7 Ways to accelerate your financial journey
- Set aside part of your income regularly in investment options that give you returns above the inflation rate.
- Look for clever ways of compounding your income eg Investing interest from treasury bills and bonds in money markets to compound it every 6 months in case you are invested in 5-year, 10-year bonds etc
- Budget your money using the 50-30-20 rule. 50% of each paycheque or salary is set aside for bills and necessary expenses. 30% is set aside for day-to-day lifestyle expenses like entertainment and clothing. 20% goes into savings. This is just an example and the more we save the better. Saving more than 30% of our net income should be a good habit or at least a good target for our long-term financial well-being. This rule allows you to pay bills, have fun and still be able to save. Having a balance is all about making the most out of your finances and your worth as a human being so that you can live the kind of life you want. With a balance, you should be able to pay your bills, have fun and save for the future.
- Reinvest dividends from Saccos, the Stock market, Chama, etc. By reinvesting your dividends, your money works for you and this is the height of earning money known as passive income.
- Consolidate some of the hard assets that you have eg if you have 5 pieces of plot, you can sell some eg 2 in your 30s/40s, and invest the cash in money market or bonds to generate regular cash flow. Once you have found a rhythm in one source of income, work to create a second one so that you have multiple sources of income.
- If in business, work to increase the cashflows in your business over time so that you can pay yourself more and set aside part of this regularly.
- Invest in your self-development by learning new skills to increase your ability to offer more value and earn more over time. It is also important to invest in social and business networks where you are likely to access opportunities in your area of expertise or business