Overspending and wealth creation

It is impossible for one to build wealth by overspending. Wealth creation can only occur by surplus and not by deficit. It is up to you to make the choice. You should ask yourself the question: do you desire to be wealthy or to be poor? The question is formulated with desire and not want. Desire implies your attitude converging with your saying. One thing is to say you want to be wealthy, another thing is to make the needed sacrifice involved with controlling yourself and spending less than you make. Spending less also means delaying gratification. That is to delay your pleasure of the present to the future. Think about this!   

Building wealth requires principles and tradeoffs

Building wealth requires principles and tradeoffs if one wants to make it. It is important to master these principles and sacrifice you have to make. This is true irrespective of whether you are a salaried worker or an entrepreneur. The first principle one has to be aware of is that of accumulation or compounding. It is interesting to note that anybody with high school education studied compound interest and its calculation. But, how many people use this principle in their day-to-day lives? Many people generally wait to hear a magic word on how to get rich when they attend seminars. If you want to be rich, you must first spend some years accumulating money by spending less than you make. The tradeoff for this is sacrifice of denying yourself of things. This is a common sense which everybody should know, but only a few people can make the needed sacrifice. In my next posts, I will use simple calculations to demonstrate this principle.      

Walter Okpala: Teams cannot be homogeneous and productive unless ...

Walter Okpala: Teams cannot be homogeneous and productive unless ...: Many companies spend a lot of money and time trying to form teams in their organizations. In the era of internet technology and collaborati...

Teams cannot be homogeneous and productive unless ........................!

Many companies spend a lot of money and time trying to form teams in their organizations. In the era of internet technology and collaborative innovation, having teams working around the clock worldwide is very important. However, many teams are not productive as expected. The main reason for this is the difference between compensation paid to members of the same team. How do you think members of the team will react if they know that their immediate superiors would receive about 5 times their compensation at the end of the project? To worsen it all, credit always goes to the bosses for positive results. It is true that some executives mention the team as the executors, no one knows who the members of the teams are. In order to understand this clearly, I am going to ask you a question. How will you feel if you discover that your superior will receive 5 or 10 times the value of your compensation, including bonus? Will you totally dedicate to your work where another person will take all the credit? This is especially true for workers with talent. 

     In my next posts, we will look at the consequences of this practice! 

                   

Walter Okpala: Differences between salaries of executives and oth...

Walter Okpala: Differences between salaries of executives and oth...: From my experience in teaching in companies, I could notice the complaints from the junior staff over the salary differences. The junior st...

Differences between salaries of executives and other workers 2

From my experience in teaching in companies, I could notice the complaints from the junior staff over the salary differences. The junior staff always think they do not belong although they are the ones who do the actual work. As a result of this complaint, I began doing reserach about how this issue affects the productivity of workers and how it can be corrected for better harmony in the team work. I have reached the conclusion that everybody in an organization is important, although some may appear to be more important.

     Imagine the telephone operators, a position generally considered low in the hierarchy and outsourced. It turn out that the first contact a customer has with a company is through these workers. Their attendment is vital and determines if a customer stays with the organization or looks for another one. A CEO is at the top and receives information from many departments. What he or she may not know is that the bad performance of one of his departments is caused by the telephone operators. Another example of the importance of blue color workers is in the assembly of automobiles. If this category wants to sabotage the organization, the workers can just fix the parts wrongly. In this way, the cars will have accidents and probably kill people. When these go to the press, the automobile company is obliged to have a recall of all the cars for repair. Recall costs a lot of money to companies. 

      Therefore, everybody in an organization should be valued so they can have a sense of belonging. If the salary between the CEO and the lowest in the hierarchy is set in the ratio of 10:1, I think the problem should be reduced. That is if the CEO receives $1 million, a cleaner should receive $100,000 per year. If this change is carried out, many positive changes will take place in organizations. Think about this!

           

Walter Okpala: Differences between salaries of executives and oth...

Walter Okpala: Differences between salaries of executives and oth...: It is interesting to note that the salaries of senior management of companies are very much higher than those of other functionaries of the...

Differences between salaries of executives and other workers!

It is interesting to note that the salaries of senior management of companies are very much higher than those of other functionaries of the same organization. It is understandable that people with higher qualifications and experience should receive more than others. However, how can we explain the fact that some executives make $ 20 million a year while other workers in the same organization receive an average of $60,000. The main explanation for this discrepancy is that executives bring more value to the organization than others. Although this is true, it is important to remember that those at the bottom carry out the execution stage. In my opinion, I think it will be a good idea for organizations to establish a ratio between the salaries of executives and junior staff. What do you think? I will like to have your input!    

Walter Okpala: How is your performance result?

Walter Okpala: How is your performance result?: How do you perform in your Organization? Is it an excellent performance or a mediocre one? Your importance in an organization must be refle...

How is your performance result?

How do you perform in your Organization? Is it an excellent performance or a mediocre one? Your importance in an organization must be reflected by your performance. An excellent performance result indicates that you are very useful to the organization. In that case, you can be considered as a linchpin. Your job can be guaranteed by you only when you become a linchpin to an organization. I have written about this in my earlier posts, but let me say it once more. What guarantees our job is not the state of the economy, or the government, or the boss. Rather, our job is guaranteed when we become so indispensable to the organization that it cannot do without us!

     So, check your performance result and evaluate your feedback and see how you can improve your bad qualities. Don't take your feedback as a personal issue or try to defend every point on it. Rather, take it as a lesson and use it to change your bad behaviors. Ask yourself how you can become a linchpin to your organization.

     Think about this!

        

Walter Okpala: The importance of planning

Walter Okpala: The importance of planning: All specialists agree that, among other factors, planning is essential to success. Motivational speakers always say that one's success ...

The importance of planning

All specialists agree that, among other factors, planning is essential to success. Motivational speakers always say that one's success depends on planning. They justify that if one does not know where he is going, any road is okay. That is to say that without planning, a person does not know where he is heading to. But, how does planning really determine one's success?

     The link between planning and success lies in the subconscious mind. What actually happens is that during the planning process, the future project is mentalized, that is, captured by the subconscious mind. The subconscious mind makes your project become real. The fact of the matter is that anything we desire in life becomes easy to achieve when the subconscious mind makes it real so we can see the image. This also gives us the extra motivation to pursue the desired project. 

     Planning demands time and concentration. It does not matter what you do, you need to plan it. Whether planning your career, choosing a college major, starting your business, finances, etc., one needs a plan. Don't live your life without plan!       

How to obtain college degree without debt 5

In my earlier posts, I gave some examples of how someone can get a college degree without entering into debt. In the present post, I am giving one more example of reaching the same objective. Another way of getting a college degree without debt is by using a combination of financial aids and cooperative education programs. there are different types of financial aids available to students, although they are more widely available at the graduate level. 
     Some colleges and universities offer merit-based scholarships, others offer scholarships targeted at sports, while others give scholarships to specific groups such as the minorities, women, the poor, and the disabled, etc. Undergraduate level scholarships do not generally cover full college costs except some merit-based scholarships. However, having a combination of Federal grants, state, institutional financial packages can reduce college costs substantially. Merit-based scholarships cover full college costs at the top universities which always have large endowment funds. Interested candidates should search for these opportunities by contacting the institutions. Sometimes, the information is available on the institutions' websites. 
     At the graduate level, scholarships are available for qualified candidates in the form of research assistantships, teaching assistantships, and fellowships. Top-ranked universities compete to have the best and brightest candidates. The criteria are always based on the undergraduate score (CGPA), Graduate Record Exam (GRE) scores, Graduate Management Admission Test (GMAT) scores for MBA candidates, what you intend to do with the graduate education, and research interests or even publications. Students with undergraduate score of 3.3 or above will receive a full felowship award. A fellowship award pays your full tuition and a monthly stipend of about $2,500. Fellowship award requires a complete dedication to studies and nothing more. Graduate students can also receive research assistantship award. In this case, they are required to carry out research with a professor. In compensation, they receive full or half-tuition award and a monthly stipend proportional to the professor's salary. The work load is normally 20 hours a week. Teaching assistantship is similar to research assistantship, but targeted at teaching undergraduate student. Almost all graduate programs have these scholarship programs. 
     Another way to get financial aid at the undergraduate level is through cooperative programs. A cooperative program implies a work-related financial aid. In this, a student has to work for a stipulated number of hours a week (20 hours) in order to receive a stated percentage of tuition scholarship. In some programs, students work inside the institution. In others, they work in organizations which have agreement with the institutions of learning. Students interested in this kind of program should search for cooperative or work-study programs in the colleges they wish to attend or in Google search. An example of this type of college is the Berea College. All students admitted into it are awarded a work-study financial aid in which they have to work for 20 hours a week. In compensation, the yearly tuition fee is reduced to about $2,200. 
     In summary, there are opportunities for those who do not want to be in debt. The only requirement is to look for them. With the internet today, the information is readily available for those who look for them. Think about this!                     

Walter Okpala: How to obtain college degree without debt 4

Walter Okpala: How to obtain college degree without debt 4: In my former posts, I have given some tips on how to get college degree without debt. The two earlier tips were reducing college costs thro...

How to obtain college degree without debt 4

In my former posts, I have given some tips on how to get college degree without debt. The two earlier tips were reducing college costs through AP and CLEP examinations, and by attending community colleges. In this post, we are going to look at the online courses. Getting a college degree or part of via online is also an excellent way of reducing cost of college education. Many higher institutions offer online courses as a part of their curricula while others offer a full degree program. It is understandable that in some courses such as medicine, dentistry, law, and engineering, it is impossible to obtain an accredited college degree through online courses. However, the general basic courses can be met. In this form, the overall cost of obtaining professional degrees can be achieved. The best way to go for online courses is to first check the website of the college you want to attend and verify the online courses they accept as transfer to complete the degree requirement.

     Many highly rated universities offer online courses through consortia called opeculture, openlearning, courseware, among others. Examples of universities involved are MIT, Harvard University, Yale University, Stanford, UC Berkeley, etc. The most interesting thing is that these courses are free and they offer certificates upon completion of each discipline. You can also consult the following sites to help you identify the courses available and costs. These are:   

http://www.onlinecolleges.net/   

http://www.onlineu.org/most-affordable-colleges

http://www.openculture.com/freeonlinecourses

http://ocw.mit.edu/index.htm#

http://www.phoenix.edu/


I understand that education should be a way to go up the social ladder and cannot be turned into a way of slavery and bondage through student debt. In the world of today, there are many opportunities that can make it possible for you to get your degree without debt. The only thing it requires is to go for information. Think about this!

Walter Okpala: How to obtain college degree without debt 3

Walter Okpala: How to obtain college degree without debt 3: In my last post, I mentioned one of the ways one can get a college degree without debt. In that post, I explained the importance of communi...

How to obtain college degree without debt 3

In my last post, I mentioned one of the ways one can get a college degree without debt. In that post, I explained the importance of community colleges. In this post, I am going to give another example of preventing debt while geting a college degree. The present method requires more discipline than the first one. The method I am refering to here is getting college credit by taking college equivalent courses examinations called the Advaced Placement examination (AP) and College Level Examination Program (CLEP). These two exams are organized by the College Board and accepted in many institutions of higher learning worldwide. Interested candidates can go to the website of the College Board at https://apstudent.collegeboard.org/home?navid=gh-aps and https://clep.collegeboard.org/ respectively.

     Students who take the exams and pass can obtain up to 2 years equivalent of a four-year college degree. However, each college or university has a limit on the courses and number of credit it can accept. So, you should ask the institution of your choice about the courses and the credit limit they accept for these exams. The good thing about these exams is that you can study at your own pace and take the exams when you want to. This means you can be working and be taking the courses one by one. The money you saved while working can be used to pay in-state tuition for the last 2 years of college. In this way, you can never be involved in student debt. Even in courses like medicine and law, the amount of student loan a student can take to complete the course will be significantly reduced. However, you should be highly disciplined since nobody is controlling your time. The second thing about the exams is that you can take them in many parts of the world and they are not expensive. Visit the website of the College Board and get all the necessary information to help you.

Think about this!        

Walter Okpala: College degree without debt 2

Walter Okpala: College degree without debt 2: In my last post, I promised that I will write about various ways people can obtain college degree without incuring debt. The first of these...

College degree without debt 2

In my last post, I promised that I will write about various ways people can obtain college degree without incuring debt. The first of these means is obtaining college degree by first going to a community college. Community college is a two-year college where students can get equivalent of two years of a four-year college. It is called community colleges in the USA, but other countries have equivalent institution. This is a very cheap way of obtaining a college degree. In the USA, majority of the community colleges belong to the state governments. In this way, they are subsidized by the government and students can also attend them from home. There are more than 2,000 community colleges distributed in every state and locality in the USA. Although not all community college credits are transferable to four year colleges, interested students should verify this option before enrolling.

     The main advantage of the community college is the cost which, in some cases, represent about 30% of the cost of a four-year state college. In order to prevent students and their parents from getting into debt, I wrote a book listing the 50 cheapest American Colleges and Universities. The book is written in both English and in Portuguese languages. The books are available from:         

(1)  http://www.livrariacultura.com.br/r/search/track? url=http%3A%2F%2Fwww.livrariacultura.com.br%2Fp%2Fthe-50-cheapest-american-colleges-and-13157932&query=walter%20okpala&ref=13157932&_=0.04348868224769831 

(2) https://store.kobobooks.com/pt-BR/ebook/the-50-cheapest-american-colleges-and-universities-for-foreign-students  

(3) https://store.kobobooks.com/pt-BR/ebook/conheca-50-faculdades-americanas-mais-baratas-para-alunos-estrangeiros

   

The book provides the cost of each college and university, the courses available, contact address, etc. 

     By going to the community college, a student will save enough money to pay higher tuition even when he transfers to a four-year college. The other option can be to work after graduation from community college, save some money before going back to complete the four-year course. Using this method, one may spend more than 4 years, but will definitely not have the student debt which is a nightmare for many people. Consider this!          

Walter Okpala: How to obtain college degree without debt

Walter Okpala: How to obtain college degree without debt: The problem of student debt is becoming widespread one. Many people go to college to get degree, but after graduation, they find themselves ...

How to obtain college degree without debt

The problem of student debt is becoming widespread one. Many people go to college to get degree, but after graduation, they find themselves in a big trap on how to find job and at the same time, worried about the incured student debt. The question some parents are asking is whether there are other ways to go to college without student loan. The answer is yes, although these other means require more sacrifice. In the following series of posts, I will show various ways of getting college degree without being in debt. Watch out for the posts!
          

Walter Okpala: Parents sustaining their adult children

Walter Okpala: Parents sustaining their adult children: One of the barriers to financial planning is parents over-sustaining their adult children. There is a trend worldwide, on the average, that...

Parents sustaining their adult children

One of the barriers to financial planning is parents over-sustaining their adult children. There is a trend worldwide, on the average, that the older generations are have better economic conditions than the younger ones. As a matter of fact, this trend does not mean that older generations were wealthier than the younger generation. Although there are more job opportunities today, only the highly qualified candidates can secure them. While the older generations were able to get job with only high school diploma, getting a weel-paying job today requires college degree in some specific disciplines. That means that not all college degrees can assure you job and descent income to sustain yourself. What this trends also means is that those without college degree or with low-paying college course do not make enough for their living. As a result of this problem, many adult children live with their parents, even if they may have a higher level of education than their parents. 

     Parents should give support to their children when needed. However, over-sustaining your adult children without limit is a bad decision. This is because the adult children enter into comfort zone and do not struggle anymore. In many cases as witnessed in developing countries, adult children get married and start having children under this condition. What was to be a temporary help becomes a right. Many parents struggle with this, but do not know what to do because of the emotion involved. They generally say: "how can I send my children and grandchildren to sleep on the street"? 

     This over-dependence poses financial burden on the parents. Most of them are retired, but cannot enjoy any minute of their lives anymore. I know many retirees who spend their pension on medicines for themselves and the rest on sustaining their children and grandchildren. Their pension finish 2 days after receiving them. In some cases, the parents go back to work in order to help while their adult children cannot get regular jobs. 

     It is important for parents to understand the financial implications of over-sustaining their adult children. Although help should be given, there has to be a time limit attached to it. On the contrary, you cannot live your life. The irony is these younger ones cannot make the same sacrifice their parents are making. Look at the cars they ride, the smart phones they use, and video games they play to understand their behavior. 

     So, live your life. Do not live your life for others!