THREAD🧵
10 Things about Money & Investing that you will regret you didn't know earlier:
1/ A little lifestyle creep is okay.
10 Things about Money & Investing that you will regret you didn't know earlier:
1/ A little lifestyle creep is okay.
If you get a salary increase, most people will assume that you should save & invest more.
What nobody tells you is that you should also live a little bit more.
You should focus more on maximizing your life enjoyment & less on maximizing your wealth.
What nobody tells you is that you should also live a little bit more.
You should focus more on maximizing your life enjoyment & less on maximizing your wealth.
2/ You are the biggest holding in your portfolio.
The biggest holding in your portfolio is you- income that your career will generate over your life time.
Your skills & knowledge will do more for you than any amount of investment returns over your lifetime.
The biggest holding in your portfolio is you- income that your career will generate over your life time.
Your skills & knowledge will do more for you than any amount of investment returns over your lifetime.
3/ If you do not tell your money where to go, you will always wonder where it went.
Budgeting is not for the financial savvy, it's for everyone.
If you do not budget your money, it will never be enough to cater for your needs.
Budgeting is not for the financial savvy, it's for everyone.
If you do not budget your money, it will never be enough to cater for your needs.
4/ Often, the enemy is low income and not financial illiteracy.
You can talk about savings all you want but it's income that builds wealth.
It's very hard to save money when you have low income.
You cannot personal finance your way out of poverty.
You can talk about savings all you want but it's income that builds wealth.
It's very hard to save money when you have low income.
You cannot personal finance your way out of poverty.
5/ Not all debt is bad.
A little bit of leverage is okay
The people who can best use debt are those who don't need it.
A little bit of leverage is okay
The people who can best use debt are those who don't need it.
6/ Prioritize liquidity in your portfolio.
"No matter how valuable an investment may be, it is of no practical value to you unless its liquid when you need to cash out.
Just as travelers die in the wilderness without water, investors perish if they have no liquidity."
"No matter how valuable an investment may be, it is of no practical value to you unless its liquid when you need to cash out.
Just as travelers die in the wilderness without water, investors perish if they have no liquidity."
7/ Diversification may preserve wealth, but concentration builds wealth.
"Diversification is a protection against ignorance.
It makes little sense if you know what you are doing."
"Diversification is a protection against ignorance.
It makes little sense if you know what you are doing."
8/ Cash is King
Cash is the most basic building block of a portfolio.
You should never run out of cash to meet your expenses.
If you keep the cash portion of your portfolio secure, it can hold up the rest of your wealth through the worst times
Cash is the most basic building block of a portfolio.
You should never run out of cash to meet your expenses.
If you keep the cash portion of your portfolio secure, it can hold up the rest of your wealth through the worst times
9/ You will never feel rich enough.
Being rich is a relative concept.
And that relativity will always be present in our lives.
This is why no one feels rich.
Because it’s easier to point at someone who is doing better.
Being rich is a relative concept.
And that relativity will always be present in our lives.
This is why no one feels rich.
Because it’s easier to point at someone who is doing better.
10/ Avoid banks' saving and fixed deposit accounts.
They have very low interest rates and you will quickly lose the purchasing power of your money.
Put your money in a Money Market Fund or a SACCO instead.
They have higher interest rates and you can easily access your money.
They have very low interest rates and you will quickly lose the purchasing power of your money.
Put your money in a Money Market Fund or a SACCO instead.
They have higher interest rates and you can easily access your money.
11/ You do not get rich by cutting down on your expenses, you get rich by increasing your income.
There is a limit to how low you can cut down on your expenses.
But there is no limit to how much money you can make.
There is a limit to how low you can cut down on your expenses.
But there is no limit to how much money you can make.
That's it!
If you found this thread useful:
1/ Follow me @kahome_steve for more amazing threads.
2/ Quote tweet the first tweet in this thread so that other people may find it.
If you found this thread useful:
1/ Follow me @kahome_steve for more amazing threads.
2/ Quote tweet the first tweet in this thread so that other people may find it.
P.S.
I published an e-book just for you.
It covers personal finance management and investing fundamentals.
This e-book will help you achieve your financial goals.
Get it in the link below👇
I published an e-book just for you.
It covers personal finance management and investing fundamentals.
This e-book will help you achieve your financial goals.
Get it in the link below👇
Here's the link. If you can't access it via this link, DM me.
gichukikahome.gumroad.com
gichukikahome.gumroad.com
TL;DR
1/ A little lifestyle creep is okay
2/ Not all debt is bad
3/ You will never feel rich enough
4/ Cash is King
5/ Prioritize liquidity
6/ Concentration builds wealth
7/You are the biggest holding in your portfolio
1/ A little lifestyle creep is okay
2/ Not all debt is bad
3/ You will never feel rich enough
4/ Cash is King
5/ Prioritize liquidity
6/ Concentration builds wealth
7/You are the biggest holding in your portfolio
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