How To Generate Solid Wealth

AzimaWellness Talks 7/2017

How To Generate Solid Wealth

In our newsletter last week, we unpacked how we fail to seize opportunities to work with established businesses to leverage  their experience and grow. This is what made China , South Korea , Taiwan among others become the powerhouse they are today.

Truth is Africans remain beggars because we do not know how to relate with money. Making money has a formula that we must get right from the word go. We need to hammer home this message using all avenues. From the pulpit to schools, media stations and all.

Money is a store of value and a medium of exchange. Most of us use money as a medium of exchange and not as a store of value.

We get paid for bringing value to the market place or in exchange for our labour or services
Making money is a game. All games have rules. The rules are made by those who control the game. All good teams or players have a coach. This is what make their performance epic. If you want to master the game of money, get yourself a financial coach like Warren Buffet to tell you.

The game plan is to generate earnings from the money you’ve invested earn much higher than your  recurrent expenses. At this point you have become  financially independent. If you continue to accumulate the residue income you become wealthy.

Wealth is abundance of material possession or knowledge. You need to have good knowledge to know which of your assets generate cash flow. Cash flow is king. We pay our bills with cash flow not assets like plots and land.

Being wealthy is the ability to live on money generated by your investments that generate  residual income. If you can live on your residual income enjoying the level of life you desire and your network keep growing , you have achieved financial freedom.

Road map  to financial freedom.

 Like everything else, life comes in seasons.

We all start to relate with money in our early age between 10 – 20 years. This is when we are in school. We get exposed to money with pocket money from parents. This is called navigation stage.

This is our money problem No.1.  It installs a money template in our brain that money is received, spent within a certain duration (term) and then wait to get more from the giver/ same source. It program  you to become a dependant.

This template continues when we go to work in employment earning. You work when broke, earn once a month and give away the money to pay bills. You maybe have some fun for a few days end month and then get back to working broke until the next pay day.

This is a very boring life! We fit into this easily because it’s what we got exposed to from our day one with money. Only this time money comes from our employer  not parents. We do not save to create alternative streams of income. We know money is for spending. When we save some money , it’s rarely for investment to generate cash flow but to buy stuff or dead stock. We buy stuff like cars, plots, gadgets and homes on mortgage etc. These takes away money from us in maintenance. Very few people  understand how this game is played. We do not see the traps set to tap our money for instant gratification.

To help our people out of this trap, we need to teach them financial intelligence. We believe people require to know how to save and invest their savings to generate more money. They need to know money saved in a bank is losing value to inflation. You should only invest your money where it generate a higher income above inflation.

Here is a good road-map to help our people financially.

Earn money and save before spending. Then spend what remains after saving. You should invest your savings to multiply and keep growing it.What we earn from active work is seed capital. Send it to work for you.

Practice delayed gratification by living on a low budget when you start working and save as much as you can and invest . Time to enjoy will come
Accumulate your savings and invest in the money market like trading stocks. This is one of the easiest ways to grow your savings.

2017 FINANCIAL – SHARES.

NO.

NAME OF COMPANY

OPENING

CLOSING

DIFFERENCE

PERCENTAGE

Jan-17

Jan-18

%

NAIROBI BUSINESS VENTURES

1.35

3.2

1.85

137.03

STANDARD GROUP

16.5

37

20.5

124.24

CROWN BERGER

41

80

39

95.12

DTBK

102

192

90

88.24

KCB

23

42.75

19.75

85.87

NSE

11

20.25

9.25

84.09

CIC

3.1

5.65

2.55

82.26

TPSEA

18.05

32.5

14.45

80.05

NBK

5.4

9.7

4.3

79.63

KENGEN

4.95

8.6

3.65

73.73

EQUITY

23.5

40

16.5

70.21

NIC

20

34

14

70

SAFARICOM

15.9

26.75

10.85

68.24

I & M

74.5

120

45.5

61.07

NATION MEDIA

72

115

43

59.72

KENYA POWER

6

9.05

3.05

50.83

BRITAM

9

13.5

4.5

50

TOTAL

16

23.75

7.75

48.44

STANCHART

165

210

45

27.27

CENTUM

38

43.5

5.5

14.47

SASINI COFFEE

17

27

10

58.82%

Those  who invested in stocks last year made handsome appreciation. The chart above shows how good it was for investors. Talk of sending your money to work for you ! About 20 counters made over 50% returns. For every 100k invested, it yielded around 75k more. Two counters yielded more than amount invested . We all can do this!! Azima wellness will show you how to pick stocks. When to buy and when to sell.

To be continued …
With profound regards,
Maina Azimio
Founder and CEO
Azima Wellness Consultants LTD
Conference Speaker & Corporate Trainer in Total Wellness.

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