Personal finance has become one of the most prominent topics of recent times. As Economic times get tough, people are continuously leaning towards identifying ways and secrets to making money in order to live a fulfilling life.
In this article, Centonomy Limited CEO and Financial Literacy coach Waithaka Gatumia talks about how to make money and have it work for you, make safe investment choices and navigate challenges within your surroundings to achieve your personal financial goals.
One of the most potent money-making avenues is entrepreneurship. The diversifying needs within the economy has subconsciously opened up multiple avenues to leverage on as an aspiring entrepreneur. The trick lies in identifying the correct niche and filling it accordingly.
Mr Gatumia says entrepreneurship is a decision. It is about starting a business because you want to and because an opportunity exists that begs to be taken.
“The thing is, many of us, look at the barriers and not at the opportunities. How we view things matters a lot. Sometimes, it’s simply because you can’t see what’s right in front of you and this is why we have life coaches and financial advisors. For example, if you really wanted to buy a certain model or make of a car, you will start seeing it as you walk about the streets because you have become alert to it,” Mr Gatumia says.
Secrets To Making Money Work For You – Where To start
To make money work for you, a solid starting point is essential. In the context of Kenya and the rest of the continent, extra care is required when handling financial questions because the income levels are quite low across majority sections of the population. There are those who are in dire need, while there are those who are relatively well off and comfortable with regard to finances.
There are people who don’t even have food on one hand, and those who are privileged enough to have a lot of spare cash after taking care of their basic needs and leisure.
Mr Gatumia says it is important for society to balance itself out by being generous – those who have to support those who do not have. However, he notes that this should not be an excuse to make people hamstrung and unable to do something about their situation in life.
“I honestly believe that if everyone were to take the position of constantly trying to be better in life and setting concise goals, you’d be able to see exactly what you’re looking for and find the opportunity that is in front of you,” Mr Gatumia says.
Step 2: Discovery
Understanding the real situation you are in and appreciating the surrounding environment is a key ingredient in the entrepreneurial journey. There have been multiple cases of people attempting to start businesses and attempting to make it in life, the difference between the successful ones and those who fell off is the resilience and ability to rise and keep going.
Mr Gatimia says, “One of the things that you have to understand is that not everything you’re going to try is going to work. It is important to keep trying. In my case, I failed severally in business but it was never for the lack of trying; it was majorly the lack of knowledge. I was good at project management, but I wasn’t good at the entrepreneurship journey of building a business and actually understanding the finance in business, and that’s where the failure came. But that failure, as it was, opened another door for me that has been a huge revelation in my life.”
Understanding that challenges and failures are part of the journey will feed your hunger to succeed. Failure should teach you that a certain process has not worked and that you should try again, not give up. Do something new. If you fail to learn the lesson, that’s where the problem is. Read books and learn from your environment to keep improving.
Step 3: Take advantage of the environment and prevailing economic conditions
Understanding the environment you live in and taking full advantage of it is one of the most potent investment opportunities. Regardless of the difficulties within the environment, it is always important to be on the lookout for opportunities or challenges that need innovative solutions.
“Entrepreneurs are people who see problems and develop solutions to those problems. The food for entrepreneurs is problems,” Mr Gatimia says.
Mr Gatimia says one of the most important things is not to focus too much on what you cannot change. When you spend too much time on what you can’t change, then you’re not being productive. In Kenya’s case, changing governance policy, for example, will come through voting. Voting and public participation are key to changing prevailing circumstances like punitive tax policies and governance issues.
It is always about finding where the opportunity is. If you spend too much time on problems, you don’t have the power to change, then you’re not doing the right thing.
Ask yourself whether you have an opportunity to step out and do something at any level of your life. In all instances, the answer is always ‘yes.’
Mr Gatimia says that for instance, Africa is the only growing continent on Earth. The growing population provides opportunities in banking, technology, insurance, food & Nutrition, etc. It is therefore important to identify opportunities at all levels of society and reposition strategically to leverage them. This is what the multinational companies are seeing.
Step 4: Get the right investment information
With so many investment ‘opportunities’ being thrust at people across all social classes, it is important to have the right information. Making a wrong move could be devastating as some investment opportunities are either scams or skewed to deceive.
“Always strive to get the right information. If you can get into a class, do it; if you can buy books, go ahead. Practicing is what people do not like at all but if you can practice, then you get better at it. Do not expect to be good at something from day 1,” says Mr Gatimia.
Step 5: Know how to navigate tough environments and make it work for you
With taxation and inflationary tendencies within the local economy, it is always important strike a good balance between what you can control and what you aim to control. Here are tips to navigate a tough environment and emerge successfully.
- Work on your income.
Mr Gatimia says whether its at your job or at your business, it is crucial to do everything you can to grow in your position. He says people often complain about pay and a myriad of other things and believe the employer is to blame. Mr Gatimia says you need to do more and become more valuable to your employer. Once you demonstrate your value, they will be able to pay you more or give you a promotion.
- Pay yourself first
Mr Gatimia says that as a habit, for any money that comes in at the end of the month or at the end of the week, save and invest first. This is because if you save and invest after you’ve paid everybody else, there’s nothing left. So if you make the habit of paying yourself first, then there’s always an investment and a growth.
- Track your spending
Mr Gatimia says most of us do not know how much we spend. You cannot budget if you don’t know where your money is going. He says it’s prudent to spend time to track and know where your money is going. Plug all the holes in your pocket.
- Focus on assets
Mr Gatimia says one of the problems that we have today is that we spend so much money on things that don’t put money in our pockets. An asset is something that you own that puts money in your pocket. It gives you an income and maintains its value. This is what you should look out for.
It is important to identify the one thing you love in life and work towards achieving it. While there may be challenges along the way. It is the dedication and the passion to get better and keep learning that will ultimately drive you towards your most cherished goals. The resilience to keep going is what has separated the most successful from those who have failed in life.
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