THREAD🧵
So you just landed a new, well paying job?
Here’s how to save and invest your money in the right way👇👇
So you just landed a new, well paying job?
Here’s how to save and invest your money in the right way👇👇
1/ Create a Budget.
If you do not tell your money where to go, you will always wonder where it went.
Separate your needs from your wants.
If you do not budget your money, it will never be enough to cater for your needs.
If you do not tell your money where to go, you will always wonder where it went.
Separate your needs from your wants.
If you do not budget your money, it will never be enough to cater for your needs.
2/ Keep Track of your expenses.
Know where your money goes.
This will help you account for your high income.
It will also help you budget better as it helps you realize where you are wasting money.
Know where your money goes.
This will help you account for your high income.
It will also help you budget better as it helps you realize where you are wasting money.
3/ Cultivate a savings culture early on.
It's not how much you earn that matters, it's how much you keep that matters.
Prioritize savings over expenses.
Do not save what is left after spending, spend what is left after saving.
It's not how much you earn that matters, it's how much you keep that matters.
Prioritize savings over expenses.
Do not save what is left after spending, spend what is left after saving.
4/ Where do you save your money?
The best saving avenues are Money Market Funds and SACCOs.
They have higher returns than banks' savings and fixed deposit accounts.
And they also have return rates that beat the inflation rate.
The best saving avenues are Money Market Funds and SACCOs.
They have higher returns than banks' savings and fixed deposit accounts.
And they also have return rates that beat the inflation rate.
6/ For Money Market Funds:
- They require as little as Sh 100 to get started.
- You can add up your savings at any time and with any amount.
- You also get to access your money within 2-3 days
- They require as little as Sh 100 to get started.
- You can add up your savings at any time and with any amount.
- You also get to access your money within 2-3 days
7/ For SACCOs
- You can borrow 3x your savings at lower interest rates.
- You get dividends on your share capital
- You get interest on your deposits.
- You can borrow 3x your savings at lower interest rates.
- You get dividends on your share capital
- You get interest on your deposits.
8/ Create an Emergency Fund.
Once you have a good foundation in personal finance management, it's now time to get ready with investing.
An emergency fund is a pool of resources that should cover your normal expenses for a minimum period of 6 months.
Once you have a good foundation in personal finance management, it's now time to get ready with investing.
An emergency fund is a pool of resources that should cover your normal expenses for a minimum period of 6 months.
Why is it important?
- It helps you avoid selling your long term assets whenever you have a financial emergency
- It will help you sleep well at night knowing that you have a financial back up
- It will come in handy in case of a future job loss, or any other emergency
- It helps you avoid selling your long term assets whenever you have a financial emergency
- It will help you sleep well at night knowing that you have a financial back up
- It will come in handy in case of a future job loss, or any other emergency
9/ Get Health Insurance
Hospital bills and medical expenses can easily wipe off all your savings.
Start with the basic health insurance - NHIF
Then if your income allows, get extra medical cover.
Hospital bills and medical expenses can easily wipe off all your savings.
Start with the basic health insurance - NHIF
Then if your income allows, get extra medical cover.
10/ Getting started with investing.
Once you have the basics in, you can now start focusing on wealth creation through investing.
Here, you now start focusing on long term assets like:
- Bonds
- Stocks
- Real Estate
- ETFs
Once you have the basics in, you can now start focusing on wealth creation through investing.
Here, you now start focusing on long term assets like:
- Bonds
- Stocks
- Real Estate
- ETFs
11/ Create your portfolio
Depending on factors such as: age, income, risk appetite, financial goals
You can create a portfolio with the right set of assets to help you achieve your financial goals
Depending on factors such as: age, income, risk appetite, financial goals
You can create a portfolio with the right set of assets to help you achieve your financial goals
Your goal is to continuously buy a diverse set of income producing assets.
Over a long period of time, the passive income from these assets has the potential to exceed the active income from your salary.
Over a long period of time, the passive income from these assets has the potential to exceed the active income from your salary.
When you hit that level, you worry less about retirement planning, as income from your investments already exceeds income from your salary.
That's it on the basics of getting started with money management and investing.
P.S.
You can learn more about this in our upcoming masterclass.
Registration details are in this poster below
P.S.
You can learn more about this in our upcoming masterclass.
Registration details are in this poster below
TL;DR
1. Create a budget
2. Track your expenses
3. Build an emergency fund
4. Get health insurance
5. Cultivate a Savings culture early on
6. Build a portfolio
7. Keep Buying more Assets
1. Create a budget
2. Track your expenses
3. Build an emergency fund
4. Get health insurance
5. Cultivate a Savings culture early on
6. Build a portfolio
7. Keep Buying more Assets
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