Money in the bank will never grow you rich. Banks are there for the sole purpose of kukukamua.
Picture this, you have saved 600k in a bank but want to get a loan of Kshs 2 million. The bank will charge you 13% on the loan but your savings will earn a paltry 3%. This means that you will be disadvantaged by 10%.
Same scenario in a SACCO. You borrow a 2m loan at 12% and at the same time your savings earn interest at 10%. Your disadvantage will only be 2%. The risk with SACCOs is that they don’t have proper governance structures like most banks do. Otherwise besides that,save and invest your excess money in SACCOs.
Get any idle cash out of the system by investing it e.g stocks, land, business etc. Relying on interest paid by Saccos and banks is counterproductive if you account for inflation.
I saw a ktalker posting here he has been sacrificing a lot to save cash nilimshow he is stupid.Saving cash money is poor people’s mentality…Let money work for you NOT you working for money
nangoja karoga ,mayekeyeke na grandpa, jamaa anaingishanga 600k p.m. akifanya online writing na watu wa diaspora
wacha niweke watch thread nirudi Saturday
But you need to save a little amount of money to cater for emergencies. You can’t invest all your money in solid assets coz it will be hard to dispose them incase of an emergency
Think big.
There are apps you can use to invest in US stock. Research and choose the right ones and watch your money multiply, sometimes in a matter of days like Tesla.
Or if you are cautious with your money, choose an S&P 500 investment fund, and it will give you consistent annual returns above what Kenyan banks are giving you.
