Money

There was a time I had begun writing this article around August 2019 but I lost the whole of it. Nevertheless, I am glad because now, I can address it from a point of more experience now.

Money! A topic that I was really afraid of handling even before I got a job because of all the common stereotypes associated with it in this day and age. However, you can imagine the shock that struck me when someone handed me their annual salary report and I realized that approximately Ksh. 400,000 had gone through his hands.

The next question I had was, “what did you do with all that money?” because, let me just be honest here, for some it may seem like little, but for many that is a lot of money.

That one question prompted me get a financial advisor. I tell you, God was so gracious He literally brought her to me through listening to the radio. (Madam Stella Chepgn’eno—{Eagle Tact Consultants Ltd}. She has been my guide and friend on this financial journey; also Rubiani Wealth Management– coaching and financial advisors

https://www.standardmedia.co.ke/lifestyle/article/2001351511/how-the-big-boys-play
https://www.standardmedia.co.ke/lifestyle/article/2001351511/how-the-big-boys-play

Upon our broad discussions, I realized that there is much information out there but many of us suffer as a result of ignorance (sad to say).

She took me through all the nitty-gritty of finances from mid-year 2019 to-date. She gave me a breakdown of her financial model, which looked a bit scary at first but with time I am also learning that there is no success without sacrifice.

I would like to arrange them in order:

  1. Tithe (10%) I wanted to write (for the Christians who believe in tithing they understand), but I do not believe that is how tithing should be essentially. Tithing is our thanksgiving offering to God; the first-fruit of our labours due to Him.
  2. Saving (10%) Whenever you get some money, it is important to put some 10% away in an interest account. Saving in the bank is also a good move but the reason why she told me it would not be advisable is because the interest earned was quite low. Then, with time, one can increase the percentage of saving depending on the expansion of your income base. A great saving instrument to a start with is a money market account that offers an interest of approximately 10%-11% per annum. Another important thing I learnt was, with savings one has to define the purpose of saving clearly so that the money is stored in different saving accounts.
  3. Expenses and repayment of loans (55%) (in the case you have a loan) For this case, it would be important to track your daily and monthly obligations so as to avoid living beyond your means.
  4. Investments (10%) —when you have saved some money for instance, for investment purposes, you can invest in safe products for a start like: treasury bills or bonds, mutual funds then advance to more aggressive products like shares and corporate bonds.
  5. Personal development and travel (10%) These would include personal goals like education, trainings, coaching, mentorship programs, vacation, travel goals like around the world lifetime goals (PS- this is my travel goal). So it is important to create a list in order of importance then set aside some money for these things so that even as you check them off, you are able to make more and more bold goals.
  6. Givings (5%) These include donations, gifts, offertory, grants, scholarships etc. This is one principle for me that is important because I have come to learn that even where I am in life as a person, is as a result of being greatly influenced by people who gave me some food, shelter, education, clothing and pocket money. Therefore, it is also important to pay it forward and bless others too. Additionally, one should not necessarily feel tied down to 5% giving only; one can give as much as they have purposed in their hearts. A wise man once ministered to my spirit; he said, “do not give away too much if you do not have the faith for it, give only what you can offer and afford.”

That’s pretty much it. I have not gone into much detail with the different instruments in financial savings and investments. However, as I learn more and more, I will also share more of what I learn. The trick with money I have learnt, is actually knowledge, wisdom and discipline.

I recommend a very informative book for anybody who would like to get a simple break down on money matters; book title —The Richest Man in Babylon. You can read it online for free! Go figure!

The five laws of gold –The richest man in Babylon

In the case you would like Stella’s contacts, you can drop a comment in the comments section below and I will send it to you.

♣️

Featured image:Caesar coin

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