The Four Financial Circles

finacial circles

In my article, What Does It Mean To Live Like Horses? I shared on how the quest for survival puts emerging entrepreneurs in a difficult position when negotiating payment terms with clients, and how it ultimately inhibits the growth potential of so many ventures. Today I want to expand a little bit more on that thought.

I have observed that there are basically four financial circles to which every individual and entrepreneur belongs.


My last post was derived from this circle. It is the base level where folks practically struggle to get through each day as it concerns basic necessities like food, transport fare, shelter, etc Folks in this circle are usually the first casualties when there’s hike in the prices of general consumer goods. However, there’s a grading within this circle just like all others, not everyone is exactly at the same level.


This circle is just above the previous, basic things of life isn’t much of a problem here, the folks just want to be comfortable enough to live in a good home, buy the gadgets they want, send their kids to good private schools, afford one or two trips abroad, and so on. There’s also a grading in this circle, not everyone is at the same level. Beyond that, some people shuttle between this circle and the previous one, others remain here perpetually while some others proceed to the next.


At this point comfort is no longer a person’s quest, it is settled. Folks here are more concerned with how to maintain their quality of life and create a fortune for their heirs. People here take investments more seriously; they want to own properties and assets, anything that gives them some level of security.


This is the stage where money isn’t a problem anymore. The world’s top billionaires belong here. They are hungry for impact; something with their names crested on it; own a football club or something of that sort, set up a foundation tackling one major problem the world laments about, or re-engineer the business itself to offer greater value to the world. By all means, they embark of legacy projects. So long as it takes money, there is nothing they cannot afford.

Not everyone starts from ground zero by the way, but everyone belongs to one out of the four circles at each point in life. I am an advocate for people to live within their means and be contented with what they have per time even when hoping and working to improve their lot. However, my goal is to share few business insights:

Have you thought about why it is a struggle for many of us not to spend business money on personal needs, even with all the talk about financial discipline?

Everyone fantasizes about capturing just 1% of Nigeria’s 180million people, but why is it easier said than done?

How do all these affect our strategies on pricing, marketing, business model, and investments? I hope to share on these in the coming days. Thanks for reading.

Also published on Medium