do

you counter this? Pay two times if you pay the bank their own Go back and say I like to make a payment. I want to make principle. Only tell them principle only. That money you're paying goes to the principle. It doesn't change your monthly payment, but it reduces the loan ten you know, from say five years to four point five years. This is all you need, right, you want to reduce the tenure. So when you have a fixed loan and you make a principal payment, you are

reducing the term. But on a credit card, when you make a payment to the principle the credit card, you are actually cleaning off the loan on that credit card, because you are cleaning off what the credit card is charging you. Every month. The credit card looks as what you owe. It will calculate your your APR once every month and charge your very expensive rate. So when you make a credit card payment, try to make it twice. You pay the bank, then you pay again, and you

tell the bank credit card is automatic. Once you pay, it goes to principle. But with the other fixed loans, you've got to tell them principle only. So you go to the principle and they can't pay up the loan. That's how you want to do a desk management, right, You identify and you pay off with a plan and with a purpose. Don't leave it to chance. Don't say I'm going to pay this loan when they call. Have that. It's very simple and need to work for you. Right.

So this we're talking income. Well, so we're talking assets and liabilities. We're focusing now on the libry stub, which is your debt, How to pay off that debt, that debt. Yeah, so now when we want to do as we're going to have a whole new space because that's a whole new topic. Are talking about asset allocation. I'm not do as a location a separate space for you guys, because that's very, very important. How to invest. So many of

us are investing wrongly. We're investing according to returns, not objectives. You don't invest because it pays you more. You invest because your objective is this or debt. For instance, if your rent is due next year, there are certain investments you cannot invest in with the excess money you have for your rent. You can't buy crimptal with your rent money. You can't buy stock with your rent money. It doesn't

mean crypto and stocks are bad. It simply means that your duration is too short for you to make any any any any compounding return with because it's just one year, and stocks do better over an extended period of time, not one year. So there is no better investment. Stocks are not better than fixed income, but those stocks have

going to be attached to your objective. So many times we'll say there's a federal goverment bond and the feedogment bond pays lower than infficient will say, oh it's paying lower than inficition, I'm not gonna buy it. That's not how you look at it. If you are a retiree, unfortunately, that's the only thing you can buy. You can buy property, you can buy fixed income, but you can go buy

crypto as the retiree. Also with stocks, you'll be very careful we buy stocks as a retiree because you have no compounding period to recover from should those stocks fall. Last week the market scrypto has gone from twenty six. It's not a bad eighty five. Imagine if you bought crypto in your retirement account, how would you have recovered It. Doesn't mean crypto is bad, but crypto is for younger people that can afford to sit on a loss for

a longer period. Because when your crypto goes from one twenty five to eighty five, the worst thing you can do is to sell. You don't want to sell. You want to stay here in the market until they recover it. But if you are not selling and you are eighty five years old or seventy five years old, how do you eat? You have to sell to eat, So you're going to sell that crypto at a loss. That's the point. You invest according to your objectives, not the returns that

are being offered. Kid that in mind, guys, don't ever invest because the returns are high. You want to ask yourself what type of investment is this. If it's a longer investment and you have a retirement plan, of course you invest. But if it's your rents money. You have rent money today, but it's due next year, you don't buy crypto with your rent money. You don't buy stock with your rent money because it's not guaranteed. There is

fixed income, which is guaranteed. There's variable income, which is not guaranteed. Variable income always has a better return that fixed income because the risk factor inheriting it. All right, folks, let me just read a few messages here so I can just get the party going. Yes, I'm investing in my four Yes, so that's exactly what I'm saying. You said, which I should not invest in. I should not buy investment unless I have a retirement savings account. Please, can

you explain more on this because I'm investing that's my retirement. No, look at what I'm saying. If you are investing. It's always a good idea. It's always a good idea to invest when I s in your honest account or in an investment fund. But when you put money in a America, which it's called for one K or the individual retirement account eirah in Nitia, we call it the retirements in this account. Those accounts are what we call tax advantaged accounts.

With any funds you put in that account, you don't pay taxes. Not only do you not pay taxes, those accounts grow tax deferred. What that means is that when you put when you put money in that account, it will compound without putting, without you paying taxes. So you are able to then grow that portfolio faster than an account where you're in withholding taxes and the rest. So long term, long term, having money in the retirement since account that is tax deferred has a huge advantage because

you're not paying taxes. So the first you want to invest is not your own personal investment in the retirement simis account that the company is offering you because it has a tax advantage. So if you live in America and the company offers you for one K, they will tell you if you contribute to one nur will contribute or if you compute to one dollar, will contribute fifty

cents of ten cents or one ten. You want to take advantage of that because that's the that's an salary increase to you seem in Nigeria, if you contribute eight percent, your company will pay ten percent. Eight percent of your busy coutunal transport, your company will contribute ten percent. So why would you not firstiform maclimize your retirement simmeters account and get the ten percent on your company before opening up your own. You can open up yours after you

have done the company's retirement accounts. You don't do yours and not do the company retirement sentens accounts. You have to do the service account for the company that is tax deferred first max it out, then you can do yours. It's very important and if in America, the best investment

you can have, it's called the health savings account. Where a health savings account, when you put money in, it's tax tax tax exempt, so you put money in, you can write what you're put in from your tax from your income, so it's you take that off your income when it grows. It is tax free tax free. So you put money in, you don't pay taxes. The money grows, you don't pay taxes. When you take the money out, you also don't pay taxes. So look at it this way.

You are twenty five years old, they are very very healthy. You open up a retime a health invni's account. Every month, put twenty five dollars into that Hilton's account every month. It's going to grow tax free for every year that you are working. Every year you just put it in. When you retire, all that money you have built up, you can withdraw that money for health related expenses tax free. You can buy shoes, sneakers, you can buy drugs. You can fly to get a massage on a Greek island,

which is healthy. You can go and get a mud path in Turkey. Thuse are all health related transactions. You can buy vitamins and not gay taxes when you take it out. There's no other investment gives you a three tax benefit when you put it in GRUS and take it out is tax differred. So if you're in America and you're listening, you want to make sure you go open up a health savings account. Ask your employer most and plus or offer that to you with a high

deductible plan. Actually, if it's a health serves account, make sure it fits your objective and you want to go get it. So that's start for for that. Yeah. Yeah, Instagram, you have a question, Please go ahead, Integrified, go ahead your question. Just go read this. Okay, that's so example, you have.

as a location. But I try to cent so if you get that right, and then is an example, how how old are you? How are you like below forty, below, thirty, below fifty okay, okay, So if you're take two years old right, just on the age of load, that tells me you have about let's say you want to retire when you're sixty five. That's how many compounding periods you have. You have a very long compound that you can afford to invest. When do you think if you invest, you

want to take money out? Where do you think you're going to You're going to retire? I want to okay, I want to start working for somebody within maybe and I want to stop working for money maybe.

Let's say, what do you what do you end? Right now? Do you end below one million, below two million, below twe million, below four million below? What do you end? You end? Give me like a range? What do you earn? It sounds okay, Let's say you and let's all say you end even five, just to make it to match easier. Right, So let's say you end five million, right, So what you're saying that you want to end, so half of five is two point five right, you want to end

two point five million. Let's assume that's no inflation. You want to end two point five million in ten years. Let's do the mass, So two point five percent is the end FIGO. Let's say return on asset is ten percent? What should I put in front of two point five million? That if I'm multiplied by ten percent, I'll get two point five what's that first figure? It's very it's very easy, mats, So what should I put that? If I multiplied by ten percent, I'll get to point five percent? What was

that first field? How much would that be?

next ten years? And when we say ten years, what take it to two periods? So ten times twelve. You are saying you want to have in one hundred and twenty compounding periods, you want to make twenty five million. That's what you want to have in one hundred and twenty compounding periods. At one hundred and twenty compounding periods, you want to have twenty five million. That if in fished its ten percent, it will direct two point five percent. What do you think in Nigeria can give you ten

percent today? What do you know? Something like.

out in numbers on now you see? Now you see how your plans start to fall apart because you yourself, I now agree with that two point five is not going to be a lot. You see the point when you put it on paper, when you do you want to say you want to stop working for someone in ten years, that's what you said. So if we wear the black and we put those numbers and figures for you can see now see what are your plan is?

That means you didn't want to in five million? If you want to have passive income or if you want to retire, you want to have passive income that can cover your expenses. So what you want to do today to say what are those expenses that I have? Then number two, what is my passive income today? Your passive income cannot cover your expenses, your active income can. So you have you said in ten years you have one hundred and twenty compounding periods to start to convert huge

amount of your active income to passive income. That in ten years you want to pay at least x amount of your income from passive income. It is possible. It's not about the fastest way to get to that number, sir. It's a start business, not to invest. If you start a business today, then that becomes active income, but it generates you more income to invest in passive assets. You hell what I'm saying. If you work for this, If

you start a business, you generate more active income. That active income allows you to them by the passive assets that cantribute you fifty percent of your expenses. Number that as you get older, you're expense is going to go up. Maybe today you go to holiday in Ghana. In ten years time, I own to go about in Greece, So your expers are going to go up, so it's a toll order for you. That why financial planning is a very very delicate topic. You've got to have your plan

on paper. When you put numbers and then see it doesn't make any sense either I'm in the wrong job, or I need to change my country or change mind, change mind what to call my assets so or change my decor anything. Because if you do it that way, then it makes sense. If this if you were if you are in America and you want to retire in Nigeria, your whole cognition changes because now you're bringing dollars back to Nigeria that if you convert, can give you sufficient

income to live out your passive income. Like do you see what I'm saying? So investing is about looking at all those all those and what we say options and then basically saying this is what I would like to do, and using those options to then do your financial plan. Because it's it's not like you said, it's easy to say I like to retire in twenty four in ten years when you look at the figures, it's very very daunting. But the suppose don't change is how you want to

achieve those principles that change. Yeah, alright, thanks again. I really enjoyed using your example, really really do. Yeah, should regard me to me honestly, honestly, sir, it's best to just send me just also ask me a question of the timeline and respond yeah. I get a love requests sometimes things I don't go there. Just ask it because of the time and I respond yeah, tag me ask me a question of response. So question from YouTube how easy is it to get the money from the ARRESSA

want retirement? Which is the ARSS bands to be trust ANSWERD Yes, it's rather easy to get your money from your retirements in miss account. They give you watching to bring in documents, documents into bringing once you're about to retire, I tell them to tell you what to bring in. You bring it into, the company will pay you. I build the pay half of your money as boxed, some in cash and they pay the rest as an annuity to you. Yes, you can put any trustee as your beneficiary.

So that's what they can receive those pension assets. That's I see what you're going with that. Yes, you can do that. Most people don't are not using the arresses the right way. Right, you have a guaranteed stream of income that's going to come to you when you retire, when you have your financial plan, do you take that into consideration when you want to go buy that mortgage. You want to tell the mortgage company, I have this guarantee stream of income coming to me in the next

twenty five years. Can you give me a ALP today and I will look for a way. I'm not going to tell you what to do to attach that stream of income to paid on that mortgage. Your retirement series accounts, your long term savings. It's going to guarantee you a stream of income guarantee. But the felleral government not taxable. It can be Stolen's in your biometric name. It's in your name. Not know the company, it's in your name. That's a huge asset that you want to take advantage of.

Very few leisuras are in that scheme. Less than ten percent of national workers on nagial level forces in that scheme. So they have the bit of wall of about ten to fifteen million raised ninety Nians. But they have the non informal sector. That's where you have to go after. Many informal folks not in a salary and do not save, so you have to make sure that you are saving in retirement this account. You don't have to go to

a PF. They have micro PF now that can enroll you as a small business and you can enroll in those corporations. Start to say, because it's a compounded return, you get professional management into those accounts, and it might be the only things that are available for you that is separate from your business. Your business cannot be your retirement scheme. Your business cannot be your retirement scheme. That's just your business. You've got to separate your business from

your income. Your business pays you an income, Your business not your income separated. So if you own a business, the income should come to you. So that way you can transit the business of somebody else and still get the income shares. When you incorporate equity, you hold equity. The business. Equity is owned by yourself, and the business then pays diffidence to the equity, which you then own. You don't have to work twenty four seven because you own a business. You can own the business, get the

income and not walk to the four seven. That's why passive income is the bull, not active income. Passive income all right, I had this gentleman here amid hi, do amid high. I'll be go ahead, I can hear you. Let me go back to to to DM. Yes, so yes, the most of the questions that get repetitive, but yes, we're stressing. How many do you just put me? When you speak? I'm going to mute you when was ham just some mutay and then we can speak Oh jeez, yeah, okay, yes, well,

well we're really focusing on the topic of Pacific. You've got to understand that that's the whole goal. If you are rich, that's because of pasidic. We're not telling you here, go and buy X or Y. This is the structure that you want to follow. You know, you can't say you want to retire. We just had a conversation with Instagram, and I just walk you through how this is done in real life. If you go to a fuanship and you say I like to retire, I'm going to ask

you when do you want to retire? What they want to get from you is your compounding period, and ask, okay, what is your goal when you retire? I just want to go to an island and live on that island. What want to get from you is also your expenses when you retire, but where are you going to retire? You know retire United States, are going to retire in Nigia. Why is that questioning important? Inflation? If you retire in the United States is easier to plan because inflation there

is really easy to plan an organized around. In Nigeria, we've gone from forty percent inflation two years ago or a. But if you say effected about ten percent inflation to now, where've been told the invasion is sixteen percent in less than a year. So would you believe you if you go from ten percent to sixteen percent in less than two years, it's simply tell it can go back right up. And again, why is the interest rate still high if

the inflation rate has come low? But if you are in Nigeria, the plan is a bit more difficult because we can't we can't know, we don't know where in future is going to be in the next year. So you've got to save more if you're in Nigeria. But save what you can't save in naira because naira is very very unstable store of revenue or sort of ink of asset. If you hold a narra today, you are losing officially sixteen percent. Just holding ir in your hand,

you've lost sixteen percent, which is infliction rate. If you hold a dollar in your hand, you've lost two to three percent, which is inflation rate. To which one do you want to basically hold It depends on where you want to retire and where your expenses are meant to be the best investment scheme or retirement scheme I have seen. It's a guy that walks or ends in dollars that want to retire in Nigeria. That's perfect because you're getting a dollar, you're bringing it to Nigeria to spend. The

dollar is stable, Nara is on the stable. You can afford all your expenses in Nigeria. But not everyone's in that class. But then again, if that's where you are today, you want to start to them broaden your investment horizon and seen I want to buy more dollar investment not because Nayra is bad, but because you want to get

access to a currency that is more stable. Inflation is the problem if there was no inflation or women having this zoom class, because all we do is when we end money, we take tempts on that money, dig the ground, putting the grid cover it and then we're good. It's because of inflation that we're worried about talking because if you save today and it doesn't beat inflation, you're wasting your time. Right, But we have still safe, right, we still have to say fantastic. Guess let me go back

to DMS. Yes, we've spoken about inflation. Were passing income? YEA mean who talked a lot about that. If you just go back, it's it's going to be recorded. It's on YouTube. It's also on the podcast. If my podcast is the way I see it, it's also on the on my DM. There you can get the podcast to record it and to be released. We have talked about fifty more minutes and we're gonna call it off because just because I'm in transit so I'm really getting good

put download speeds. I want to share a lot of stuff, I cannot do it. So we have to call this early and then we'll call the day and then next week we should have to then do more of the investments. We'll start it off from income and expenses that will not move to as the liabilities. We've taught us spend a little bit today about debts. I said that that with this, you want to do your categorization and pure of you that cut into your to the highest debt

amount or the highest debt percentage. I prefer you pay the higher e p R. Because I will take off your what's it called. It will make it easier for you to pay pay to the principal principle only it

works in your in your in your favor right. And then next week we're going to do more of as the location with a lot of visuals for that, and we'll make sure I have my visuals up and then we can share that together because that would show you, guys, essentially how to invest me because I invested for returns as it's not the way you do it. You won't invest for your objectives. And if you're younger, you have

you that's different Fermi. If you are older, right and waiting for em Lots of guys want to speak, but I cannot add them. Emrys to floating America. Can you hear me? I can see you struggling to look in there. Yeah, I heard you, guys, but it's not it's not going I think it just in network. Let me get all we'll add all that. And I also sent you that request. I think it was a network. Let's see what happens. Yeah, oh, I hire you all bottom okay, both, I'm doing very well.

I already got your book. I'm lazy your book. Okay, I'm doing an audio version very soon for the day, like I am listening to already those two audio books. Books. You have been You have been a leader. God bless you, and I appreciate that I'm missed.

can follow. But like you said, it was a page I put up last week and it was it's summarized everything this is also been recorded as well as regards to the book by book. I wrote the book with the Nigerian language and Nigerian palance. I tried to use as many niger examples. The investments ARECA. I talk about their ass talk Nigerian stock market investment funds. There's a whole page in Niger on my book around ponds where I picked a particular phone and I'll say this is

the font for this. I say, if you want to get long term investing, use this font. If you want to buid inflation, use this font. If you want to do good, use this fon Nigerian phones, not US phones. So even when we do the budget we talk about generator. There's no drinks in America. There's no generator to express in America. That's why I always talk around the book. It's all my experience Nigeria the US managing money for rich people, for pensroon phones, for trust. I knew that

an Islamic fond at the time in my life. All that I wrote in the book and I put it there very very rich. So it's in all the get the book and keep it right, and there's gonna be an audiobook coming very soon, so you can listen to people like, oh I just listen. You're driving home, just listen to it. It's very very rich. All that you can go ahead, all that amazing. You're taking a lot of people.

is this is my probomum, especially to Nagerians. So if you notice that page, I talk a lot of Nigerians and I try if it's possible not to charge you, like to do a master class. If I did a master class on this exact same space, I would have double number of people on the space and they will all be paying. So I'm not saying people just have to understand that the money thing is not like if you have a dent if you have a opinion your too,

they're gonna pay a dentisty to get out. If your car is bad, they're gonna call them I can take it out. But people with money, that's a saying that it's my money and I can manage it. That's that's kind of wrong. Money has a certain way it has to be managed. They are certain principles you've got to follow. If you get it's wrong, it's very very it's costly. If you lose money, you have to make more money to just recompense it for the inflation and for the time a lot. I'm not telling you to go buy

the stock on that stock. I'm giving you how you want to arrange your finance, life right plan, insurance, retirement before you invest. If you don't do this stuff this way, it's going to cause you problem with that line. So this is the point I'm making universal principles. It's not a Nigerian principle, the investal principle. If you do your financial help check, like I said, this is a new year coming wherever new year are coming, you track your expenses,

you track your income. You categorize both of them. You know what is passive, you know what is active, you know what is non discussionary expenses, you know what the discussion of expenses. Then you don't ask yourself this year. This year, I mean twen twenty five, how much of my passive income can pay my expenses? The answer might be one percent. Maybe you have the expenses of a million ira and you only have passive income of ten thousand ira. So today your passive income can pay one

percent of your total expenses. Okay, what will your goal in twenty six? Can I move that one percent to five percent? You see how simple this is. Simply move that one percent to five percent. I say in twenty twenty six, by December twenty six, I would like five percent of my passive income to pay for my expenses. That's the great goal for you. That means that means you're going to have to go back in and number one, increase your investments and number to reduce your expenses. That's

a goal that everyone can agree with. Then twenty twenty seven, can you make it six percent? If you keep on doing this way in twenty years, you find out by in twenty years time, twenty five percent, twenty percent of your passing income is able to pay for your expense. And that's the entire goal of retirement. You can't say you want to retire retirement. It's when your passive income

can you pay your expenses. That point where your passive income grap with that can pay you're expensively, just like a straight line goes like that. That's when you carry tire. Guys. So I appreciate you guys hopping in here. Like I said, the network really is not allowing me to share. Really a lot of stuff I like to share. So we're gonna end a bit earlier than we would have normally ended. Normally we're here for three hours. Let's see how long

we can. Just next time we do meet, I ssure you to have all these visuals and will show it together across to you guys. So part of you, guys, we're gonna just shut it down. A lot of DMS, I hear you, but minority gets a lot of them, and I'm gonna use you talk about protect the book. Get the book on Amazon. It should be in the Nigeran bookstop. I think now there's gonna be Amazon for now. Guys. What else and just look a quick look at the dms and seen there's anything that is interesting. I like

this song I have. I have a house in Legos. I have a house in Legos, but my family is living in the house in Legos. I have a second house. So he has two houses in Legos. His family is living in one house. Would I classify that house as an income being assets or a non income paying asset? If ready to answer the question, it's your family paying income if your family is not paying income. Again, like I said, we're not talking to the accounting definition here.

There's the reason why we're making it income assets and non income assets. If your family is living in that house, I don't think they're paying you income. Right. The question for you is are you paying interest liability on that home? That's the question for you. That's the question for you.

If you've got that home, there's no mortgage and all that. Fantastic, it's an asset for you and there is nobility gender the size, so it's fantastic for you, but it's not makes sense on a financial planning basis to go borrow money and have a home and then give it out to family members that do not pay you in the rent because in what you've done that you've created an asset and incured an interest bearing liability. But you've got created a corresponding income, creating an assets. So your net

what is not just negative? There is no opportunity for that network to become positive. I hear you don't confuse income and value. I hear what you're saying that the house value will rise. That's not what worried about here. You can't go to a restaurant and tell me the server, my house is worth one million. Give me a plate of rice. No, you've got to pay for the plato rice. So the house has got to generate income, that is income. The value of the house is the asset. Remember we

are comparing income generating assets assets. It's not an asset to interest bearing liability. It's the liability. You will not saying that the income from the house makes it not to be an asset. No, it's still an asset. But what sort of asset is it? Is it giving you income or is not? Follow your example and following yourself, follow your example. The house is not giving you income, But you've got a loone buy a house that is

not giving you income. So your network is going to not only be negative, but you're not giving your network any opportunity to generate income to pay off the lability. There are two things there. The network itself is asset less liabilities. But below that that asset will buried income that goes to your income statement that should pay off the liability on this asset is we're not worried about the income or the liblist on our balance sheet. Don't

just put it up. We're not worried about the income on the balance sheet. What we're asking is that is that asset itself generating income. We're not asking the income on the balance sheet, but we're asking is that asset generating income? If it is fine? If it's not fine, match then if you have an overload of interest bareing liabilities your network. Our issue here is network, not liquidity. Our issue here is network, then you would have a

negative network and not just a negative networks. On your income side, you have no income to service this interest bare liability. So you're going to be an asset reach and cash just like Nigeria is. Nigeria has tons of assets. We have oil fields, we have gold in Kebby, we have palm oil. In Abia, we have cocoa in the oil, but we are cash poor. We are borrowing one trillion a month in Nigeria, but we have billions of barrels of crude oil. So in Nigeria's case, Nigeria has got

a huge interest their reliability. At two years ago, Nigeria was paying nearly ninety percent of her income to service her debt ninety percent nearly today is down about forty five forty four percent. So the income on the income steans that that's making we're paying almost forty four percent here to service our debt balance sheet. So the question is now, is the ink the assets Nigeria gen written?

The assets Nigi genity with this debt? What's the asset the railways, the roads, that's the assets, the education people, We are the assets of Nigeria. So are the assets and Nager wating out? Is it being funded from this? Can we pay taxes? This is where the attax from his past. Can the assets of Nigeria pay taxes to coper the places of Nigeria. So it's the same principle everywhere. Don't confuse income and assets. The point is on the balance shifts that were worried about the net worth. What

are you worth? But on the income side, we're asking you that asset and that liability are generated. What are they bringing in? Because you need cash to eat. You can't retire with assets. You retire with income passive income. When you go to the hospital, you tell the doctor has to pay my bill. You don't tell him I have a house down the road. You say I have a credit card or have cash at your check to pay for my health. So you retire with income. The

business can generate income. If you have a business not generated income, that's a problem. Help that clesant up. That's a good question. Out that clean up. Yes, don't mix two of them. It's still an asset, but it's an asset generating income. That's our question, right, and the income goes to the income statement. Fantastic, All right, fye, guys, I do just a quick check. Not other questions here. I love back A good way for to summarize. Let's start wind down the space. So guys, who walk this

week around assta liabilities. Last week we're talking about income and expenses. So what we're gonna do now is that when I'm going to sort of set the stage up for next week. Next week, we're gonna talk around asset management. What we're going to gogle to say, Okay, we want to invest. We've seen that we have we have to make passive income. We've seen that we have to grow our asset size to feel for our lab this side. What sort of investments should we make to generate passive income?

What should we invest in? That's what I'm going to talk around next week. How can we have an investment plan? Where should we invest, how long? How should we do it? How should we select investments? That's maybe be a great topic for us to do next week. So again we'll be here next week. Will we've been a good internet situation, so we can share all our pages and you guys can follow you wonderful and I drew up with you guys. Last point, guys, please to get the book. It's it's

it's it's a fantastic book. I wrote it, got tons of experience in this field. Ily want to just pass that information across you guys, like I said, and that book can really help because all these topics are out there.

We're just to pay twelve and we can't talk around page twelve whilst the recording an audio version I will say before the end of the year, which had the all division our just in time for Christmas, so you guys can get that as the Christmas give shp your friend's gonna be way cheaper and we also listen to the book. And also then all right, folks, on that note, my name is Calu. Actually, thanks for journey with me, spending your Sunday with me. Let's just say to end,

we're just in a prayer for the continent Materia. It's our country, not an agi, and we don't have enough nitty to the country. We just want to want safety for all those that have been taking for their parents. We just pray that Lord the Lord will bring them back to their families in one piece. We know we can return the emotional stay these kids around, but physically, if we can just give them back to their parents, that would be a big, big boost. Not for the nation.

We've got to pray for the nation. Lots of bad actors going around. We're just going to make sure that nations stays strong, united and of course solid. So that note, guys, let me let you guys go. We have a fantastic rest of your Sunday, and I'll see you guys next week. Thank you so much and bye.