Converting Cash Flow To Wealth; How to create Residual Income.
Azima has been at the forefront sharing tidbits in wealth creation. To be wealthy enables you to live life on your own terms. To have options in life. It gives you peace of mind and well-being leading to optimal health. Wellness is engaging in a set of behaviors that are likely to lead to optimal health if applied properly and consistently. This is only possible if you have adequate money.
Wealth is a mindset. You create wealth if you align your thinking to wealth. Most of us remain poor because all we entertain are thoughts of poverty. You attract what you think most of your time. This does not happen by chance . It is how we were programmed from an early age. Most of us were brought up in depravity.
Any mention of money was frowned upon by parents. This was my reality. My father worked for East African Railways. It later became Kenya Railways. It was among the worst employer in staff remuneration. My father did not entertain any talk that suggested cash expenditure from his wallet. He was broke 365 days in a year.
With this background, we did not learn much about money at home. It was a taboo subject. But through my own personal initiatives, today I know money is a faithful servant. Way much loyal than human beings. If you deploy money to work for you in the right places, it will not disappoint.
Problem is most of us use money as a medium of exchange only. We do not know it is a store of value. We earn money from exchange of goods and services. More than 80% Kenyans earn money from salary and wages.
A big percentage of the money earned goes to pay overheads like house rent, bus fare or other forms of travelling expenses to and from work. Pay for upkeep like food, clothes and other bills and pay bills like water and electricity. These are the first traps of money set up by the money smart to harvest from our sweat.
After meeting basic essentials, we have been programmed to crave certain luxuries. This is designed to take away money from us. These are Items that are good to have for gratification but we can delay and have them later. These include conveniences like a smartphone that cost you in data bundles or Wi-Fi, pay TV that cost you to watch like Multichoice. Those at a higher level buy a car they do not make good use of but pay sh 200 to park in the sun all day.
We are programmed to spend to look good. We spend money in saloons, buying clothes in fashion and shoes to match the bag especially for ladies. We are more sensitive about what people think about us and pay any amount to prove we leave a sophisticated life. All these activities take money away from us. To cope with Johannes, we end up spending more than what we earn.
We borrow to meet the shortfall and pay back with interest. This is the starting point to get into a debt trap. This is a dangerous lifestyle. It make us live broke from January to December. By Christmas, we have no money for holiday. Because we need to join other people going home or Mombasa for holiday, we borrow to travel digging ourselves deeper into debt. Come January with school fees to pay, we borrow again from our Sacco to pay school fees. The culture borrowing for consumption is the biggest threat to wellness. It is living tomorrow’s life today.
The question is, what will you do when tomorrow comes? In this days of retrenchment and companies like Nakumatt, Uchumi, Kenya Airways and chase bank among other big firms going south, it is dangerous to rely on salary as the only source of income.
These are some of the money mistakes we make due to lack of financial knowledge. Financial Knowledge comes from financial education. Problem is they do not teach this even in graduate school.
But there is a way out of this mess. We can learn delayed gratification. In Azima we have developed a clear road map to a better lifestyle. We need to learn this formula and have the patience to watch our investments grow.
Keep it here to learn the practical steps to gain financial IQ in the next article . Don’t go away .
With profound respect,
Coach Maina Azimio.
ICF- Accredited CPC & CPM
Conference Speaker and Corporate Trainer in Wellness.
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