I believe that it’s no longer news that the value of
our currency continues to depreciate. In fact most currencies have
experienced a downward plunge in their values when you analyze
developments in the last decade or so.
In simple terms this means that what One Naira could buy
ten years ago is not what it can purchase today. One useful analysis we
can make is to compare the exchange rate of the Naira to the dollar for
the last ten years. In 2005 the Naira exchanged for around N130 to the
Dollar; today it is currently valued at around N210, a loss in value of
around sixty-two percent.
While the Naira’s value has depleted significantly incomes
have not gone up substantially in the last ten years for most people.
This means that no matter the increases earned in the last decade it
cannot compare to the losses made. In actual fact you need to earn at
today’s value at least sixty-two percent more in order to afford what
that same amount could purchase ten years ago.
Thus the impact of inflation and eroding currency values
cannot be overlooked. How is one going to be able to create wealth while
the value of money is constantly declining? The only way is by playing
by a different set of rules – the new rules of money.
Now the credit goes to Robert Kiyosaki, author of the Rich
Dad, Poor Dad book series for the term, “The New Rules of Money.” In
his bestselling book, “Rich Dad’s Conspiracy of the Rich: The Eight New
Rules of Money,”Kiyosaki posits that economic systems of the world
equips and empowers the rich to continue getting richer, at the expense
of the poor. He advocates a series of eight new rules, to help the poor
or less advantaged build their way to wealth.
Reliance on existing “old” rules like getting a job,
saving, diversifying your investment portfolio, avoiding debt, owning
your own home can only take one so far in these days of plunging
currency values and government bailouts.The new rules are:
