Money

There was a time I had begun writing this article around August 2019 and I lost the whole of it but 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 to enquire from a person who was well versed in that field and God was so gracious He literally brought her to me through radio. (Madam Stella Chepgn’eno—{Eagle Tact Consultants Ltd} who 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 with us but many of us suffer not because we are are disadvantaged but out of lack education and sometimes even ignorance.

She took me through all financial instruments and she has been taking me through them one by one patiently. 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 with the order of most important according to my view.

  1. Tithe (10%) I wanted to write (for the Christians who believe in tithing they understand), but that’s not how tithing should be essentially. Tithing is a responsibility just the same way we pay tax (give to Caesar what is due to Caesar and to God what is due to God)
  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 it would not be advisable is because the interest earned is quite low. With time, you can increase the percentage of saving depending on the expansion of your income base. A great saving instrument for a start is a money market account that offers interest of approximately 10%-11% per annum. Another important thing to note with savings is that you have to define the purpose of your saving clearly so that you can put the money in different saving accounts.
  3. Expenses and repayment of loans (55%) (in the case you have a loan) For this 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 with order of importance and 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 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 important to pay it back and bless others too. Also, one is not tied to 5% only; you can give as much as you desire but as a wise man once ministered to my spirit —do not give away 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 many details with the different instruments but as I learn more and more I will share what I learn. The trick with money I have learnt is actually knowledge and discipline .

I recommend a very informative book for anybody who would like to get a simple break down on money matters—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 box below and I will send it to you.

♣️

Featured image:Caesar coin

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