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The wealth creation mindset: Centonomy Strathmore Hangout

 

One-word description of the Savannah wildlife – scenic! The vast land is full of animals in one with nature and yet of different personalities, but do you ever wonder what makes the lion king? The elephant will fear him despite his size and intelligence because he sees him as an “eater”, as the late Dr. Miles Monroe put it. All that the lion sees, on the other hand, is “lunch”. He does not concentrate on the size or the intelligence of the prey but sets focus on the end goal and sets his mind to get it. ‘Everything is created twice, first in the mind and then in reality.’ ~ Robin Sharma.

Setting aside the sophisticated, business-oriented definition of money, what do you think money is? The Student Council organised a session with Michael Thotho, lead youth trainer and programme manager at Centonomy Ltd, giving Stratizens tips on money matters. According to Mr. Thotho, money is equivalent to value, what people pay for. For instance, we pay more for a taxi service today, as opposed to public transport, because of the ‘value’ attached to it. By increasing their personalized attention and flexibility for the customer, Uber gains more than our local matatu owners. In simple terms, for increased monetary value, add value.

A personal “Wealthometer”

‘Many people think that being rich and being wealthy are the same thing,’ said rich dad. ‘But there is a difference between the two: The rich have lots of money but, the wealthy don’t worry about money.’ ~ From Robert Kiyosaki’s, Rich dad Poor dad.

“In Centonomy, we believe being wealthy is the ability to live the life you desire without having to go to work for it. It takes a lot of effort, however, to put into your work/skill and discipline. Wealth creation is just like weight loss: Simple  Easy,” Mr Thotho stated.

Wealth creation cannot happen overnight but the discipline you develop now will determine how much you can handle in future. Always remember, a little money is not so little. Kshs. 300 a day is Kshs. 9,000 a month, which is equal to Kshs. 108,000 a year.

Set yourself apart

Tip 1: Pay yourself first!

For the work well done, you deserve a pat on your back. Though we are not referring to a spa treatment with the girls or a road trip with the boys, we speak of matters of saving and investment. “Before shopping, rent, dates, eat-outs etc., keep a portion aside by saving it, preferably, in a savings account and look for possible areas to invest. Inculcating a habit of prioritizing your savings brings you closer to wealth creation,” Michael advised.

“It is important to note that you need to attach a goal to your savings, for instance, save for that trip, for your new phone or to top-up your cash for that new car. It helps give meaning to the process. Later on, you can begin to work on an emergency fund. Ideally, it should sum up to a minimum of 6 months of your monthly expenses to avoid being caught flat-footed in the times of need,” he added.

Tip 2: Track your spending.

Many may call you frugal but ‘you need to note down every cent that leaves your pocket.’ Yes, even that packet of chewing gum and that airtime too. It helps you find out if your expenses are leaning towards consuming your income or at times dipping into your savings cookie jar. Michael gives us an easy way to categorize all our expenses, as below:

  • Essentials – rent, food, transport, education
  • Important but not essential – airtime, a change of clothing
  • Everything else – FIFA, games, eat-outs

Tip 3: Entrepreneurship!

The world’s highest-paid personalities use their skills and interests to create value, consequently minting them money. Talk of Bill Simmons, Kylie Jenner, or Elon Musk; all have a common ground in passionately working on interests close to their heart. Think of solving a problem and see how people buy your idea and do not give up on it. As it is said, be patient for good things take time.

 

This article was written by Anna Jessica Munya. 

 

 

If you have a story, kindly email: communications@strathmore.edu

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