- Start savings regularly and the sooner the better (preferably as soon as you get your first job). Try to save at least 20% of whatever you earn.
- Avoid buying property on a mortgage as it takes a lot of your income unless you have a planned strategy to clear off the loan. Cash Flow is very Important. Though, the house will be your asset on the balance sheet, your liabilities and commitments would also increase.
- Unexpected situations can hurt all your plans; ensure you are in a position to handle these risks by doing regular financial reviews.
- Car Purchase can be avoided unless its for daily use.
- Ensure you are saving money into a ANNUITY which provides you with Income as soon as you retire; Income in retirement is an Asset; Assets in retirement can become a Liability.
- Deduct your savings from your income before you spend any of it. Do not take on loans and liabilities unless that is your only way out of a situation. Unnecessary loans dent your cash flow and affect your peace of mind in ways you cannot even imagine sometimes.
- Marriages are made in Heaven; but the cost of the ride can dent your pocket. Weddings can be more beautiful on your pocket and warmer if kept simple; consider when you spend this money. It can dent your pocket very deep.
- Inflation is real; if money is kept Idle; you are losing money everyday; beware of how much money you keep in a current or checking account. If it is excessive; you are losing more and more to inflation: a HIDDEN RISK to many families and individuals.
- If you invest in the stock market, watch it with caution and be ready to take action.
- Do not have a belief that showing off with a huge property and expensive car make you (look) rich. It’s what you save and invest, that is more important in the long run.
- Where there is a will; there are relatives; therefore ensure you have a clear “letter of wishes” to protect the people you truly care about and avoid them the hardship which follows your demise.
- Never invest in LIFE insurance looking from the perspective of getting market returns. LIFE Insurance is not an investment; it is a risk management tool to protect future income.
- Your knowledge and your skill set should be your first investment; after that you can invest into other physical assets.
- Your future plan should be very clear especially in the areas of your career, your life goals, your expenses and your investment strategy.
- Build an emergency fund which covers approximately 6 months of your expenses.
- Health is Wealth; Ensure you keep a close eye on both these words; loss of either one can be very dangerous. Do regular check ups on both these words; HEALTH & WEALTH.
- Death and Illness cannot be predicted!!…. therefore buy adequate income protection insurance due to illness and death.
- Old age is REAL; do not overestimate your working capacity; you will need some form of “Guaranteed Income” when you are in retirement. AGE HAS A FUNNY WAY OF TAKING TOLL ON YOUR ABILITY TO WORK!!
Why not talk to me today and lets fix the above.
Gallin Wekesa;Financial Advisor @Britam
0712 870 447 gallywexa@gmail.com