One week after payday most of us are broke. Sorting bills, rewarding ourselves, black tax paid, and money saved we have nothing left to show off our hard work. This raises one of the most frequently asked questions, where does my money go?
You just spent it on food, no new clothes bought, zero assets acquired, another month on the financial treadmill and you are wondering how your parents managed to put up with this kind of inflation? A joke I stumbled on Twitter recently highlighted all these, “5,000 in Kenya can only get you milk, bread, and toiletries from the supermarket.”
Many Financial advisors advocate for budgeting which in Steve Down’s opinion works for some time, but with the rate of inflation globally budgeting is not the answer to your deteriorating financial health. Diversifying your sources of income and investing are the only sure ways of staying afloat in times of economic hardships.
Getting money requires risk, keeping money requires the opposite of risk. How then can you diversify your sources of income when you have an 8–5 job?
1. Get Financial Education First!
How are you going to make more money if you do not understand how to identify and leverage business opportunities or you have no idea what influences your spending habits? In The Psychology of Money, Morgan Haurosell highlights how different people perceive and behave towards money.
“People from different generations raised by different parents, who earned different incomes and held different values, in different parts of the worlds, born in different economies, experiencing different job markets with different incentives and different degrees of luck learn different lessons.”
Trial and error hardly educates us on becoming better in our personal finance, do yourself a favor, and invest in Financial knowledge.
2. Invest in Digital products.
The early transition to technological innovations has seen inventors become wealthy. Creating a competitive and convenient product will see you earn for the rest of your life.
If you are not a creator you can choose to invest in a digital product that has a return on investments. The only sure way to go about this is to research.
3. Know how to sell
Anyone who knows how to sell anything can never go hungry. Selling is a highly-placed skill. In job interviews, people sell the value they bring onboard. If you sell yourself short, no one will be interested in knowing more about you.
Learn how to pitch, negotiate, sell and retain customers. This will ensure you have more money.
4. Treasury Bonds
Want a sure way of getting interested on your money? Invest in Treasury Bonds.
Treasury bonds are a secure, medium- to long-term investment that typically offer you interest payments every six months throughout the bond’s maturity. The Central Bank of Kenya auctions Treasury bonds on a monthly basis but offers a variety of bonds throughout the year, so prospective investors should regularly check for upcoming auctions.
Learn more on investing by registering for Financially Fit Africa’s Cause Champion program where you learn how to make money work for you.
(Earn 25% of each monthly subscription fee you send our way. Continue to receive 25% for each month you remain a subscriber. Become a “Cause Champion” and receive 25% of each monthly subscription your affiliates (Cause Agents) bring in as well. Track every sale through your own dashboard.)