X Personal Finance

We are often exposed to somewhat questionable financial advice.

- Loans are not good.
- Renting is throwing money.
- Land is the best investment.
- Keep all your money in the bank.

While personal finance is personal, there are time-tested truths about money.

- Buy what you

✓Use your job to earn and invest that income into a small business or skill that can multiply your income.

✓Let your business profits work for you by investing them in stocks, real estate, or other businesses that generate steady cash flow.

✓Transition from working for money

Time, skills, money, wealth are a cycle.

Master each step, and you control everything.

~Use your time to learn skills.

~Use your skills to make money.

~Use your money to build wealth.

~Use your wealth to save your time.

~Save your time to make more money.

Payday week!💰

Here's what we do on paydays as we build wealth, one top up at a time:

• Knocking off debt
• Dividend stocks top up
• Emergency fund top up
• SACCO deposits top up
• Fixed income fund top up
• Bond fund account top up

Wash, rinse, repeat next payday 🔄

Every new month, normalize using your income to,

✓Pay bills
✓Pay off debts
✓Build social capital
✓Add to investments
✓Add to emergency fund
✓Keep the rest for yourself

This is the formula to derive job satisfaction & enjoy the journey to wealth as well as the destination.

You invest in your future when you:

•Set personal financial goals
•Pay attention to your money
•Educate yourself about finances
•Set up a retirement fund account
•Buy investment-grade real estate
•Have an emergency fund account
•Have shares CDS & t-bond account

If you want some money, go get a job.

If you want more money, invest in your education or skills, then get a higher-paying job.

If you want much more money in future, invest in your self education, start your own business, and invest in cash flow assets.

~Learn a skill.

~Turn it into income.

~Turn that into savings.

~Turn that into investments.

~Investments give passive income.

~Passive income gives you free time.

~Now you can learn another skill.

~And repeat the process over and over until you hit financial freedom.

Before the next salary shows up, set up a system. Automate savings first, even if it’s small. Let your future self get paid before your lifestyle does. Blowing your salary once is a life experience. Doing it every month is a bad personality trait. Fix your attitude towards money.

As a business owner, pay yourself a salary, no matter how small. Live below the salary you earn.

If your needs are more than your salary it means either you've succumbed to lifestyle inflation or you earn little.

Don't bother aiming to save half of your income if you aren't

Everyone wants fast money. No one wants slow money. But slow money compounds for longer periods of time, hence sustainable.

Master a steady wealth creation process and you won't have to worry about money, ever.

Put your money into different baskets.

If you spare Sh 15,000

✓The 20's are foundation years,

~Learn, save more, spend wisely.

✓The 30's are stability years,

~Earn more, invest wisely.

✓The 40's are soaring years,

~Compound more, diversify wisely.

✓The 50's are maintenance years,

~Risk less, protect more.

Never invest in things you don't understand.

Broadening your understanding should be part of the strategy too.

If you understand individual stocks the best, invest in that.

If you understand business the best, invest in that.

If you understand real estate the best, invest in

Saving money is hard.
Being broke is hard.

Being in debt is hard.
Being debt-free is hard.

Starting a business is hard.
Working a salaried job is hard.

Pursuing dreams is hard.
Living with regrets is hard.

Upgrading skills is hard.
Staying stuck is hard.

Choose your hard.

You can earn about Sh 50K annual interests or dividends by setting aside between Sh 6,000 to 10,000 monthly for 4 years; from a Sh 60K net pay. It depends on where you invest.

✓Sh 500K MMF savings with pre-tax earnings of 12% p.a.

✓Sh 500K SACCO deposits with at least 10%

Whatever amount of money you make, throw some into investments.

Real estate, bonds, equities, special funds, dividend stocks, businesses.

Have enough to cover bills.

You should not have money sit in an ordinary account collecting dust.

Your money should work harder for you.

To build lasting wealth, your money needs to work for you through investments that grow over time:

1. Dividend stocks
2. Treasury bills
3. Unit trusts
4. Derivatives
5. SACCOs
6. Treasury bonds
7. Fixed deposit accounts
8. Real Estate Investment Trusts

What you can achieve when you start paying attention to your finances:

1️⃣Pay off debt
2️⃣Save more money
3️⃣Make more money
4️⃣Feel content with your life
5️⃣Set and reach financial goals
6️⃣Invest in yourself and your future
7️⃣Comfortably give to others in need

Dividends and interests are ready examples of passive income from:

•Stocks
•Bond funds
•Special funds
•SACCO deposits
•Money market fund
•SACCO share capital
•Treasury bills and bonds

Get paid more than 12X a year!

When you learn, train, and progress, you get better with your investments.

When you get better with investments, you get rewarded.

When you get rewarded, you gain confidence.

When you gain confidence, you increase your investments.

Increased investments lead to more cash flow