My Money Mistake is a weekly PiggyVest series that examines the worst financial blunders made by actual Nigerians and the lessons they learned from them.
For this week's episode of My Money Mistake, we spoke with a 40-year-old restaurant manager who, in a moment of desperation, sold his late father's inheritance, but still struggles with his finances years later. He explains why he sold the property and his subsequent misgivings.
Could you describe your financial error?
I hail from a polygamous family, and after my father passed away, I inherited one of his properties. At the time, my family and I were struggling financially, and I desired to pull them out of poverty.
Every time I received a financial windfall, financial obligations prevented me from savoring it. Consequently, I sold the property out of desperation.
Oh wow. How much did you get for the item?
Not very much. Approximately 2.5 million yen. I gave my siblings approximately 1.5 million and intended to use the remaining 1 million to improve our circumstances.
How did it turn out?
Things did not go according to plan. We spent a portion of the budget on real estate agents for house searching. After moving into a new home, paying the children's school fees, and purchasing a few miscellaneous items, all of our funds were depleted.
I had nothing to invest from the money. The sale of the property didn't net me much, and I didn't have a concrete plan for how to spend the proceeds, so when the money arrived, I had to resolve the matters I deemed most important. In fact, it was the small amount of money I gave my wife that allowed us to survive.
How did she spend the money?
She traveled to the village to acquire yams, which she then sold in the city. Before I became a delivery agent, our only source of income was the profit from that enterprise. This employment was helpful to me.
What about labor?
I've been getting by. I was recently hired as a restaurant manager. It does not provide me with much, but I must leave the home every day to provide for my family.
It pains me that I sold the property for only 2.5 million when I've heard it's now worth between 20 and 30 million. Now that I have the knowledge to launch a business, I lack the financial resources to sustain it.
How is your family doing?
I currently only have my wife and children. My entire family believes that I am an idiot. They believe I made a mistake, and I believe they are correct. My mother and siblings severed ties with me. No longer are we on decent terms. I only hope that my circumstances improve shortly so that I can return to them, make amends, and win them over.
It was such a grave error to sell that property. If someone had taken the time to educate me, I would not have done it, or I would have waited for a superior buyer. Currently, I am still living hand-to-mouth.
I am so regretful about everything. What lessons did you take away from that experience?
I've learned that there are certain items that should never be sold at random, and that one must always evaluate financial decisions critically prior to making them. If there is no specific plan for the money's use, it will undoubtedly be misappropriated.