Personal finance is a topic that I cannot get enough of whether it’s written about in articles or on YouTube videos. I love listening to anything remotely related to personal finance on the platforms I visit on a daily basis. A big part of personal finance is knowing where your money comes from and where it goes, in fact that’s personal finance in a nutshell. I have in the past few days come across a lot of criticism about some of the ideas I hold true when it comes to personal finance, namely when it comes to saving. My view is that you should try to save as much as you can from whatever you make.
The idea of paying yourself first (your future self) is a legitimate way to build wealth and take control of your finances irrespective of where you are in your journey. The main critique is that people who advocate for saving (like me) are missing the big picture and they need to focus on EARNING over saving. I recommend anybody reading this to check out this video with Grant Sabatier (basically a millionaire who made his money through different gigs) where he talks about budgets and the basics of spending your money wisely. I totally agree with him. Also, I cannot question the guy about his philosophy because clearly it works and anybody who is willing to put in the time can replicate his success to a certain degree.
However, his path may not be one that many people would like to go on and that’s fair, the beauty of personal finance is that it’s personal. Everybody has their own set of unique circumstances and even though it’s possible to learn from others, you have to tweak your own strategy according to the economy that you’re living in. So what I’m saying is that you should look to earn more AND save more. What I have not spoken too much about in my previous posts is what to do with all that spare cash in your savings and that is the basis for the segue into my upcoming mini-project. I will be posting a series of posts about getting started in the world of investing.
I would like to reiterate that I am no expert on personal finance and investing. I am passionate about the them and I keep up to date with what’s going on in that world and actively work to improve my knowledge on them.
The series of posts will be focused on understanding risk and reward, outlining your financial and non-financial goals, understanding various investments, identifying myths and traps of investing, and how to start investing in Kenya AFTER you know your PERSONAL reasons to invest. You work hard to make your money and hopefully save some of it too, so why shouldn’t your money work for you too? The only assumption I make in the upcoming series is that you have an interest in understanding investments BUT you don’t have the resources (time or money, both are hard to get) to hire a personal financial adviser to do it for you. A quick SPOILER for you: the highest return on any investment you can and will ever make is still going to be lower than the returns you will get when you invest in yourself. Nothing will give you the same return that investing in your education will give you.
Back to the matter at hand, you should be look to earn more at your job or through your side-gigs or side-hustles whether it means asking for a raise or switching to a higher paying job BUT it shouldn’t come at the cost of sacrificing the happiness you get from your work. Of course, for many being happy at work is a privilege and I understand that but like I said, personal finance is personal, you have to sleep in the bed you make so think carefully. It’s a lot easier to sleep at night knowing you could lose your job tomorrow and could still cover your expenses for a few months. Earn as much as you can and save more than you think you can because the two are NOT mutually exclusive even if the title of my post suggests so. Saving is the only constant whichever side of the earning spectrum you fall on.
I will be posting my series on getting started to investing titled “The Easy Investor’s Guide” in the coming days so please stay tuned. Please share what you may have liked or disliked about this post and what you might want to know about specifically when it comes to getting started in investing.