Joebaba

Energy. Finance. Life

[Joebaba @joebigthings]

@minutesimal_ Companies have different metrics. But I once read somewhere that it’s a part of your monthly pay that accumulated all through the year. Normal working days for the month is 20/22days. The extra 10/8 days each month is compounded to make up the 13th month.

[Joebaba @joebigthings]

@ItsDrenix @jon_d_doe I feel you.
Create an excel sheet and track your spending. Write down every penny spent and the reason. In a month or two you already know what your biggest expenses are. Be disciplined and find ways to reduce the expenses.
You could also try to save first before spending

[Joebaba @joebigthings]

@the_beardedsina That’s how God works!

[Joebaba @joebigthings]

@BJAdeparusi lol!!!!

Make I no cast the update for here

[Joebaba @joebigthings]

@BJAdeparusi And now you dey enter Germany every weekend…God is indeed great!

[Joebaba @joebigthings]

@BJAdeparusi @PNMbah Nwanne, ke way?

[Joebaba @joebigthings]

@ajanwachuku @ThatOneGeezie @_simondevs @TopBoyRayy UNN Engineering faculty now have more departments? Especially the nuclear and chemical Engr., departments. It used to be just 5 depts some years back.

Anyways, those grades aren’t for the weak. You are a scholar. Congratulations and all the best in your next phase of life

[Sir J (J9) @SirJarus]

Short answer

For those I have observed and seen, they work more on their earning power. Their earning increases progressively. And they deploy their income wisely.

Long answer

If we define rich by asset of over N750m naira, here are some tips from those that I see get to that level from 9-5:

1. Type of jobs

The jobs they get are top jobs (top oil companies, top departments in top banks or some specialized subsidiaries, tech, international organizations etc) with good salaries, bonuses and other perks.

It may be tough to move beyond middle class in regular 9-5. You mentioned “rich”, so the type of job has to be the one at the top of chart

2. Personal development

They invest in themselves - write professional exams required by their profession, masters, become very good at their job/profession. They can easily move to better companies.

3. Career progress

Very good in their work, get regular promotion (= regular payrise), become important to their company.

Someone earning N2m today won’t continue to earn N2m forever. As they grow in career, their earning increases significantly

4. Expenses

They are very deliberate in planning their expenses. Some plan their foreign holidays to a time their company wants to send them abroad for official work. For example, the company wants to send them to the UK for a 5 day training. They plan their vacation in the UK to start immediately after the end of the 5th day. That means the return flight cost and hotel costs for 5 of the 12 days they spend in the UK are covered by their company

Company policies like health insurance (HMO) also save them a lot of expenses. Imagine all their childbirths, family hospital bills on their employer.

Many maintain small families too.

4. Loans

They explore personal loan opportunities available to their type of job. In some jobs, banks chase you with loans. They pay back over 4-5 years from their salaries. As one finishes, they move to another.

They explore cooperative societies and other group financing opportunities.

5. Investment

Many invest in properties (lands, houses) using these bank and cooperative finances. Some lands bought for N20m in 2015 are now worth N200m. I know someone that worked in one of these companies that finished a house worth N60m in 2015. That house is worth minimum of N350m today.

Some invest in other things. I know some that opened supermarkets as side hustle.

Group finance leveraging their company’s cooperative also helps. Cooperative negotiates and buys land in bulk and resell to members, while they pay over time.

By their 15th year of working, some can boast of net assets worth at least N750 million

- 2 plots of lands bought at N20m each in 2015 are worth N150m each by 2025 = N300m

- 2 houses (N40m) financed through cooperative, bank loans, savings etc are now worth N200m = N400m

- a supermarket started with N30m now worth N150m

- cash in balance of about N50m

The above totals N900m million.

- if they still have a loan balance of N100m with cooperatives and banks, that’s N800m net assets.

If you then ask, but I said 9-5, why all of these?

1. 9-5 is still the seed of all of these
2. 9-5 does not mean you should not invest
3. Banks give them loan because of the security of their 9-5 job
4. They have access to group financing because of 9-5
5. 9-5 does not mean you should keep money lying idle in bank and not use it to multiply (people make this mistake when talking down 9-5)
6. You are exposed to these opportunities because of a good 9-5 job

What they use their salaries for
- save a part with bank, cooperative etc
- use a part to pay back loans
- use a part to cover personal expenses

Other sources of income that augment their salaries
- rental income from a house built or bought with 9-5 pay
- dividends (cooperative, some invest in shares)
- side hustle income (supermarket in this case).

And this is a conservative estimate still. Some top guys are legit naira billionaires from these things

[Joebaba @joebigthings]

@OjiChioma1 Not surprised. You actually can’t be a “guru” in physics without some level of insanity.

[Joebaba @joebigthings]

@Tunde__O Nice break down of IAS12.

What happens to the tax obligation if there is a revaluation loss?

[Prof Phil® @Phil_of_finance]

Since it's Saturday, I wanted to remind you that dedicating time to personal development is crucial for career growth.

If you are aiming to become a top finance professional, here are the key skills you'll want to focus on.

>>>

[Dhaval (Investment Books) @InvestmentBook1]

How to Analyze Stocks

[Richard Okunola @richardokunolar]

I am looking to recommend someone with strong expertise in U.S. corp tax who is available for a side gig to support an NG entity with U.S. incorporation in filing its tax returns. If this is within your capacity, please reach out. I'd prefer a qualified U.S. tax practitioner.

[Dr Joe Abah, OON @DrJoeAbah]

The Vigil360 app lets people know exactly where you are in the event of an emergency. It works even without internet access. Please download the app on Playstore. I understand that it will be available on AppStore soon.

[Joebaba @joebigthings]

@SirJarus You will get all the benefits accrued to the PENGASSAN members provided you all are on same employment terms.

However, you might need that voice to speak up for you someday and you won’t get their support. Don’t stress it, Just Join PENGASSAN if you are working with an O&G comp

[Joebaba @joebigthings]

PENGASSAN is the reason oil and Gas industry has the most competitive and one of the best employee package in Nigeria. If you truly have the interest of your employees at heart then you shouldn’t have a problem allowing them exercise their right to join a union.

[Joebaba @joebigthings]

Many Nigerians think PENGASSAN is made up of touts and they want to sabotage the economy. SMH!

Check the profile of their members and you will begin to rethink your opinion on this issue. Not everything is politics. Learn, re-learn and unlearn.

[Joebaba @joebigthings]

@MasterBolaji Employees of Shell, Mobil, Total Energies e.t.c are all members of PENGASSAN and they have been in business for ages.

What’s so special about Dangote that he is afraid of Union?

[Joebaba @joebigthings]

@dogzigee @SirJarus lol

You don’t know how PENGASSAN operates

[Joebaba @joebigthings]

@SirJarus Make the move if you have passion for HR. Even if the decision turns out to be wrong, you can easily switch jobs as HR professional and can work in different industry.