Personal finance: How do you spend monthly earning of Ugx1m?
Many of us especially accountants and people who are well educated have a feeling that we are so much literate about money. But issues of money are very challenging. You need to take some discipline, accept your condition because there is no good medical doctor who treats themselves.
I have a mentor, tax consultants and investment advisers. I seek their guidance every time I need to invest say in stocks. Keep asking yourself who is that person who provides you guidance about how you invest your money for your retirement?
Many people are putting money into agriculture. When it comes to agriculture, the potential is so huge. If you invest in agriculture and know the business, you will always get money. The most important thing is investing where you make the most value. If you don’t have over 10 acres of land, may be agriculture is not your business.
If you have say Ugx100m, you may not put all this money in agriculture. You might burn your fingers. As an entrepreneur, you need to be a pragmatic risk taker.
If you are earning Ugx1m, how do you spit it among the critical elements?
Source: Your Three Keys to a Worry free life by Mustapha B. Mugisa 2015
If you are earning Ugx10m, how do you plan your income? Remember, saving is not enough. Find a way to put that money into use. An investment is when you put money somewhere and it earns more money. If money doesn’t earn more money, it is wasted time. If you deposit money onto a current bank account, you just get charged. Such an account is a liability.
Health is the biggest expense in this country especially above ages of 50 years. You need to spend a lot in preventative health care by buying health insurance.
Savings, medical bills and emergencies are about investing for the future. And this is where you are going to live the rest of your life. It is important at least you spend 35% of your income for the future.
If you stopped working today, how do you maintain your current lifestyle? That is a clear definition of wealth.
Personal finance part2: https://mustaphamugisa.com/personal-finance-part2-paying-fees-children-isnt-investment/