Dear Entrepreneur, Here Is A Guide On Living Within Your Means

By Soko Directory Team / Published October 13, 2023 | 2:39 pm



lockdown fruits A man shops for groceries and fruits

It’s less than two weeks after payday and many people are already broke. Yet it has little to do with their income or the cost of living.

Many do not know why they continue to suffer financial hardships. Their biggest undoing is a lack of knowledge to manage their money effectively. They also lack the moral fiber to do “the right thing” about their finances.

Ignorance and living in denial are more hazardous to your financial welfare than a small income high inflation, or high taxation.

Read Also: Empowering Your Financial Future With Digital Savings Solutions

You probably know two people of similar backgrounds who ended up in different financial circumstances. One is rich while the other is poor. While one educates his children with ease, the other struggles. The more comfortable of the two may not be as intellectually abled as the other. Money matters are largely about the mindset. The academic laggard ending up wealthier while the bookworm suffers financial distress is a common occurrence. Coupled with the right skillset and toolset, ethical individuals who can scan and grab opportunities create more sustainable wealth than wheeler-dealer overnight millionaires.

Wealth creation strategies are largely cultivated into repeated habits that enable average income earners to navigate financial pitfalls.

Read Also: Harnessing The Power Of Saving By Capitalizing On The Promise Of Higher Returns

Robert Ochieng, CEO of Abojani Investments, emphasizes on key habits for wealth creation.

  1. Spend less than you earn – When you commit yourself to spending more than you earn, you create a deficit that must be met, often by borrowing. This creates an even greater deficit as you incur interest payments.
  1. Take a realistic look at your income, needs, and wants – Get your priorities in order and give up the wants that cannot be accommodated. Consider long-term issues like retirement, home ownership, and higher education.
  1. Avoid lifestyle creep – understand the difference between looking prosperous and being prosperous. Financial prosperity includes emergency savings, adequate insurance, investments for income and growth – then rewards himself with a few luxuries without jeopardizing his family’s financial security.
  1. Thinking long term – many people think of only what they can do now. They fail to consider constant efforts over the long term. Saving Sh 10,000 for school fees next year will ensure you have Sh 30,000 for term one fees in January.
  1. Take advice from qualified people – taking advantage of low-priced investment masterclasses like Abojani’s will help anyone both beginners and seasoned investors alike to sharpen their knowledge of sound personal finance habits and capital markets investments, besides getting help to open investment accounts and pick tailored investment solutions for their unique situations.

A stable and secure financial life is not the result of a huge income, cheap goods, or low taxation. Rather, it is a factor of how much you know about money management, the quality of professional advice, and how much of that knowledge and advice you put into practice.

Read Also: Get Ahead Of Financial Game With Kingdom Bank’s Up To 10% Interest Rate On Savings

By Benjamin Cheruiyot




About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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