A Shilling today is worth more!
January 3rd, 2007 | Uncategorized |
The year that is! 2007 is now a reality and you have probably already decided on your goals for the year. We wish it was that easy, resolutions without financial implications. The good news is that yet again you have to make important decisions this year to better yourself and grow your value. The secret to good management is to increase value. That is a simple statement, but not a very helpful one. It is like advising a saver on good money management to “set aside a little, all the time.” The problem is how to do it.
There may be a few activities which one can read a text and then “do it”, but good money management is not one of them. It involves a lot in terms of experience, creativity, judgment, and a pinch of luck? Good money management is a discipline you develop gradually as you progress. And of course it comes with a few hiccups here and there. Purpose this year to learn something new in this area, the basic principle here is “a shilling to day is better than a shilling tomorrow” as the guru’s put it simply. This is so because money today is available for immediate investment and/or savings. Start with what you have at your disposal set a side a certain percentage say 10% of your earnings monthly as savings. Be creative; do not put all your eggs in one basket. Besides having an account with a commercial bank, look out alternatives that will make your money grow and require minimum investment. For example unit trusts which cater for the small time investor of as little as UGX 50,000. The fees charged in the African Alliance Money Fund for example are 0.5% on the entire fund and not on individual investments. You will be hard pressed to find a commercial bank with such favorable rates. The ease and flexibility in the fund or liquidating or redeeming units is another factor that should be considered. Again I need to stress that “a safe shilling is worth more than a risky one”. You are able to withdraw part or all your money from the fund without prior notice of forfeiting interest. Keep track of your investments detailing amount invested and when, interest earned to date through the statements provided on request. Many a time we loose lots of monies through bank charges, administration costs and other hidden costs because we make uninformed decisions on investments. Before you decide to make an investment into any portfolio seek the input of an investment advisor/fund manager. Their services come in handy most especially in today’s world were your uninformed decisions are somebody’s niche. Purpose to read some material on good money management and get to it yourself or how else will you learn how the investment and savings game is played? Most of what you will do has already been documented by the “investment gurus”. Do not try to experiment something new because this concerns your livelihood and you don’t want to mess with your finances. Consider reaping benefits in the long term and not in the short term! Congratulations upon reaching the New Year! May it be a prosperous one! Arthur Kaliisahttp://kammassociates.comesatradehub.com
There may be a few activities which one can read a text and then “do it”, but good money management is not one of them. It involves a lot in terms of experience, creativity, judgment, and a pinch of luck? Good money management is a discipline you develop gradually as you progress. And of course it comes with a few hiccups here and there. Purpose this year to learn something new in this area, the basic principle here is “a shilling to day is better than a shilling tomorrow” as the guru’s put it simply. This is so because money today is available for immediate investment and/or savings. Start with what you have at your disposal set a side a certain percentage say 10% of your earnings monthly as savings. Be creative; do not put all your eggs in one basket. Besides having an account with a commercial bank, look out alternatives that will make your money grow and require minimum investment. For example unit trusts which cater for the small time investor of as little as UGX 50,000. The fees charged in the African Alliance Money Fund for example are 0.5% on the entire fund and not on individual investments. You will be hard pressed to find a commercial bank with such favorable rates. The ease and flexibility in the fund or liquidating or redeeming units is another factor that should be considered. Again I need to stress that “a safe shilling is worth more than a risky one”. You are able to withdraw part or all your money from the fund without prior notice of forfeiting interest. Keep track of your investments detailing amount invested and when, interest earned to date through the statements provided on request. Many a time we loose lots of monies through bank charges, administration costs and other hidden costs because we make uninformed decisions on investments. Before you decide to make an investment into any portfolio seek the input of an investment advisor/fund manager. Their services come in handy most especially in today’s world were your uninformed decisions are somebody’s niche. Purpose to read some material on good money management and get to it yourself or how else will you learn how the investment and savings game is played? Most of what you will do has already been documented by the “investment gurus”. Do not try to experiment something new because this concerns your livelihood and you don’t want to mess with your finances. Consider reaping benefits in the long term and not in the short term! Congratulations upon reaching the New Year! May it be a prosperous one! Arthur Kaliisahttp://kammassociates.comesatradehub.com
