“Let us live up to what we have already attained” (Philippians). This statement meant nothing to me until a couple of years ago. Now I can only look at this retrospectively but at the time I had no idea of the impact of my decision to walk into an investor road show for people who were are considered to be ‘High Net Worth” investors. Having just realized I had a total amount of two hundred shillings in my bank account I was very far from what can be considered to be “High Net Worth”. However I went for the meeting encouraged by the fact there was bound to be free coffee and cake. I could not invest in anything that was being promoted in that meeting (there were no options for investment for Kes 200) as they had targeted people who could raise between Kes 25 million and Kes 100 million. Now looking back, I didn’t walk away with millions on the spot but I did gain insight into some aspects of running a business, ideas and networks. I’m not at the destination but I am on the journey accelerated by the fact that I could now tap into what the end looks like. Being able to meet people who had created wealth enabled me to get a glimpse into how they think and act. I personally learnt that if you want to make Kes 100 million, go speak to someone who has made Kes 100 million instead of complaining how broke you are.
What does this have to do with Financial Goals? When you set a Goal, you have to see the end and start acting from there. You cannot set a financial goal, behave in the exact same way, think the same way and expect to mysteriously achieve it. An athlete running 10,000 metres starts and finishes from the same point and while running has already visualized themselves at the finish point. Whatever your goals are, the momentum that will move you is seeing yourself at the end. Your starting point and journey is from the end. Say John and Natasha have the exact same goal which is to buy a house valued at Kes 15 million in 5 years. They both have no savings towards that goal. John sets it, goes back to doing what he does, hoping at some point he will earn enough money to take a mortgage and buy the house. His action plan is “hope” and many of us who set goals do base it on hope. You cannot set a goal and stay (in thought and behavior) in the same place. Natasha despite also not knowing how the Shillings and Cents add up to make this dream a reality, decides to believe and take definite action towards making it happen. There is always a strong element of faith in Goals you have set. She therefore starts looking for the type of house she would want therefore expanding her information and networks, she adjusts her spending to start saving and also starts using her business research skills to do extra consultancy work to earn extra income. She also becomes more focused at her job, prompting performance discussion with her Manager and therefore the ability to earn more at work. It doesn’t matter that her immediate cut in expenditure does not add up to the cost of the house. This is where many of us fail because you can’t see how Kes 3,000 extra per month will become the Kes 15 million you need. The one action you take today is a catalyst for tomorrows result. Continuous action leads to huge results. Because she has decided it will happen and is “living today but with the end in mind” her everyday behaviours are changing. Every day she looks at her goal leaving her mind open to receiving new information/ideas about how it can be achieved. She will probably get her house (or still make significant progress in her financial life) and more importantly will have learnt in the process how to use her skills to create income, progressed in her job, become disciplined with her expenses. As a result of working towards her goal, in the process she has changed. She will leverage on this change and process to achieve other goals even in other areas of her life.
Remember, the definition of madness is to keep doing the same thing and expect a different result. Immediately challenge and take responsibility on what you are going to change as a starting point towards that goal.
Waceke Nduati
Waceke runs a program on personal financial management. Find her at waceke@centonomy.com| twitter @centonomy| www.facebook/centonomy
Question and Answer
I am 23 years, a recent graduate, and working at the moment. I started to do a side hustle and the business was good. I stopped when I got the job. I want to be an entrepreneur in future but am wondering whether I should stop working or continue with the business?
Try continuing with the business while working even on a smaller scale like on weekends or your free time in the evenings. You are young without family obligations at the moment hence you probably have a lot of time on your hands after working hours. When you do this you will be able to evaluate whether it makes sense for you to go into it full time. You don’t have to leave your job to start the business. You can make that decision based on performance of the business.
Hi my name is James and your article in the Saturday nation on “Creating Income” really inspired me a lot. I earn 15k but the problem is that I don’t know how to save. I wanted to take a loan from the Sacco to buy two calves and sell them after one year. Is that a good idea?
Firstly you are saving even though you don’t realize it. Your monthly contribution to the SACCO is in fact a saving. Saving is really just figuring out what your monthly expenses are and then deciding what you will put away every month. As with any idea, you need to do research. What are your costs e.g. purchasing the calves, feeding and maintaining them in the course of the year. Where will you keep the calves and who will look after them? If you take a loan will you recover the interest you will have paid in that year. List all expenses you will incur, what you expect to sell them for and see if the amount you make is worth it. Also based on your expenses can you afford the monthly deduction? The risk is if you are unable to sell the cows for any reason remember you will have to continue servicing the loan.
Waceke Nduati
Email your questions or comments to Waceke her at waceke@centonomy.com| twitter @centonomy| www.facebook/centonomy