It is the dream of every person to be rich and make investment decisions . Kenya’s fastest growing investment firms- Cytonn Investments- Edwin Dande who shared a few tips that you should start focusing on if you have to be rich very first. The tips include the greatest mistakes Kenyans make in investment decisions. This clearly shows how rich people think different from ordinary minds.
- Saving all your Money to bank -Putting money in the Bank simply earns you nothing. Instead you shold invest your money where you expect returns“Do not save in the bank, put your money where it generates a handsome return that will be more than the interest paid on deposits by banks,” says the Cytonn Investments partner and CEO.So instead of settling for the low interest on deposits from a banker, shop around for unit trusts, Real Estate Investment Trusts (REITs) or even the stock market that offer higher returns
2. Buying insurance saving products – This gives a more realistic means of saving and security in the long term. Dande however strongly advises against this option as its rate of return on investment tends to be lower in the long run yet the monthly contribution could be higher than what a pure investment vehicle will demand.“The return is lower than just buying a pure investment plan like a REIT or unit trust and buying a life and disability cover separately,” he says.
3. Don’t wait too long, start with what you have – The earlier you start investing the better, don’t wait hoping for miracle in the future. Start with the little resources you have and you will make it “Financial planning is basically planning for your retirement and the best way to start is with what you have (it’s not about having millions before you start investing)”