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When it comes to managing money, there are two main strategies: a defensive game or an offensive one. A defensive approach means you focus on cutting down expenses to stay within your income. This style requires careful budgeting and resisting unnecessary spending. However, keep in mind that there's only so much you can cut – your expenses can only go so low. On the other hand, an offensive strategy means you focus on earning more to cover your expenses and reach financial goals faster. Unlike cutting expenses, there’s no cap on how much you can potentially earn. You can grow your income through side hustles, investments, or career advancements, which provide flexibility and new opportunities. Whichever path you choose, understanding these options allows you to make a strategic choice. Balance between cutting costs and maximizing earnings, and find what works best for your lifestyle and financial goals.

To live off passive income, you need to own income-generating assets. These assets produce regular returns without requiring much of your time. For instance: Bonds offer semi-annual interest payments, providing a reliable income stream. Stocks may pay dividends, sharing a portion of company profits with shareholders. Real estate can earn rental income, offering both cash flow and potential appreciation. The key to achieving financial independence through passive income is to ensure that the earnings from your investments cover your living expenses. When your passive income consistently exceeds your costs, you no longer depend on active work to meet your financial needs. By carefully choosing and diversifying your investments, you can build a portfolio that supports your lifestyle over the long term. Reinvesting and managing these assets wisely helps grow your income potential, allowing you to live comfortably on passive income.

How to Save Money in 2024 1. Set a clear savings goal—whether it's daily, weekly, or monthly. Write it down to stay accountable. 2. Decide where to save your money. Options include a bank account, Sacco, Money Market Fund, Mshwari, an insurance policy, or even a secure home safe. 3. Find two like-minded individuals who are also saving. You can support and encourage each other along the way. 4. If possible, join a savings group (chama) and contribute consistently. 5. Create a budget each month and stick to it. Avoid impulse purchases and taking on unnecessary debt. 6. Reduce spending on harmful habits like alcohol, gambling, and other non-essential expenditures. 7. Limit unnecessary social spending on events like baby showers, weddings, and birthday parties. 8. Steer clear of online scams that promise quick returns. 9. Increase your income by starting a side hustle, improving your business, or advancing in your career. 10. Focus on acquiring assets rather than liabilities. Secure your financial future by joining Ujani.co.ke today. For just 499 Ksh, enroll in our Budgeting and Goal Setting Course and start your journey to financial freedom.

As we near the end of 2024, these are some of the top-performing assets this year — Bitcoin: +58% — NSE: +48% (in USD terms) — Gold: +33% — S&P 500: +22% — KES: +21% against the USD — Infrastructure bond coupon: 18.5% — MMFs: 13-18% — 91-day T-bills: 16%

Many investors often regret their decisions because they overlook exit strategies when starting out. For instance, education and endowment policies prevent you from withdrawing savings until they accrue surrender value. Treasury bonds may need to be sold in the secondary market, often at a loss. SACCO BOSA savings only allow access through loans or upon leaving the SACCO, with refunds taking up to 60 days. SACCO shares require finding a buyer when exiting, and selling them can be time-consuming. Buying land in remote areas may also take a long time to liquidate. Liquidity, or how quickly you can access your money, is a crucial factor that investors should prioritize. Balancing long-term growth with accessible funds can help you make better decisions and avoid common pitfalls in your investment journey. Always think ahead and ensure your portfolio has room for flexibility and liquidity.

Happy Mashujaa Day! 🇰🇪 Today, we celebrate the brave men and women who have shaped our great nation with their resilience, sacrifice, and vision. At Ujani.co.ke, we honor not only the heroes of our past but also the everyday heroes who continue to inspire change.

SACCOs remain a more attractive credit option than banks, particularly in high-interest rate environments. Here’s why: 1. SACCO loans are not impacted by central bank rate changes, offering more stability. 2. Most SACCOs offer loans at a 12% per annum rate on a reducing balance basis, effectively lowering the cost of credit to around 7.5%. 3. Members can typically borrow three to five times their savings, making it easier to access substantial funds. 4. Collateral isn’t required; instead, borrowers can use guarantors or self-guarantorship. 5. Many SACCOs will waive outstanding loan obligations if a borrower passes away before fully repaying. These features make SACCOs a reliable and affordable option for individuals seeking credit, especially when interest rates are high.

According to CBK data, loan disbursements by Savings and Credit Cooperatives (Saccos) in Kenya have increased by Ksh 46 billion, reaching a total of Ksh 749 billion. This growth has allowed Saccos to surpass commercial banks in loan disbursements across the country.

While cutting expenses is important, it’s ultimately your income that drives wealth-building. Frugality has limits—there’s only so much you can save—but your earning potential has no ceiling. No matter how thrifty you are, it can’t fully compensate for a low income. Often, the real challenge isn’t a lack of financial literacy; it’s a lack of sufficient income. By focusing on growing your income, you create more opportunities for financial freedom and wealth accumulation.

2024 has been an exceptional year for Kenyan investors. The Nairobi Securities Exchange (NSE) is up 45% year-to-date in USD terms, while the Kenyan shilling has strengthened by 23% against the dollar. An infrastructure bond (IFB) fetched an impressive 18.6% coupon, and money market funds are averaging returns of 13-18%. Additionally, the 91-day Treasury bill is offering a 16% yield. Meanwhile, global markets are also performing well, with the S&P 500 up 23 year-to-date. With all these opportunities, where are you investing your money this year?