How to grow a financial base for a safe retirement.
Azima Wellness Talks 13/2018
How to grow a financial base for a safe retirement.
We are living in interesting times. With the technological advancement in healthcare and better income, life longevity is increasing from the average 70 – 75 years to beyond a 100 years. Our retirement benefits are timed to go for a maximum of 10 years after retirement.
Most of our middle class slide into poverty soon after retirement if they are not already trapped in debt by the time they retire. I know of many workers who by the time they retire, they owe more than their total retirement benefits and their accumulated shares contributions in Saccos and chamas after loans deductions.
This has been made worse because we lack financial intelligence. During our working life, we depend on only one stream of income, salary. Whenever we need more money than we earn, we have been programmed to borrow to meet the shortfall.
We need to tell our people with a loud voice that borrowing is not a way of earning income. It is very expensive to borrow money for consumption like paying school fees. What you need to do with borrowed money is invest it into a venture that will generate more money than the interest charged on the loan. Then, re-invest the profits you make until it start to make residual income.
This is the missing formula that has kept most people in financial bondage. This is a worldwide problem. People in the developed economies like America are even worse off. They are programmed to want conspicuous consumption. The captains of commerce there have mastered how to manipulate human emotions to their advantage. They use smart advertising to create craving for things the income earners cannot afford. To keep the consumption going, they invented credit cards and now digital loans.
This means that the majority live on credit. They spend their money in advance before earning it. Allow me to submit that taking a loan to pay for consumption is living tomorrows life today. The question you should ask yourself is what will do when tomorrow comes?
This is why Azima Wellness Consultants have taken the bold move to not only raise awareness on this state but designed programs to improve this sorry state. In Q2 we are taking our training programs online to make them accessible to many more people at your convenience. Truth is the financial blueprint we have been using is faulty.
It is not an easy task to undo the current belief system but it got to be done or our people will continue to live in eternal misery. Our goal is to educate as many people as possible how to relate with money. Refer to the package in one of our programs o the flyer attached.
Money has two usage. As a medium of exchange and as a store of value. Unfortunately most of us relate with money only as a medium of exchange. This is the person who is always in debt. You are a slave to the debts because you have to keep working to pay your debts. The money sharks are too sharp for the debtors.
They scheme not let you become debt free. After paying off a chunk of the loan, they entice you to do a top up loan. You are encouraged to shop by credit cards which they give free. They know if you have a card you cannot resist the temptation to swipe. This is living dangerously.
The way to relate with money is to earn first, plan how you will spend your income starting with saving for investments then spend what remains after saving. This is new knowledge for most salaried people. What is there to save and even the income is not enough to pay the recurrent expenses which include debts?
When you find yourself in such a situation, what you should do is look for another stream of income to supplement the current one. Resist temptations to borrow the shortfall.
A good loan is money borrowed for business. Period. To avoid the temptations to borrow, we need to learn how to generate more than we consume. All it takes is a new mindset. We get paid for bringing value to the market place. Ask yourself what you are bringing to the market and you are on the pathway to great wealth. Do not look for another job. Create a stream of income.
With the common market for Africa, there are numerous opportunities we can tap into. With 12 Billion customers, our limit is our imagination. My advice is do not overthink. Money is made through simple concepts. Be at the service to people and they will pay you for it.
Maslow made a very good classification of human needs that have stood the test of time. Study the hierarchy of needs and choose at what level you want to operate. Choose the lowest point of entry. What will not require a lot of input to get started. Look inside yourself and discover what you are good at. What are your gifts and talents and what among them can you monetize?
Is it sports? Acting? Entertainment? Is it serving others who have launched their careers like supporting a musician? Play guitar or drums for the musician? Is it becoming a coach or a team manager or any other supporting role?
There are a lot of opportunities in sports. In economies like America which is highly developed, all serious players have managers, promoters, doctors, financial advisers and many more. Your gift/ talent could be to manage or promote others like Don King the famous boxing promoter. You must not have been a good player to become a super coach. The coach of Arsenal was never a renowned footballer yet he has been the coach of one of the most successful team. The same is true of other coaches in great teams like Manchester city, Liverpool and Man U.
Join me next week we unpack this to specific opportunities and how you can plug in. Keep it here.
With profound regards,
Founder and CEO
Azima Wellness Consultants LTD
Conference Speaker & Corporate Trainer in Total Wellness.