By JOHN KARIUKI
Wannabe millionaires who deceive themselves by feigning financial contentment are everywhere people look these days. These are the high earners who live a flashy lifestyle by going into debt up to their throats. They sport the latest models of cars, mobile phones and home appliances, and take their children to the best schools around. But they are often in a horrible financial cycle of borrowing. When they create goals for themselves, they don’t make them big enough to incorporate hard work and a saving culture to live well.
The harsh reality is that people do not simply get rich by using mathematical formulae. Like life itself, there is more to wealth creation than subscribing to some textbook theories and formulae, or saving huge sums of money without a purpose.
If you look at all the people who have made vast fortunes, you will realise they all made fundamental changes in their lives and patiently nurtured their empires from scratch. Riches come from a personality overhaul.
Personal finance experts say that the first step in wealth accumulation is saving. This gives one a no-strings-attached startup. And this starts by analysing one’s spending habits with a view to making cuts.
Hilda Karani, a personal banker with one financial institution, says that many people do not realise that wealth accumulation abhors time wastage.
“Time is precious and the wealthy do not waste this precious commodity,” she says. Karani further says that only people who have their money priorities right every get rich.
“Be honest with yourself and decide which investments are compatible with your personality, skills and experience and which ones are not,” she says.
Diversify too early
Karani decries a frequent investment mistake that many people make at the crest of their business success.
“Frequently many people diversify too early and in ventures that they know little about, draining all the profits from their core investment which fold up,” says Karani.