Many people grapple with the idea of how to invest. But the greatest problem is actually not the how but the when where and when to invest.
Sam Wanyama Sambu an investment expert and an advisor on money matters has however delved on this very critical subject even as many businesses stare at a bleak future due to the pangs inflicted by covid 19 monster.
‘’Many people are wealthy but not rich. We all have a potential to be both rich and wealthy but the decision lies within ourselves’’ opines Mr. Sambu.
According to the financial expert change should start from the head not from the stomach as is the case with many people.
Merry go rounds are good but they only serve as a social gathering which add little impact when it comes to financial liberation.
‘’ People should try and embrace the readily available capital in banks and SACCOs rather than investing in merry go round that only serves as social gatherings with very little and sometimes no impact on the economic well-being of our people. At times people get entangled in debts and working hard to honor their merry-go-round obligations at the expense of investing in ventures that would have otherwise earned dividends’’ Sambu added.
Rather than engaging in endless merry-go rounds, the expert advises people to form themselves into investment groups, raise money then approach a financial institution for a loan facility which if well invested will earn rewards.
…Instead of buying land and wait for 10 yrs for it to appreciate…
On the fad of people rushing into buying land in the hope of reaping huge benefits once the land is sold, Mr. Sambu advises otherwise.
‘’ it is prudent to use say 3M to lease a piece of land, construct houses and earn rent on it than investing a whooping 3M in a land that will sit idle for say 10 yrs only to earn you some 5M when rent for one year alone could have earned you close to 3m besides creating a job opportunity for one or two guys thus changing lives’’ states Mr
. Sambu.
‘’Your salary is not a reward but a seed to be used in creating wealth. Most people work for 30 days and once they have been given a salary, they mistake the seed for reward which lead to them mis- spending the money with zero regards to investing the money as seed hence the high hand to mouth culture which is currently prevalent amongst the city dwellers. Work hard but spend your hard earned money wisely by investing part of it to create wealth’’
Stop Irresponsible borrowing.
If you save Ksh25,000 in Safaricom’s Mshwari Lock Savings Account, the interest Safaricom gives you in a month is Ksh30.07
Roughly this translates to 0.12%
Question is, at what interest rate would Safaricom charge you in a month for a loan of Ksh25,000 through Mshwari???
Having called Safaricom their loan interest rate is 7.5%….
It means if Safaricom keeps your 25,000 you earn Ksh30.07
If on the other hand you keep Safaricom’s 25,000 they earn from you Ksh1,875 /
What kind of a relationship is this fellow Kenyans????
Point is, some allegedly profitable corporate giants are extortionists and exploiters.
They take advantage of Kenyans naivety, lack, and general financial exploitive systems to take people’s money almost for free and lend the same money out at staggering rates.
Common Kenyans need a lot of financial education and enlightenment to learn to put their little money where it works for them...
