It’s Just Money – Money isn’t the most important thing in life. We all have different priorities, but for most people, good health, friends, and faith all rank higher than money. When you spend countless hours working for a living it’s easy to get distracted and lose sight of those priorities. It’s good to take a step back every now and then and reflect on what really matters the most.
Start Saving Early – Most people don’t want to think about saving money when they’re young, but that’s really the best time. Not only do you have many years for your money to compound and grow, but by starting young you’ll be developing good habits that can last a lifetime.
Habits are Hard to Break (Good or Bad) – Building on the previous point, once habits are formed they can be hard to break. This can work for you or against you. If you put in the effort to break your bad money habits and replace them with good habits, you’ll probably be impacted for many years.
Don’t Follow the Crowd – Don’t be influenced by what you see your friends, family, or neighbours doing with their money. Most people make terrible financial decisions, so why follow them?
If You Manage Your Money Poorly, Having More Money Won’t Solve Your Problems – A lot of people think if they had more money their financial problems would disappear. But people who manage their money poorly will have financial problems whether they make a little or a lot. Focus on managing the money you have, and when you do get more of it you’ll be better off.
You Can’t Get the Most Out of Your Money if You Don’t Know Where it is Going – Tracking your expenses can be an eye-opening experience. Most of us have some habits or expenses that really add up, but if you’re not paying attention you won’t realize just how much it is.
Focus on the Biggest Categories in the Budget – If you’re trying to save money, a good place to start is with the biggest categories in your budget. Even small percentage improvements in these areas can add up fast and have a big impact on your overall savings.
Increasing Income Should Be Just as Much of a Focus as Cutting Expenses – If you’re looking to improve your financial situation you can either cut your expenses or increase your income (or ideally, both). Topics related to saving money get a lot of attention, but increasing your income can actually have a bigger impact, assuming you’re managing your money effectively. There are a lot of different ways to increase your income like getting a raise, earning some sort of certification, changing jobs, starting a side hustle, or building your own business.
More Money Doesn’t Always Mean Less Stress – Money can definitely help to make life easier in lot of ways, but stress about finances won’t completely go away once you have more money.
Net Worth is More Important Than Income – Most of our society associates wealth with how much money you make each year. In reality, how much you make isn’t nearly as important as how much you have. Would you rather make Kshs. 200,000 per month with zero net worth, or make Kshs. 40,000 per month with Kshs. 1,000,000 net worth?
Trading Your Time for Money is Not the Best Way to Build Wealth – Most millionaires have made their money by owning a business or by investing in income-generating assets (real estate for example). Of course, there are exceptions, but in general relying on a job to make you wealthy is not the best approach.
Invest in Yourself – There are a lot of different ways you can invest in yourself like getting an education, learning or mastering a skill, or starting a business. These investments can have a huge impact on your long-term financial situation.
Focus on Developing Your Strengths – It’s better (and more profitable) to be really good at one thing than to be pretty good at a lot of different things. Having one strength where you really excel can make you very valuable.