Financial Discipline and Planning for Retirement: Strategies for Financial Management and Independent Wealth
Learn from Prof. Henry Etende Embeywa Riap about the importance of financial discipline and planning for a secure retirement. Discover the process of managing income, budgeting, saving, investing, and controlling expenses to achieve financial independence. Explore the significance of a healthy money mindset and practical tips for effective financial management.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
PERSONAL FINANCIAL DISCIPLINE AND PLANNING FOR RETIREMENT. BY PROF. HENRY ETENDE EMBEYWA RIAP EDUCATIONAL AND TRAINING CONSULTANTS 0725-162-812 0743-923-280
THE FINACIAL DISCIPLINE PROCESS ACTION 1 ACTION 2 ACTION 3 INCOME FROM MULTIPLE SOURCES FIXED E BUDGET SAVING INVESTING SPENDING COMM. E D E
FINANCIAL MANAGEMENT FINANCIAL MANAGEMENT IS HANDLING OUR FINANCIAL SITUATION IN A RESPONSIBLE MANNER TO ACHIEVE FINANCIAL INDEPENDENCE. (MITCHELL, 2011). THIS IS ACHIEVED THROUGH CONTROLLING INCOME AND ORGANIZING EXPENSES THROUGH A DETAILED FINANCIAL PLAN. IT REQUIRES: BUDGETING; SAVING; INVESTING; DEBT MANAGEMENT AND PERSONAL FINANCIAL GOALS.
FINANCIAL DISCIPLINE TAKING CHARGE OF FINANCES AND LETING THE MONEY WORK FOR YOU. WILLINGNESS TO FOLLOW A FINANCIAL PLAN. DECIDING: HOW MUCH TO SAVE 30/70 % RULE THE SMALL DOUBBLING UNIT MODEL. (20, 50, 100, 200, 500, 1,000) WHERE TO SAVE SAVINGS DEPOSITS CAPITAL SHARE DEPOSITS HOW OFTEN THE SAVING SHOULD BE HOW TO PROTECT THE SAVINGS (INSURANCE?) FOCUS ON INVESTMENT WHAT TO INVEST IN HOW MUCH TO INVEST HOW TO PROTECT THE INVESTMENT (INSURANCE?) FOLLOWING A STRICT BUDGET/A RESPONSIVE BUDGET.
3 LEVELS OF COMMITMENT Rational Motivational Productivity Emotional
THE THREE ASPECTS OF COMMITMENT REASON MOTIVATION EMOTION SAVING A BICYCLE, MOTORBIKE, A CAR, AEROPLANE EASY MOVEMENT, PRESTIGE, TRANSPORT SERVICE, CREATE WEALTH. INVESTING START A BUSINESS (SME), BUY A HOUSE, BUY A PLOT, OPEN A YOU-TUBE CHANNEL TO MARKET A TALENT. IMPROVE LIFESTYLE, TO GROW EARNINGS (CREATE WEALTH) PREPARE FOR FUTURE NEEDS
THE MEANING OF MONEY MINDSET Money mindset is the unique set of beliefs and attitude about money. It drives the decisions about saving, spending and handling money and causes you to succeed or to fail. BUT The key to success is in your hands.
HEALTHY MONEY MINDSET MANAGING INCOME/ EXPENDITURE. (ESIE) Earn from many sources and save 10%-30%. Budget for what you spend. Save and spend within your control. Live within the boundaries of your budget. YOUR BUDGET SHOULD BE SMALLER THAN YOUR INCOME! Spend on essentials and ignore non-essentials. (REDUCE THE BUDGET OR INCREASE THE INCOME SOURCES).
MONEY MINDSET.. CONSIDER WHERE YOUR INCOME COMES FROM: SALARY, DIVIDENDS, BUSINESS RETURNS, RENT, ANY OTHER SOURCE. INCOME-EXPENDITURE THE BEST FINANCIAL STATE TO BE IN IS A FAIR BALANCE BETWEEN INCOME AND EXPENDITURE. SPENDING LESS THAN YOUR TOTAL INCOME IS HEALTHY, BUT SPENDING MORE THAT YOUR INCOME IS UNHEALTHY. DO NOT SAVE WHAT IS LEFT AFTER SPENDING, BUT SPEND WHAT IS LEFT AFTER SAVING. TO HAVE FINANCIAL PEACE, YOU NEED TO SAVE SOMETHING REGULARLY: IT DOES NOT MATTER HOW MUCH YOU SAVE REGULARLY, WHAT MATTERS IS THAT YOU FORM THE HABIT OF SAVING. USE YOUR SAVINGS TO INVEST PRUDENTLY.
SAVE SOMETHING REGULARLY. JAN JAN JAN JAN FEB FEB FEB FEB YEARLY TARGET 20 40 80 160 320 640 1,280 2,560 30,600 50 100 200 400 800 1,600 3,200 6,400 76,500 100 200 400 800 1,600 3,200 6,400 12,800 153,000 200 400 800 1,600 3,200 6,400 100,800 500 1,000 2,000 4,000 90,000 1,000 2,000 4,000 8,000 180,000
MANAGING FINANCIAL STRESS: SAVE SOMETHING REGULARLY. JAN JAN JAN JAN FEB FEB FEB FEB MAR MAR MAR MAR YEARLY TARGET 10 20 40 80 160 320 10 20 40 80 160 320 5,040 20 40 80 160 340 680 20 40 80 160 340 680 10,560 100 200 400 800 100 200 400 800 100 200 400 800 18,000 50 100 200 400 800 1600 50 100 200 400 800 1600 25,200 10 20 40 80 160 320 640 1,280 2,560 5,120 10,240 163,800 20,480 200 400 800 1000 200 400 800 1000 200 400 800 1000 28,800
HEALTHY MONEY MINDSET.. PRUDENT BORROWING AND DEBT MANAGEMENT. FOCUSSED INVESTMENT. What? Why? How much do I invest? How much Returns do I expect? GOOD BOOK KEEPING.
VISION FOR WEALTH CREATION FOCUS: ON HOW TO CREATE NEW INCOME.(NEW REQUIRES NEW) START SOMETHING TO CREATE INCOME. PUBLISH, BE A CONSULTANT, BUSINESS VENTURE,. INNOVATE TALENT USE. CROSS-POLINATE. JOIN SOMEONE WHO IS GENERATING INCOME. JOINT COMPANY, PARTNERSHIP. ON HOW TO INCREASE CURRENT ICOME. MORE DEPOSITS. MORE SAVINGS. PURPOSEFUL LOANS. INVESTMENT. PRODUCTIVITY EXPANSION. IMARISHA ANY CURRENT EFFORT.
If you know how to teach soccer, don t teach soccer. Find a way to create soccer tutorials and sell them online so they create revenue around the clock.
BORROW FOR A PURPOSE. INVEST IN SOME INCOME GENERATING ACTIVITY. NGURUWE (MZAO, NYAMA). NG OMBE, MBUZI; KONDOO (MAZIWA, NYAMA, MZAO). TRANSPORT SECTOR (RENT-OUT YOUR CAR; TRANSPORT GOODS). REAL ESTATE (RENTAL HOUSES; HOUSES TO SELL; HOUSE HACKING). EXOTIC TREE PLANTING (AFTER FOUR YEARS= 20,000 PER TREE). FOOD INDUSTRY (OUTSIDE CATERING; HOTEL OWNERSHIP). FUNCTIONS AND MANAGEMENT (TENTS AND SEATS FOR HIRE). EDUCATION (SCHOOL OWNERSHIP; TRAINING OPPORTUNITIES ON-LINE; PRINTING AND PUBLISHING; CYBER SERVICES). IT INVESTMENT (CYBER SERVICES FOR ALL NEEDS). ENTERTAINMENT INDUSTRY (ARTIST; HIRE OF EQUIPMENT). ELECTRONIC MEDIA (VIDEOS ETC.). BEAUTY INDUSTRY. AGENCY
ALTERNATIVE OPTIONS FOR INVESTMENT ONCE YOU HAVE SAVED, GROW BY BORROWING FOR A PURPOSE: AGENCY: YOU CAN ACT AS AN AGENT FOR: A BANK A MOBILE SERVICE PROVIDER LIKE SAFARICOM AN AIRLINE FOR THIS YOU NEED TO RENT SOME SPACE TO WORK FROM AND EARN COMMISION. NGOMBE: WITH 40,000/= YOU CAN START WITH ONE NG OMBE MAZIWA OR NG OMBE NYAMA, AND GROW SLOWLY. MBUZI: WITH 20,000/= YOU CAN START WITH TWO MBUZI MAZIWA OR MBUZI NYAMA, AND GROW SLOWLY. TRANSPORT SERVICE: YOU CAN BUY A NEW 14 SEATER OR AN 18 SEATER AND LEASE IT TO A TOUR COMPANY TO BE RECEIVING A FIXED SUM LIKE 100,000/= EVERY MONTH. OTHER OPTIONS EXIST.
ALTERNATIVE OPTIONS FOR INVESTMENT REAL ESTATE: GET A LOAN TO BUY A READY HOUSE THEN MORTGAGE IT TO REPAY SLOWLY. BUILD RENTAL HOUSES. BUILD BUSINESS PREMISES AND RENT THEM OUT. OTHER PRUDENT INVESTMENT: IF YOU TALK TO EXPERTS THERE ARE MORE OPTIONS: CHICKEN LAYERS, BROILERS. HAIRDRESSING/ BOUTIQUE. DRESS-MAKING. TREE NURSERIES. OUTSIDE CATERING. TENTS AND CHAIRS FOR HIRE. CONSULTANCY. SUPERMARKET SERVICES. MANY MORE EMERGING OPTIONS. ICT: RENT A SPACE AND CREATE INTERGRATED ICT SERVICES: ONLINE SUPPORT SERVICES DOCUMENT PRODUCTION AND BINDING SERVICES ANALOGICAL PUBLICATION.
LOAN MANAGEMENT GET A LOAN ONLY WHEN YOU ARE SURE WHY. MANAGE GUARANTORSHIP: TO GUARANTEE SOMEONE AGAINST A LOAN, YOU NEED TO MANAGE THE FOLLOWING INFORMATION ABOUT THE PERSON: NAME ID EMPLOYMENT NUMBER COUNTY OF BIRTH COUNTY OF RESIDENCE LOCATION CHIEF PROPERTY LOAN HISTORY A GOOD LOAN IS ONE THAT YOU INVEST IN SOMETHING THAT WILL MAKE YOUR MONEY GROW. ONE MUST THINK BEYOND FEES, MEDICAL, EMERGENCY BEAUSE THESE ARE SURVIVAL LOANS. TO GET A BIGGER LOAN, YOU NEED TO SAVE BIG IN SHARES AND DEPOSITS. REPAY YOUR LOAN TO EARN A BIGGER ONE IN FUTURE.
THE DISCIPLINE PROCESS IN PERSPECTIVE ACTION 1 ACTION 2 ACTION 3 INCOME FROM MULTIPLE SOURCES FIXED E BUDGET SAVING INVESTING SPENDING COMM. E DISCRETIONARY E
MINDSET FOR RETIREMENT 1.POSITIVE EXPECTATION 2. PLANNING FOR INCOME SOURCES: EARLY SAVING PRUDENT BORROWING INVESTMENT INCREASED SHARES FOR DIVIDENDS 3. PLAN FOR SOCIAL SECURITY/BACKUP 4. EARLY INSURANCE AGAINST FUTURE RISKS
THANK YOU SO MUCH THANK YOU SO MUCH ENJOY A HAPPY WEEKEND ENJOY A HAPPY WEEKEND END
