‘We Work To Build Capital for Investments!’ – Mr.Pius Mugo ( CEO Nabo Capita)
Today we look at the Possibility of YOU (yes, You & I)Achieving Financial Freedom while still employed
So what is this T:S:C 1:3:6?
Did the Teachers Service Commission come to your mind? Well, that’s not it!
I was privileged to get hold of the book ‘MILLIONAIRE EMPLOYEE -Achieving Financial Freedom while still in employment’ by Mr.Patrick Ngumi, a long lost Campus mate from Kenyatta University. Thankfully Our Authorship Journeys have reconnected us.
This book is particularly dear to me since it espouses and compliments the same principles that I have shared in my Book ‘BEYOND 8 TO 5 – Critical Lessons by a Retrenchee’.
The difference is that He wrote his book while in a stable well paying Job, while I wrote mine, after a harrowing retrenchment ordeal! How I wish I had been disciplined enough to apply most of the principles outlined in the book……In retrospect though, that experience has made me tap into and explore my otherwise latent strengths, and I have morphed into an Author and a Transformational Speaker
Back to T:S:C 1:3:6
Financial Freedom is the ability of any individual to live off the returns of their investments, without having to go to work to earn the returns.
Such investments could be Portfolio incomes from investments like Shares, Bonds, Treasury Bills, or passive income such as rental income.
So if you find yourself earning more from these kind of incomes, than your monthly expenditures, you have indeed achieved financial freedom.
The reality for most individuals, especially the working class, is that we live pay check to pay check, and are often burdened with consumer debts.(those loans we easily take out to finance our lifestyle, instead of investing the money).
Sad to Note is that , if majority of employees missed just one paycheck, they would have to borrow some soft loan here and there to cater for just that 1 month’s expenses.
What does that mean?
Most employees will have to work year in year out, and the vicious cycle of Work – Salary- Pay Bills- Work Again continues to retirement age!
Is there there a Way out of that Vicious Cycle?
YES. and the solution is in Using part of your salary to INVEST. These investments will eventually begin generating for you passive income like dividends, interests gained, capital gains, rental income to you year in , year out!
This principle also applies to business owners.
Start using a part of your net profits to Invest. Just as an Employee may lose their jobs, So may a business owner, lose a business to various reasons.
And here is where the formula T:S:C 1:3:6 comes in handy
According to Patrick, Author of the Millionaire Employee, we need to separate our monthly incomes to 3 portions Tithe, Savings and Consumption(T.S.C)
For Starters, he recommends the ratio 1:3:6 Tithe 10%, Save at least 30% and then Utilize the remainder 60% for your other monthly expenses
What are you Saving for? Save to Invest.
Use your savings in the various investment vehicles available such as Unit Trusts, Equity Funds, Government bonds, Treasury Bonds and many more other options.
(For more detailed explanation on each investment vehicle, write me an email and I will share the detailed information and even link you up with Reknown Expert Investment Bankers who will guide you along on your investment goals)
With Time, these investments will start yielding you returns in the form of dividends, interests, capital gains etc (this is now passive income right there because you are not working to earn it, but your invested money is now working for you)
With the extra income coming in, you can now even afford to Save More, to Invest More, while maintaining the same standard of living.
You are now well way ahead on your journey to financial freedom!
Just remain Disciplined.
Avoid the lure of Increasing your Monthly expenditures , because that will swallow up the extra income in, instead of you re-investing it!
Is it Doable? YES
Have Others Done It? YES they Have
Can YOU Do It? YES YOU CAN
Where do you Start?
1. Resolve in Your Heart To DO IT for yourself, for your better Tommorrow, for Peace of Mind in the event of a financial crisis, For those you love so much (Your Children maybe? Biological or Otherwise)
2. Identify the very Basic Investment Vehicle you will start investing in. If you don’t know any investment bankers to guide you, please email me, I will be more than Glad to introduce you to great investment bankers to walk with you through to your financial goals. Begin Somewhere. Begin Now
3. Commit that first Amount to your Savings or Investment Account. The Late Nobel Laurette, Prof.Wangari Mathaai begun by planting just one little Seedling, and her commitment led her to be the 1st Kenyan , 1st African Woman to not only receive that prestigious global award, but to also leave behind a legacy that will impact generations to come in Kenya. Because of her, We enjoy the serene Uhuru Park, the Karura Forest as well as many other forests that would have otherwise been totally destroyed.
A journey of 1,000 steps begins with just 1 Step. Let this be your first step. It doesn’t matter the amount you will set aside. It’s the commitment, the determination that counts.
My Challenge to you for this week –
Are you already Saving consistently from your monthly salary?
If Yes, Have you began Investing from your savings?
If No, Decide and Commit now to start saving a particular amount every month
If you need any guidance on this subject, or you just want to share your experiences on this subject, I’d Love to hear from You!
Reach me via Email:firstname.lastname@example.org