In this week’s article of “What I know about money”, Leah Muthoni talks about how she teaches relatives how to fish instead of giving out handouts.
Leah is the Chief Executive Officer at Lesedi Developers Limited, property developer, and Land buying and selling firm.
Here below is her story.
A business is only as strong and as stable as its structures. I have been able to set up this by ensuring that I have built up a team of workers who identify with the business objective, have the ability to connect with our target customers, and are willing to go the extra mile to achieve customer satisfaction. Your results will always reflect the strength and abilities of your team. Your team can earn or make you lose money.
When I started out, I mistook cheap labor for cost efficiency. This cost me good results and the cheap labor always fell short of the targets I wanted to meet.
Having a Budget
The importance of having a budget and sticking to it cannot be emphasized enough. I used to create a budget then end up spending money on things that I had not planned for.
In the end, this would leave me making money mistakes and losing money on unnecessary expenditure or expenditure I had not planned for.
I teach relatives how to fish instead.
I had a major weakness of spending too much money on relatives. Looking back, I have learned that while it is good to financially assist relatives, there is a limit.
It will be a bad money move to leave yourself bankrupt in the name of helping relatives. I teach relatives how to fish instead. Save money on a monthly basis. I save my extra income the moment I get it. I save either through the bank or through a Sacco. This money goes to a locked account which I usually unlock based on my goals or whether the budget for investment has been achieved.
I also put money into insurance covers. Since I started using these avenues, I have found out that my financial discipline has improved. I am now able to compound my money through investment and savings. Previously, I used to save money through Merry-Go rounds and Chamas. This was not effective.
Focus has always been my best shot at life. I have learned that the best way to create wealth is by having a good relationship with my finances. This involves being strict and disciplined in the way I handle my income.
I business, I have learned that mistakes and failure are part of the game. However, the trick is never to lose focus no matter how hard you fall. Master the art of picking yourself up. Failure is not failing; failure is falling and refusing to get yourself up.
“It teach relatives how to fish, and be self-reliant,” was first published by the Smag, a publication of the Saturday Nation.