Financial Coach Waceke Nduati On Debunking Myths About Money Posted on August 31, 2013: Many people make a lot of mistakes with money which they come to realise much later in the future. Wackes Nduati, founder of Centonomy, talked to members of League of Young Professionals on 29th August on some of the myths about money that prevents us from being wealthy. Here are some of the myths we like to feed ourselves 1. I am doing well – Just because you own a big car, good salary, nice house or a title. Many people find themselves in unending cycle of poverty because of our spending. A car is not an investment and it will never generate any money, instead, it is an expense. Many people with big cars are on the highway of poverty. 2. I will ask for salary advance just once – Many of us live from salary to salary while others are even leaving beyond our means. People are even having fuel advances from Saccos. If you cannot maintain your car then it is burden that you need to get rid of. 3. I can afford the repayment – E.g. Car loans, mortgages, etc. You must differentiate between bad debts and good debts. A bad debt is what you use for your own consumption while good debts are those that help you generate more income. 4. My home is the biggest asset- building a home is not an investment. You need other investments that will help you generate Debunking ‘my home is the biggest asset’ myth income. Whatever investments you make you still need income. 5. I will save when I earn – There is no magical figure that will come into your account as savings. Saving or investment is a choice which is uncomfortable. Save the little you have and you will find that you will not die. The more you earn the more you spend. 6. Investments are complicated – Take time to learn on the various investments. Read financial books, business news and magazines and also get interested in stock markets. “Those who work in the different investment sectors are the ones who make it difficult to understand and I was part of them so that you can go for their services.”Waceke adds. However, you can get help from experts on the technical things but learn the basics. 7. I can delegate creation of wealth- People have delegated creation of wealth to companies like Old Mutual, Pan Africa Insurance etc as well as stock brokerage companies. Others are busy blaming others including the government, employers, or the wealthy e.t.c. Blaming others make is an excuse not to save and makes us to relax in investing. Realise that it is your fault not being wealthy. Once you discover it is your fault you get the responsibility to change. 8. I do not have money to invest – You will never get enough money. So start investing now. This is because the cost of living keeps rising because of inflation and the more you earn the more you spend.
Posted on: Sat, 31 Aug 2013 07:53:18 +0000
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