Savings are the beginning of the journey to Financial
Freedom. How much of your income are you saving currently? Where are you
saving? What is the Rate of return? How secure is your money?
Before you save
First things first. You cannot save what you do not have.
How are you making your money? Utilize your skills and abilities to generate as
much income as possible right where you are.
Considerations
When you are looking for a place to save, it is important
that you find a place with a mix of benefits to you.
Returns
Put your money where it will labor hard for you. Do not keep
it where the rate of inflation will wipe away its value. Worse still, do not
put it where there is close to zero in terms of return. Enlighten yourself with
the knowledge you need about the alternatives you have.
Security
It is good to pursue high returns but you must also be
careful not to sink your hard earned cash in a Ponzi scheme. The security of
your money is and remains a key consideration.
Access
How easy/hard is it for you to access your money when you
need it? It is important that you decide from the onset what your goals are
with regard to your savings. Knowing the why behind your savings will dictate a
lot of things. If these are emergency savings you will definitely want a place
where you can access the money on short notice. If you are thinking long term
you want to be in places where there are restrictions on access. Let your goal
dictate the vehicle you choose.
Reputation
What is the track record of the institution you want to put
your money in? Can you vouch for them unashamedly? Do you have social proof
that they deliver on their promises? While some institutions rely on their good
name with nothing to offer presently, skin in the game is an important
consideration when you are choosing an institution. If possible seek to
understand the top leadership of the institution and their track record. If
they have questionable reputations, it is m=important to tread carefully because
leopards rarely change their spots.
Financial strengths and fundamentals.
Are you able to tell the financial strength of the
institution? Do your due diligence before you hand over your money to anyone.
Make sure the institution is fundamentally sound. Look at its financial
statements, line of business, associates and affiliates among many other
things. They will give you a clue as to the safety of your money.
Fees involved
Seek clarity on any fees, taxes and other charges the plan
attracts. Without this info, you might find yourself eating into your gains
without noticing. The charges need to be as low as possible to maximize on your
potential return.
The options of a
saver
Money gives the possessor options. This is where the
elements of financial freedom start to kick in.
With money I can set up a business responsive to my
strengths and a good fit for me. When I go into a business I am well suited
for, then I am no longer working but living my dream.
I could also choose to continue working where I am currently
but from a position of strength knowing that should I be let go, I have a soft
landing.
I have the option to buy into a portfolio of stocks, bonds,
REITS and many other investments that will earn me interests and dividends.
Depending on the size of my savings, I could easily replace my income with the
interests I gain from my investments.
Wealth creation is a marathon. The problem with today’s
generation is we want to make a sprint out of it. It is important to know that
wealth that comes easy flies easy too. Wealth that respects process will
outlast any shakeups.
Are you ready to start running the Marathon of Wealth
Creation? Talk to me today and I will be your guide along the way. Reach out on
+254725832477 or Samuel.asena@advisor.jubileekenya.com
Don’t put off till tomorrow what you can do today.
Very informative piece!
ReplyDelete