Financial Education: Continuous Learning

[Kigui]

I recently read the book "The Richest Man in Babylon". It has a very good suggestion, that 20% of your income must be invested in a revolving fund where all proceeds are reinvested. I'm a follower now.

Share your ideas here on how to save money and also where you invest it.

Some of us put our money in real estate that pays after 10 years. Treasury bills double every 7.5 years

 

[Bhai]

Sportpesa

 

[Kigui]

Sportpesa

Gatiti gaka gatūngana. Ūngīrohīa nda ukībaisana. Bure kabisa. Gatiitira gaka.

 

[Mimi Huwa Namwaga Ndanii]

Kigui ni kigui tuuuu

 

[qalonzo]

Treasury bills double every 7.5 years

Is this for real? Sounds appetizin'

 

[qalonzo]

Sportpesa

you are a billionaire now?

 

[1776]

Sportpesa

Kabisa! Triple your cash in less than 2 hours.

 

[qalonzo]

Kabisa! Triple your cash in less than 2 hours.

Lete hizo bets.

 

[747Captain]

let me follow

 

[CaptainLloyd]

I recently read the book "The Richest Man in Babylon". It has a very good suggestion, that 20% of your income must be invested in a revolving fund where all proceeds are reinvested. I'm a follower now.

Share your ideas here on how to save money and also where you invest it.

Some of us put our money in real estate that pays after 10 years. Treasury bills double every 7.5 years

An investment portfolio depends on the risk that you are willing to take, your liquidity requirements (how easy do you want to have access to the hard cash), and of course the amount that you have.

Government bonds are considered risk-free, a good investments vehicle for kids school fees. Put in K Shs 3M in a government bond that gives you 10% every-year. You have your K shs 300K for kids school fees forever (until the bond matures), when you get your K Shs 3M back. This is just an example of your risk appetite, your liquidity requirements and the amount in question.

 

[747Captain]

An investment portfolio depends on the risk that you are willing to take, your liquidity requirements (how easy do you want to have access to the hard cash), and of course the amount that you have.

Government bonds are considered risk-free, a good investments vehicle for kids school fees. Put in K Shs 3M in a government bond that gives you 10% every-year. You have your K shs 300K for kids school fees forever (until the bond matures), when you get your K Shs 3M back. This is just an example of your risk appetite, your liquidity requirements and the amount in question.

toa witholding tax 5% na payment processing and allthat 2%

 

[Mediocre]

toa witholding tax 5% na payment processing and allthat 2%

Na inflation ya 5% pia.

 

[747Captain]

Na inflation ya 5% pia.

exactly, actually the real inflation inachezea 7-7.5% annually

 

[Baby Panay]

Wtf is a bond? Najua ile ya mahakama.

 

[CaptainLloyd]

exactly, actually the real inflation inachezea 7-7.5% annually

The 10% is around the net coupon rate after all taxes, as the coupon rates are close to 13%. Inflation is another discussion, other investment vehicles in your portfolio can cover that e.g. a bit of good value equity (KCB, Safaricom) that give decent dividends every year. Your day to day hustle can also cover (nominal- real) returns gap from the risk-free bonds.

 

[747Captain]

The 10% is around the net coupon rate after all taxes, as the coupon rates are close to 13%. Inflation is another discussion, other investment vehicles in your portfolio can cover that e.g. a bit of good value equity (KCB, Safaricom) that give decent dividends every year. Your day to day hustle can also cover (nominal- real) returns gap from the risk-free bonds.

Good thoughts there.

 

[Kigui]

The 10% is around the net coupon rate after all taxes, as the coupon rates are close to 13%. Inflation is another discussion, other investment vehicles in your portfolio can cover that e.g. a bit of good value equity (KCB, Safaricom) that give decent dividends every year. Your day to day hustle can also cover (nominal- real) returns gap from the risk-free bonds.

Good stuff right there. I have a very little risk appetite. So, I do real estate. Planning to be a little bit less risk sensitive going forward.

I'm not a financial analyst, lakini I was wondering whether Treasury bills could beat building and renting out block of flats. Just think about an investment of 5m-20m.