The Journey called Wealth Creation

Peter is 45 years old and married with two children. He owns a home in Runda and drives a Range Rover. His children go to good private schools, the kind where overseas school trips are the norm. He worked as an engineer for various organizations and set up his own firm 10 years ago. His business now employs over 50 people and he has recently won a 10 year contract with an international company to put up solar energy plants across the country. Peter is a member of a prestigious golf club. He entertains his staff at his house twice a year.

Simon is 32 years old, single and works for Peter. He believes Peter is the poster boy for what success is. Simon also wants to impress Peter in all ways to ensure he can progress rapidly. Simon believes Image is Everything. He aspires to have the image that Peter carries and demand the same respect. Simon takes a loan to buy a Mercedes. He ensures he has the latest phones and was spotted at the last company meeting with an I-pad. He takes a Kes 15 mn mortgage to buy an apartment in Kilimani. He joins the golf club. Soon, the pressure of his upgraded lifestyle wears Simon down. Pay day cannot come soon enough and financial stress is beginning to affect his performance at work. This is noticed by management and he is summoned to Peter’s office. He breaks down and admits to Peter that this expensive lifestyle is wearing him down despite, the motive being to earn respect and help progress his career.

Peter tells Simon, “It took me 20 years to get where I am today. The first house I lived in and the first house I bought was not in Runda. Everything you see me with today is the result of consistent hard work. You may admire the material things I have, but I have them now because I can afford them. How do I know that? My business will pay me every month and a handsome dividend every year whether I turn up at work or not. The business also pays for the car, my entertainment, the school where my kids go to, my holidays etc. The biggest mistake you are making is comparing yourself to me and trying to acquire just the material things that I have. I have assets that will pay for my lifestyle in perpetuity whilst you are stretching your salary and taking consumer debt to keep up with me, and in that way ensuring you never create true wealth”.

Rings a bell? A lot of us in some way do compare ourselves with other people without understanding the journey they have taken. Instant Gratification has become the norm. We see someone else with a lifestyle we aspire to have and immediately start trying to play copy cat with their material lifestyle forgetting the time, effort and even money that has been invested in getting where they are today. When you are consuming everything you earn, you will not sustain even a moderate lifestyle in future. Like Peter, build investments or assets (business or otherwise) that will give you an income whether you are working or not. Then, you can enjoy your Flossets as much as you want without dependence on a job to sustain the life. That in my book is true Wealth Creation.

Waceke Nduati Omanga| waceke@centonomy.com