Personal Finance | Susan Gichuru | DOI March Edition

Susan Gichuru | Personal Finance | DOI Mar Edition

Understand that silver and Gold all belong to God

• How we handle money stems from what we think about money and our attitude towards it.

• For a believer money serves as a tool. It serves to push the kingdom agenda.

• Money is not only a tool for kingdom agenda, it is also a tool to help you fulfil your purpose.

• We are expected to be faithfully stewards.

• Being careless about my money is being careless about a God given resource.

• It is never about how much you earn its always about how you spend it.

• If you are not able to manage the little then having more of it will be of no use.

• Budgeting is telling your money where it should go and not wondering where it went.

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• The 50 30 20 budgeting rule of thumb

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• 50% should cover for your mandatory bills and expenses.

• 30% should carter for saving investing and debt repayment

• 20% should go for wants leisure and giving

• Rent should not exceed 30 percent of your net income.

• What must be on a budget.

**A list of bills is not budgeting

1. Mandatory bills and expenses.

2. Debt repayment.

- bad debt-> money taken that will do little or nothing to improve your source of income

- good debt money taken for investment purposes and growing your wealth in the long term.

3. Savings and investments

4. Wants and leisure.

- plan.

- save up.

- proceed with moderation.

Qualities of a good budget.

1. It accounts for any and all cost no matter how small.

2. It must allow for flexibility.

3. It accounts for wants and leisure.

I N V E S T I N G

Saving is capital preservation investing is growing my money.

If i am not investing my money i am loosing the value of my money over purchasing power.

Our investment choices should be guided by our financial goals.

Have an emergency fund

Save up for retirement

When it comes to money

1. Educate yourself- it will give you the best returns.

2. Get rich slowly - short cuts will cut you short

3. Think Long term.

• Go back to God for He is the one that teaches us to make wealth.

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