Dear Dalitso

Everyday lessons for tomorrow

Prisoner of Hope (Part 3)

January 15, 2024
Letter #33

Proverbs 24:27

Dear Dalitso

I was young and now I am getting older. In my life, I have made both good and bad decisions. Along the way, I have learnt several important lessons around money, joy, and contentment. I come from a background of poverty, so I had no real point of reference in my family. Almost all the lessons I have learnt about capital accumulation have come either from the church or independent research and let me quickly add that I am still learning. One of the most valuable lessons to date is the teaching of wisdom in Proverbs 24:27 (Prepare thy work without, and make it fit for thyself in the field, and afterwards build thine house).

Let’s break it down.

  1. It’s the sequence of investing- first, you deploy your earnings into a productive field (a vehicle or investment platform) process. The proverb was written when the mainstream economy was agrarian- the field relates to the place where you have the potential to increase the value of your principal amount.
  2. Make it fit for your work- don’t just invest nje- ‘make it fit for yourself’- you know your short, medium, and long-term goals- so make sure your investment aligns with those goals. What would you like to achieve in 2024 (it could just be a holiday for you and your family in August or December)- start putting aside money into a productive portfolio. This is most likely going to be a short-term savings account. Consider what you need to see in your life in 3 years- work backwards and calculate how much you need to save per month or how much you need to earn from your investment per month. You get the drift. But don’t immediately spend your earnings without a proper plan. Have a monthly budget- whatever you earn set aside something for the future. 
  3. Then build your house- this is usually your long-term goal. You do not build your house from month-to-month earnings- but instead, you liquidate savings accumulated over ten years.
  4. The mistake many of us make is that we want everything simultaneously and now. We need to pace ourselves. Create consensus within the family on what you will defer. Cut some fat in your budget.

Once the plan is in place- it will help to guide you on how to live your life. Go ahead and try this. Let me know when the plan works!

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