𝟏) 𝐈𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠 𝐢𝐬 𝐨𝐧𝐥𝐲 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐰𝐞𝐚𝐥𝐭𝐡𝐲
Investing is not exclusive to the rich. There are various investment opportunities available in Kenya that cater to different income levels.
These include:
– Mutual funds
– Treasury bills
– Government bonds
– Established saccos
– Collective investment schemes
Mobile money platforms also enable small-scale investing, such as buying government bonds with small denominations.
2) Credit cards are dangerous and lead to debt
While credit cards can lead to debt if misused, they can also offer numerous benefits when used responsibly.
These include rewards programs, cashback, and convenience in international transactions.
By budgeting carefully and paying off your balance each month, you can avoid high-interest charges and build a positive credit history.
𝟑) 𝐂𝐚𝐬𝐡 𝐢𝐬 𝐤𝐢𝐧𝐠 — 𝐚𝐯𝐨𝐢𝐝 𝐝𝐢𝐠𝐢𝐭𝐚𝐥 𝐩𝐚𝐲𝐦𝐞𝐧𝐭𝐬
While cash has its place, digital payments offer numerous advantages such as convenience, record-keeping, and safety during transactions.
Mobile money, for example, allows you to pay bills, shop online, and transfer funds without carrying large sums of cash, reducing the risk of theft.
𝟒) 𝐎𝐧𝐥𝐲 𝐞𝐬𝐭𝐚𝐛𝐥𝐢𝐬𝐡𝐞𝐝 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬 𝐧𝐞𝐞𝐝 𝐚 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐩𝐥𝐚𝐧
Every individual and business, no matter how small, can benefit from having a financial plan.
Planning helps you set financial goals, budget effectively, and track your spending.
Whether you are saving for education, investing for retirement, or running a small business, a financial plan is crucial for achieving your objectives.
𝟓) 𝐁𝐮𝐲𝐢𝐧𝐠 𝐢𝐬 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐭𝐭𝐞𝐫 𝐭𝐡𝐚𝐧 𝐫𝐞𝐧𝐭𝐢𝐧𝐠.
𝐑𝐞𝐚𝐥𝐢𝐭𝐲
While homeownership can build equity, renting offers flexibility and can sometimes be more financially viable, especially if you don’t plan to stay in one place for a long time.
𝟔) 𝐘𝐨𝐮 𝐝𝐨𝐧’𝐭 𝐧𝐞𝐞𝐝 𝐚𝐧 𝐞𝐦𝐞𝐫𝐠𝐞𝐧𝐜𝐲 𝐟𝐮𝐧𝐝 𝐢𝐟 𝐲𝐨𝐮 𝐡𝐚𝐯𝐞 𝐚 𝐠𝐨𝐨𝐝 𝐜𝐫𝐞𝐝𝐢𝐭 𝐜𝐚𝐫𝐝.
Reality: An emergency fundAn emergency fund is a dedicated account or pool of money set aside specifically to cover unexpected or urgent financial expenses, such as medical bil... ... is crucial for unexpected expenses. Relying solely on a credit card can lead to debt and higher interest costs.
𝟕) 𝐑𝐞𝐭𝐢𝐫𝐞𝐦𝐞𝐧𝐭 𝐢𝐬 𝐭𝐨𝐨 𝐟𝐚𝐫 𝐚𝐰𝐚𝐲 𝐭𝐨 𝐰𝐨𝐫𝐫𝐲 𝐚𝐛𝐨𝐮𝐭 𝐧𝐨𝐰.
Reality: The earlier you start saving for retirement, the more you can take advantage of compound interest.
Starting early helps ensure a comfortable retirement.
𝟖) 𝐓𝐡𝐞 𝐬𝐭𝐨𝐜𝐤 𝐦𝐚𝐫𝐤𝐞𝐭 𝐢𝐬 𝐭𝐨𝐨 𝐫𝐢𝐬𝐤𝐲 𝐟𝐨𝐫 𝐚𝐯𝐞𝐫𝐚𝐠𝐞 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬.
Reality: While the stock market has risks, investing over the long term can lead to significant returns. Diversification and a well-thought-out strategy can help manage risk.
𝟗) 𝐈𝐟 𝐲𝐨𝐮 𝐜𝐚𝐧 𝐚𝐟𝐟𝐨𝐫𝐝 𝐭𝐡𝐞 𝐦𝐨𝐧𝐭𝐡𝐥𝐲 𝐩𝐚𝐲𝐦𝐞𝐧𝐭, 𝐲𝐨𝐮 𝐜𝐚𝐧 𝐚𝐟𝐟𝐨𝐫𝐝 𝐭𝐡𝐞 𝐩𝐮𝐫𝐜𝐡𝐚𝐬𝐞.
Reality: Just because you can afford the monthly payment doesn’t mean you can afford the total cost, including interest and fees.
Always consider the full cost of a purchase
𝟏𝟎) 𝐘𝐨𝐮 𝐜𝐚𝐧’𝐭 𝐧𝐞𝐠𝐨𝐭𝐢𝐚𝐭𝐞 𝐲𝐨𝐮𝐫 𝐛𝐢𝐥𝐥𝐬.
Reality: Many bills, including medical expenses and certain utilities, can be negotiated.
It’s worth asking for discounts, payment plans, or better rates.
𝟏𝟏) 𝐏𝐚𝐲𝐢𝐧𝐠 𝐨𝐟𝐟 𝐚 𝐦𝐨𝐫𝐭𝐠𝐚𝐠𝐞 𝐞𝐚𝐫𝐥𝐲 𝐢𝐬 𝐚𝐥𝐰𝐚𝐲𝐬 𝐭𝐡𝐞 𝐛𝐞𝐬𝐭 𝐨𝐩𝐭𝐢𝐨𝐧.
Reality: While paying off your mortgage early can save you interest, it may not be the best use of your money if there are other higher-return opportunities for investing.