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First Rule of Wealth Creation In Kenya

22 Nov

First Rule of Wealth Creation In Kenya

The first rule to wealth accumulation is to save. The first secret to being super wealthy in Kenya is to set aside some time, energy and money for investing in ventures that yield passive income.

save in kenya

In life we have been taught to work all our lives and the culture of saving has not been inculcated in us. In my article culture of saving, I explain that this could be as a result of us being a third generation banking population.

This could also result in us believing that working would bring us success so we continue to find any work to do and we do it as long as we can. As a result this kind of culture will only let you know that what you can save is money and even then you do not save much and if you do at any opportune time you get, you withdraw and spend it. This kind of thinking can only lead to poverty.

However there are two other very important ingredients that need to be saved. That is your time and energy. There is a popular saying that in your pension years you eat the fruits of your youth. During your youth you have alot of time ahead of you and are very energetic. And the youth normally think it will always be like this so they go wasting their time, energy and money. As the years pass on you realize that these two ingredients go diminishing. If you ever evaluate your life you will realize the results of how you have invested your time and energy.

So do not spend all your time and energy working. Save some of it to invest it in other areas that help you to multiply your time and energy


Budgeting is part of Saving

The rule of saving according to the book The richest man in Babylon is 10%. You should save 10% of all that you earn. you can also save 15% depending on your personal decisions. Once you start saving like this, it obviously means that you are now living below your means which is a good thing. But it also means that you have to budget the 90%.

Budgeting is basically planning in advance how you are going to spend the 90 or 85% so that it is enough for your needs. You see planning is crucial if you are going to survive living on less than you earned. You have to plan in advance. If you fail to plan you are planning to fail.

This advance planning includes even on your time. You have to plan in advance how much time and energy you are going to employ to work and how much you are going to save for your family or to develop yourself or to network or anything else.

So you do not only budget your money but also your time and energy. Budgeting will mean you are living on less today so that you can have more tomorrow.

Save: Its Purpose

The Principle behind why you must save is simple. It is so that you may Protect and multiply. When you save your time, energy and money, it simply means you are protecting and multiplying the same. It means you value your time, energy and money and are not willing to waste it.

How do you multiply? You multiply your time, energy and money by investing it. When you invest your savings it starts getting babies and the babies start working for you and when they are grown up they get other babies that work for you. It follows the principle of sowing and reaping.

The wealthy know this secret. So do you what they do? They start to save for their children when they are young. Why? Because they know that when the children are young, the money they save has alot of time to multiply. If you start saving Kshs 1000 per month for a new born child at a return of 10%. That money will have multiplied to Kshs 520,000 by the time the child is 40 years old.

What do you invest your time, energy and money on? In my article Investment Solutions in Kenya, you will find the various avenues that you can invest your time, energy and money to help it grow.

The end result of your saving after you invest is that it then yields you a passive income. A passive income is one where you do not have to exert energy or time to get it but it comes directly from your investment. It is the results of your money and their babies working for you.

If you desire to be wealthy, that is, where your money works for you and not you working for your money then you have no option but to save. You might not know where to invest yet but just cultivate a culture of saving and it will save you later on life.

I read a story of a young man who had been saving for years. He did not know where to invest but he continued to save. Then one day he saw an investment seminar being advertised and he registered for it. It was the opportunity he had been waiting for. Because when he left the seminar he did what he had learnt and within three months he had obtained financially freedom. This meant that he did not have to hold a regular job again unless he wanted to. He could do whatever he wanted to do with his time, energy and money because the passive income from his investments could support him and sustain his lifestyle.

If you do not save then you will have not have money to take up money making opportunities that come up in life by surprise. However, with some savings, you are always ready for an opportunity to multiply your money. A good example is when the Government of Kenya is borrowing money from its citizens through bonds or government papers. How many Kenyan’s are able to partake of such an investment? Very few. Infact most of the time it is the wealthy or the few Kenyans who save and understand the value of long term investments and its relation to passive income that partake such offers.

Some do not partake because they lack the knowledge but there are those who have the know how but still cannot partake because they do not have money to. Why? Because they do not save. Bottom line opportunities are attracted to those who save.

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