Printer Friendly

PERSONAL FINANCE: 9 truths that make money work for you.

figure By WACEKE NDUATI OMANGA When it comes to managing your money better, all you need is to change your mindset. Here are tips to guide you: class="MsoNormalChange the stories you tell yourself.

The voice in your head can be your greatest friend or enemy. Most of us tell ourselves lies that hold us back from doing great things.

For instance, we cite lack of resources to justify why we cannot do it. We also tend to plug into people and conversations that reiterate the message.

Change that story. class="MsoNormalTake responsibility.

You are largely where you are because that is where you have chosen to be. This is a hard pill to swallow.

There are some things outside our control but our financial situations are largely a result of our choices. Nobody put a gun to your head and told you to live where you live, eat what you do and even borrow.

When you accept responsibility you also know that it is up to you to resolve your problems, but not your employer, family, among others. class="MsoNormalUnderstand the difference between being a factory owner and a factory worker.

When you are a factory worker, you can live large but when that income disappears, you cannot afford the lifestyle. But a factory owner has assets to sustain him/her even when they are not working elsewhere.

In fact, most factor owners don't live large contrary to popular belief. They may not dress in the best suits or drive the fanciest cars.

class="MsoNormalReframe what it means to do well. There are many of us speeding down the highway of poverty in a luxury vehicle.

There is absolutely nothing wrong with the nice car but far too many of us have fallen into the trap of buying things for social approval. To win over attention which we often mistake for respect.

There will always be a latest, better, and faster version of something so this is a game that can never be won. It will only keep you in the rat race.

class="MsoNormalUnderstand the value of time. Take your monthly net salary and divide it by the hours that you work.

How quickly do you spend that amount? If you are like most people, it often doesn't even take you an hour. The problem is we spend money faster than we earn it.

We can increase that amount by using time well. When not working do something that will add value to it such as learning something new or taking a new course.

Also when making your next purchase don't just look at the money but also ask if it is worth the time you have spent earning that money. class="MsoNormalWork backwards and ask yourself what will be important to you in the next 10 or 20 years.

This will start to show you what you truly value. In my book, Making Cents, I have talked about money not being the life but rather a tool or resource for the life.

This exercise helps you define what that life looks like and hence how money fits in. class="MsoNormalCreate multiple income streams.

Your job is one. Income from your business is one.

There could be others. In our classes, we identify non-financial assets such as skills, talents, and hobbies that can be monetised.

It doesn't have to start off as a big amount. class="MsoNormalUnderstand the difference between assets and flossets.

Assets will appreciate in value, give you an income, and at times keep money safe. Flossets look very good but will often depreciate and cost you money.

class="MsoNormalMany of us wish we started getting our act together earlier. If you could start all over again, what would you do different? Well, just start doing it.

It's never too late. Related Stories
COPYRIGHT 2019 Knowledge Bylanes
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2019 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Daily Nation, Kenya (Nairobi, Kenya)
Date:Apr 6, 2019
Words:728
Previous Article:Universities grapple with shortage of lecturers with PhDs.
Next Article:Pursuit of popular varsity courses puts Vision 2030 in peril.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters