This may possibly be one of humanity’s greatest desires… to see what tomorrow brings. But that is the very thing that gives us the desire to live; not knowing what tomorrow brings and the hope for tomorrow. This does not stop us from planning for the future. It is amazing to see just how much we plan for a tomorrow we do not know.
Core to most plans is the desire for financial freedom. I discovered though that many people do not know what financial freedom is. Majority in fact think that financial freedom is a preserve of the rich. This could not be further from the truth and anyone could be financially free – this excludes victims of poverty.
Financial freedom is having income that will meet your current lifestyle for the foreseeable future – usually your lifetime. Meeting current lifestyle needs is naturally where many people go wrong. Our desires are such that they adjust to the income we have. So, the moment you earn twice as much is the moment you live twice as such. Financially intelligent people know how to postpone such desires and invest such extra income. The reward comes with years of financial discipline.
Financial discipline, admittedly, is hard to achieve. There has been a trending payslip – though fake, of someone earning KES 100,000 and saves only KES 200 from it all. This is at times referred to as the fast lane, considering he spends almost KES 20,000 on food in a month! Anyway, story for another day! You can check out this analysis of another payslip here. This may help you squeeze your budget to help you save…
Yes, saving! This is the key to financial freedom. Simply, you are setting money aside for the future – because you do not know what it holds. If you are like me, money sitting idle isn’t useful and further very tempting to use. We need to find a way to put this idle money to work so it can bring more. We also need to protect it from our temptations.
Here’s a suggestion from our collaboration with Jubilee Insurance. We have two major solutions to this conundrum; one oriented to the family person and one just for disciplined saving.
Starting off with the latter, the Investment Policy seeks to instil a savings discipline with added advantages. It has the advantage of accommodating mid-term and long-term plans i.e. 5-20 years. This plan commits you to a monthly savings amount for a fixed period of time. Depending on the term of the plan, you can get access to cash bonuses (a small reward for the discipline 😊) every 3-5 years. Further, you get a life cover with a minimum sum assured of KES 350,000. Did I mention you get a tax relief of 15% off your monthly premium?
The former, Education Policy enables you to plan for your children. This is even more critical as you insure your children’s welfare no matter the unpredictability of life. Education being the most important investment, this plan ensures continuity in your children’s education in the event of an untimely death. You still get a life cover, bonuses and even tax relief.
This could just be your first step and motivator to being financially free – you know, that stage where even life gives you lemons, you can squeeze them make a lemonade from savings that can push you for the rest of your life.
Save. Invest. Enjoy the returns. No, you can’t predict the future but you sure can have some degree of control over it!