Building Wealth Gradually

The process involves commitment and resilience as well as Enjoying life 

How you can grow your money with just Sh. 5,000 only!

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Kenyan Money: Very often people underestimate the power of money that is within their grasp, argues Waceke Nduati Omanga in this feature that was first published in the Centonomy personal finance online journal:

We find ourselves perpetually waiting for bigger amounts of money as that is what we feel is adequate to start saving or investing with.  We feel that it is only with these huge amounts that we can actually do something significant. And while we are waiting for these big amounts we are usually recklessly spending small amounts of money everyday without realising their value or the alternative use of the money. Secondly we are letting opportunities pass us by.

I think sometimes the disease of instant gratification filters down to our saving or investment mentality.  We want to immediately be able to say we have Kes 50,000 to put aside without realising it is also small amounts over time that build up to Kes 50,000.  Today, we explore the power of Kes 5,000. You might be wondering where to get Kes 5,000 given that your bank account is usually empty by the end of the month.  Well, do you easily spend Kes 170 a day without thinking about it? If you left your house with Kes 170 in your wallet, would it be there at the end of the day?

Ndindi Nyoro: Why employment may never make you rich

Right there is your Kes 5,000 at the end of the month.  Maybe you are spending it on lunch, snacks, drinks but you can make a choice to ensure you have Kes 5,000 every month.  So what can this Kes 5,000 actually do?

You can have a savings account with Kes 5,000.  You can opt to put this money in a savings account.  Many banks will be able to provide this to you and these days even some mobile service providers are offering a solution for these savings. At the end of one year you will have at least accumulated Kes 60,000 plus some interest in this account.

This is money you can use to pay school fees or even go on a holiday. Even if you are not sure where to invest, start here.  Open this savings account even as you research on various areas to invest.  Don’t wait to have the perfect investment to start putting aside your Kes 5,000.  Starting this way will actually start creating the discipline of saving that many of us need to foster.

You may even opt to put this money aside in a SACCO every month and at the end of the year earn dividends on the shares you have accumulated. Just using an example from one of my SACCO clients, you would have earned Kes 6,000 shillings at the end of that year.  This 6,000 can be used to reinvest in something further or enable you to pay your utility bills that month.

Your Kes 5,000 has started making money work for you. Accumulating this amount of money in a SACCO will enable you to borrow up to three times what you have saved.  This means after one year of saving you can borrow Kes 180,000 to do further investment such as a business and in some areas you can buy a plot of land with this. Remember to ONLY borrow for investment and not consumption purposes.  Ensure that the return you will get will exceed the interest you are paying.  Your Kes 5,000 has therefore enabled you to leverage and access good debt for investment purposes.

You can invest in the stock market with Kes 5,000 a month. The minimum number of shares you can buy on the stock exchange is 100, hence as long as you are buying shares that are trading below Kes 50, you can invest. There are actually many fundamentally strong companies that are trading below Kes 50 at the moment that you could actually be accumulating ownership in with this Kes 5,000.

Let’s use an actual scenario.  I have picked one of the banking shares and assumed in the last one year, you had been investing Kes 5,000 per month accumulating this share. In the last one year you would have accumulated 1,800 of these shares.  You would have spent Kes 60,000 (Kes 5,000 x 12) in total but the value of your shares would have been Kes 75,000 (after brokerage commissions).  Of course past performance is not necessarily an indicator of future performance with shares and you would have to do further research on the particular share you are buying but this goes to show that with Kes 5,000 you can actually activate the process of growing the value of your money.

You can invest in Treasury Bonds with Kes 5,000 saved for 10 months.  The minimum investment in a Treasury Bond is Kes 50,000.  You can put aside your Kes 5,000 in a savings account and when it accumulates to Kes 50,000 you simply go and purchase a Treasury Bond.  Depending on the rate offered at the time, this bond will pay you some interest every six months.

You can create or join an investment group with Kes 5,000.  Do you have 10 friends who can join you in this venture to save Kes 5,000 a month? Being able to pool your money with other people will significantly multiply the impact of Kes 5,000.  If there are 10 of you, that means you can put aside Kes 50,000 a month!  In a year you can collect Kes 600,000 (as a group).  You can buy more shares, you can buy larger property, you can start larger business etc.  As a group you can accumulate a significant investment portfolio if you each commit to putting aside Kes 5,000 a month.

Kes 5,000 a month over time is a very significant portion of your Retirement Plan.  Kes 5,000 a month saved over 10 years and earning just 10% p.a. will accumulate to just under Kes 1 mn. Do not hesitate to start with or put an extra Kes 5,000 in your pension fund.

You can eliminate your debts with Kes 5,000. Say you had a loan of Kes 500,000 for 5 years and you were being charged 18%.  If you put an extra Kes 5,000 towards your repayments you will pay off this loan in 3 years instead of 5 and save Kes 100,000 in interest costs in the process.

I could go on and on.  This is just simply an introduction to what you can do with Kes 5,000. When you start taking notice around you of what can be done, more and more ideas will open up.  I know people who have started poultry farming, vegetable trading, catering and various other ventures with this amount of money. Remember that a bird builds its nest one twig at a time.  The nest just doesn’t appear. Let that Kes 5,000 be your first twig. Kenyan Money.

 

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From The Worlds Most Famous

*LESSONS FROM 15 CONTEMPORARY PROMINENT MEN & WOMEN!!!* 1. *Dr. Ben Carson said,* "I struggled academically throughout elementary school yet became the best neurosurgeon in the world in 1987." *LESSON:* Struggling is a sign that you are on a verge of success. Don't quit yet. 2. *Oprah Winfrey said,* "I was raped at the age of 9 yet I am one of the most influential women in the World." *LESSON:* Don't let your past decide your future. 3. *Bill Gates said,* "I didn't even complete my university education but became the world's richest man." *LESSON:* School does not make you rich. School is only supposed to polish what will make you rich, not make you rich. 4. *Joyce Meyer said & I quote,* "I was sexually, mentally, emotionally and verbally abused by my father as far back as I can remember, until I left home at the age of eighteen, yet I am one of the most influential preachers in the world." *LESSON:* Let your past push you, not define or limit you. 5. *Christiano Ronaldo said,* "I told my father that we would be very rich but he couldn't believe me. I made it a reality." *LESSON:* Your words rule your life. If you mean what you have said, each word will come to pass. You get what you say. 6. *Hear Lionel Messi!,* "I used to serve tea at a shop to support my football training and still became one of the world's best footballers." *LESSON:* Believe in your dream. Don't let your pain tell you how your future will look like. 7. *Steve Jobs penned,* "I used to sleep on the floor in my friends' rooms, returning coke bottles for food, money, and getting weekly free meals at a local temple, I later on founded Apple Company." *LESSON:* That you are small today doesn't mean you will be small tomorrow. Keep trusting God. 8. *Former British PM, Tony Blair said & I quote,* "My teachers used to call me a failure, but I became a Prime Minister." *LESSON:* Don't let someone else's opinions of you become your reality. 9. *Bishop David Oyedepo said,* "I started Living Faith Church from a lawn tennis court with three members only & preached prosperity. Many of my friends criticised me, but today we have the largest church auditorium in the world & two world-class universities." *LESSON:* Believe in yourself even if no one does & never think of quitting. 10. *Nelson Mandela said,* "I was in prison for 27 years & still became president." *LESSON:* You can be anything you want to be no matter where you have been or what you have been through. 11. *Mike Adenuga said,* "I drove a taxi to finance my university education but today I'm a billionaire." *LESSON:* Don't let your past decide the kind of future you need to have. 12. *Harland Sanders, Founder of KFC said,* "I was on the verge of suicide when an Idea of opening a restaurant hit me after I retired as a cook in the Navy." *LESSON:* Nothing is ever too late. "Too late" is a language of failures. Your future can begin at any age. Don't ever let AGE limit you. 13. *Aliko Dangote said,* "I worked for my uncle since I was a small boy, people looked down on me. I later on took a loan from my uncle to open a tiny shop. I worked hard to make ends meet. Now I am the richest Man in Africa. *LESSON:* Failures or limitations of the past have no control over the greatness in you. To him that believes, all things are possible. 14. *Barack Hussein Obama said,* I am a son of a black immigrant from Kenya, I graduated from Harvard and later on became a Senator in Chicago. I was also the President of the most powerful nation on Earth. *LESSON:* Never design your life like a garden where anyone can walk in and out. Design it like the sky where everyone aspires to reach! 15. *Arnold Swarzzenegger said,* I traveled to America in search of financial independence when I was 15yrs old. I became the world's strongest man 7 times and Mr Universe. I then got my Economics degree, then I became one of Hollywood's best actors before I was voted twice as governor of California." *LESSON:* Don't wait for everybody to believe in your ability and dreams. *KINDLY SHARE TO MOTIVATE OTHERS.*

To End Corona Feed the Hungry

In as much as science will help us to win the fight against Covid-19it is the social science approaches that will stop the deaths. One such approach is feeding the hungry. The Current situation Two main pandemics we are fighting at the moment are: 1. Coronavirus 2. Hunger virus. Two main groups of people at the moment fighting the pandemics are...... 1. The Rich and 2. The Poor. The global irony and the African outlook... The rich is afraid of the virus. The poor is afraid of hunger. The rich wants the poor to stay at home to avoid the spread, but hunger won't allow the poor to stay at home. The poor fears that if they stay at home, the hunger virus will kill them. The rich fears that if they also come out of their homes the coronavirus will kill them... What a delicate situation we have ....... Opinion: In order to restore the world to its normal social equilibrium: The rich should assist the poor with food, so that they can stay at home. When the rich succeeds in keeping the poor at home by providing enough food, The spread of the coronavirus which the rich fears the most will be chased out! This is common sense.....Yet because some people have the microphones, all you hear is ...... “stay at home”.......... “stay at home” . How can they stay at home when the hunger virus is at home. Fight coronavirus Fight Hunger. Stay safe.

Respect Everyone

Everyone Matters *WHO KNOWS TOMORROW??* Raila was the prime minister in the other regime and Uhuru Kenyatta was his deputy but now. Raila calls Uhuru Mr president. Munyes thought that he had done away with Ekwee after a successful defeat in 2013 but Ekwee later became his boss. Obama mocked Trump as self defeat man- during the election period now Obama calls him Mr president. 👉Life is like a COIN thrown up in the air. You can't really predict which side will turn up. 👉NO ONE STAYS ON TOP FOREVER. IT'S JUST A MATTER OF TIME AND SEASON. 👉Treat everyone with respect and show some kindness because there will always be a tomorrow. Be good to all! 👉A Boss today might become a Subordinate tomorrow bacause there's no parmanent state in life. 👉ALWAYS USE YOUR POWERS AND POSITIONS CAUTIOUSLY AND FOR THE BENEFIT OF ALL. 👉Always stand for what is right always

The Power of Prayers and Worship

The real worship that connects us to God Its good to worship in truth and in spirit Good morning. Word for the Today. Acts.16;25-26. 25.About midnight Paul and Silas were praying and singing hymns to God, and the other prisoners were listening to them. 26.suddenly there was such a violent earthquake that the foundations of the prison were shaken.At once all the prison doors flew open, and everybody's chains came loose. Pray until chains are loosened. Paul and Silas were beaten and put in prison for preaching the Gospel of Christ and delivering a girl from demon possession. They were chained in the inner cell. They decided to pray and worship God in their situation.They did not lament or complained but chose to Pray. We are imprisoned and chained in various and very difficult and painful let us not complain or lament over the the pains but like Paul and Silas, Let us purpose to pray and worship God until He opens the prison doors and loosen our chains. We are chained by Covid-19 through curfews, lockdown, family separation, financial strains,floods, sicknesses job losses, alcoholism,drug addictions deaths of our loved ones and many others. God answers Prayers. Have prayerful Life

Mercedes Benz -Lesson to Honour Your Wife

The Real women who help their husbands they help themselves The Mercedes Benz brands represents a legacy of its founder, Karl Benz. The near genius Mechanical Engineer was born in Germany. After graduating from university, he started a mechanical engineering shop where he would invent the first ever three wheel car that was internally powered by use of gasoline. Largely uncredited in Benz's mercurial success was his wife. Benz opened the factory with a friend and procured a loan together, unknown to him, the friend was like the modern day Pwagus, who escaped with most money, leaving Benz behind to be auctioned. Benz was auctioned shortly after marrying and paying dowry. In her wisdom, the wife went back for the dowry. Her father did not oppose. But the wife wasn't as dumb too, rather than give Benz the money, she invested in Benz factory and acquired stocks. Her injection to the company gave Benz a new lifeline. That officially marked the start of Mercedes Benz. Karl Benz invented the first ever internally powered car, but it was his wife, with kiherehere, who drove it first. Benz had went to fix some mechanical issues in the factory, when the wife put his two sons on the three wheel car and drove it for over 60 miles. Before that, Benz wasn't sure his invention would travel that far. As she drove to meet her relatives 60 miles away, she lost control akaingia kichaka, after pulling the three wheel vehicle out, she passed over a shoe cobbler, and advised him to fix a heavy leather to the wheel to prevent the quick rotation of the wheel. That was the first invention of break pads, which she patented. It was a great marriage. As Benz demonstrated his ingenuity in the factory with groundbreaking inventions, it is Bertha who pioneered the marketing. Their car brand still carries a mark of prestige globally.

New Songs of Joy

Psalm 126: When the Lord brought back the captives to Zion, we were like men who dreamed. Our mouths were filled with laughter, our tongues with songs of joy. Then it was said among the nations, “The Lord has done great things for them.” The Lord has done great things for us, and we are filled with joy. Restore our fortunes, O Lord, like streams in the Negev. He who goes out weeping, carrying seed to sow, will return with songs of joy, carrying sheaves with him.