WHAT ARE THE MOST IMPORTANT THINGS ABOUT PERSONAL FINANCE THAT SOMEONE WITHOUT A FINANCIAL BACKGROUND MUST KNOW

 

1. Do not expect to get rich quickly, no matter how professional you are or what kind of opportunity that might be available to you.

2. Don't listen to someone else's get rich schemes.

3. Know how to save, even if you are having low income because it lay a better foundation for you.

4. Start saving when you are young, this will help you to come up with a saving culture which will help you when you are old.

5. Use auto-savings methods offered by your bank, insurance company and SACCOs. These institutions give dividends to their customers, these dividends comes from the saving a customer saves with the institution.

6. Read a lot on investments or on how to invest so that no one can take advantage of you because you lack investment knowledge.

7. Don't be afraid to diversify your investments this will help you to earn more interests on your investments. It will also help you to have varying sources of income in retirement.

8. Always make a habit of spending less than you earn.

9. Don't use debt to buy things you could not buy with cash. Instead use debt to invest or buy appreciating assets only.

10. Never forget inflation. A million dollars today may be to the equivalent of 200,000 dollars in the next 30 years.