The Financial Lesson My Landlord Taught Me

My first car was a Volvo 340DL. Gold colour. I lived in one of the flats within a 4-block and 8-flats property. Our landlord, Alhaji Lawal (now I think I have a thing with people named Lawal) of blessed memory, lived in one of the flats

As our culture is, I went to Alhaji Lawal's flat to inform him of the car. I wanted him to come and pray over it.

Alhaji Lawal followed me excitedly. He wore his trademark shorts and hopped down the stairs. When he came close to the car, he made a statement that was shocking and which I misunderstood for a long time.

He touched the car, looked at me and said in Yoruba, "When we were your age, it was a vespa we bought first and not a car". I masked my anger with a false smile. How could he say that? Was he unhappy that his young tenant bought a car? I was 26 years then.

Alhaji prayed over the car but I can't recall saying Amen heartily.

For a long time, I silently resented Alhaji Lawal for that unsolicited advice. Now, I understand better.

I now know he actually meant well. He spoke to me with the benefit of experience. If a child has as many new clothes as an elderly man, he cannot have rags in equal proportion with the elderly one.

When you start a new job, business or get proceeds from a new contract, don't rush to eat your seed. That is not the time to splurge on assets. There's a Yoruba proverb which says that the first income earned by a youngster is used to buy beancakes.

It's not the time to change your wardrobe in line with your new status. That's not the time to paint the town red. That's not the time to buy that wig. That's not the time to move from Okokomaiko to Victoria Island. That's the time to save.

Save at least 20% of your income. Put it in a savings account. When you have a considerable sum, invest it in a higher-yield instrument. When you're ready to buy an asset, look for functionality rather than aesthetics.

Don't exhaust all your savings over an asset. It is only a foolish man that will buy a G-Wagon and be begging friends for money for fuel. Start small. Remember that the moment you drive that car out of the sales garage, the value has gone down.

You also now have to bother about car maintenance, change of tyres and God help you if a danfo or Micra runs into you- unbudgeted expenses can show up. That wig won't thrill you again after a month. You have to struggle to keep up with the living expenses on the Island.

You can't live on the Island without a generator or inverter, you need to spend some time lounging with the boys and generally keeping up with the Joneses.

Many years after Alhaji Lawal made that statement, that has been my guiding principle. Save first. Invest the savings. Then you can buy assets from the proceeds of investments. And when you buy assets, buy based on need and not greed. You're not competing with anyone.

"First plant your fields; then build your barn". - Proverbs 24:27 MSG

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