S8:EP6 | There Is No Investment Without Risk | Rina Hicks & Pius Muchiri |

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  • Опубликовано: 2 янв 2025
  • Contact Faida Investment Bank
    WhatsApp: (+254) 743 552 341
    Call: (+254) 719 212 349
    E-mail: oak@fib.co.ke
    oak.africa/
    Head Office Address:
    Crawford Business Park, State House Rd, Nairobi Kenya.
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    Contact Nabo Capital
    Call: (+254) 709 902 700
    Email: invest@nabocapital.com
    nabocapital.com/
    Head Office Address:
    5th Floor, International House, Mama Ngina Street, Nairobi
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    The foundational principle discussed here is the importance of paying yourself first as a crucial step toward achieving financial independence and, ultimately, wealth. Paying yourself first implies setting aside a portion of your income for personal financial growth, thereby avoiding a commitment to perpetual financial struggle. This principle underscores that building wealth isn’t merely about how much you save but about prioritizing consistent, proactive self-investment. No matter the frequency or the amount saved, the essential step is to begin and maintain this practice as a core habit.
    Once you've committed to paying yourself, the focus shifts to where and how you allocate these funds. Saving in traditional accounts or keeping cash in physical forms, like under a mattress, may not yield long-term financial growth. Instead, investing in opportunities that offer compounding returns can help money work for you even while you sleep, building a system where your investments multiply over time. Inflation, for instance, continually erodes the value of idle money, underscoring the necessity of putting it into investments that appreciate and safeguard your purchasing power. This approach allows for the continued ability to meet and sustain your lifestyle goals, like travel or quality time with family, well into the future.
    Financial planning requires a personalized approach, considering factors such as your investment timeline, risk tolerance, and ultimate financial goals. For example, saving for a child's university education in 18 years offers a wider range of investment options, like the stock market, compared to a short-term goal like a wedding in six months. Aligning investment strategies with your personal goals and timelines ensures a tailored approach to wealth building. Partnering with experienced financial advisors and investment institutions can simplify this process, providing expert guidance, a structured approach to financial planning, and access to well-suited investment products.
    Finally, the concept of wealth is about more than just financial growth; it’s about buying back your time. True wealth creation is about cultivating passive income streams-such as dividends or interest income-that reduce the need to trade your time for money. As wealth accumulates, it enables you to outsource tasks and dedicate more time to pursuits you enjoy, achieving a lifestyle where your time is yours to manage. Working with reputable financial institutions can be instrumental in reaching this goal by offering services to help you effectively allocate and grow your resources, ultimately building a stable financial future.

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