10 Tips on How to Remain Poor

In the past we have dwelt on different tips on how to save and achieve that financial freedom; how to break out of the financial rat race. It is with the same vigor that we are going to explore the different tips on how to remain poor or even sink further into poverty. Nothing in this world comes easy and free, and for whatever success or failure in your life you have to work for it. Most achievements in life are earned, knowingly or subconsciously. Below is a look at some ten tips on how to remain poor:

1. Never wake up early. Keep stretching and turning in bed until you get too hungry to continue dozing. If there are no bed bugs, why hurry to get up? 

2. Never plan how to spend your money. Whenever you get money, start spending it right away and when it's finished, you try to count and recall how you spent it.

3. Don't think of saving until you have real big money. How can you save when you earn so little? Those telling you to save are not sympathetic to your burning needs.

4. Don't engage in activities usually reserved for the "uneducated". How can you, a graduate, engage in petty trade, network marketing or home-based production? That's for people who never went to school!

5. Don't think of starting a business until an angel comes from heaven and gives you capital. How do they expect you to invest before you get millions? Even though more than half the businesses in your town were started with little capital, you as a smart person can only start with millions.

6. Complain about everything except your own attitude and laziness. Blame the system, the government and the banks that refused to lend you money. They are all bad and do not want you to get rich.

7. Spend more than you earn. To achieve this, buy consumer products on credit and keep borrowing from friends and employers.

8. Compete in dressing. Make sure you're wearing the latest clothes. Intimidate the congregation with your trendy fashions every Sunday. Whenever your neighbour buys a new phone, you get one that is more expensive.

9. Get yourself a nice second hand car that costs more than three times your yearly salary.

10. Give your children everything they ask for since you're such a loving parent. They should not struggle for anything because you do not want them to suffer that way, they will grow up lazy and hence poor enough to ensure they can't help you at old age.

Unfortunately to avoid the ultimate result of these tips (poverty), you will have to avoid most, if not all, of the aforementioned behaviours.

5 Money Management Tips to Implement In 2016

Proper management of finances is one of the most import things for a Kenyan today. It is getting extremely easy to get buried in debt, and it seems almost impossible getting out of it.

These 5 tips, are very useful if your resolution this year was to get to and stay on track to financial freedom.

 Money Management Tips to Implement in 2016

1. Create a budget, and stick to it!
You probably guessed the first tip right. Yeah, it is the same old cliche, "budgeting". I wish I could say something else but there is no financial management without a budget. That is why you will see this tip in almost every blog you read. Write down your budget, and prioritize everything. Top of your list should be what is extremely necessary. And when I talk of the first item, then savings should top your list. Make sure you have figured out each and every expected expenditure and if possible try to over budget. This way, if something unexpected happens , you won't have to go over your budget, but if there are no unforeseen expenditure, then you have extra money left over. 

2. Open a savings account
If you still don't have a savings account, I would advice you to put all those resolutions aside and start this year by opening one. Savings accounts are very important as they help in times of emergencies and also acts a money reserve for future expenditure and investments. I was taught to try and save at least 3 times your monthly income, just in case you lose your job. (3 months is ample time to get back on your feet). I understand it is hard to just stash that much money away all at once, but bit by bit you will make it.
One easy way to build your savings is to have an automatic direct transfer set up from your checking account to your savings.

3. Live within your means
Always ensure your cost of living is below the amount of money you actually make. It will require good budgeting techniques and persistent monitoring to achieve this. Once you have reached the threshold (that is Income = Expenditure), try to reduce your expenditure by a further 10%. This will ensure that you end up with some extra money at the end of the month after footing all the bills. This also means that if you get a raise at your job or get a better paying job, you should try to continue to live the way you have been before.
This means your savings will increase at the end of the month. Increasing your cost of living unnecessarily, will always hurt your finances and in case of a setback you will find it hard maintaining such standards . So its best to just play it safe.

4. Beware of Credit!
Credit is a double edged sword. Carefully planned, Credit is very useful in the financial world especially when you want to buy capital intensive stuff like a vehicle or a home. However, credit can also be fatal to your finances. Even though, technology has made it easier for a Kenyan today, to get a credit card or some kind of “buy now, pay later” deal, it is extremely important to avoid unnecessary credit at all cost. Talk of M-Shwari, M-Advance, M-Kopa, AFB credit card, Okoa stima, Okoa jahazi etc, all these credit products are easy to get and with minimal or no collateral required. While it may sound like a good idea at this time, it is what really hurts people years down the road.
People go on swiping that credit card as if they will never pay it back, when, in reality, you will need to pay all back, plus interest. If you are a credit user, make sure you have the cash to back it up.


5. Stay Healthy
Health is wealth. And for you to keep healthy, you must invest in your health. Eat healthy food, do exercise, and be sure you have a health insurance. If your employer doesn't provide a health insurance, then you should try and get the cover privately. The cheapest insurance cover in Kenya today is NHIF. For those employed, you should already be a member of the scheme. However, if you are self employed, you can get full insurance cover at only Kshs. 500 per month. The benefits of a health insurance is immense.  With an insurance coverage, you will drastically reduce the cost of medical bills and keep yourself out of debt in the unfortunate event that you need to seek medical care.

If you can practice these 5 money management tips this year, you will be better off. It is always good to take control of financial destiny now, rather than being at the mercy of debt collectors! 

Happy New Year 2016.
May you succeed.

How to Save for the December Holiday

The Christmas Holiday is here with us, the jingle bells are ringing already, and many people are looking forward to spending quality time with their family and friends. The truth is that for you to enjoy this holiday and any other, you need to have money. Not just money, it has to be enough or else you will live with embarrassment or in-imaginable debt. Avoiding these two, will require some smart spending on your part.

Accordingly it is always wise to save for the December holidays because there is always a cost that comes with the season. Whether it is traveling upcountry, or attending a social function, you will always require to have some money.

Given that saving itself is not an easy task and most of these promises we make to ourselves that we are going to change the situation often remains at that level, I would like to look at 3 tips to help you save for and during this festive month.

3 Saving tips to Guarantee Holiday Celebrations

1. Make use of off peak hours

If you are daily commuter across the urban centers, you have probably noticed that the fares are very expensive during rush hours. In the morning, leave very early and in the evening leave slightly late to avoid the peak hour rush.
That 30 or 20 shillings savings fare saved, per trip, may seem like a small measure, but it will pay off in the long run. For example if you use two matatus to and from work every day. It means you are making 4 bus trips. Multiply that by Ksh. 20 and you get a saving of 80 shillings daily. In 24 days a month that’s already 1,920 shillings saved.

Traveling to up-country can be made much earlier or just after 25^th and making sure you come back earlier (generally before New Year). Delay a bit and you will surely pay double.

Fares always consume a great percentage of our income without even noticing. At times such as this, every coin counts.

2. Stop unnecessary spending

I know this is one of those things which are easier said than done. It requires discipline to avoid some unnecessary expenditure, especially the things you have got so used to that you start to think they are part of your life. Are you that kind of a person who likes to treat themselves to pizza, groundnuts, ice cream or soda? As the festivities begin, it will be wise to pause all that and save this money for the holidays. Spoiling yourself will follow in the next few days.

Impulse buying is the number one reason many people find themselves totally broke just days after payday. Resist the urge to make unnecessary expenditures and you will be smiling when you check your bank account during and after the December holidays.

3. Start saving early enough

Realistically speaking, if you haven’t been saving the rest of this year, there is absolutely no way you can make up for it now. In case you intend to enjoy the festive periods, you may want to start your saving as early as January.
Early saving will spare you the pressure that comes with the huge holiday expenditure because you will have a set plan and you will be spending within a budget.

To avoid the January blues, you need to make realistic holiday plans. If you do not have money to travel, upcountry or to the coast, you may want to pick a fun, less costly activity to indulge in.

Breaking Out of the Financial Rat Race

Photo courtesy

The financial rat race is an endless, self-defeating and futile pursuit of financial freedom. It depicts  the futile efforts of a lab rat trying to escape while running around a maze. The rat never gets out of the maze and the sad bit is that it has nothing to do about it. Just like the poor rat in the maze, many of us find ourselves trapped financially. 

It is a common problem among the working professionals, for salaries to disappear as soon as they hit their accounts. Two weeks after receiving the salary, you are broke and wondering who will loan you money to sustain you for the next 15 days. This translates to living a half a month on debt which must be paid next month.  As much as you would wish to, you tend not to have an escape route as you are poised to borrow every month to finance your past expenditure. You keep on promising yourself that with the increase in income, you will settle all your debts, be financially stable and save for your future. However, as your incomes grow, so is your expenditure. As you think on how to cover the debts, more expenditure awaits you. Your kids get old enough for school, medical emergencies become inevitable, you need a car etc. You end up consuming all you have made, if not more. The debt burden grows: morgages,car loans, school fees loans and the rest. Fast forward to that day you would have wished to retire and you find that you cannot. Why? You do not have any saving to sustain your life. Call it whatever you want but, the truth is you are dependent on work to eat. You are in a financial rat race. So why does this happen and how can we break out?

Reasons why you are Always broke:

1.You lack a budget

Are you an impulse buyer? Do you buy things on the whim, without analyzing if it is a necessity or not. For your money to be of any help, you have to enlist all that is a necessity and in their order of need. Leave out anything that you can do without. Remember savings is the first necessity here, followed by debts. Helb loans, M-shwari, friends soft loans, comes to mind. Save for your future and have a plan on how to clear your debts. When the budget is made and sound, adhere to it. 

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2. You are not saving 

I wish I would have started with this, but for me budgeting comes first. 

Do you always spend everything in your account? This will surely leave you broke and in debt. You must save for a rainy day. Savings or investments should never be sacrificed for expenditure. It is rarely possible to do what you intend to i.e. start savings when the income increase. The moment you get a taste of what you can consume rather than save, you will continue doing that. So it is good to make saving a culture. Savings should not became the option and consumption became the necessity. To break out of the financial rat race you have to acknowledge that expenses will always go up, so to postpone savings is lying to yourself.  Inflation is constantly living with us, only the rate changes. In fact the more you climb the social ladder the more things are thrown at you to buy. Whatever life you choose, the level of savings should never depend on the cost of living. That is why saving should always be the first in your list of necessities and should never be compromised whatever the situation. (Repeat). When your expenditure increases, reduce other consumption. If your motive of working hard is to cover for increased expenses, then this will never end. Rise in expenditure will always outshine your income increase. There will always be that new thing to buy, new cars to drive, new places to visit, new schools etc.

 3. You are Philanthropic

Is it common for your relatives and friends to call you once it is end month to send them something? Do you feel compelled to do that even at the expense your own needs? You need to stop this. Even though it is good to help your relatives and friends, do so with your financial status in mind. If you are not able to help just explain to them in a polite manner that you are not in a position to do so. You may help them later on when you are able to. It is mediocre to help your brother pay his son's school fees only for your child to be sent home for lack of school fees. I know they will talk bad if you don't help, but remember you do not achieve anything by pleasing people. Be honest about it and all will be well. The blessings will come, especially when you will be helping again.

4. You are constantly Borrowing:

 Are you always seeking a soft loan to upgrade your life? You must stop this. Loans are not bad, per se, however, borrowing for aspiration is bad debt. Loans are important for personal development and growth. However if you constantly borrow even for the slightest things, you will forever remain broke. You will be depressed to learn that after paying your debts, you always have nothing left to consume, let alone save. Always live within your means. By this I mean, buy what you can afford not what you can afford repayments on. (Repeat).  We often confuse these two.  Just because we qualify for a loan to buy it does not mean we can afford it.  The trap of borrowing to maintain an aspirational lifestyle is very common and it will lead you straight to the financial rat race. Borrowing for a holiday, taking M-shwari loan for lunch, swiping a credit card at a restaurant, and using your AFB credit card on that trendy shoe is not right . Do not borrow to live a life you cannot afford. (Underline)

Because of all these reasons, at the end of the day you will not have an exit.  You cannot stop working because  you never invested enough to sustain your lifestyle. The true means out of this rat race is having built an investment portfolio that can sustain your lifestyle. NSSF pension funds alone will not be enough. Therefore, to live and sustain the lifestyle you desire, you not only have to work hard now, but you need to prioritize building of the assets rather than consumption. Have your priority right and you will be amazed at how much wealth you will accumulate. You may even find yourself retiring early.

How Hiring That Nanny can drag You to Jail

The newly published regulations setting the minimum wage for domestic workers threaten to make house-helps the preserve of a few rich households, if homes were to stick to the law.

The regulations has set the minimum monthly salaries a domestic worker should be paid in every major town, compulsory weekly off days and/or overtime compensation.

Acting labour secretary Raychelle Omamo has in a legal notice granted all domestic workers in Nairobi a 12 per cent pay increase in their minimum pay, effectively pushing their minimum monthly salary to Sh10,954 from Sh9,781 last year.

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TWO DAYS OFF-DUTY

The house helps are also allowed a mandatory weekly 2 day break. Failure to grant this compulsory  paid leave, the employer will have to pay the househelp at the rate of Sh527 per day or an additional Sh4,216 a month.

Adding that to the basic minimum salary of Sh10,954, means domestic workers who do not get 48 hours off a week will earn not less than Sh15,170 a month – nearly matching, if not surpassing the pay of many low-cadre workers in government and the private sector.

These rates apply to those working in Nairobi, Mombasa and Kisumu while those in other urban centers will be required to pay Sh10,107 monthly.

JAIL TERM

Any employer found in breach of the new rules risks serving a jail term of up to three months, a fine of Sh50,000 or both.

Regulations setting minimum pay for domestic workers were introduced in 2011 to align the country with the stringent International Labour Organisation (ILO) proposals, aimed at improving the working conditions for those employed in the informal economy.

Therefore before hiring that nanny you so much need to take care of your baby, be aware of this regulation. And if you can't afford one (which is the most likely scenario) then you better think of baby sitting your child at home alone.

Simple Ways To Achieve Your Annual Financial Goals

If you were not aware, we have come to the end of the first half of the year 2015. How did you fair on, financially?
Whether you are employed or job searching, you will agree that life is harder nowadays. The cost of living has escalated, basic goods are no longer affordable and all these loads of bills to settle.  If you were not lucky (read not well organized)  you had to go through these past six months being broke. You are terribly failing on your new year resolutions.
Now, where did the rain start beating you? Where did we go wrong? Why can't you achieve your financial goals? One reason is the aforementioned, high cost of living but still, we might just be the ones digging our financial graves not just in the past 6 months, but throughout our lives:

What are the common mistakes preventing us from achieving our Financial goals?

Spending More Than We Earn: Even though basic financial management rule dictates that we should live within our means, majority of Kenyans have found themselves spending more than they earn. 
Failure to Track Down Our Expenditure: Tracking your expenses is especially useful when your expenditure exceeds your income. Unfortunately, there’s the section of Kenyans who don’t track down their expenses which means anything goes for them. They end up spending their all.

Keeping Up With the Joneses: There are those Kenyans who are constantly in compettion with their friends, neighbours and family. Obviously this will leave you broke because you may not have the same income, neither do you have the same needs. Buying unnecessary things, just for competition sake, is a sure way to be broke and in debt.

Constantly in Debt: Talking of debts, there are those who are constantly in debt 24/7. They borrow one debt to pay another. Debts interferes with our financial planning as you lose control over our funds. Living on borrowed money is both expensive and unsustainable.

Remedy for these pitfalls?

Quite simply, one should spend less than they earn. Living within your means is the first step to financial freedom. The rule is that you should save at least 10% of your income and if possible even more.

Two, Track down your expenses to the very last dime. No matter how small the expense, it should be tracked to come up with a monthly estimate of how much one spends. Every time you get money — whether it’s from your paycheck or  other personal businesses — write it down. Every time you spend money — whether it’s paying bills, bus fare, or buying coffee — write it down. Track down every cent that enters or leaves your life. It is the first step to making a good budget.

Three, as a rule of accounting, one can only budget with cash at hand and not expected cash. The way the world is, you cannot be part of another person. Living another person's life will only frustrate you. So, you should be grateful for the little you have and be content with it and move on with life at your own pace.
Finally, avoid debts at all costs. If unavoidable, debts should be managed. Debt for asset building is
necessary but not for wants or to compete with friends.

Goal Setting
Money and goal setting tend to go hand in hand, so set your goals and endevour to achieve them. The trick with proper goal setting is to break down the goals down to small manageable steps done monthly.
Secondly, break your financial goals down into the year. And every month, make sure to do the task that will enable you achieve the big goal. That way, at the end of each calendar year, you will be able to review if and how you achieved this.
Finally, it is also vital to look at the goals at least weekly in order to be attuned to them, remind yourself of your targets and keep yourself motivated in attaining them.

You still have half a year left and am sure you can accomplish more than half of what you had envisioned at the start of this year. Take the above steps and be grateful for whatever little you achieve this year and aim to improve on it next year. All the best.

How to Survive on a Low Income in Kenya Today

 Most households in Kenya today are finding it hard to survive on the peanuts they earn to the end of each month. With inflation ensuring that the prices of goods and services, in Kenya, are increasing at a rate faster than your pay cheque, it is easy to see why this has become an overwhelming problem for so many people.

This can be especially true for low and middle income families (what majority of Kenyans consider middle class is actually the upper lower class), who are already feeling stretched to the limit and have very little or no resources left after footing their basic bills.

All is not lost, however, as there are some basic ways that every 'hustler' can save money on their day-to-day expenditure. Below is a look at the top money saving tips perfect for anyone, more so the low-income earner

1.  Save on Transport: Transport is a recurring expense which consumes a significant portion of a Kenyan income. Therefore, it is only wise to save that 10 or 20 bob, per trip. Always look for ways to save on transport expenses. Be it walking the short distances, using public transport instead of driving, or waking up early and staying late in the office to avoid the rush hour peak fares, saving on transport is a must for a Kenyan hustler.
2. Change Your Bank Account. If you have been operating a bank account which charges account keeping fees or that which requires you to have a minimum balance on your account, then it is prudent you change to a more pocket friendly bank. The Kshs. 200 account maintenance fee might seem small but its effect on your money is significantly huge, especially when you don't have enough income to sustain it.
3. Saving on Meals: You don't have to take your breakfast in a hotel if you can easily wake up early and make it yourself. A cup of tea in Nairobi in 2015 is ksh. 50 or more. Whereas this may be tastier and ready made, a cup of tea would cost you ksh. 15 bob or less if you made it yourself. You can carry your lunch to work instead of buying lunch in the cafeteria for over 200 shillings.
4. Save on TV: Until recently, television was not considered a recurring expenditure to the Kenyan low income earner. However, with the enforcement of the digital migration directive, Kenyans have found themselves paying something little to watch TV. But to save on TV, it may require that you eliminate your Pay TV services and opt for a free to Air TV instead. The cost of a free to air set top box might be slightly higher than the pay TV ones but the overall cost of a pay TV (even if it is kshs. 150 per month) is tenfold more.
5. Shopping: You don't want to spend the 1,000 shillings daily on grocery if you hardly have enough cash to feed to span a month. Shop for sales items at the grocery store and strive to purchase items in bulk, to get the cheaper per unit price.
6. Movies and books are sometimes considered a luxury, but if you have to, rent a movie instead of heading out to the movie theater where tickets are fairly expenses. Some information contained in the the books can be accessed inexpensively through the internet or by renting instead of buying a book.
7. Saving on Cell phone credit: If you have a cell phone plan already, you may opt for the monthly post paid service, if your calling is intense or reduce extensively on the number of unnecessary calls you make. SMS plan and Whatsapp comes handy here.
8. Eat outs and Dinners: Limit the number of times you eat out each month and choose to eat at home instead. When you do eat out, be sure to ask for water instead of more expensive drinks, and skip dessert at the end of your meal.
9. Save on Electricity: Lower your electricity bills, by using energy saver bulbs and appliances and turning off your lights and TV when you are not in the room, and unplugging your appliances at the outlet when not in use.
10. Sometimes it is good to avoid big stores: Sell and buy items at a local kiosk or smaller stores when buying clothes, household furnishings and miscellaneous goods. The supermarkets are cheap outlets for basic commodities like Unga. However, when buying furniture, and clothes, you don't want to compete with guys who hold the notion that expensive is stylish.
11. Health and Fitness: Instead of paying that monthly subscription at the gym, you can start a walking club with some of your friends, or purchase some yoga training videos that you can do at home. Keeping yourself healthy is fundamental both to your current and future savings. Watch what you eat and keep exercising. The good news is: healthy food are inexpensive.
12. Buy Generic: Brand names are always expensive. Therefore it makes sense to purchase generic-named medications, cleaners and groceries in place of the "original" ones. Cautions: do not try this trick on electronics, the cost will double.

Combining these twelve money savings tips can help a low income earner spend less on the everyday items they purchase and survive to end month with zero debt and/or extra cash for savings. While not all of the tips may be applicable to your household, just doing five of them on a regular basis can help you save a lot of money over the course of just a few weeks.  You should always be on the lookout for ways to save money, no matter how much you earn.

Applying for Personal Loan? Here are Three Things You Should Know Beforehand

Choosing the right bank to file a personal loan with is as daunting as paying the dues itself. There are vital factors to where borrowers should base their decisions before making up their minds. Some are obvious considerations while some are often overlooked.
Here are the things you need to know before signing a policy and contract with bank representatives.
1. Interest rates.
Banks give different interest rates, and not all loan payment schemes have the same policies. Secured personal loans have relatively lower interest rates when compared to unsecured personal loans. Advanced loans, nonetheless, can have higher interest rates than what unsecured ones have.
Always widen up your list of options. Compare interest rates not of different loan plans within the same bank but should be compared among banks. The ratio of interest rates should also be practically proportionate to the term (duration) of payment. Remember that some lenders may offer loans with lower interest rates but with shorter term of payment, so be wary.
2. Company reputation.
Many aggressive lending companies and banks do whatever it takes to get clients by whatever means possible. Banks and their employees are the best salesmen! They have compelling talkers that often leave grey areas but end up convincing clients anyway. Some even resort to blackmailing, often by using loan sharks and other threats.
Research if the lender has a good history in honoring contracts and not blatantly violating them. Avoid very lenient banks that would extend payment period on the condition of doubling the interest rate without giving you other options. They surely have hidden agendas.
Coaxing banks are obviously after your money more than you are in need of their money. They are the ones that enter an agreement with borrowers in a not-so-good faith, so better avoid them before you get mired in debt.
3. Hidden charges.
Before filing your application for a personal loan, always scrutinize the payment scheme and know every item to pay for. Hidden charges are very prevalent in almost all kinds of financial transactions, be it credit card bill, phone bill or even school tuition. These are the vague and undeclared dues which are not clearly shown in contracts or policies.
Don't get carried away by glib talkers. Always keep in mind that they are sellers and they will do anything to close a deal even at your own cost. Lenders are walking billboards with neon lights that spell all the upsides - only the upsides - and hiding the downsides.
For this reason, it is best for you to fill out all grey areas in your mind and answer all lingering questions - whether you've already asked them twice or they just popped out of curiosity - before giving your final decision. All details should be laid out in front of you, both big and small. Know everything you want and need to know before signing a contract for a personal loan so you won't get mired in debt and suffer in the long run.

Ways to Make Extra Cash to Suplement your Income

There have been an increase in the
number of people asking about ways to make extra cash and felt it would be a good discussion area here. Making additional income is as legitimate a way to help with personal finances as saving money and I'm sure that people have a lot of experience to share with those that are looking to supplement their current income. However, what worked for one may not work for you.

How can one make that extra money?

There are a number of ways to earn
extra income and the full list would be far too lengthy to discuss in any single post. In short you either work for yourself or you work for an employer.
The choices for the entrepreneur would be to sell products, services or a combination of the two.

Whatever the industry, it is important to find a need and fill it. It's not necessarily important that you are the first to do something but paramount importance is to be the
best at what you do.

I worked part-time at an information science college teaching computer applications for one year in addition to my full-time employment. I loved it ... but between paying taxes per pay, taxes at year end, paying for gas, buying lunches or dinners, and just the time away from home it wasn't worth continuing to keep the part time job. I recently quit and while I am writing this on a Monday night at 7:15 pm, I would normally be at this college earning around ksh. 500 for a 3 hour shift. The take home (after expenses) would be around the same amount of money that a 7 year old boy makes working in a factory in China.
Sometimes (not always) working for an employer is not the way to go. I am also a part-time graphic designer for small businesses and individuals in the city. I will design a logo, a receipt book, a poster or a flyer for between ksh.  400 and Ksh. 1500 per page and charge for further editing and printing. I am booked for business for quite some time. I also offer small business computer repair services and individual customers often turn to me for consulting services and vice versa. I earn (and keep) much more than working at the college. I can do it on my own schedule, and enjoy a legitimate home business.

What I am saying is that I am using my skills and each of you should do the same. One person could have an award winning food recipe while
another person may want to perform energy audits, sell or install energy efficient light bulbs and thermostats, and/or associated products and services. Mr. Muscles over there might consider teaching exercise classes in his garage alone or in groups. My list of options can simply go on and on but all relates to one basic question... what's YOUR passion?

Do you know anyone who might like a scrapbook but lacks the time,
equipment or skill to put it together on a computer? Hmmm... that can be a lucrative money-maker especially to an elderly person who may want to hand down recipes and photos and such. Another skilled person might want to buy and refinish old discarded furniture found in a dumpster (only lucky people will find it) that can resell for ksh. 2,000 - 5000 with a coat of paint, sanding, upholstery or whatever. What about Mrs Stay at Home Mom becoming a virtual assistant for an entrepreneur with a day job? She can take messages, answer questions, type invoices, mail postcards or whatever's needed on her own schedule in between diaper changes and naps.
Do you have a great idea for a book,
newsletter or magazine? Start out by writing it and then worry about self- publishing or selling to a publisher. If you find and fill the needs of your audience you can earn not only income but royalties. I have an active interest in passive income.

Do you enjoy washing windows?
housekeeping? running errands? There are a number of disabled and senior citizens who could use your energy. What about doing taxes, bookkeeping or using accounting experience? make up? Sewing or alterations? Teaching computer skills? Clowning? swimming instructor? crafting? consulting? Designing houses? Blogging? Opening an online store?

I told you this could be a long list but what works for one person won't work for another.
Don't just wait for your ship to come in, swim out to meet it!

Why Medical Cover Should be Your Top Priority this Year

Are you a healthy person who rarely
gets sick? Do you even need health insurance coverage? Those who seldom become ill are fortunate but things could change in the future. You just never know when your luck could change and your health could take a turn for the worst. To be prepared for anything that could happen, having insurance is wise. You can never be too careful when it comes to your well- being.  Moreover, it is not financially wise to depend entirely on the government backed NHIF. The last time I checked, NHIF were only paying for inpatient services (for those not in civil service) and maternity delivery charges (which is free in Government hospitals). This enterly leaves outpatient services, which account for the huge part of medical services requirements, for your pockets.

If you hurt yourself or develop a serious medical condition, you could rack up debts at an alarming rate. A broken leg could cost you a few thousand shillings and even a short hospital stay could see the charges into hundreds of thousands thousands. To prevent cringing at the total cost of treatment when you are presented with the bill, invest in a health insurance policy. It will protect you from unexpected medical charges that could potentially bankrupt you.

Many health plans also protect you from potential financial ruin because they limit the out-of-pocket expenses that you are expected to pay.

If you require medical care and you do not have coverage, you will have to pay for the services you receive (100 percent of them). Even if you earn a good income, that can be hard on your bank account. For those who purchase policies, insurance providers negotiate lower rates with hospitals, physicians, and specialists. This means that as a policy holder, you are not responsible for the total cost of medical treatment, but only for partial payment.
Protecting your health and doing everything you can to remain healthy should be a top priority this 2014. Those who have health insurance are more inclined to visit their doctors for preventative care and for the treatment of smaller issues such as infections.

By seeing a physician for routine
check-ups, smaller problems can be detected before they have the opportunity to turn into more serious conditions that require lengthy and costly treatments.
Getting the care you require when you need it goes a long way in improving your overall level of health. There is peace of mind and confidence in knowing that if you feel sick or if something is not right with your body, you can book an appointment with your physician or go to the emergency room immediately.

Studies have shown that individuals who have health insurance coverage are less likely to drink and smoke. They are also more likely to eat healthier and to engage in physical activity on a regular basis, in comparison to those who are not covered.

You have more options for your medical needs when you opt to get insured. As a policy holder, you have access to a wider array of health care resources. In other words, the network of physicians, specialists, and medical facilities you have to pick from is much
greater than if you do not have any insurance at all. The services and treatments available to you may also be of a wider and more varied nature if you arm yourself with insurance that protects your health.

Health insurance is a great way to protect yourself and your wallet.

Financial Management: Creating a Family Game to Prevent Debt

Have you ever thought about making your household finances a game for the whole family to play? With so many board games that utilize money to win the game, children will have the basic concept that winners have the most money in the end. Besides creating a way to keep monthly costs down it promotes family time and builds a financial understanding for money management. Who wants to teach a child that using other people's money is best? A little practice on self-sufficiency will go a long way and prevent a fast cash advance from entering the picture. .

Depending on the age of your children, you will want to include as much detailed information as you can.
*It is important to begin the game with an understanding of income and a budget. It's always good for kids to understand that money comes from somewhere. Too many children only see plastic cards as a source of payment. Take a few minutes and explain what credit or cash advance loans means and how it can hurt you if you don't have the money to pay it back.
*Define needs and wants and see what the children can come up with to place in each category. They need to start understanding each category in order to play the game.
*Talk about utility payments mortgages, car loans, insurances groceries and fuel. Use an average
payment and subtract from the total
income.
*Use old receipts to show food and
fuel costs so they can see how
controlling these two can make a
difference in what is left over for other household needs and wants.
*Ask for suggestions on how to handle unexpected costs like the mechanic or trip to the doctor. Discuss how these costs are often handled by credit cards or direct cash loans especially when there is limited money to cover everything else that month.
Create a game out of saving money. Trips to the grocery store when kids find needed items on sale or keep their bedroom lights shut off whenever they are not needed are great opportunities to earn 'game cash'. Your child ran outside to play without turning the television off would end up as a forfeit of cash. Children will begin to internalize routine behaviors for the benefit of the household budget. Bonus shillings for children who make it through the trip to the store without asking for extras are a great way to nip certain behaviors in the bud. It could also promote brown bag lunches or snacks rather than cries to stop to buy something outside. At the end of the week the person with the most 'game cash' could win a small treat. As a family, go over what was saved by the end of the month and celebrate together.
Games are a great way to provide incentives to improve. Once the saving money behaviors become habit, your budget will be better for it. Talk about money as much as you can in child friendly terms. True life money management lessons are a great way to set your child up for life. Free them of ever feeling the need to apply for cash loans or max out their credit cards in order to pay the bills. Personal finances are about finding freedom that you can afford with the money you earn.

My Encounter With Muthurwa Hawkers

It was sotime in 2008 when i first stepped foot in Muthurwa and the welcome was amazing. Every hawker was screaming to the top of his/her voice inviting to buy, or the least, have a look at their wares. I felt more like a tourist in my own country - everybody was interested in pleasing me.
I had always heard of Gikomba and Muthurwa as the hawkers paradises. Tales in the villages had it that in Muthurwa and Gikomba, nice suits that Nairobians came wearing during Christmas, cost no more than ksh. 100 per piece. Children clothings, basic Tshirts and blouses will trade for between ksh. 5 to 10.
I came to Nairobi much earlier (even before Muthurwa was constructed), but being a resident of the western side of Nairobi, it took me very long to undertake this expeditous venture. Children west of Uhuru highway are prohibited from waliking beyond Moi avenue, I was made to understand. During this particular day, though, I felt I had grown big enough to take good care of myself and with security rising in Nairobi, I had no reason to hold back my adventure spirit. 
Back to the hawkers, I was called, pulled closer and persuaded to buy absolutely everything. From women bras to children socks. Obviously I didn't have anything specific to buy but decided to try out a pair of trouser. The vendor had pulled me closer to him and was busy showing me all types, sizes and colours of trousers, even before I made my mind to buy one. To him, all the trousers he was holding would fit and look good on me irrespective colour and size. He had guesssed that I was wearing size 32, which was true.
Searching through the bundle of cloths, I managed to spot a grey 'official' trouser. It was neatly sewn. The measuring tape on the vendors neck confirmed it was size 32. I paid ksh. 900 for it , which was lower than what we pay at Westgate by some hundreds.
I was disappointed that I did not get the deal I used to hear in the villages, but consoled myself that the price could have been much lower had I burgained further. This was a disappointment but what followed left me laughing at my self.
On reaching home, I went straight to my bedroom to fit the new cloth. The grey trouser went up with an amazing ease and came down much easier. The waist was too big for the slender boy I was. How did the hawker trick me into buying something that big? Didn't he confirm it with his tape? I struggled with so many questions and thoughts. I even thought of returning the trouser to the vendor the next day but shelved the idea since I could not remember the location of the hawker in busy Muthirwa market. A tailor who was to reduce the waist discovered it was size 38 and could not fit me unless it was tailored afresh. I discarded the cloth at his stall.
Experience taught me that Muthurwa is not for people like me. People who cannot burgain to save their dear life. And from that day, I have never gone back to Muthurwa except on special occasions when Foward Travellers buses abondon me in Muthurwa bus station. (I have since moved to Eastlands). I have never alighted at Gikomba and do not plan to go there in the near future.

Buying fron Hawkers in Kenya: Cons and Pros

The streets of major towns and cities in Kenya are littered by 3 groups of people; preachers, hawkers, beggers and idlers. As economy bites, the third and fourth groups are diminishing. However, the number of hawkers are going to reduce any time soon.

Hawking business in Kenya has been  facing major challenges and especially from the county askaris who nets and bundle the street vendors and their wares to the patrol vans. More often, you
will encounter Nairobi hawkers dropping their wares as they scrumble for safety, away from the city county authorities. The vendors in these streets have however out beaten the county askaris to some extent. For instance in Nairobi, the hawkers usually display their goods on some collapsible curton boxes. This means that the pedlers in can easily dismantle the display, gather their wares and disappear into the dark corridors before getting caught by the askaris.

In as much as the county governments in Kenya are working
towards containing the street vendors in one strategic position in the towns (Muthurwa, city park and Ngara in Nairobi), we all must admit these street sellers can save the day in numerous ways.

The importance of hawkers in our society is huge. You will readily find affordable goods in the streets without putting in too much search effort. Moreover, hawkers sometimes sell distinctive goods making sure that you do not join the 'Kenya Uniform' bandwagon.

Hawkers offer variety, affordability, and convinience that is second to none.

Limitations of Buying from hawkers

Not all is rosy in buying stuff from our street vendors. It is from a hawker where you buy a trouser which is just your waist size (measurement confirmed by the measuring tape on the vendors neck) only to reach home and find that the trouser is twice your waist size.

I recently bought an energy saver bulb along the streets of Nairobi on reaching home the bulb didn't even light.

You may also buy an umbrella, when found offguard by rain, which will only lead you to the bus stop before it breaks to pieces.

Sometimes you lose your money before you even purchase the ware. Pick pockets in our streets can make your shopping spree a nightmare.

In a nutshell, the quality of products you buy from hawkers is not gauranteed and worse still, there is no warranty. You buy it today, it is defective, tomorrow you look for the vendor and he/she is nowhere. Moreover, your safety and that of your money is not gauranteed. You will be knocked down by the same seller when county askaris strike.

All said, shopping from street vendors is a risk but most people will do it to save cost. If you plan in buying fruits and other foodstuff, you will get the best price at almost the same quality. For clothes, jewelry and footwear, you will get low quality at low cost. For electronics and electrical equipment, do not even think of buying one from a hawker.

The Financial Side of Christmas

The festivities are just about the corner and every Kenyan is looking foward to the celebrations. To a large group of Christians, this marks a celebration of the birth of Christ himself while others have dismissed it as a secular celebration with no biblical backing.
Whether Christmas' origin is in the bible or any other spiritual books is not for me to discuss. (The relevant person to engage you in that discusion would be my parish priest). However, whether you believe in it or not, Christmass is here with us and will be there for many more centuries. And you know what? You will be, one way or another, affected by it.

The effects of X-mass are diverse as the mode of celebrating it. The social benefits of  Christmas are obvious, but it is  its economic effects that have drawn my attention. Below, we look at the financial effects of Christmas.

1. Transport: Kenyans are fond of flocking the major cities and towns in search of work and when the festive season arrives, they must join their folk in the villages for these celebrations. December is greeted by fleets of busses to the villages carrying all sorts of people and goods. It is not uncommon to see a Nairobi resident carrying Sukuma Wiki back home.

The players in the transport industry have taken advantage of this to exploit the passengers. It is during Christmas that the fare to your rural home can instantenously double or even tripple, but you still find yourself paying it.

2. Idleness: It is during the festive period that most employees are forced to take leave from work for up to 3 weeks. This turns a hardworking Kenyan citizen into an idler moving from one social gathering to another. If you are tired with your coach, you will find yourself attending wedding ceremonies, harambees and all sorts of parties. All these doesnt help but increase the financial cost of Christmas.

3. Business: Depending on the nature of your business and its location, it can either flop or boom during Christmas. The number of customers in towns drastically reduce as most people travel upcountry while some stay indoors for fear of the bad weather. Any business targeting foodstuff, beauty, transport , money transfer services as well as those located in the villages are set to thrive during Christmas.

4. Expenditure: This is another obvious area affected by Christmas. However deep your pocket is, the festivities will surely leave holes in it. From Christmas attire to food and drinks, the festive season will only present you with reasons to spend. It is because of this expenditure that January has been cursed as a broke month.

5. Offers and promotion: This may turnout to be the only positive financial side of Christmas. It is during this period that retail stores treat  customers to amazing discounts. The clearance sale racks will offer up to 50% discounts. Most supermarkets will either permit redemption of loyalty points or double the amoubt paid per point. There are numerous shopping coupons, gifts and free device services tailored to reward loyal customers. The different lotteries and mini draws can turn you into a millionare this festive season.

Financially, Christmas day and the entire December holiday is not fun for family breadwinners. Business is down, expenditure sky rocket and the best you can hope for is to celebrate a debt free new year. However, with proper financial planning and disciplined expenditure, December can be like any other month.

The Benefits of Owning a China Phone in Kenya

Yesterday I witnessed something which surprised me: a man withdrew ksh. 9,000 from his m-pesa account and went straight away to buy an iNOTE Beyond phone. If you have no idea what an inote beyond is, it is a tablet phone manufactured by a Chinese company itel. All these may still sound greek, so let's refer to the phone simply as a China phone.

A China phone is the name used in Kenya to refer to the cheap phones from not so popular companies. The name doesnot necessarily depict the country of origin. Basically most phones in Kenya come from China, even the Samsung and Nokias.

I wasn't surprised by how the phone looked, The phone has a pretty cool body which, from far, may be confused with samsung galaxy S4. But I looked at the amount of money this guy was willing to pay for a 'china phone' and wondered if it provided value for money. Why would a sane guy spend 9k on a phone I can barely pronounce its name?

'China Phones' as we all know have a tendancy of turning out to be 'fake' so paying 9k for a 'fake phone' can only be practiced in Matheri hospital and it's environs.

So to be sure that this guy wasn't conned I bought a much cheaper model of the itel phone and compared its benefits to a sumsung or nokia phone of the same amount. It didnt cost me much but the features were amazing. I cant help boasting a 1.3 Megapixel camera, 3G, flash light, memory slot, video and music player, anti-theft security feature, dual sim etc.

Now, with 2k I could probably have bought a basic Nikia or Samsung phone. The ones you may confuse for a simcard holder and having no feature to boast about apart from the fact that it can receive and call.

Below are some of the benefits of owning a China phone:

1. Pocket Friendly: An original China phone cost much lower than the popular phone brands like Nokia, Motorola, Samsung, Sony Ericson, HTC etc. Looking at the features of a China phone versus the cost, I would confidently say that they offer value for money. The guy would have caughed 9k for the tablet but remember a similar tablet from Samsung will be something between 30k and 40k.

2. Reasonable Lifespan: This may sound contraversial since China phones are known to have a shorter lifespan. However, the lifespan of any phone depends on the user. You can boast of your nokia 1110 which can drop from a 6m tall clif and remain intact, but remember, phones are no sledge hammers. Carefully handled, a China phone can last 5 to 7 years.

3. Numerous beneficial features: If for 2k I can now watch my local TV channels on my phone at no extra cost, I dont think there could have been a better burgain. The flash light becomes very useful during blackouts; The music and video player keeps you enterrained and the ever loud inbuilt speaker eliminates the need for a woofer.

4. Multi-simcard holder: The least number of simcards a China phone holds is two. If you own more than one simcard, you don't need to replace your line now and then if you own a China phone neither would you need to carry two or more phones. There are China phones supporting up to four simcards in one handset ( say, Safaricom, Orange, Yu, and Airtel at the same time).

5. Availability and Variety: Walk to any phone shop in Nairobi and the first phone you will spot is a China phone. Selling China phone is a booming business to the advantage of the customer. There are also a variety models and makes of these phones. You can buy itel, alcatel, forme, Tecno, huawe, ZTE, Bird etc. From basic phones to tabs.

So next time you think of buying a phone you can try a China and I can assure you; you will never look back.