This archive report was first published on 27 November 2019.
On November 27, 2019, Florence Nyokabi, the head of HR at Standard Chartered Bank, shared her inspiring story of building wealth and financial freedom.
According to Nyokabi, her journey to wealth began with identifying her purpose for investment, which was informed by defining the kind of lifestyle she wanted to lead now and in her retirement. She takes an honest view of her personal balance sheet and net worth every year, setting shorter-term goals to achieve her broader purpose.
Nyokabi emphasizes that wealth is not an end in itself but a means to an end. She defines the kind of lifestyle and values she wants to live by and uses wealth as a means to lead that lifestyle. Her motivation for building wealth is to achieve freedom, security, comfort, peace of mind, have fun along the way, and help others by way of giving back.
However, Nyokabi has had her share of money mistakes, including buying a house in an area that depreciated in value, copying the latest fad with respect to investment, and lending a substantial amount to a friend which led her to losing both the money and the friendship. She notes that one of the main money-related challenges women face is waiting too long to buy assets such as a house, fearing debts and failing to try again when they fail.
Nyokabi saves by investing her surplus funds in near-cash instruments such as TBills, Fixed Deposits, Money Markets, and shares in Saccos. She channels the funds on a monthly and quarterly basis, believing this is the route women looking to save wisely ought to take. She observes that many women will leave too much liquid cash in non-interest earning accounts, which becomes a dead asset and a target for unplanned expenditure.
Despite facing setbacks, Nyokabi emphasizes the importance of learning from mistakes and rising up, dusting herself off, and trying again, only much wiser this time. If she were to start all over again, her first investment would be a house, and she would seek advice from experts early enough and find a mentor in money management at an early age.
