What does “rich” mean to you? A lot less than you think! Nice suit? Nice watch? Instagram bling? It’s all a lie... 50% of millionaires surveyed said never bought a suit more than $400 or a watch above $200!
Power of getting rich is in compounding. You’re already LOSING money by not taking action
GET OUT NOW (30% of credit score is based on amount of debt you carry). Ironically, (borrowing other people’s money aka "credit") credit is CRUCIAL for getting rich. BIG wins - credit purchases are huge (house, car, etc) and the interest rate you get depends on credit score/report. Could literally save or cost you tens of thousands of dollars over the course of 20/30 years!
Warren Buffett favorite - leave his kids all money in these. These stocks use computers to find funds and average the market - SP 500 or NASDAQ or NSE (Kenya). Something like Old Mutual (Kenya) (don’t own YET, explain next point). Mostly they have very Low fee index funds are key — (0.2%-0.75% annual)
Get rich if you’re lazy? Rebalancing portfolio takes work, time, knowledge, research, etc. Lifecycle or "Target Date Funds" Specific type of mutual fund helps diversify portfolio for you based on your age.
EX: Assume I made a bet with you - for every $1 you put into investing, I’d give you $1 for free. Up to $5,000. No risk to you. Would you do it? THAT’s WHAT 401k IS! 25 and under age less than 1/3 participate in 401k program (less than 4% max out). if employer offers 401k match - do it! In Kenya this equals to NSSF.
It is said to be the "best investment". Rethinking the investment...
Everyone should have (especially in your 20s) At 59 and 1/2 can withdraw everything tax free. I think of this like Individual pension plan from KCB
Being average is NOT good. 86% of Kenya's living on paycheck to paycheck. Be better than that.
Have an emergency bank account that is at-least 2 times your monthly income.