Thursday, August 18, 2011

Becoming a Millionaire in Ghana

A Friend and I were discussing a topic which I find very interesting, not only was it informative it  also set me thinking. Thinking about how to retire young and retire rich in  Ghana, my beloved country. A country once called the Gold Coast because you literally pick up Gold when you take a walk on the shores of the sea, interesting, isn’t it? So what happened to the supposed Gold on the coast of my country, Ghana? Well, help me if you know the answer.
After, the interaction with this pal of mine, I have decided to write a post on how you can become a millionaire in Ghana. I have heard many young Ghanaians debating about  who the richest man in Ghana is,hmmm, for  me I know Aliko Dangote is the richest African on the Earth and probably also the richest black person in the world, a position occupied by Opera Winnefery.  So,  who, is the Richest man in Ghana? Well, that is not the main topic for my post today. But if you know the answer feel free to leave me with your comment.
How Do you Become a Millionaire in Ghana?
Many people belief becoming a millionaire is a matter of luck ,for me I beg to differ. Becoming a millionaire in Ghana is simple but require smart effort and lot of patience. You plant the seed of greatness early in life and have to wait patiently for year to enjoy its fruit over and over again.
So , what is the starting point for becoming a Millionaire?
Resolve today that you are going to save and invest at least 10 percent of your income throughout your working life. Take 10 percent of your income off the top of each paycheck each time you receive one and put it into a special account for financial accumulation. The fact is that if you save just $100 or at least $10 per month throughout your working lifetime and you invest that money in an average mutual fund that grows at 10 percent per annum, you will be worth more than one million dollars by the time you retire at the age 65. This means that anyone, even a person earning minimum wage, if he or she starts early enough and saves long enough, can become a millionaire over the course of his or her working lifetime. It is expected that every young Ghanaian begin  to start earning money for a living at the age of 25 at most,that is if you complete a tertiary institution in Ghana. From age 25 when you start earning  to age 65 when you retire is 40 years. Believe me, if you put aside 10 percent of your income from that age till you retire and do it consistently, you may not be the Aliko Dangote of our time, but you would definitely be enjoying life after retiring.
Developing the lifelong habit of saving and investing your money is not easy. It requires tremendous determination and willpower. You have to set it as a goal, write it down, make a savings plan, and work on it all the time, But once this practice locks in and becomes automatic, your financial success is virtually assured.
Why Do many  a Ghanaian  Retire Poor?
A major reason that people retire poor is because of impulse buying. They see something they like and they buy it with very little thought. They become victims of what is called “Parkinson’s Law,” which says that “expenses rise to meet income.” This means that no matter how much you earn, you tend to spend that much and a little bit more besides.What that means is that,if there is an increase in salary, the average Ghanaian would increase his expenses so he can enjoy a “better” life, keeping up with the Jones.
But you don’t have to be a victim of Parkinson’s Law. If you cannot save 10 percent of your income, start today by saving 1 percent of your income in a special savings or investment account. Put it away at the beginning of each month, even before you begin paying down your debts. Live on the other 99 percent of your income. As you become comfortable living on 99 percent, raise your savings level to 2 percent of your income, then 3 percent and 4 percent, and so on. Create a
savings plan that you are comfortable with and then commit to it.
What Next?
So who is the richest Ghanaian? Do you have any clue? Do you also have any money tips or saving techniques that have worked for you? If so, please leave a comment below with strategies that you have successfully used to save and invest money I would love to hear from you.