This archive report was first published on 20 January 2022.
Geoffrey Kiragu, a renowned real estate entrepreneur, has built one of Kenya's best real estate businesses from scratch. With a humble beginning of Sh. 1 million capital and a few plots, Kiragu has mastered the art of financial discipline, which is crucial for wealth growth. In this feature, he shares his wealth-growing tips that can help you achieve financial discipline and build your wealth.
Published on January 20, 2022
Identifying your needs and wants is crucial before creating a budget or setting financial goals. Your needs comprise essential items like food, shelter, and clothing, while wants are nice-to-have items that are not essential for survival. Prioritizing your spending should always focus on your needs, and never compromise your financial stability to help others.
Setting specific, measurable, achievable, relevant, and time-bound (SMART) financial goals is essential for success. Break down enormous goals into smaller, manageable ones to make them more palatable. Create a contingency plan to overcome potential obstacles and stay on track.
Make budgeting a habit by designing a budget that dictates how much you can spend each month based on your income. Categorize your expenses into fixed and variable expenses, and ensure debt repayment and savings are factored into your expenses. Tracking your spending is crucial to understand where your money goes each month and make adjustments accordingly.
Automate your savings and stay away from debt by setting up a system that transfers funds to your savings account regularly. Consider investing in assets like property, stocks, and bonds to diversify your income streams. Earning extra income through a side hustle can improve your life and enable you to save for big purchases.
Finally, budget for miscellaneous items like entertainment, shopping, and unexpected expenses to avoid financial shocks. Review your budget regularly to include additional expenses and make adjustments as needed.
