Part 2: Deliberate and Focused Growth
As a man of faith, one of my strongest beliefs is that I'd never have a better last year irrespective of the season of life I'm in. 2016 is a proof of that.
It has become a tradition that I take time off every last week of the year to set goals for the coming year. So after setting my #GoalsFor2016, signed it and sent it out to a few friends I call #AccountabilityPartners to help me track, the year began with loads of carry overs from goals I couldn't achieve in 2015, like relocating my family to the States. My wife was growing weary and agitated. 2016 started on a very depressing note for me. Spent the holiday alone, lonely and miserable. Thanks to a few family friends from church and my Pastors who ensured I got invited to every family gatherings. God bless you all.
Life is in phases and men are in sizes. Your goals won't all happen at the same time. Some of them need time so don't be over agitated when things don't happen fast enough. Just focus on what's working and maintain the tempo so as not to lose focus and give in to depression.
One of the yardsticks of the American adult is the health or otherwise of his credit history. As at June 2015, I had zero credit rating even though I had been living and working in the US for a year. So I knew I had to do something drastic to boost my credit rating.
After investing $1k in a secured credit card as no US bank or credit card company was ready grant me credit owing to the almighty 'insufficient credit history'. I wonder how one is supposed to have a credit history without a bank offering you a starting credit card. I know, right? Well, I got tayad and deposited $1k with a Credit Union which they loaned back to me as Credit facility.
That single move, boosted my Credit Ratings from 620 in August 2015 to 734 by March 2016!
Immediately my new credit ratings became news among credit card-issuing companies, I began to get offers but as a sharp Ijebu boy, I deliberately turned a few of them. But in 1 month, I went from that new guy relocating to US with $1k credit limit (na secured credit sef oh) and without sufficient credit history to a man entrusted with over $28k credit limit from 4 banks and credit unions. That's 13.8 Million Naira at the current exchange rate!
In fact, the credit union where i invested $1k eventually offered me a $13k credit lifeline, just less than a year. Of course, I eventually closed the $1k secured credit card and collected my money back. No time!
In other words, I witnessed a 2,880% increase in my credit limit in just about 8 months. And trust me, this can happen to anyone. Just set it as a goal and keep the discipline to refrain from frivolous spending.
But a note of caution here, even though I now have more than $28k in credit limit, I still keep to my Ijebu-ness by ensuring I don't spent more more 5% every month. I have a habit of paying off all my credit card debts at the end of every month, even if they are not due yet; except on purchases that have 0% APR and I have just one item in that category.
I naturally just don't like buying things on credit. Guess that's the African man in me. Our two cars were bought cash-down despite having a good credit score that could have allowed me get a pretty low interest rate on loan for a new car. I'd rather buy a 'Used Car' I can afford than jump at a new car where I'd be paying car notes every month thus paying some else's salary.
You see, the average American or European uses a brand new vehicle but 90% of those cars are bought on credit. Per adventure, if they lose their job or source of income tomorrow, those cars would be repossessed by the Banks they are owing. Don't get me wrong, there is nothing wrong in cruising around town in brand new, tear-rubber Toyota Camry 2016 model oh, if you can afford it or if the returns from your investments can pay for much monthly car payments. For me, I am not there yet! So I will jejely settle for a 2011 Used Toyota Camry with a good mileage that my savings can afford.
The average young man would rather buy a depreciating liability like a brand new car instead of investing in an asset like a house because you cannot drive a house around! How else would people know you have arrived if they don't see you cruising around in the latest wonder on wheels in town? My dear, STOP IT! Anytime you borrow money to spend, instead of borrowing to invest, you're only taking money from the future. Some of us will arrive at that future penniless!
With my newly improved credit rating, I was able to make another investment worth a quarter of $1M seamlessly. But that's a story for another day.
I remember once, I think around September 2015, calling my wife and breaking down on phone with her because I had just gotten a 'rejection letter' from one of the Credit Card companies I applied to for credit. Can you imagine that I turned down that same company in less than 1 year?
Anything is possible for a man with goals!
Summary1. Don't be discouraged when things are not working as you want them to. Rather than give in to depression, just go back to drawing board and re-strategize. Re-jig your goals.
2. Stay Flexible!
3. Don't buy depreciating stuff on credit. It's not smart economics.
4. Wanna build your credit rating, go for a secured credit card today. Preferably with a Credit Union because they function like non-profits and they are not as brutal as Banks.
5. Once you have a good credit rating, keep your spending at below 5% of credit limit and ensure you pay off what you spend monthly.
6. Don't spend more than you earn!
7. Save for rainy days.
This seems like my last blog post for 2016. See you guys in the New Year.
Thanks for reading.
Wale Salami
About The Author
‘Wale Salami is a Nigerian born American active duty serviceman, a seasoned international development strategist, astute investor, community organizer and a social media enthusiast. Wale and his adorable wife, Omotolani (a trained Lawyer), runs Salamis Equity LLC and enjoys meeting people and influencing their world. They are blessed with a beautiful daughter, Mojooluwa. The family lives in Central Texas, United States.
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