I know the power of having friends that motivate and inspire you and push you to be the best that you can be. I am always grateful to God for the friends in my life and today is no exception. I call him my office bae because our friendship is really amazing. Having spent most time with him, he’s taught me a lot about life but mostly money and he’s one person I look up to. I knew I had to get him on this blog to share everything he knows about money because I have seen him sacrifice a lot in order to achieve his dreams and that has challenged me over the years.
You know I believe in learn! Learn! Learn! And when you do teach. So here is everything you need to know about investing, saving, debt, budgeting etc. from my office bae lol.
(Special announcement at the end of this article)
- What’s important about money to you?
Money is important because it gives you freedom and enables you to have more control over your life. It means less financial worries. Having money means that life is not a routine of pay bills and die it is living life to the fullest, enjoying adventures and making the most of the few days that we got here on earth.
- How has your relationship with money been in the past and how has it shaped you?
I have been much disciplined when it comes to money. Coming from humble beginnings, my thoughts and habits have built a very strong foundation about money. Growing up I have always taken care of people around me especially my mother in getting her medicine this therefore makes me want to make better choices when money is involved. I have made great financial choices, I have been able to achieve some of the things I’ve always wanted in life at a certain age, and dare I say my financial health is pretty much okay.
- Let’s talk about relationships and money. What’s your story?
I believe you need to have a partner that understands your goals and wants the best for you. As for me, my partner is very supportive and I am glad that I am honest with her about my financial goals. I believe that this is a discussion that needs to be had in every relationship. Like where are we going? Together or even individually? And also how can we help each other out to both achieve our goals. It needs to be an honest discussion.
- People save for different reasons, why do you save? What would you advice someone who wants to start saving?
I save towards a goal I want to achieve. I save to invest. The great Robert Kiyosaki says that saving is for losers and I agree. Find a way to make the money that you save work for you.
Advise: Stop thinking of saving money as a way of depriving yourself but see it as this great adventure of accomplishing something. If you set a goal, want it so bad to respect it and prioritize it.
- How do you set your financial goals?
I weigh the following items when setting my financial goals
- My first step in setting my financial goals came when I wanted to know how I spend my money. If say I take Ksh 200 I want to see where it all went to the last shilling. (know where your money goes)
- Create a realistic budget. Try to know what’s coming in and what’s going out, then work it to address your goals.
- What is important to you, the thing that you want so bad, work toward that and achieve it
- Decide on what to do first- there should be short term and long term accomplishments that one want to achieve.
- Note down the plan- Decide which is the best combination of ways to reach your goal and write them down.
- Create a roadmap- Think of any ways to reach that goal. It can be through saving, cutting expenses, earning extra money through passive income or finding additional resources.
- How much money is needed- Determine how much money you need to save to reach your goal and separate that amount by week, month and/or year.
- You have sacrificed a lot to get to where you are, what motivated you in sacrificing?
My dreams and ambitions, the things I want for me and the legacy I want to leave and also because it is a game, a very challenging one that requires you to find the mysterious balance point between your momentary needs and the future goals, a game that resets parameters every first day of a new year. We all have ambitions and mine demand for me to sacrifice the small pleasures to get to where I want to be in the next 5 to 10 years or so.
- What are some other ways to make money other than salary?
There are many ways to make money. Passive income can be in form of paper assets (shares and stock exchange) or charging for services in what you are good at (developing a website, artwork etc.). You can use your savings to start a business or even venture into agribusiness.
- How can I invest? Examples of investments.
Investments range from stocks to mutual funds. It all depends on how bad and fast you want it.
- Stock (I Love Olymptrade)
- Real Estate (can start with containers)
- Mutual Funds (wouldn’t so much advice on this)
- Let’s talk about budgeting… What are some few tips you can share with us.
A good budget can help keep your spending on track and even uncover some hidden cash flow problems that might free up even more money to put toward your other financial goals.
- Use cash as opposed to swiping- this will keep you keen on how much you’ve spent in a day
- Have regular budget meetings with yourself- challenge yourself to keep a daily inventory on where your money goes, pick the item that takes most of your money and see how you can cut on that
- Save on food- this is where like personally all my money goes. Try and do hom meals rather than eating out. Thank me later on how much you will have saved.
- Try cutting on your utility bills- especially on internet, find a plan that sorts your data and voice needs.
- When I save do I need different accounts to be able to do that?
It all depends with the person. You don’t necessarily need different accounts. All you need more than anything is discipline. Starting off is hard so you can go and open a savings account (preferably old mutual) which you can earn interest from, set a duration as to when you want to keep saving for and wait for the period to mature.
You can also challenge yourself with friends, remember to just start it doesn’t matter what you start with or how much, just start with that Ksh 50.
• Debt. Let’s say I have a couple of debts from different companies, how would I be able to get myself out of debt?
Debt can be good or bad. In this case I guess you asking about bad debt.
- Try and do something on the side
- Sell everything that you do not need
- Try and cut on expenses as much as you can
- Get a part time job /pick a side hustle
- Drop expensive habits
- Bottom line is no matter what type of debt you’re in, whether its credit card debt, car loans, or something else, it’s important to know there isa way out. It may not happen overnight, but a debt-free future could be yours if you create a plan and stick with it long enough.
- We have talked about saving and budgeting and all that, but how do you deal with overspending and peer pressure?
First I don’t believe in overspending because we all have a choice. We have needs and wants and when you are about to overspend it is mostly because of a want. You need to actually plan yourself better.
Peer Pressure? I believe that you need to identify yourself with people who are as hungry as you are in building assets. People who will hold you accountable when making money decisions. A friend who will call you out for wanting to buy that 60k TV when you don’t have savings in the bank. Those are real friends.
- How did you feel when you first bought your asset?
Maan!!! That was the best feeling ever. Not to blow my own horn but holding my title deed in my hand made me realize that every sacrifice was worth it. I am so proud of myself.
- Finally, what advice would you give to someone who’s looking at having financial freedom this year?
Financial freedom is a dream come true for each and every one. Be honest with yourself and / partner about money. Look at money positively, track your spending and the most important write down your goals. Try and spend less and what you save don’t stash at the bank, try as much as you can to invest, read more and expand your mind on what you can do to have money work for you and not you work for it. Understand where you are at, you can’t start the journey of financial freedom if you do not know where you are at with money.
This Month I will be doing a Money series, let me know who can I interview? What specific articles about money would you love to read? Let me know in the comment section below. I am super excited about this.