Good Debt, Bad Debt, Using Debt to Grow Networth

this year. We're talking about the major themes in financial planning. Right, we're set up with the income and expenses. Then we went into network, which is your assets and your liabilities, and then of course we talked about also about investing, you know, how to do asset a location. We talked about inflation. We brought into folks that talked about how to even invest in tween twenty five and we felt it was all so expedient this week. Then talk about debt,

you know, because death gets a bad wrap in investing. You know, lots of people say, oh I don't want to borrow, or lots of folks want to borrow, but don't know how death is not good or bad. Not even finance is good or bad. It's just how you use it. So let's do a space ast where on debt, borrowing, what is good debt, what is bad debt? And all that kind of stuff, right, so that we can learn and hopefully we can use that advantage. Of course, death is going to be from mortgages all the way to

credit cards. Now, guys, it's going to be very interactive space. You know, I can really talk a lot about debt. If you guys ask us questions, it'll be fantastic so that we can all learn together. But let me just give you a primer. Right, They're just start with good debt, bad debt. Good debt is good is debt? First of what is debt? Death is front loaded consumption? Right, front loaded consumption When you borrow, what you're doing essentially is

that you are borrowing against future income. So you're going to make money tomorrow, but you want to spend money today, so you borrow against that future income, and that that becomes front loaded consumption because you are borrowing to consume or to invest, so you are front loading that investment or that consumption. It means that you are created that whole in the future. Right, there's a hole in future you have created, so you have to cover that whole up.

So the whole concept of debt is that when you borrow today, you want to make money to the next day to pay off in the coming years. That's the

whole issue of death. If you are borrowing because there's an unexpected expense, the same thing you are front loading that consumption today, you are going to create a whole tomorrow which you need to cover up, which means right, Which means right that death can be good and debt can be bad if we can generate revenues today to cover up the expenses whole we have created to the future. So what's a good debt? A good debt is going

to be like a mortgage. Right. Let's say you have a thirty year mortgage and then you are borrowing to buy that house. The issue is when you borrow, the house or the asset is also appreciating value, but your debt or the interest rate that you're paying is more or less fixed. It could be fixed for thirty years, it could be fixed for even ten years. But when you compare the debt, the rise and the debt, and

then the rise and the asset value. You see that the asset value, which is the house in most instances, would keep paid to the debt or would even grow faster than the debt. So the revenues that you are getting or the benefits you are getting tend to be better or to grow more or to be you know, give you a better net worth than the cost of the debt itself. Good debt number one. The cost of this debt is not larger than the revenues or the

asset growth of what you have bought. So if it's a good debt, it means that what you are paying is less than what you are getting with the mortgage. You're paying a fixed costs, but the asset apprecision is basically going on and on, and it's also tagging onto inflation.

So take Nigeria for instance. If you bought a house insane, a bar or lucky or caduna right, the house value would appreciate with inflation, but the loan that you've taken to buy that a house is usually fixed usually get to fix deposit or sorry fix credit from the bank to buy that loan, so you see that balace that you get, you are every month that goes front, that goes forward, your INTERESTRCE is bending down, but your asset value is going up. That's good debt. So what's bad debt.

Bad debt is of course the debt where the cost of the interest is higher or is more costly than the revenue news or the enjoyment you're going to get from that from that activity. So if you say you use your credit card and you're going to vacation, you're right to say, do buy. You're not making any revenue. It's just vacation holiday. It's good for your soul, but you're not making any revenues, right, So you're putting points or should we say cash or balance on that credit card.

So the rate of growth of that credit card is going to be higher than the rate of growth that you're going to get from the asset appreciation if there was no asset boss anyway, So you could argue that that's bad debt because you have to pay that consumption over time with interest and there's no revenue that has come true to help you to pay that. So that's good debt and bad debt in simple forms. If you borrow to buy something or to invest in something that

can pay you back, that's good debt. If you are borrowing to do to buy or invest in something that's not going to pay you back on the revenues, that's of course bad debt. And like we said said, it's a lot we're going to talk about. Really, I don't want to take your time. So if you folks have got questions, I see the d MS popularity active, let's ask right, let's make it a very interactive session's let's let me let me get those questions and then we can take them. I have a long list here. Look

at the what we posted up here, fico. How can you get a good credit score? Right? How can you don't go that bad debt? Mortgages? Credit cards? How is the best way to use them? I can go on and on and on, but I don't want to, so I prefer to basically take my answers down to what you guys really really want to know about so that I can answer and let me just jump real quick on the d MS. It's our credit is a great question from Shay from Shay O want Shay? Yeah, she

is asking our credit cards? Should I get the credit cards. Are they good? What is the pros and cons of getting credit cards? Great question? Now I call credit cards. Credit cards can be good and credit cards can be bad. But you put it very very careful about credit cards. When you go to the West, it's a credit society, which means that everything is on credit. You can pay for really anything on credit, and you are encouraged or she even say mandated to get credit in the West

because you have a credit score. And if you want to buy a house, or you want to buy a car, unless you have the cash in hand, you've got to go borrow. And then if you want to go borrow, they look at your credit score. So the point is this, even if you have your own cash, even if you never borrow, you are doing all good and all that. If you don't have a good credit score, it counts against you. So let's say you don't borrow, You've been

kept good balance sheet, you know, and all that. But you want to buy a house, right, they're gonna pull your credit. And when they pull your credit, if you have no credit score, you're gonna pay higher interest rate than someone that just has maybe average credit. So it's always advisable to have credit. The promise you can have credit without paying anything. You don't have to pay interest to have credit. So let's come back to credit card

shaw you. If I want to get the credit card in in the West, I will get a credit card that has points when I mean pointed. When you use the card, you get a cash back reward or you get points or whatever. It is. Going to give me a card that has got a reward. That's number one. The number two. How do I want to use my credit card? I want to use my credit card without paying interest. The way all credit cards work is this.

If you swipe the card, say on the first, you have to pay within the cycle date or the calendar date or whatever the card company tells you, if it's twenty days or thirty days. If you pay the balance within that period, you pay absolutely no interest. So what do I pay with my debit card? I pay my debit card. Say I pay my groceries or I buy gas to my credit card, right, my debit card. Right. Instead of bringing that to my debit card, I use

my credit card. I pay for those same groceries that I've paid for with my credit card, but now I'm getting the points. So I pay for gas on the first, I pay for gas on the seventh, I pay for gas on the twenty first, So I've paid for gas three times, Right, But what do I do. I immediately before the month is over, I clean up my credit card expenses, so I pay zero percent. It's like having a thirty day no interest loan. I use the card, I pay off. The credit card gives me a reward.

It can be cash, it can be pointed, it can be whatever the card says it is. But I also increase my credit scoring because every time I swipe my card, I've taken the loan. When I pay back, I paid back the loan, So of course my credit score goes up for doing nothing. I'm doing the exact same thing that used my debit card I do on my credit card. Right. So that's the good side of using a credit card. You can use a credit card to increase your credit scoring.

Number one, And of course you can use credit card at no cost to you. And of course they get a credit card card work to give you rewards. If you get a credit card that pays your airline points, for instance, and you use that credit card all through the year to buy just gas, and groceries, you might be paying for your trip back to Nigeria. Right, you can use those points and then get a ticket that will bring it back to Nigeria every year. So you've got to plan it out and choose the right card.

Credit Cards are not good or bad, it's how you use it. What you don't want to do. She is to use a credit card to go shopping. Right, if you go shopping and you load up the credit card, once you use your card more than thirty percent, it counts against you. So let's say your card is a thousand dollars. Once you carry a balance, not when you spend. You can spend one thousand dollars and pay back a

thousand dollars, no problem. But once you carry over more than three hundred dollars or thirty percent into the next month, it starts to count against you. Credit cards have a limit of thirty percent before it counts against you. So what I mean to carry it over into the next month. That's going to cost you about thirty points on your if you use that as a percentage out of how you get your score. If you want to have a good score, Number one you pay on time. Number two

you don't carry over more than tty percent. If you just do this too alone, you've got sixty five percent of the points that count towards your credit card and your fiical score. So she hope that helps you, right? I would say number one, Yes, take the advantage. It doesn't matter what credit card you get. Get one. The bank won't give you a credit card because you don't have a credit call. Go try and see what's called

called a secured credit card. Secured credit card. What that means is that you you're gonna go to the bank or the credit union. You're gonna give them your mostly called your You give them cash, and the bank will then give you that credit card. You give them cash, they give you a credit card. Then use that credit card responsibly. Like I said, get one that has points, right, or get one that pays your cash back. Put the balance on it, pay the balance of don't carry the

balance into the next month. That way, your card is zero percent, but you are getting the cash for free. Yeah hope, I held there. Thank you? Say second point, whats fyco? Your FYCO is just your credit scoring. FICO is the name of a company fair Isaacs Corporation. FYCO simply is the issue. We say, the company or the prenet company that tracks your credit scoring in America, about four of them. I just know three off hand. I know I know TransUnion, I know Experience, I know Experient.

So those three guys track your credit scoring. What that means every time you spend money or you take a loan, if you take a loan from a bank, which your social security, anytime you take a loan, those guys basically will send the report. The bank send the report to the credit bureau. So once you go to a bank or credit union, or to anyone that uses your social Security to give you a loan, you are creating a copy or a record that the bank or lending the

lending institution will send to the credit scoring bureau. So what you see is that over time they build up your credit history, who you are borrowing from and who you are paying back to. So ather lenders use that credit score in your FI cod as it were, but that's a name for it to determine if you're a good lender or if you're a bad lender. In simple terms, if you borrow and you pay back on time, then

you're a good lender. Was the implication. Your credit cost goes down because your credit scoring goes up, so they hire your credit scoring to lower your cost of boring. Guys, don't sleep on this. If you want to buy a house in the West and you have a high credit score, that extra one percent that your house gives you, that extra one percent that you get right because you have a good credit score, can transit anywhere from ten thaland

dollars to thirty thaland dollars over those thirty years. So it's very very important that you have a good credit score. And you don't wait. Don't wait and sit till I get a job. Once you get to it to the country. Like I said, if you don't have a job and all that, get a secure credit card. It's good to get it on your social I don't advise you getting it without a social so that it tracks no over time.

And another thing you can do is if you're married, or you can put yourself on your wife's card, on your husband's card, on your partner's card, so that you'll ask the bank, if I put myself on this card, will I also get the point or the credit scoring? Will it also show up on my score? Some banks don't do that, just give you a card that you can use. Some banks will do that. They'll give you a card that you can use and the points come

to you. So be very clear. Ask them. If they say no, there's no point getting it, they say yes, do get it. So fyco is very important. Is one of the most important things on non in America after your social agree. So you want to make sure you're getting a good fycle there, all right, great, So lots of great questions here, guy, I'm just trying to read through and just pick the ones that are beat unique. Abdurahim is asking what sort of investments should we avoid

making with the debt or broad funds? Great question, Abdurahim. So avoid spending or using your credit card to invest in to invest in a new project that has a lower return of investment than the ap R of the card. So let me explain it this way. The ap armies the interest rate the card will charge you. Right, if the card is charging you twenty percent interest rate, that of course you should not use your card to do anything that will charge you less than twenty percent. That's

number one. On second place, I'm going to meet you in you speak, that's number one, Number two, a credit card should not be used for investing. So after the man, you don't want to use your credit card to invest. You don't want to use your credit card to go buy stocks and shares. Why because, like I said, your credit card is thirty days or based on what the card complete tells it is thirty days interest free. So if you have any transaction it's going to make you

a profit. That's good, but that profit must be closed out within those thirty days or whatever days your credit card company gives you. So a credit card company says you're going to pay back in thirty days, no interest free. Of course, when you don't borrow to invest, it should be able to clean up that transaction within thirty days, So you make a higher return on investment if you borrow and you do a good transaction that is going

to pay you in sixty days. Of course, going to pay a credit card company back with interest for two months, so it doesn't make any sense. So Number one, the tenure of the man is very very important. The tenure of the of the investment. It should be lower than thirty day's number one. Number two, I don't advise to do any investment because you're not sure of that tenure. And like I said, you use the credit card to build your credit score up and to get points. Credit

cards are very dangerous. They have the highest interest rateing and highest aprs that you pay twenty percent is average you pay twenty five twenty nine, So they are very expensive. But you can't use them to your advantage. So try not to use your credit cards to do investing. Use your credit cards to get the points and to increase your score. And second, how are you doing. You've got the flownouts, so go ahead on second? All right? So before gets ready? Yeah, So, just wanting to clarify on

the mortgage example you gave. This is from Lorry Lourie wants me to clar five on the mortgage example I gave earlier. Yes, so if you take a loan to buy a more to buy a house, right, that's usually looked that looked at as a good investment, good debt. Okay, see a question, So let me clarify, right, So you're asking if all mortgages are good investment. Of course not number one. The rule of mortgage is say location, location, location, which means that when you want to buy a house,

you want to look at the location you're buying that house. Correct, So let's say all things being equal, you are paying rent today. You are paying rent today, which means that you want to whatever happens, you're going to pay rent. So it's it that you pay rent or you pay mortgage, but you are still going to pay something from your account to live somewhere. Now, which would you prefer to pay rent or to pay mortgage? Mortgage is always better?

Why because to the mortgage you are getting equity. What is equity in the West. The way the structure there are loans is that when you pay five percent for a house, you own the house. So if a house is worth one hundred thousandner or dollars, and I pay ten thousand dollars of the bank, I own the house. I am paying my mortgage. That's a separate matter. But if the house appreciates from one hundred thousand to two hundred thousand, that one hundred thousand is my own. It's

not owned by the bank. It's owned by me. I can use that appreciation and take a loan and use the money to do what I like. I still pay my mortgage, but it's owned by me. But that's equity. So when you buy a home, you are giving yourself access to equity. So in terms of that a loan, even if you're going to pay the same cost as for your rent and for your mortgage, it's always should we say better to own a mortgage because it still going to pay something, but at least the mortgage gives

you equity. So if you are to do that, you want to have a great credit scoring to buy a home in America. What you need two years tax return credit score more than seven hundred. Now the higher credit score and looking at your debt income determines the interest rate you will pay to the bank for that mortgage. The difference between pain four percent and five percent that one percent is almost ten thousand dollars over thirty years.

So you want to make sure you have planning to say, I want to get the highest credit care with the lowest loan to value so that I can get a very very very very good interest rate on my loan. That's your target. So the mortgage is not all mortgages that you should take a loan for. If I wouldn't take a loan to build a home where I'm not going to live in, if I'm if the home it's

going to be in my village. So if I am from a small village right in the southeast, I willn't take a loan to build that house because I don't live in that house, so that it's not advantage for me in terms of the equity. Right. But if I'm living in, say in a bar, I can take a loan to build a house, but because I still have to pay rent in a bar. But if I leave in mount House, Namba, at least I get the equity. You see the point I'm making so that equity, don't

don't step on equity. Great and second, I ready to speak a second, move on a second? You were first year? Okay, let's get this. I got real on the score, deem the real on the score? Dem how are you doing so the real? Yeah? Yeah, very good going from here? How you do? Go ahead?

there twenty one percent investments in Nigeria? Yes they are and they're very very safe. Is the federal government treasury bills are paying anywhere from eighteen to about twenty twelve percent, But you have to have this fifty million naira to qualify for that at least fifty million Ira. The savings bonds are paying anywhere from eleven percent to about ten

ten percent you need or just five thousand. So yes, if I borrow at one percent, I don't know what country it is at one percent and I bring that money. What you're doing is called it's called the carry trade. So you're ask him about the carry trade. If I carry that money from that country to Nigeria, yes, I get the high investment. My problem is I have to find a way to go from naira back to that currency. If you can find that answer, I would say do it.

If you can't find that answer, I'll be careful. You know, look at Nigeria. A Julos Burger. It's now exporting cashw notes. This is Julos Burger. So they do contracts in naira, but they're a German company. Nigeria has no Nira dollars. They do their exporting cash.

or four three years. We don't have it anymore. So I would say the one leg is good. The only part I don't have I have issues with is the one that is going to go back. That's what I'll say. So does I answer the question? Yeah, thank you very much. I have gotten what I heard. Perfect. Perfect, Let's get sick and second, go ahead. You've got the floor.

You know it has cash back points, or it has travel points, or whatever reward it is. I want to get the reward a car that has a reward. If I get that, how do I use that card? I buy groceries, the same thing you would buy with your debit card, not shopping. Not know what I mean shopping, not going on a shopping spree, but the same items you pay for your utilities, your gas, your books, the same thing you pay with your debit card. Use your credit card, get the points, then make sure you clean up.

You pay up before the month is over. As long as your balance at the end of the month is zero, the credit card company will not charge you any interest irrespective of what the interest is charged on the card. So if you do it this way, I've explained it, Yes, get a credit card. In that line, that's the only time I recommend you get a credit card as a student, if you want to get a credit card to spend.

The answer is no, they're very very dangerous. They charge you are very very high and all percentage your rate. So unless you are getting a credit card to get the point and going to clean up every month, do not get the credit card. Does that answer the question? Yes? Perfect. I have a question here from Joseph on the DM but let me get a duke to answer, because Joseph's question is very exploit Duke of you've got the floor.

you to spend a particular amount in a month. My question is how if you are not able to spend that particular amount, the credit card company expect you to spend in a particular amount.

don't show up, you're going to pay. So let's assume you get a car that has a zero percent annual cost. You don't have to spend. The point is, if you don't spend, your credit card does not go up. You see, they are forcing you to spend because that's how their culture is. So you don't argue. You basically go to Rome and do what the Romans do. So if they're saying you want you need to have a good credit card to buy a house at the lower point, you

do you follow them. But what you do is that you follow them with with sens right, So what you say is, Okay, I'm going to get a credit card for a thousand dollars, It doesn't matter how much the card is. A card of five hundred and a cad of ten thousand is the same principle. If you get that card, as long as you use the card and pay back on the card, you've got thirty five points. So as long as I use the card and I

pay back on time, thirty five points. As long as I keep less than thirty percent on that card, meaning that I don't carry more than thirty percent from the one month to the next month, I get thirty percent. So thirty five plus thirty I already have sixty five points from just doing these two activities. So pay your card on time, don't carry more than thirty percent over from one month to the next month, you are already

as sixty five percent. Then what another point, how long I've got my credit card is ten points, which is why we like you take an axe. You want to get your credit card as early as possib because you're going to lose ten points if you don't get it. What is the other point the type of credit that you have. So if you just have only credit cards, maybe you don't get enough point. But if you have a credit card and a personal loan. Ooh, now you get extra point for the type the spread of credit

that you have. Right then, The most dangerous one delay is this when you have a credit card, please don't apply for a second one, especially if you're like a student or a loan income in. Every time you apply for credit and the credit card company pulls your credit card, we just called an inquiry. It deeps your score. So unless you really want to get the loan, you go to the store. Most stores will tell you, hey, welcome to TM TG max. Right, do you want to get

a TG max card? I should name do you want to get a card so that you can get a discount today? If you say yes, you are applying for a credit card. They don't say that way, but you're applying for a credit card. Every time you apply for a credit card, it does an inquiry. It reaches your score, So you want to be very careful. Once you have one, leave it that one because you want to build up your score. So get a card with no annual points. You get a card with reward. Just buy your grocery

or your gas. Buy fifty dollars or fifty pounds every week, pay it off fifty pounds every week, pay it off. If you just do this for one year, you're gonna have the highest credit scoring. It's not hard. You don't have to do anything complicated. Get a cap of five hundred pounds of five pound dollars, use fifty dollars, use fifty pounds, pay it off, repeat, do it every week for at least eight months. You're gonna have the highest

credit score. You might not have the highest because you don't have a personal loans, but you get what I mean. You'll be at very, very high our number. Does that work for you, sir?

Central banks rate goes up and down with. Right. The other one is called a fixed rate of fixed rate mortgage. Right, that's a normal one where once you buy the house, it's going to be a fixed rate going forward. It

doesn't go up or down. Now, your question is this, if you are going to stay for four years, three years, if you're going to stay less than five years, then it may make sense to buy an adjustable rate mortgage if the rates are lower, because you are trying to get that house at the lower cost and you are hoping that the house value goes up so you can get out of the transaction. So you can sell. So you want to keep your interest rates very very low.

Get the house. Then you're hoping that you want you have to flip this house in two three years, then you can flip the house without paying that high interest cost. You see the point I'm making, It's not really has to do with your arm with what it has to do with your objective. If you want to buy that house to live in that house, right, and rates are low, always go for the fixed because you are locking the low rate going forward. Right, Let's look at today in America,

rates for mortgage are higher than usual. They're about six seven eight percent. They are higher than usual. So if I want to buy a mortgage now in America, with all the uncertainty, would I buy an adjustable rate mortgage? Maybe not, because no show will happen in the future, and I want to buy something that I think is low. Right, But even if I buy today at eight percent and I lock it in, if rates fall down, I can refinance at a lower rate. So I can go from

eight percent to six percent by refinancing my mortgage. But if I buy an adjustable rate mortgage, I'm saying that the rates can go up. Rates can come down. So it's not really to your question. It doesn't matter. Your down payment has got to do with what you want to achieve with that home. The more you pay down payment, the less your more interested. In America, we have what we call the the insurance this insurance PMI. PMI is

insurance you pay to the lender, not yourself. To the lender, if you pay less than twenty percent to buy a house, they will charge you PMI. You don't want to pay PMI because not your insurance. It's like you're buying insurance for the bank. So if you pay more than twenty percent, you don't pay PMI. But the question that you want to ask yourself is, Okay, if rates are so low, I just maybe just pay it together. Why you have to pay twenty percent of my money on the house.

I have that cash, I can go somewhere else. So one I'm trying to answer is this duke, is it has to do with the objective why you are buying that house. Will determine if you should pay a high down payment or a low down payment. If you're going to flip that house, you are looking at keeping as much cash as you have with yourself. But if the house you're going to live in for ten years, oh bye bye, pay the PM paid twenty percent and reduce

your future interest payments on the house. Does that make sense, Duke, Oh yeah, yeah, So look at it that way. Adjustable rate is fluctuating, but it's cheaper initially. So you're looking at send the house quickly, that's your objective a RM. But if you're looking at living that house with your kids in school, good school district, pay the thing, reduce your monthly interest rate and enjoy it. You can always refinance downwards, doesn't matter, right, So that's how I want

to look at it. Yep. Okay, Joseph, I'm reading your DM very interesting DM. So j Justef said, let me try to explain to you. Joseph says he has an opportunity for a loan of twenty percent. So, Joseph, our loan is twenty percent rebate of six percent, so mean you're gonna pay about fourteen percent. So it's fourteen percent loan, right, and it's for one to three years. So we have a fourteen percent loan for one to three years. The repayment is is three years and it's going to cost

you tenenty five percent of your salary. You didn't tell me, Okay, tirty five on your salary. Okay. Now I think you are asking me if you should buy a government bond for twenty three percent or a mutual fund at twenty one percent. It's a simple answer, Joseph. And it's a simple answer. The loan is for fourteen percent. You can't buy anything that you are not sure of getting more

than fourteen percent. You can't buy anything. So when you say mutual fund, is that mutual fund guaranteeing you twenty tw one percent? If if it's an equity mutual fund, it's not guaranteed. Even if it's a money market mutual phone, I'm not sure it's guaranteed. The government bond is twenty three percent. I like that one more because you are taken at fourteen percent to make twenty three percent, So you've already locked in your profit. There's no risk there

because it's the government. So you are borrowing from your company at fourteen you are given to the government at twenty three. You've locked the money in, no no, no risk. You're going to make how more twenty three let minus fourteen? How much is that about nine percent or so risk free. The only question is that if you want to quote unquote do more, then you are going to have to take more risk. And this mutual fund you're talking about is more is riskier than the government bond. If it's

an equity mutual fund. I would not do it with the loan because it can go up to one hundred percent, it can go down to two percent. So be careful about borrowing to invest in something that the value is not locked in now, there's no way you can hedge that. So I would prefer the government bond. It's going to

be a simple tidy exchange. You maximize that borrowing. It can give you borrow your hundred million eire, borrow one hundred million Eira, take it and go and buy the government bond at twenty percent and make nine percent risk free. They might have some tax advantages there if you do the government bond. So based on your on your d M. Joseph, that's it's a simple thing to analyze. Remember, if you take a fixed cost loan, you don't want to invest

in a variable return investment. I say it again, if you take a fixed cost loan, you don't want to invest in a variable return instrument, because then you are chasing what you don't know. Just how that makes sense for you? Great question. I love those kind of questions. Thank you, doctor Smart, you've got the floor. Go ahead, sir, Thank you.

there are only two forms of investment. There are only two forms of investment. Number one, that's what we call fixed return. Fixed return means as you are investing, you know exactly what you are getting back. So fixed return. If I invest tenera today, the banks isn't going to end ten percent. I'm not going to end ten percent on my tenera. No argument is fixed return. I'm ending interest on my principle, fixed guaranteed, no debate. The other

investment is called a variable return. So when I buy a stock, if I buy Dango to cement, my profit is based on how much profit dank the cement makes. I want to pay me. They can make one hundred percent and pay me one hundred percent. They can make one percent and pay me one percent. So you see that's fixed and there's variable. Let's now go to mutual funds. Mutual funds are just a basket. They will take that

basket and then they put things in a basket. So they're now sell it to you, and you will say, listen, instead of you buying a Mercedes car, a BMW, a Toyota, a Lexus, a Tesla, just buy this basket. Once you buy this basket, you have bought all those car companies immediately. So when you buy a mutual fund, Americans call it mutual funds. Nigerians we call it unit trust. So Americans don't have trust or they don't have a what trust deed in Nigerian read real palace is unit trust in English?

Mutual funds in America, But it's the same thing. Even when you hear ETFs exchange traded funds, it's the same thing. They are all a pool of funds managed by an investor on your behalf. So when you want to buy a mutual fund or in a trust, you want to ask yourself. Are you buying a trust that is doing fixed return or is doing variable return? How do you know your actual manager? What is this you need trust for?

If they are only buying bank loans, certificate of deposits, fixed deposits, treasury bills, anything that they know the interest rates in advance, that's the fix return and they usually will tell you on the you'll see IBTC equity or IBTC fix return. You'll see it on the name. If you're not sure, ask them. So, if it's a fixed return mutual fund, you are only going to get a return based on the fixed fixed returning instrument that they

have bought. If it's a variable return, right, then you are getting mutual funds equities, you are binding to the profit and loss of a company. So most once you see are sometimes equity. You can also have what we call a balanced where you are buying half equities or half mutuals, but they will give you the percentage. That's basically it's when you hear me say VT in America, that's a mutual fund or an ETF. That's an ETF

that is investing in variable income, which are equities. When you hear me say b ND, that's an ETF that is investing in a fixed return, which are like bonds and money market instruments. So smart, what you want to do is that when you want to buy anything, you tell the banker or you tell on your app. Use your app. You say fixed income mutual fund, neutral, it will, it will, it will screen for you and give you only fixed income. Fixed income means that your principle will

not increase. What you are going to get is that you are making a return on your principle. So it's what were called capital preservation. Principal preservation. If you give a bank a billion, your one billion will not increase. What you are doing is that you are going to get to return on your one billion. You see what point I'm making. Even if they give you one hundred percent return, you are getting one hundred percent return on your principle. But when you invest in variable income, you

invested in the profit and loss of that investment. So it's your princes park can actually go up if the share price goes from one dollar to two dollars, and your princepe can actually go to zero if it goes from one dollar to zero. Did I answer that question right with towards.

I said, I've I've front loaded my consumption. If I borrow or one hundred million narror and I buy a brand new Lectus cheap, what have I done? I have gone to the future taking one hundred million of my earnings brought you till today, and I'm consuming with buyinger

a Lexus chip. It would make perfect sense if that Lexus jip, I'm going to use a Legus jip as car higher or movie you higher and people pay me back money and over the years I make money to service that loan that when that hole, that one hundred no A hole comes, I have made so much money from renting that car out that I can cover that loan. So it makes sense. But if there is no income to cover that one hundred million IRA hole, how do

you cover it up? It's going to be covered up one way or the other by you reducing your livelihood and your expenses. So even if you're going on holidays with your family when you're older, you'll find yourself paying a loan to a car company. That's a problem. So you want to be very very careful about borrowing to invest, not just in luxuries, but any venture that does not give you a rate a return back. You know, when you look at when you look at how accountants do

balance shift, they will do assets and liabilities. But when financial planners do a balanceship, we look at we will classify your asset in terms of is the asset any money for you? That's what we look at the assets. If you have a phone, let me give a better example of hurry. A brand new Apple phone, latest model will cost you maybe one thousand dollars. It's that phone in your hands. It is an asset or a liability. And I count tell you that that phone is an

asset full stop. But the financial advisor will tell you it depends on what you are doing with that phone. If I use that phone to make calls, to receive text, to take selfies, it's a liability. It's not an asset. It's a liability because why it's taking money away from me and paying alone to buy that one thousand dollars iPhone. But what if I use that iPhone because the memory, because the graphics on the phone to run my podcast, and from that podcast, I get folks that advertise on

my podcast and I make returns for me. Of course, that phone becomes an asset because it's generating income for me. So the phone itself can be an asset. It can be a liability. Your car can be an asset, it can be a liability. That accountancy is different from how financial planning because if it's not bringing you money. You can have a house in Lacky that is worth a lot of money, but that house is flooded so you

can't rent it out. That house is a liability to you, not an asset, because you are it's costing you more money to maintain that house than you are making from rents. So it's not asset liability in the accounting sense. But is it giving you money or is taking money away from you? That's how in planning I define assets and liabilities. I'm not saying I can. That's the wrong, but when you look at it that way, it clarifies many things

for you. Right. That's to answer your question. So that answers your question without me answering it tells you it might not be a good idea to fund any lifestyle that you're not making money back from. Let me give you an example again. Just make it close to you. I saw Bonnarp Boy his his parking lot. He had lots of Ferraris there. I saw what's his name that video he's driving the latest rolls roys Is? Are those rolls

roys and Ferraris? Is it a bad investment or a good invent for those guys to buy Ferraris and rolls stroys? It's not a bad investment for them. They are in the business of entertainment, so they need to entertain and show you off. So if bona boy was make a Camaro and nobody will follow him, he has got to drive a Rose Royce to show he's an entertainer. It's like him buying a brand new iPhone. That's the same way he's buying a brand new Rose Royce. So he can do that because it's his job to buy to

wear diamonds. That's his job. But if you work in a farm, your job is not to show off or to entertain, even if you have the money, So it's not the again, go back to the example. It's not the income or the expenses, it's is this thing bringing money for you? That's the question. Bonnap boy is gonna use that rolls Royce to get more gigs. So that's why it's an asset for him. But if you go borrow buy a ferrari to drive the ferrari, it's not an asset for it because you don't make any money

from that ferrari because you work in the library. How do that makes sense on the question? But let's go to your first question, Barr is a very ver supple answer. You should, in no circumstance go to a bank to borrow money to start a business. Where in America, where in the UK, where in Nigeria? Banks are not set up to lend you money to start a business. No, you start a business with your family and friends and your own savings and equity what we call patient capital.

You don't want to borrow from a bank because when you're a startup, what defines a startup, Harry, there's no cash. It startup basically means you don't have any cash. So if you don't have any cash, why are you taking the limited cash you're even making from operations to pay the banks? What more, you see anything that are going to be taking your principle to pay back that bank loan.

That's why there's this question always ask people. There's a stratestic that shows that most businesses in Abuja closed after two years. And I asked, why do you think it's two years? Because two years when your rent expires, so the business really died, but since two years twenty then they formally closed. You should not to answer is simple, buyer. You should not go to the bank to borrow money to start the business when you have started the business

and then you need working capital. Let's say you have a contract to supply. The guy says, if you supply me this, i'll pay you one week.

telling you that we're going to give you. I want you to pay me twenty three thousand dollars, and I'm going to give you a piece of paper. That piece of paper can change your life, or it can be a cost, it can be an asset, it can be a liability. There After, the student on is this, will you get a job that can pay back twenty three thousand? That's the only answer. It's not a numbers question, per se, Techno.

It has to do if you spend, if you invest twenty three thousand and so something, no matter the interest rate, will you get a return that would pay back twenty thousand? That's your question if you are doing it. Of course, in anxieties usually yes, because the it folks are not show how they may do it, but they're able to make a lot of revenues from their certification. Maybe they go and do Python or whatever they I don't name,

but they get a lot of revenues. Is salary revenues that can pay back their loone right, same thing we'd say a certify financial analysts is that certificate is in demand. Is an international certification. If you get it, you're able to get a good job to pay back your loan. So it's a question really of what are you getting when you say NBA internationally this program. I would say, don't do it, not with the loan, because NBA is and I'm not. I have an MBA, so let me

just make sure. Don't get me right. NBA is like water. If you want to do an NBA, I want to borrow do an NBA. Borrow money and go to Harvard. At least you get the network and then you can say I'm investing in the network. There is nothing Harvard to teach you that the business could No nature will not teach you, trust me. The difference is this in Harvard they're going to meet the folks that will be

ceeos in ten years in a Nature Business school. They might be seals in ten years, but they're in Nigeria. Which one has more currency for you, Harvard or Nature Business School? So it's not really technolog You get my point right. It's not what you're paying for. It's not what it costs. It's what you're going to get from that. If somebody tells you to forget the education part. Let's say someone tells you buy a ticket. This is gonna cost you twenty three thousand dollars, and this ticket you're

gonna have just two outcomes. You're gonna have up or down. Up means if you buy this ticket you get double, So you spend twenty five thousand, you get fifty thousand, or if you buy this ticket, your ticket are going to get zero. So it's a binary choice. You give up twenty five thousand dollars you buy a ticket that's going to go up fifty thousand or down zero. Would you do it? Would you? Would you take that risk and say if I spend twenty five thousand, I'm going

to get fifty thousand, nine or zero. That's number one. Number two the NBA you want to go for NBA is you are buying the school name, not the education. Forget that. Can I tell you are buying the name of the school. If somebody applies to your company from Harvard, you will take him and you'll put on your on your another point and say we have this guy, he's trained in Harvard. That's why you're saying. Anyone that goes to Harvard, they always put it there had along Night

Mit along Night Sloan School along Night Year alumni. Why they are telling you they went to this unique, very very exclusive place. And that's current se That exclusivity is the crazy. That's what you're paying for. It's not what they leent in that school. It's who they can call and say, Okay, I wasn't habut with this guy. You can't have it a long nine. So if it's just gonna be an NBA program, I wouldn't do it. If

I have the money, I would do it. If you have the money in your bank account, sure do it. Add to your CV. So if you want to go for I don't call any name schools school and the school's name, and you have the money, do it add to your your program. It favors you. Your CV is you know it's health your CV, but don't borrow to do it unless it's those Marquee unique schools that you

can then relocate even because you did that. If it's just gonna you're gonna spend that all that dollars to get around the Male Business Program, I wouldn't do it. I wouldn't. If you're gonna go to China and lend Chinese to do one international program, that're gonna live in China, fantastic. But if it's gonna be an NBA program, what's it gonna give you NBA? Unless you're gonna use that NBA program in Nigeria and become CEO based on your MBA,

then it makes sense. We don't roll like that in Nigeria. Right in the UK, US they rod with where you attended Yale? How many presents have yield brought out? Obama was Harvard, the VP we have today in America, Yale, even Trump, Prince was it was it, Pennsylvania school went to Psvan went to So they all rolled like that. But if it's not that, be careful. If you have the money, do it. But if it's something going to borrow,

be careful. If you're going to borrow, then invest in a school that has name, So you're buying in quote the name of that school to help your CV because it's a business man. Yeah, it's a business in the end. All right, thanks, Thanks, that's just my opinion right again, So let's get the fair. I am oddo the fermi? I am Hey, what's hi?

Do you think it is wise for me to take that property? So be on your mind that if I'm going to lease the property, I'm not going to stay there because I already went the place on that same street.

be risky or something. So those are the factors I'm that weigh on my mind. I don't know what you think about it.

Then you can invest with them and own the short let apartment and then they manage it for you. They've now even gone to owning the building at themselves being very successful. They've come here three times. If you fill the space, you will know about them, right, and they've done pretty well. So but look at your question, Like I said, it's not a relative question. Is a question about if the risk free rates in Nigeria at risk

free without doing anything is twenty one percent. Let's say it's twenty percent, why would someone take the risk and invest in something that's going to pay him t percent twenty five percent. That's really your question and that's the problem with Nigeria and high interest street. If I have a billion era, I can make two hundred million Eira without lifting a finger. If I have a million error, I can make two hundred No not if I have fifty million or one hundred million, I can make twenty

million every year without lifting a finger. With twenty million, I can pay my driver, pay my cook, go from somewhere in Malta and come back. I don't have to do anything. I do have to chase workers, I have to chase tied to or nothing because I am and in twenty percent risk free So that's what question you're asking. You don't have You don't have one hundred million of your own. You want to go borrow at money in cure the risk that if that loan fails, you're on

the hook. Because Nijera does not have non recost loans, they're gonna come after you if you if that project fails, you have to pay. You want to take the risk to invest in that project, and you want to make a return that will first of all pay back the bank or whoever I lend the money from, and number to make it worth your while. In finance, something we'll call capital asset present model. That's answer your question by doing the official numbers and all that to say, hey,

is it worth it? But let me ask you a question. Come come back to yourself. The return you think you're going to make, You've done your modeling. What's the return number you think you're going to make if everything goes as you have planned? There's no ware you invest this money, you buy this building, what's the return you believe you're going to make? All in no issues or return you make?

hear you saying. Because the risk filated. If I have one hundred millionaire today, I can go to my bank, give them that one hundred millionaire, tend to buy me treasury bills. My bank will give me twenty million guaranteed, no wahala. If I give it to you, you are going to give me forty percent. So the question is that extra twenty percent is it compensate me enough to invest in you. That's the point I'm asking you. I think it's okay. So you also have to ask yourself

that question. If everything goes well and you can make forty percent, you are just barely bit in inflation. Number one and number two are just covering your your bank your bank side. But there is no rich person that didn't take risk today. None. If you do this project and it works out, it's on your CV, you can go back and say I did this and to do more. So he said, you're asking me a question. Should I take risk? It depends? Can you take it? How do you are you feeling lucky? Do you get the point

I'm making. No one's going to answer that question for you. No one's going to tell you take risk. But you've got to do your modeling correct. You've got to do a lot of sensitivity in Nigeria. You've got to say, what will happen if exchange rate goes to one eight, what happens if it's faced to one one, what happens if inflation goes up. You've got to do that modeling. But I also think it's a good business, it's a

good sector. If we do the rebasing, you're going to say that real estate is going to really blow up in Nigeria. It's all about location, location, location if we were is that building. Remember you are targeting for short, two shorts and illegals. The guys are coming the jackbad the guys that have money, the upper ended people. So they want to go to where it is considered safe. If you're going to put a shotlet in some locations, they won't go there. If they be short, in some

good locations, they will go there. So I will say, really, really, get your modeling numbers correct. If you get your modern numbers correct, try and get a very very low cost of doing the low cost of equity if you can. My friend, I've told you that I come to the space. If you notice they don't go to the banks. They raise money from the owners that want to own that short letter apartments. The reason why they're not going to

the bank. The guys that have done it that I know that I've come here more than three times making love. When they don't go to the bank to borrow. So that's for you to consider. If you can do what we call other people's money. So if somebody wants to invest with you, perfect that's patient capital, right, you can do more with that sort of capital. If you go to the bank. The bank is gonna charge you every

month without feel. Every month. This is going You're gonna pay for diesel without feeling, So be do your modeling correct. It's a good sector, but it needs cash flow. In this business, they're gonna invest upfront and then recover. You see what, I'm gonna invest a lot of your money upfront. Then you want to do recoveries or like a trading business. We but you have good you buy, you sell, you know your binance. This is you're gonna invest the bulk

of the money upfront. It's gonna go cash will go out. Then you start recovering cash cash cash cash very risky.

I prefer equity than debt in Nigeria, just because it's cheaper in Nigeria or not anywhere else. Makes sense. I like that question though, thanks so much, thank you, perfect, Hey, perfect I've got let me see he dropped off, So let's go back to d MDMs asking Calu, can you talk about crypto? We always get crypto questions? Can you talk about crypto? Is it a good investment? It's something that I should do. I've been trading crypto, the normal questions.

So you see the thing with this crypto thing? Is this right now? Now? Now? Because of the new administration in America, they seem to be crypto friendly. Every day I wake up, I read about a new state in America that is going to do strategic crypto reserve. I think it was Ohio that did one, then Wyoming, then Miami. So you read about all these things happening, even as in Canada are better always wants to do crypto reserve so there's a lot of noise around crypto, especially bitcoin.

If you in America, now you have ats that invest in bitcoin. That's a big deal. That means that the largest institutions in the world have adopted bitcoin. They said, okay, this particular one is okay, and we can invest in it. So I buy bitcoin through my bank. I don't buy it to the exchange, I buye I go to the bank site, I buy it. It's that mainstream. Now there was an investment that a few years ago was considered as very, very risky and not even worthy of being

invested in. Today, if you go to your bank in America, they are ETFs, black Rock and the rest, they are ETFs that allow you to invest in bitcoin. Bitcoin alone. Right now, you've seen AI, You've seen a lot of noise around it. So it looks like there's going to be a market for this thing, and that it's going to be not just holding it because it's scarce, but they might be utility for it going down the road, it looks like. But still we don't know what these

things do. What I mean, we don't know what these things do. Everybody says bitcoin, bitcoin, bitcoin, but how many transactions can you do in legals with bitcoin. I liked there's a guys on team in America talking about that. He was a realistic guy and he was saying that the way they finance real ested now or how his fam fantasis real est is that when you come to them to borrow money, Let's say, want to borrow ten million dollars, they would they will borrow you twelve million dollars.

Then they will tell you to use the extra two million dollars to go buy bitcoin. So what they're doing is that they're buying bitcoin to give the project liquidity and safety. So when you're building the house, you have these two million bitcoin that you bought when you took the loan, and it just sits there. So if something happens to the house, maybe there was a fire or folks not buy the house, in their mind they can

sell that two million bitcoin and do recoveries. So you know, you borrowed twelve million, but you only want to ten. They gave you two million to buy bitcoin, so in their mind, the bitcoin price is going to be stay more stable than when you're home at your building, so they're able to use that bitcoin as collateral or to

guarantee the cash flows of that realistic investments. If we start to see more of these things that will happen where people are finding innovative ways to use crypto, bitcoin and the rest to do normal transactions, then this thing can really really take off. Well, I mean this thing crypto currencies or crypto as a utility can really take off because then people will see, oh, I can use it for this. There's a blockchain. You can use blockchain

for elections for currency, which is what bitcoin is. But if this thing really takes off where Walls is able to make it mainstream, then of course it's a good investment, right. But I wouldn't say be very careful by putting on putting more than ten percent of your portfolio in this. If you want to invest in this, yeah, there's one percent, two percents of a portfolio. I wouldn't say that's the wrong thing to do. But putting ten percent is taking

it a bit. You are making the larger part of a portfolio for now, unless, of course you can accommodate that risk and you think you're a younger person you can catch up. But be very very careful about buying to something we don't yet have regulations on yet. No matter what the guys today are saying, there is still

no definite regulation on crypto, blockchain and all that. They are talking about it, but not in final act wear so until because something final and definitive, just be careful a bit, right and how you want to invest in that space. Nigerians buy it because nayra is a bit you know, which will say a weak. So Nigeans like to buy crypto because it's sort of it's a hedge against investments and all that. I get it and also just make a lot of money from it. Also get it,

but just be careful. Still today you can go to a bank and open an account and say it's a bitcoin account or it's a crypto account. They won't let you do it, but Najians are doing it because they have to. It's also the way we transform on with from America Nigeria true pip. I get that part. So in Nigeria, in India and all those brass in all those countries is a big thing. But for now, until America, the UK, the West adopt it really and it goes mainstream.

It's not something you can put on a temperature. It's not like an equity you can buy more than ten percent in, but it does make money for you. That's I won't lie about that one. So keep that in mind, all right, Guess next year I like this one calor just to be clear about the credit cards again, just to be sure. I already have credit card and I'm owing a lot of I'm owing a lot. I have to credit cards and I've marked them out, and I'd like to take a TED credit card because this TED

credit card allows me to do a balanced transfer. Am I doing the right thing? Okay? So there's a great question on you are already in debt, how can you come out of debts? And credit card, like I said, are very very easy for you to going into debt because they're very easy to use. A credit card has a trick. I have to remember this trick that banks used to get you. When you are giving a credit card of one thousand dollars, if you spend that one thousand dollars, all the bank wants from you to say

you have paid is two point five percent. So if you spend the one hundred dollars and you pay two dollars or let's say five dollars to the bank. You have paid. That's it. You've paid for the month, so you can carry over ninety five dollars. Why does the bank do this, because when you carry over ninety five dollars, they charge you twenty seven percent or whatever the ap

ar is. That's the trick about credit cards. They do not want you to pay everything in full in the month of usage, so it becomes very very easy to use. So if you have a loan or if you have a bill to pay, you put it on your credit card. But if you put a one hundred dollars in a credit card, you only pay five dollars. You see, so it's easy. If you go to the store, you buy two hundred dollars worth of goods, you only pay ten dollars. You're fine. The bank lets you carry over that tony

that's one eighty the next month. So you keep on carrying over, keep on caring over, keep on carrying over until you've maxed out the card. And when you max out your card, it's the same as if you are not paying use that percent, your creditscore will also come down. So now you're in the big problem because now you have been living your life on credit. You don't have the money to shop in the grocery store. You're not going to even pay your rent, but you've been paying

it on your credit card. Now your credit cards are maxed out. You can no longer live that life anymore. So what you should you do? You want to come out of debt. So how do you come out of debt? We have two ways. We have the avalanche and we'll have the snowball. I always get confused about which is which, But there are two ways to do this. The first way to say, you write down everything you are owing.

So you write down all your debts. You do, your credit cards, your personal loans, your everything you are owing. You write it down. Then you write the cost of the loan, so that's the interest rates, what we call the API. Write down the cost of the loans interest rates to the APR. Then of course you write the amount. So you have all your debts, the cost of the debts, and of course the amounts. So there are two ways to pay your debt. The first one is to pay

the debt with the lowest amount. So if you're right, if you have if you owe, like this guy owns two credit cards, maybe he owns the personal and let's say he owns five thousand, four thousand, one thousand. The first method is to pay down the debt that is charging you one thousand. Why because it gives you an early win, so psychologically it helps you. So you own five thousand paying ten percent, you own four thousand paying five percent, then you own one thousand paying twelve percent.

So you are paying down that first one thousand dollars, so your initial quick win. And once you pay that loan off, you take that money you used to pay off. You now start to pay off the other loans. So you write your loans down, you pay off the lowest amounts. Then you take that same money and you're attack the next loan to pay it off as well. What advantage you get an initial early quick win. The other method is that it's still a you pay the lowest amount,

you pay the highest interest costs. So if you have three loans, you pay the one with the highest interest cost first, not the one with the lowest amount. So if you look at the loans, you have five thousand at three percent, you have four thousand at ten percent, you have one thousand at five percent. You pay the four k own that has a higher interest rate first,

because that's what's taking money away from you. So if you pay that one first, you are reducing the cost of the loan, even though it might take you longer, but the cost is reducing because you are paying it first. If you look at all your loans, your credit card loans are always going to be the highest APR always,

so you want to pay those ones down first. So what he is trying to do is to take a new credit card and do what's called the balance transfer, where you can take the balance from your old card to this new card. Usually when you do this, the credit card company will give you a time before you start to make your payments with interest. So you're doing a good job on doing the balance transfer, but make sure you get one with a longer and you didn't.

You didn't mention how long your balanced transfer your zero percent APR on the balance transfer is. If you want to do that, make sure you get a credit card with it with a very very long period before you start to pay interest, so that gives you more time to pay off your credit card that has those high balances. Transfer the credit card with the highest APR first, not the credit card with the highest amount, So you don't know how you just said. You have two credit cards.

So after the two credit cards, which one has a higher ap are higher annual percentage rate, transfer that first to the new card and then try to then pay it off. You now have more time to pay it off. You take it away from your old card. You don't have you say yeah, they give you try to pay off within a year. So bounce transfer is a great way to do it. And once you do this, you want to now look at your butt and try to establish the order so going forward, you don't fall into

a debt trap. You're in a debt trap, bro. If you don't come out of it and you get stuck into it, you're gonna be in serious trouble. Right. You don't want to cancel a card or you don't want the card to cancel. You don't want to put your name down with the credit bureaus that you don't pay your debts on time, because that would really bring down your score, get a negative mark on your credit. So

you want to avoid that. Whatever you do, you want to avoid not paying your credit card or any loans because they get reported and to affect your credit card. So please, please please pa piece. Do this credit transfer. You're doing transfer, do the highest APR. Get that going. Then you need to really cut down your expenses and start to pay down a credit card. You need to really cut down, cut down your cable, cut down everything else you're doing, and just focus on debt repayment. Right,

great job. Oh I just lost I just lost dark board. Was gonta invite you to speak, but you just dropped off now, so I want to add you back. If you come back on time, I can take a question or I'm going to go back to DM again. Yeah, I just want to talk about our mortgages. Yeah, so this is a great question. But I think I wrote an article guys about mortgages and the article was titled how an immigrants can buy a house into the six months.

So I gave you step by step, not not to step by step, how you can go from you leave Nigeria, you go to Europe. Anyway, in Europe you can buy a house into the six months, and I poot qualifications there as well. Number one, you have to have a job. Once you have a job, I can get you a house into the six months. You have to have that plan. And if you want to google it just go online. I read it for Nura Metrics. So just say how immigrants can buy a house into the six months caln metrics.

That's article should pop up and I'll give you because that's what you're asking cyber, that's what you're asking you on your DM. Let me explain to you. To buy a house, you need three things. Number one, credit score, what number I will say minimum seven hundred, minimum seven hundred. Number two, you need to have your down payment. So you want to save some money down because I'm going to ask you to do a down payment. So number two down payment right. Number three it's up your credit

call down payment. Tax returns. You need at least two years tax returns. Right. So let's say you leave Nigeria. There are few things you want to do. Well I leave in Nigeria. If you have money in Nigeria, I want to jack bar. Make sure you have a pay per trail. So if you sell your car, collect the check, pay it to the bank account. Pay everything to the bank account. Don't collect cash even if it's your friend. Just just leind me cat, just let me check, collect check,

pay to your bank account. Right, it shows off my bank account. Cut yourself a check, print your bank account, take it with you. Number one. So you want to establish a paper trail of how you got money. And you are taking to the United States, especially I don't know if UK, I know America, right, So you have the perpetuate where you sold your asset, you sold your house, you sold your car, you paid your bank account. It's

in your bank account. You have pick your account statement, print your account statement, get the bank to stamp it. Put in your pocket your travel when you get to America. What's the first thing you want to do. You want to get a job. You want to get a job when you get it. While you're getting a job, because you like to want to show income. You want to show end income so you can pay taxes. You don't need a job to pay taxes. You can pay taxes in America without a job. But get a job if

you don't have papers. As a different matter, if you don't have papers, you can still pay pay taxes. So let's say you don't have papers, still pay taxes. How you apply for a tax and especial number ten. You can still pay taxes without having social or being a citizen. But let's assume you emigrate the right way, and you are there. You are now getting a job. So you get a job so you can show end income right when you get a job. Next thing you want to do you get a credit card or a personal loan.

Don't wait if you don't have credit cad go to a credit union or to any back. I said I want a secured credit card, I would say, do two of them, get a secret credit card, get a secured personal loan, two of them. It's the reason why I'm watching to get two of them. You don't have to put big money. You put five hundred dollars. You put it's your money, So you put five hundred dollars, five hundred dollars. It's not going to cost you a lot.

It's your money. You put the money on the credit card, use the same credit card and buy your groceries and you pay. So you have established credit number one number two, you have established end income number two. You do this for at least twenty four months, or when you go to the America to the abbey, you do this for twenty four months. So you for the twenty four months you have your credit card running, you have your personal loan running, secured personal it means you don't need the money.

It means you give them your money. They give you a personal loan and you'll also payments back. It sounds confusing, but Google it's secured personal loan, secure credit card. So you have a job end income. You've paid taxes in year one, you pay taxes in year two. You have a credit card and a personal loan that you have been paid without fail for another twenty four months. You have your bank statement showed that in Nigeria you paid

all your assets. You have that that ten thousand dollars cash that you brought with you from Nigeria to America, you have it with you. You have to prove where it came from if you have people giving your money in Nigeria that Let's say your mom has money and your mom's going to give you money to buy your house. Your mom will write a letter saying it is a gift to you. She does not want to pay the money back. She's giving you a gift. She'll write a letter.

You take that letter, you keep it with you. You now go to your bank. This is after twenty four months, Abe, We're now in the third year. You go to your bank. What would they ask you for tax return. You have it two years, you've been paying taxes. Credit score. They're going to pull it because you've been paying your credit card and your personal loan without fail for twenty four months. You're going to have a very very high score. It's

going to be more than seven hundred without fail. You will also have two years of returns, so you get that extra ten points. You also have no inquiries. Don't try to apply for another card. You don't need another card. Just need that one credit card and one personal and doesn't even like that hires too, But don't try to apply for more. You have their inquiries. You've done good. They will pull your credit number one to put your

attack to chump, but to based on your income. Based on your income, they are going to use what's called a debt to income to tell you the kind of house you qualify for. The only thing you can change is the kind of income you make. Don't wait and say till like make big income, I will go and buy the house. Even if you work in Amazon and you're parking or walk in Walmart, you still have income. The bank will tell you, based on your income, you can afford this kind of house. So now you've qualified

to get the loan. You go to the bank. Bank stage. We're going to give you a pre qualification of even if it's forty thousand or a few thousand dollars. You have that one from the bank. You have your down payment from the you sold your money in your assets niger You have the money in cash in the bank. You have a letter from your parents or whatever's giving me your money in Nigeria. You have your bank statement. You have all that. The bank will take all that

from you. What house should you buy the first time in America. You don't go and buy the house you like. You buy the house that you can rent out. So when you go to the city, you want to buy a house in a place where you can rent out. There's a reason for these guys. Let's assume you are not married. Perfect. If you are married, don't have kids, this is perfect for you. You buy the house where you can rent out. So you go them because you might not have enough income to get your house in

the suburb. So you go and get a house you can rent out, even if it's one bedroom, you buy that one, you stay there. You have entered now the mortgage business in America. Once you are in that house, you can stay one year. You build up your equity there. You can, when you now have kids, move to the house that you want in your own school district. Because now you have a house, you can rent that house out.

It's our income. When you go back to the bank to get your second house where you really like, where you have the school district, that house is going to be listed as income because I'm going to leave that house rented out, So it's income and your balance shape. The bank will consider that you have income from your job, you have income from your house. You can then get the house that you like. That's how you do it. You get in at the lower end. You move on.

Let's say you are married. You already have kids, so you can't do this, go and get the house in the rental area. That's fine. You man need to do more. You maney to buy a smaller house today before you get to the bigger house. In America, people buy homes based on school district. Not that the road is fine, is it because it's your kids. So if you don't, if you have kids, the need to go to a particular school, that's why you spend more. Unless you do the commute, but that's how you want to do it.

But the elements are the same tax return which you get from two years credit. You do that, you don't waste time. You do it in Miliatoy. It accounts for you to inform on start account for you secured with means to doing the credit card, to get a credit card, secure credit, seecret personal loan, tax returm, savings for your down payment. That's your money brought from Nigeria or if someone's going to give your money from Nigeria, you want to make sure you have it. Your letter saying this

is not a gift. This is a gift. It is not a loan. I'm giving it to him. It's not going to pay back. All right, guys, So pull off the articles detailed is listed. I listed the steps for you one buy one by one by one, so it's not theory. That's what I do, right all right, folks, excellent, all right. So I've got b wires. You guys should speak. I have a lot of DMS. I didn't want to speak and have an intact session. I by saying my question about the government bond, how can I buy it?

If you want to buy a government bond, just speak to your broker or your banker. We have treasury bills, We have treasury bonds, but those ones are from fifty million, so you can buy that one directly, or you can buy a mutual fund issouled, buy a broker or a banker. So buy talk to your broker or your banker. If you're not buying two bond number two, can I opt out and get my principal? Sure, you can sell at any time, just ask them that if you sell before

it's matured, what do you get. Remember, if you buy a mutual phone, there's no maturity. Yout us buyd into a phone. You can sell your phone and move away immediately anytime. But when you buy the treasury bill from the market primary market, you have to hold for telling matures. Or you can sell during and just get your just kind of money and grave with There's no penalty if people will buy it from you, you can just get your money and working with you. So, yes, you can

get your principal and opt out. That's no problem. Is the any background check to buy? There's no background check per se. Just pick to your banker. I think Niga likes to do the money has to be in Nigeria and all that kind of stuff. KYC. So I'm not gonna have a bank account in Nigeria. Tell your banker, tell your broker, they will buy it for you. It's a normal key YC that they do. They will do that for you and you to get that loan. Like got phoos, I got foods? Folls on the score, king,

guys are having a great session, right, foth on the score? King? What's your mind? Talk to me?

terms of immigration and business. So I don't think you need to worry about if you are there, you're not going to come kick you out. So if you only invest in properties because of the returns, not because you want to stay or for immigration, if you get what I'm saying, so you're your your criterias should be is it a good investment rather should I want to buy this passport from kig as something like that?

I have one leg good. I simply have to look for something that can pay me ten plus and I'm okay. So once I get ten plus, I'm okay. So the first part of your question we've passed that, we've answered it. If I can get any investment that can pay me ten plus, I'm okay. Let's not go to your second part. You say you want to invest in shares in equities in niger stock market. Now that's the problem. Why is it a problem? Because shares are what we call variable return.

The returns can be one hundred percent, the returns can be one percent. So if I borrow at ten and I invested in the stock market last year, last day, market did about ten six percent at our made money last upper other So it's really down to do why I think the market to make ten plus in twenty twenty five, And no one can answer that question for you. It is a risk that if it pays off, you make money. If it doesn't payoff, you're going to lose money.

But they always say the past is prologue, But in investments, we always say past performance is not a should not be used to judge the future. If you look at stock market returns across Nigeria for even the last twenty years, many times the only investments has put in inflation. Nigeria has been a stock market last year. The stock market

bet inflation last year. So it's a question really for you, are you comfortable taking that risk to invest in ten percent in a market where it has a propensity to beat inflation, But the risk of even one percent would make you not made that's return. The question is this, how are you hedged? If you take that ten percent and invest in stock market and market returns five percent, can you still pay back that loan in two years without anything happening to your network oricuusly harming you? If

you can, it increases the option of variable markets. If you cannot, I will not advise you do that. I would advise you go like I told you a gentleman, you're having ten plus. We have the Sameston Nigeria is savings bonds by the federal government that they're paying twelve percent. That's only two percent for you. If you want to take the risk to go and do money markets, mutual funds or unit trust, they pay you more. Is still

more secured. So the answer is if in two years the market is zero, stock market is zero, will you survive. If you can survive, it means that you have a greater propensity to invest in stock market. But if the market is zero and you can survive, I would say, don't even think about it. That's all right.

is not there. But if you ask me a question, jobs, go ahead.

all have a cycle date. You swipe on the first you'll have the time that you have to pay back that card. If you don't pay back that card, then you don't pay interest. You don't pay interest when you swipe, you pay interest of what you carry over to the next cycle data. That makes any sense, So make sure you find out and then the company lets you know. That's on your first question. So your second question about what you look out for in the top before you invest.

So you have to let's ask yourselves what is a stock or a share? I think the word described that I'm buying a share of a company. So let's use let's use footballer analogy because people tend to understand when you use footb analogy. If I want to buy messy, it's messy A good bye. Today everybody will say, of course Messy is a goodbye. Of course miss a goodbye. So let's say a in Ba Eyingba football Club and Namba wanted to buy Messy. They can't afford him because

right now he's worth millions, you can't sign him. But ay Inba could have bought Messy thirty years ago because back then Messy was what maybe how much? Maybe ten thousand dollars And that's just some examples, right, So what should a Inba have looked at if they saw Messy training in a bar and wanted to buy him. Number one, they have to ask themselves is this person? Is this footballer going to make money? They're going to be a good footballer in thirty years time. That's what they want

to look at. They want to look at what called the intrinsic value of Messy. Ah, he can trap balls. Look at how he is They can run and dribble at at age five. So because he's sure knows these flashes, we believe that in thirty years time he will, he will get better, he will win market share and he will even be the best in this field that he's doing. So when you look at MESSI at five years old. You want to value him then with the mind to the future. The same as a stock. So I asked myself,

will MESSI make more problem? How do I know he'll make more profit? Okay? Can he trackball? Can he run tankmentters? Can he dribble? Can he head can he do free kicks? Are all things I'm looking out for. Same with stocks. What is the market share of this company? What is the company selling? And what the company is selling? Can it grow market share to beat competition in the future. A stock price is simply the present value of future innings.

With means that if I want to know if his stock is going to go up, I want to look at if that stock can make revenues tomorrow. So let's come to Nigera. Let's look at Dango Teste Cement. In forget that the name is called Dango Cement. If a company came and said, we want to build factories in Nigeria that will make cement, Wow, that makes a lot of sense because Nigeria's import a lot of cement. So if I have a company in Nigeria that is making

cement in Nigeria, will they make sales? Of course, they'll mix sills because Naja is always important cements. Okay. Will they make sales into the future. Of course, they'll mix it because Najas will keep on buying homes into the future. Okay. Will they grow market share and beat the foreign guys? Of course, because Nigeria laws are saying that if your local manufacturer of cement will give you a better tax

treatment and better import treatment than the foreigners. So if I have these three things, I'm looking at the intrinsic value of dango teste cement ty years ago. It's going to be higher twenty years in the future. So I invest. You say, I'm not giving your numbers. Don't do ten percent. No, that's that you've been to twenty Be too clever. Ask yourself this company you're looking at in Nigeria today, will it you around in ten years? Will it gain market

share in ten years? Will the laws in Nigeria support this company to gain market share in ten years? If those as are all yes, yes, yes, that's when you now start look at the numbers. Okay, what their profits? They must make a profit, right, they must sell, So won't look at your the sales return, so look at the income. Tame look at the sALS. Are the sales increasing in five years over a five year period, at

their sales increasing. If that company is going to make profits in twenty years time, then there are five year sales should mirror the twenty years period, right, so you don't look at their five year sALS. Is it going up? Then from sales, you look at their cost of doing business? Is their cost of doing business going up or down? If a company starts is going to have very very high costs, But as a company now gets better in

what is doing, the cost should be going lower. With means that you know, you want to look at their cost of operations. Is he going lower? Is he going higher? They look at the cross profit the company making it operationally operationally, I didn't make any profit before they pay bank loans. I didn't making a profit. They should at least be making operational profits either making losses operationally, but they are making their returns from loans or extraordinary items.

That means in five years time, he might not be a good thing. Just like in if Messi was a footballer and all his goals were from penalties, would you buy him all his goals were penalties, He's not a good striker. That means he needs penalties to score. It's civil with the business. If the basin is making money from borrowing money to pay salaries, hmm, we're only like that company one that come to make will call organic growth.

So the products are selling, people are buying in domed in theme is selling, They're making revenues, they are growing their their capacity. You want to look at the story of the company, not just the numbers. This story is a company going to make money in five years. So you ask yourself ten years ago was their Indom in Nigeria as it is today? Which have been invested in Endome ten years ago? That's the question you want to ask yourself. So if you can answer those three questions,

that's when you can look at the numbers. Number one, do you think this is going to make profit tomorrow? Number two? Will we make profits with the market share go up tomorrow? Number three? Will the government policies help this company? If you get too out of three, it's not enough. It has to be three across the board. When you get this three, you can then come back and say, okay, let's look at the balance sheet, look at the things like that. So this is this top

question asked. It's a huge topic. Right, we can talk one hour, but at least there's three questions. As a non finance person, you can figure it out yourself and know if it's going to go up. Does that make sense, sir? I appreciate you are welcome. Let me try to get it's articularly impacting here, but let's get it a yeah, you can speak nor ahead. Let me go back to d M d M.

I can answer that question. Right. I can't give you advice. All we're doing here is educational. I can't tell you buy this or buy that. I can tell you about it. I can tell you all that, but I can't tell you to go buy this or buy that. I just can't. I'm a licensed guy, so I can't tell you without doing analysis of you. So if you're asking me, I lot your question to buy this, I can answer that question. So this guys saying I have time learn in savings

invested the money to purchase land or savings bond. These are two very very So he's asking I have a MILLIONAIERR, I want to buy a bond or I can or buy land. These are two different investment as a classes, and they offer two different things. When you buy a bond, you are getting income. When you buy land, you are getting capital appreciation with no income. So the question is do you want income or not? You know there is no good or bad investment. The investment simply have to

match your objective. So you don't go and buy a car. You say why you want to buy a card, and you buy the car to suit your objective. So back to you, mister j. The question is this, do you want income? If you want income, you buy the savings bond. If you want capital appreciation, you buy the land. There are two different things here. You can compare land and savings bond. You compare your objectives. If you want to earn income, buy the savings bond. If you want to

do capital appreciation, you buy the land. Right, go ahead, go ahead.

you go to school, so you might not reflect. To make sure you ask the bank will he get the credit It's just an additional card. To make sure you ask. It's not automatic that if you add the child, he gets the credit. Care Some will say yes, if you add this child to the credit care to your credit card. I mean if you use a card, the child gets credit. Some will, some will not. Make sure you find out it's not automatic.

does the bank do with my five million? They give you to thegether I wanted want to the money from. So there's a borrower, there's there's me, there's the bank. When I go to the bank, I give the bank my money. The bank guarantees me. But the bank gives my money to the to the ultimate borrowers. So I'm sleeping happy because the bank is guarantee me nds against the bank. I'm okay with a commercial paper. The borrower is coming directly to me. So you see, I see,

I've seen Dangot paper. I've seen empty and control. They are saying, calu borrowers the money directly. Don't go to the bank. Want to borrow the money directly from you. So I'm giving my money to Dangote or empty. And also what's the return for me? They pay me higher than the bank. So commercial paper is just like a higher ending fixed deposit instrument, but it carries a higher risk because there's no guarantee on that right, there's no bank guarantee, there's no n D I C. It's now

an issue guarantee. Wait, miss if Dangote says hey, Carlus borrow went to Dangote. If empty and says hey KLi Breman and borm went too empty, and but maybe other guys I don't that're not as popular as Dangote or empty, and that if you borrow the money, you are boring them based on the issuer name, they might pay you more, but they have no guarantee. So it's just the way of you raising your return on a fixed income instrument.

That's basically what the CP is. So if you can bear that higher issuer risk, it gives you a way to end more money on a fixed deposit.

will tell you where you stand. So if you want to really get if you really want to get into the weeds of it, right, you have to go in and say where do we where are we on that ladder? When do we get paid? If the bank fails. This is not a bank anymore, it's not with a CPR, it's not a company. If a company fails, the losses that they pay creditors first. But according to a ship to a ladder, bond holders get paid first. Bond means that they issue the bond. I believe cps are after

bonds before they go to equity holders. So the answer is that's your only that's your only way you can go to them.

used to issue that loan. If you don't have any claim, you might too. You might hire a lawyer to go and grab something legally from the company because you blend them money. You want to establish the only you and then you go after them. That's are going to be your options. Really, But if you read the CP you would see where it's stated where you stand. You know, that's why you always see sub is what has happened

for now sub or de neated debt. You know where you stand in the in the graveyard or or sh say of that company. So if you have a lot of money, then you really want to be really a pandemic. Yes, you can actually actually like to tell you where we if this company goes down, where do we stand intern of the payments? Yeah?

was not real. So you are the word is issue risk. The issuer of the instruments is who you hold the risk with. It's who you are basically beholding to, right, not the guy that sold it to you. Of course, you see in when you have all this companies film in America, they go after the issuer. They go after the bankers as well. They will say, hey, what did what did you do? You you sold the bond that was trash. You called it the f world, but you still sold it. That is the criminal part of the company.

Knew that the company that the product they were selling was bad, but they sold it to you. That's the criminal element. But usually if it's not just if it's just a normal bond that was sold to you and I sold you a bond and a company field, you really can come to me and say, hey, you sold me that bond. I mean, you can come to me and get angry with me. But I basically sold you that bond based on the information that I got, which I believed was true from the issue the bond. So

That's how I put it. Ultimately, is the issue that you have been hold yet that you are own two?

your own savings number one. Number two, you do family and friends number two. Number three, you do equity. There are many ways you can get financing without borrowing, right. You can do owner you can do supplier finance, you can do that of finance. You can do factoring. But you don't go to the bank to borrow money to start a business. That's going to be a guaranteed way to roll down your cash and then get the trouble a man.

Irrespective of what happens, there are ways you have to look for a way to get that asset without paying the fixed costs. Initially, it's not going to be it's too much for you. You are paying salary, you are paying diesel. They're also going to pay a bank, So banks don't play. If you borrow money, you have to pay with a bank. So again I would suggest you always look for a way that you can start that business with doubt borrowing from the bank. Banks are working capital.

Let's say you need you have a credit card now that from issue by the bank. You want to buy gas fuel for your car to run for that day. Perfect, you can borrow from the bank, swipe your card, buy a field because you're going to get money back from your commuters and pay back the bank. So walking after a very very short But if you borrow money to buy that that, that car or whatever, then you are paying back all alone and all that and it's very

high in Nigeria. Again I'm being specific to Nigeria. Maybe I actually clarify that if rates were four percent five percent, of course you can. You can go to a bank and borrow at four five percent for five years, buy an asset and go on. But they're not four five percent in Nigeria. If you go to a bank, you work in the bank, and if the banker told you

it's anywhere from twenty percent. So if you borrow twenty five percent in four years, you've paid back the principle your depreciation is four years or five years on that car. So I said, you want to look at what I'm saying. If you buy a car with twenty five percent, in four years, the car is worth zero dollars. And in four years if you've paid the bank back, the exact principle used to buy the car makes no sense, bro.

So if you look for on that way, that's what I'll say, look for on that way to fund the car in Nigeria especially, and the same for all SMEs you you you simply can't have a business where every month you have the fixed twenty five percent cash that must leave your business. It's not gonna be as a startup. You are paying twenty five percent fixed. That's bank loan leaving your business bank loan and it's just the interest. So be careful of one, just one show way of

crashing your business right once showing perfect guys. Yeah, a lot of questions, guys, will spend two hours here, we'll start to wind down. Appreciate you guys. I'm just gonna read the truth d and just make sure I've not missed anyone. I think I've answered all the main themes that we came up with. We've talked about debts, how to get out of debts, We've talked about starting your business, and we even died the mortgages. I've given you guys

that link. If you go on Google, just google my name, Carlo Ajia and Nira Metrics how to buy a house in Tilly six months. I gave you the step by step. You know, lots of things that go into this buying a house matter. So one is asking me a very great question. I thought everybody will asked, carlu why should I buy a house? Why can't I sen be a rent? Great question, Pracilia, great question. So I asaid from saying that you have to live somewhere. If you're living in

a rental apartment, you're gonna pay rent. If you live in a home that you own, you're gonna pay mortgage. You have to live somewhere, and where you live has a cost. You are never going to be without a cost. So it's gonna be wherever you live. Do your calculation and say, because they have all these calculators abroad enough Nigeria, where you can't put in should I rent or should I buy? If you put that in, it will tell you. Yes, if you rent and if you buy, this is a

number you will give you. But remember the point I'm making it because you are still going to pay. If you pay rent, there's no equity build up. If you have a mortgage, there's equity build up. Even if you leave the home tomorrow and you sell, at least you can keep some part of the equity because you're going to sell at the current price, but the equity is yours. You pay back the bank, you go with the market pricing. So it does prove that that's the first that's the

first advantage you do get from that. I'm just having that retin rent and equity. Number two. Remember that the if you look at wealth in America, and I'm sure wealth and nature the same thing, the wealthier folks are always have at the folks that always have home ownership. Caucasians have the what's the word now, white folks, Caucasians and all that they have higher homeownership than say the

minority folks. There's the reason for that because when you have home home ownership, that's an asset, especially the worst that you can monetize. In Nigeria, we do not have those frameworks whereby if I have a house in Suliary, I can get cash from that house. Now just will give you a loan, which is not good because if you have a loan then you are paid back interest.

But in America, I know if you have a house in su Leary, you can go to a bank's assuming American America house Nigeria, if I have a house in suh Lary or in Omarha or in Slager, I can go to the bank and take a line of credit on the value of the house, not a loan. A line of credit Wich means that the loan is available for me, but I don't pay interesting. I use it. So imagine what that does for me. If I have a house in omar here, I bought the house for

one million, the house is now worth fifteen million. That means I have equity of a buvery forty nine million. I can go to the bank. The bank will give me a line of creditive twenty million. I'm not paying interest too, It's just a line is there should I need it? That loan usually is about from ten years to twenty years, right, ten to twenty years. So as you mean I want to do business, I'll start an esmate business I can take from my land of credit

aside the business. As when my kids want to go to school abroad, I can borrow from my land of credit and same to school abroad. You see what point I'm making. You have that access to a long term funding that others don't have if they don't have a home. Clearly, of course, the home is based on a loan to value, but it's still the same thing. You're going to have an asset that you can monetize. And America, the pathway

to be in middle class is true home ownership. So there are many things that are for plus buying a home and maintain that are just for you paying rent. If you're gonna say, in America for two years, yeah rent, that's fine, You've got there for two years. But if you want to stay there in the West for a long period of time, why don't you buy a home. At least buy the home. You're still going to pay that rental mortgage. Start to pay that, you know, build up equity and see what happens if you have to

go sell the house. But they're gonna say for two years, three years you want to go to school, sure, rent, So that's the reason why I was emsizes are buying a home. I wrote an article a long time ago. I tried to shade out where I dimensioned the home ownership in America. Two demographics. You know already doing the June teens. I think where we're talking about. If you really want to make minorities in America have economic power, you've got to go back and change the how they

can buy homes. I tell you what, if you google red lining, most of you know what red line. Red lining is. The back then when we had when blacks were not like economically active, and when we had the racism, before we had civil rights, you could not buy a home. Let's say you were in Legos. They will say if you are if you are black, you could not buy

a home in certain years of Legos. You couldn't buy a home in a Catcher in Lucky in VII if they would redline you red lining so you could not buy a home if you are black in certain neighborhoods in America. Why didn't they did that? Because if they keep you all in one area and it's a black area, there have no appreciating value. Even if it does, it's just there. Right. But if you can come to quote unquote as Sokor and buy a house as a black person,

then you have entered the economic Latin America. It's automatic for you. So even the white racist folks back then, not everyone. The racist folks back then understood the power of mortgages that if you want to keep a minority class down, you prevent them from buying a mortgage. It's called redlining. So look at this, sways one is saying that I will not give you this thing because I give If I give it to you, you it'd be good for you. Now you can get that thing I

don't want to get. It doesn't make any sense, does it, right? It does. Know, if they didn't believe that blacks owning homes would be good, there will be no redlining right America. It's illegal. It's illegal to even think about doing that. Say someone is black, you say I'm not going to give you a loan, or you can't buy a loan here. You're gonna get into a lot of trouble if you do that. Because when you buy a home, especially in the worst it's your part way to be in middle class. Right,

That's basically it. And it's the same in America and Canada. In Europe, it's your pathway to middle classes. It's the safer, slowest way to get to the middle class because you buy a home, just buy inflation. The home value is going to keep on going up just by inflation. But your costs are fixed, right, So that's the hack. You have a thirty year mortgage that is fixed, but the home value is going up. So that's just the hack for you. So don't sleep on that, all right. So

we're talking about credit cards. Not a lot of credit cards in Nigeria, but I know there are one or two if you're able to get them. To get them, I don't know. The credit cad nager are mostly for the upper income folks in Nigeria. I wish we would have credit cards that are going to be more for the lower income folks in Nigeria. So the students can get a credit card and they can at least use it, you know, I mean put five five and living on a credit card for a student, they will pay it

back because they will. Now they do jobs, most of them have a job, but they really get into a lot of trouble. Sometimes they have no to eat. So responsible credit usage teaching that to us students when they're very very young. Give them access to capital. True, that might be a good way to start off. I mean not twenty percent interest rate, but very very low. So we learn how to use credits. You know, it's credit is the force multiplier. It's not bad, it's just a

force multiplier. The chief have I the chief the chef in a budget. Sorry about that? Just on your hands, sure if you've got the floor.

there's not really applicable to us here in Nigeria. So as a young guy who is just starting life and all, you know, there's a lot of.

So sorry, I just want to say something briefly. I saw something on one of these fintech app I don't want to mention the brand, so they were advertising stock and bond and I saw, you know, a lot of people recently are hyping some of the Nigerian stock on this fintech app, like some oil company.

You just can't wake up, get into your car and drive. So the very very first thing you have to do, the very first thing you have to do, is you want to ask yourself why are you invest in? That's easy for you. Am I investing for long term? Am I investing to save my rent money so I can have more money to pay next year? Those questions determine how you should invest. So you have to know why you are investing. Are you in long term? Short term risky?

What's your risk profile? Get that one. Understand why you are an investor and the type of investor you are.

That's the first thing you want to do. Then, like I've said, before you even invest in coble, want cobble, you want to build an emergency fund what's an emergency fund is going to be three to six months of your necessary expenditures what be called your non discretionary expenditures, which means that what are your non discretionaries things that you must do or spend more on even if you have no money, like what number one, food, number two,

medical number three, rent. You have to pay these things even if you don't have any money. So if your total non discretionary expenses comes about five thousand, at least have five thousand in an account near cash or near cash before you invest. I would say, have fifteen thousand. But if you want to have five tons to start with, okay, but you must have a magicy fund before you invest in cobble. You must have that before invest the coble.

What's the next thing? Insurance, especially if you are married or you have a dependent. You can't invest until you have insurance. What insurance There's not like life insurance. There's insurance from loss of income. So if you have a wife or you have kids, you want to go buy life insurance for you start to invest very important because when it happens to you, then of course those guys or the insurance commits will pay and that can take

care of your your dependence you've left behind. So let's say you've got your Majesty fund and you have dependence. If you don't have dependence, you don't need life insurance. Who's gonna what are you gonna pay to? So just have your medicy fund life insurance. Then you can then say you want to invest Now, if you want to invest, I like top down investing. What means I go top and I say what's top? The earth is top? What's next? The continents there are North America, South America, Asia, Africa.

Do you want to invest in Africa? If you want to invest in Africa? Okay, what continent in Africa? Let's say Nigeria. Okay, Nigeria. What sector in Nigeria? You start from this sector? Why am I going to because I don't have the money to buy the individual company's talks. Nigeria has about rough figure and there are three hundred listed securities. America has more than five thousand, So how

can you choose which ones are good? Right? But if you buy the fund, either you buy the mutual fund you need trust or the ETA that is tracking the index, then you bought everything Nigeria, right, So if buy that one you've not bought Nigeria, then inside that Nigeria you can just okay, what sectors you even focus on? Should I buy food? Okay? With with company food, there's Bua, there's Aumo, there is this. Then you not have to go individual, but you are coming top down Nigeria food

there with particular food company. As your income increases, because if you take your income, I want to chat to buy in the store. You don't buy a lot, you won't buy enough, so you're gonna spread your beds so thin that they need to make. One hundred percent on one narrow is to narr. One hundred percent on one narror is too narrow. But ten percent on the million is one million, one point one million. Look at it that way. Two narror and thousand. It's the same percentage,

but look at it that way. So you want to start do take those steps first, right and most importantly, you've got to really start it before you invest. Don't don't like I heard you saying. People are saying this, people are saying that, what do you say? Like you know, go on YouTube, put that company in there to give you lots of information about the company. Tell you lott this stuff you're you're listening today, you're picking up a few stuff. Excellent. You're learning how to invest in, learning

a few words. Keep on doing that. You've got to understand investing before you put a couple down. There's the point I'm making, right, don't do don't invest without knowing understanding why you're putting money with. If you do that way, it's going to work out for you. Right. But you've got to know why you're investment before you invest. So you can't say should I buy this or should I buy that? Does it meet your objectives? That should be the word for you. Is it going to pay you dividends?

Will the share price rise on hundred percent tomorrow? That's what you want to ask and you know that from knowing your objective. If your objective is to make income, if you are older, that's your objective. If your income, if your objective is to grow, grow, grow, grow grow because you're younger. Good. Do you want to find out at those companies that you want to buy that? Not sure? If I help you, sir? Did I help out a bit? Yes? Thank you so much, Thank you so much, sir. Yeah.

I reaction to you guys all right, guys two hours answered to me. I think I'm going to call it a day unless anyone has any last thing to say. DM guys, I bridged you guys have searched. True, I'm looking for any unique question there. Most of you are asking the same questions. I preached the questions, but I think I've answered most of them. This one as oh, this is good. So it's asking about pension although your questions know what you're asking. Let me rephrase your question.

It's asking about I don't have any savings, I say to my PFA. Is that enough? Yes, good question. So most folks in Nigeria do not have any savings apart from what's ordered by the government. So most folks this retirement sives account in their That's where they say them, when the retirement saves account. That is a very very good way to invest. Why Number one, your investments are

growing tax free? Tax free. What means if you put a nyr in that account, the government will not collect taxes on that one narra till you take it out, so it's growing tax free. It's compounded. Number two, so you always say a compounded on the compounded This is a compounded savings account. Your RSSAY is a compounded savings tax deferred accounts. You can't get that anywhere. There is no other investment in AGLA is compounded deferred and tax free.

I think maybe insurance. But insurance doesn't take money from you every month. Okay, it does, so let's see what's a dependent on insurance and your RSSA. Insurance growth is not I don't know if the income growth is tax deferred. I think it is. But with the RSSAY you can invest literally two amounts. It's based off your salary. Yeah, that's the difference. When insurance, you are the one pain.

With your RSSAY, you pay your company is pain. So if you do arrass, your company's pain is ten percent of your basic housing transport if you do your so if you're doing insurance, you are the one pain. But it's a tax deferred compounded savings accounts you can't get anywhere in Nigeria. This dis tratings. So you put on into your RSSA and you save and it's good for you.

The question is not asking that is this enough? I think the answer is no, it's not enough because when you invest in an RSSAY, remember it's just you're just investing your basic housing and your transport. You have to do a calculation. If you go to your to a good funcial advisor or to a banker, you ask him, I want to retire in X amount of years. I want to have X amount of money when I retire. How much should I save? He will give you an answer.

It's just called present value calculation. He will take out to this calculator. He will press some buttons, he will do a few assumptions. He will give you an answer. It's called present value of an annuity. He can If he can't do it, you should be he shouldn't do it. Do that for you a banker, a stockbroker, the present value of an annuity. So what you don't want is

you not? You now come back and your company. You say, today, I'm saving ten thousand Era every month in my RSS, but when I do my calculation, I should be saving fifty thousand a month in my arresses. So what you do you do an additional for lunchy contribution, because we do that calculation. If you want to save to get fifty million ERA in ten years, if you do a present value back to today, it might translate to you paying fifty thousand narra today you do that calculation, your

an additional vundure contribution. You saving your RSC. Yes, you can do your RSC. You can mirror your RC and save somewhere else. But you want to increase your investment. Your most important savings is your retirement account, not your kid's schooling account, not your mortgage. Your most important investment account. It's your mortgage, it's your retirement account. Why, as you get older, you can no longer work, so you have a limited time to make money. Doesn't matter if you

have a brain that is functional, you can't work. You're going to get older. So because you're going to get older, everybody here has a terminal time that will work with means we only have a fixed amount of time we can save and invest. Everybody here we're going to have a fixed time that we can save an invest. So if we know that to be true, then want to make sure that we are maximizing that time. Remember, you

have to first of all end the money. They have to save the money, they have to invest the money, all in the same time period. We have maybe twenty five fifty years. That's say we have fifty years. You have to end the money that fifty years. Sometimes they're going to end the money, but you don't save it, so it's gone away to the wind. So you've got to end that money, then save that money, then invest that money for those fifty years. So first start where

we're at zero. Some start at ten, some start at forty five. But you must do all these three. If you don't do all this three, you'll be destitute. I'm just saying, because you would have no money when you are at retirement. So you have to end, save, invest and the time is fixed. You can't increase how long you're gonna live yet. So if you notice your most important investment, it's your retirement account. That's it. Your retirement account.

Before you train your kids, before you pay for your house. You pay yourself first by saving into your retirematam's account, so you are there and not a burden on anyone when you get older. If you're in America, there are lots of things you have to do long term savings because you know there when you get older, they put you in an old people's home. But if you have money, you can pay for someone to come to your house and take care of you. So you have to start

to save for long term care. Very important. It's not medical care. This is long term care. So you're in your house, so when it's come to your house, take care of you or your kids might not be there, your kids might travel, might not be there. So this is in America. You did you know when in Nigeria, we know worry about long term care because we have community, we have welfare in your village. So I'm going to

take care of you. In America, you know, we just jack back to America all the jackbad that people are only get to sixty seventy, Your kids are not going to be at home. Who will take care of you? If you are married? Fantastic? But what if you're not married, or what if both of you are old? You need to have long term care, so you pay for that one. So now means have to save in your health savings

account to pay for that long term care. This American I'm doing to write Naijerz is different, different, but entirely Najams will do welfare if you are old. Yeah, but if you're Americans started to think of yourself in sixty seventy years and say where would you be at when you're old? How would you fund your retirement? Very very important conversation. You do it very very dispassionately. You go to your guy, he'll give you numbers. You start to save.

So that's the most important savings accounts. Don't don't sleep on it. Don't sleep on it if you haven't. If you don't have an IRA, if you're an American, you don't have an iran, you don't have an individual retirement account, you should be deported. What the heck are you doing there in America without an individual retirement account? What are you doing? And we have the same version of iras

in Canada, and I believe also in the UK. All it means is that you have an account individual that you can save towards your retirement, your individual retirement account. It is so good that the US government to restrict you from how much you can put in your ERA, so they won't let you put on a seven thousand. When the government is saying we won't let you save, you know it's good. You know it's good, So you

want to save. Their rules about iras, you can't see if you're any lot and all that kind of stuff. But overall, you should be saving in your company for one k plan. If you work for a company, find out from them what is my match? What is the match? If the match is three percent, please save minimum three percent minimum. Then open up an ERA. I like ROTH. Google. This is what I'm saying, rot Ira google them save there. Niger don't have ROTH, We don't have ERA, but we

have Retirement Service account. You must make sure don't don't say government is bad, going to corrupt that story. Save in your retire SIMS account because no other accounts in Nigeria gives you tax deferred, tax deferred, so you know you're not gonna pay tax on the groot of that investment. You're not gonna pay tax because of that investment. Compounded returns what means that if you put a narror today, they pay you interest of tankoble. Next year they invest

one tenble on your behalf. You don't have to do anything. It's compounded tax. The Fed Insurance does it. I think nhi is does it. But this is your arrests. You want to do it as well. Right, very important? All right, folks, are I've got a Cosmos Cosmos exchange.

The value is encouraging. Al I'm also invested in the in the in the stock issue, using bamboo and having some knowledge and what you are giving out both Spifi Fund and a lot of tech companies there over the years they have given a good Also, I'm so happy with the knowledge and information you are sharing with all the media and everyone in this because section is so encouraging. Thanks and rememberance, Thank.

I'm giving it to you. It's not for free. People will pay and I give it to you, So don't take it for granted. I'm not trying to be I talk like this cold because I want you to learn it right, So please what I say is best practice. Plan your retirement and save. Invest. This is just best practice, right. You've got to invest. You don't want to be a burden. The world is changing. When we grew up, we took here for our parents. When you grew up, your kids

might not be there for you. Your retirement plan is no longer your kids. You've got to plan yourself right. If you live in a big house, You've got to ask yourself it's five rooms your kids you build? That help because your kids going to be there. Your kids are not going to come back and live in the house. They won't. They have their own plans. So start to ask yourself, how can we monetize that big house in gire?

Where can we go to live things like that. So start to think about think do it now, because in twenty years time, there's going to be a huge demographic shift, not just in America, also in Nigeria. Many things we don't do in Nigeria today you will start to see them in twenty years time. You're going to see old people's homes are going to spring up in Nigeria. Old

people's homes. Lots of folks that are in America, in Canada, in the UK will want to come back to Nigeria when they are seventy, when they are eighty, they want to come back. They will, and they need to a place that is safe, that they have all those facilities that I enjoyed in the UK, but don't just live in Nigeria. So if you're an entrepreneur, you live outside Legos, you can literally start to build estates targeted at the returning Jamar people. It's going to start to happen pretty soon.

It's going to have to happen even right now. Lots of putter even America on the comeback, but they don't want to go a because it's not safe, they don't have a nurse and all that. But it might say if you had an estate where how much how much is a nurse and don't mean to be it, don't mean to be rude, but how much does the nurse? And in Nigeria, so you have an esset where you have each home has a nurse. Then the esset has got a doctor on site, has at on site, has

old people's gym on site. How security is, has a wall, you have more port or whatever there and then you have Charlie's, you have organic food, you have entertainment, the same thing we have in America where you have those old people's home, but you have in Nigeria. Do you know you can charge each home? You can charge those homes, each home there in dollars five thousand dollars. People will pay to come back home to Nigeria and live there and doesn't have been legos or in any built up area.

You can do it in those It makes more balley in those towns because they're coming back to go back to the quote unquote rural life. So you say insecurity, if you have a compact with it with the town people, and you see, listen, we're going to bring these people into this place. No kid, not paying, no whatever, you're gonna get a share of the revenues. People will come in Ecuador. Ecuador use to the US dollar. Lots of Americans go to Ecuador and retire in Ecuador. They just

live there because it's lower cost of living. Because if you end social security in America, it's two thousand dollars in America is nothing in Ecuador, in Costa Rica, in Mexico, it's a lot of money. The average social secreity benefits is going to be about three thousand dollars a month. So if you live in America, the government when you retire would pay you three ten dollars. This is just on social security alone. Why would I live here if I have to pay rent at a thousand ira thousand

dollars a month. A thousand dollars a month is how much in Nira if you build a flat, even if it's a flat, and you put old people there that want to come out to Nigeria and you protect them. They have medical care, they're eating the the all those traditional food you take that we boss every week to go the same thing you do here. People will pay. People will pay, and you make a lot of money, and that town will make a lot of revenues from justice in Flox. The same way pole live in Nigeria.

Go to the jackpar It's going to be the exact same thing. You're gonna see. Lots of folks want to come back, but they are gonna come back because it's not safe. There's no medical care, there's no nine one one, there is not all that stuff. So you create a little village somewhere at Belkutar, somewhere off Umaria, somewhere off Nasarawa. People will come back because they want to come back there. They want to live there. You are just seen the jack Bar. You're just the that's in December, but you

have eleven months. The same way those guys come back for December because they want to enjoy Nigeria. It's the same way they guys that have retired want to come back to Nigeria and live here and move around. They just want to come against it's not safe and there's no medicare. You you go, you you have a hopblo in Nigeri. You say, okay, we're going to use this hospital as Medicare and Medicare approved or Medicaid approved or whatever.

If you go to the hospital, you can share America records on that hip hop with the hobble in America, things like that. You've got to get you know, innovative and creative. There lots of Americans that work in America, that working, lot of Nigers in America that can help you pass this laws. Texas, Atlanta, then Baku. They don't stay there, don't come back home. But you've got to have a plan. And if you can do the loone,

talk to your state government. That's that's that's remediances. They will pay this money diagon to the state government for a safe place they can go to. That is fantastic living. The weather is beautiful, they can live here. They think they're pan Wie and their planetium. That's what needs to happen. So that demographics is going to create opportunities in Nigeria going forward. And if not, just not ready, they'll go to Ghana and Togo and live in Ghana and Togo

at least in West Africa. So don't assume almost happened. So that's a good business plan for noone that's interested. You've got to go and plan. You know, there are folks over there, get in touch with them. Getting branded name girl, this medical stuff, put it together. People will come. It is dollars waiting for you right there. Dollar in flo but you are spending in Naira. It's not the repressal. They will pay you in dollars, but all the costure

are giving them is in Nira. They're not spending Nira. Right is in Naira. But you are any dollars in your villager. They want to go to the they don't want to live in legals. Don't live in your village because that's what they're coming back for. But it has to be safe. They've got to have medical care. They have cast your life. If you do that, you are

on something. All right, folks, let's call it thanks for hanging out with me, all true God about two hours and for the five minutes already and at thank you guys for doing that. Let's go make a good year. Don't forget to get the book. I wrote the book. Right, Let's talk about your money. Great book, lots of pictures. Everything we'll talk about on this space in that book. Everything credit, debt, investing, crypto mortgages, real estates, planning out

your your your target, savings, planned education. Everything is there, even love and money. How to take talk about money when you are dating, mind and all that. So it's a great book to have to read. It's not chapter to chapter, it's not it's not covered to cover. It's chapter by chapter with means you can read. You just talk market and understand you have to read the whole book. But it's a good book to reference from. Is written

with the Nigerian region, Nigian mindset. So I tried to use most of the international things that we do, but make it Nigerian so you can also follow. So I will say get it is available on Amazon anywhere you are just Amazon and Nigers or Roving Heights, but amso it's going to be your best bet to get that book.