(SAVING + SAVING + SAVING) = (SMART LIVING LATITUDE)
There are things we hate to hear but fortunately or do I say unfortunately get loud enough to the point of overpowering our ignorance.
70% of people DON’T prepare for retirement. It is very likely that you and I are not preparing for our retirement. We live as if 2014 never came and went and as if the count down to 2030 is on pause mode. Those who DON’T plan for their retirement, not only become a burden to self and those around them, but also to their government.
[JOIN a pension S.C.H.E.M.E or have yourself a PERSONAL pension PLAN]
Money for your personal pension scheme would easily come from smart saving. This is money that would otherwise go to waste.
Why NOT take advantage of Government’s TAX incentives? – The 1st home Ownership Program for instance can save you up to KSH 4000 USD40 without paying taxes on it.
|Be ware of DEBT Traps|
You also need to change your approach on DEBTS – Never forget that here will always be a price to pay for using other people’s money.
Why NOT avoid borrowing to go on holiday or for show off (why borrow to buy an expensive seat just for people to see that you have one in your house?) Live within your ability and use the difference to grow your asset base or use it to prepare for your retirement.
A good debt is when you borrow for example to invest to grow your asset base. A young person buying a car that will enable him or her deliver money making services is smarter than one buying a hot car just for flossing around. The money you save by avoiding debt traps becomes a good source of money for use in profitable investments.
Avoid easy credit, and understand lender’s money making tricks. Did you know for example that a person repaying a loan at a 1% interest rate per month ends up paying more for than one repaying a similar loan at a 12% per @ year interest rate?
Most importantly DEBTS need to be understood, not feared. Before you get into any debt always have a good plan and if your CREDIT CARD always lands you into a financial trouble and you are not disciplined, buy a pair scissors, CUT it into two pieces, then return it to those who gave it to you.
PS: Lastly but not least; each time you step out to spend some money, always ask yourself before using it. Do I N.E.E.D this? If you are in doubt avoid spending your money on things that you don’t need. When your answer is YES go ahead to find out whether you are getting the best possible deal. In the event that the deal meets not your expectation, look out for a better one.
If you need more help, ask us about the Wealth Creation Masterclass where such concepts are taught.
Wahome Ngari – Principal Consultant/ CEO, Citadel Consulting Ltd -firstname.lastname@example.org
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