It's not What You Earn, It's What You Save That Matters ~ Dr Caroline Njoki

I'd like to take you through my experience with sentano me and I hope by the time I finish I'll have inspired at least one person because Santo Nami has worked for me and I have a long history of joining groups which break up and then I never stopped looking for such - a solution to these financial challenges I've been having but at least I settled in sentano me because it taught things a bit differently so for me to speak about it is because it has worked for me so I'm a doctor I work at the provincial General Hospital and the other private hospitals in Nakuru and I'm also a lecturer at a katana University I can see my students some of them here thank you very much for coming and I'll start my talk with a few quotes which I'll repeat again and again my presentation is very short just ten slides the first quote I'd like you to take home if you don't remember anything I say today is you cannot solve our problem if you don't know if you don't know that problem so if you don't identify that you actually have a problem and it's very very painful to sit down and say yeah I have this problem I think you're right it's not easy but if you can't identify a problem you can't solve it so if you're trying to solve a financial issue and you don't think you're a problem yourself then you're very far away from getting any financial independence and another thing is that everyone has an ideal perception of what is wealth for me it was live in the country me I used to admire people who just walk in and out of Kenya I mean you go to us because I never had that chance another child so for me subconsciously is still a very big thing if you can go in and out of country first salary I left the country for another pass on it could be a huge car you know you know there are cars you sit in you feel it a car alright your huge house it doesn't really matter it's okay everything is fine but how do you finance that that is what is it makes a difference all right so everybody has a different perception of what is wealth it's how we finance it that really matters and makes the difference between how you create your wealth then as I said this it was a dispersive discoveries since on the second session of your personal finance management might drive you into depression why taka had warned us you will feel depressed and then you finally realize it's not what you are it's what you save that really matters you can earn a lot and you can even double your income same same behaviors you end up where you are and then if you waste five shillings out of every ten shillings the day you will add ten million you will not account for five million same same behaviors change this yourself so you can manage a business that is giving you a lot of income so charity begins at home very important thing and that's why it's very important to fast start with that personal finance session before you start thinking of your business and the many things you think you know and you realize you know it's not so obvious so my personal money management basically cannot solve a problem if you don't know what the problem is so what are some of my problems identified I'll be very personal here and I'll candidly give you some personal things okay but I've learned to be open the first thing they took us was our mentality on money these are my problems that I found I found that I had fear of losing money I was brought up by a father who tell me we're on a two puppies sutapa telepathic Abu how do you go to invest there he he buy land [Music] and believe you me I bought land what am i doing with it so I was very conservative with my investments I was not investing in things that looked risky so every County and I've worked in three counties Machakos McWeeny Nakuru I have land what am I doing with it okay so I would every time I get money I buy land and I have bought so much plots and land okay because of my fear of losing money I cannot invest in a club that is coming up in Nakuru I was taught not to lose money number two I would put money in the bank and just keep it there safe all right not touch it don't take it anywhere else number two it would not influence my choice of the partner I choose because I could not socialize with someone who does not unlike me to the pelican ORP you know and you don't see the potential of this person all right you just want someone who writes this car drives this kind of car which sometimes it's not really the right choice the people who are still in financial shambles and they're driving about good car be cheated all right my parents are understanding my parents are beat cuz they're things how to tell them and they don't tell me I know you cannot think like that jockey but after this I I see where they come from they were not taught these financial things so I understand them and I can see where they're coming from and I'm slowly able to bring them back to see things the way I see things and I'm happy with now understanding each other with my dad you know of large figures maybe bring me an investment income means 20 million oh yeah yeah yeah oh happy 20 million see that's not for me it used to be off I cannot afford it versus how can I afford it so nowadays even when someone tells me this thing will probably cost 20 million I sit down and listen I don't get intimidated by that so basically everyone has their ideal perception of what is well then important thing is how you finance that thing that you want so badly is what matters so those are some of the problems I found myself having my mentality about money I also had several problems not just that my personal balance sheet I left school immediately I was not from a very badly off family my parents were well-off I was chauffeured to school I went to a good school and immediately I went to medical school I became an INT and I never tarmacked I started earning immediately so for me I've never had a problem looking for money been in serious need and of course I went ahead I became a doctor and I started living on the fast lane the first thing I did I bought a house I bought a car and even I bought for my dad a car I had three liabilities loans I could pay for them I was I mean that was before I came for sent one of my side many men liquid assets flat land okay mom Gautama Buddha byah byah plotted I had no liquid assets I had no savings in case of an emergency and many came along I when I calculated my survival months that is if you take you expenditure and then you you divide it by the ceilings you have mine was negative 3 all right and it was shocking I cannot survive for even even a zero month negative 3 for me if I continue living with the way I was spending money with my lifestyle I had total lack of regard for relationships with people who are not my level tuna pellicano happy alright we only moved to a photocopy m-pesa you know that kind of attitude I had it I'll not lie to you so I wanted to associate more with people who I value and I think there has not have nots I was in for a rude shock after sentano me that first season the first two classes as I told you it was a deep prayer displacive period of self-discovery I went into a bit of depression but I'd been warned by red haka the problems are continuing budgeting is not what we came to do next we looked at our monthly budget for me it was not a big deal I think I'm living within my budget we were told to go home do that budget I put all the money you used that here at a less scary luleå Mamaki and you're forgotten about it put it those licenses you play in your business's records ought to happen that money you give that taxi man credit put them add them and the human mind is so good I remember everything I did with that money that here then you divide that by 12 you will be shocked you think you're living within your means you're not my budget was three times my income I could not believe it and I have been thinking I'm budgeting I looked at my liabilities the mortgages the things I do the holidays the loans my lifestyle I had so many liabilities and at that time I was busy looking for a higher paying job in Nairobi because to me the Nairobi doctors are earning more and they are enjoying life more so Nakuru was the problem it can't be me because my lifestyle was just not I'm not getting enough money to finance my lifestyle so it's not what you say rather than worry what and so after I did that I nearly truly Anna Coren I even turned down the job so I identified my problem that I told it's depressing no how do you manage these problems now that's what the last two things teach you and sentano me so I have I had to change my mentality about money you have the ability to look at someone and see the potential in them no matter what they do you stop judging you can actually pick somebody and say this one has potential even if they had nothing all right and that's how I pick even my employees I can't see her well she has the right attitude she probably just needs a little bit more education so I see people differently the first thing I had to do is to get out of debt I had taken loans one was going to take me 20 years that's the mortgage my car loan was probably going to take me another five years and my dad's loan for the car a prado was going to take me maybe another 10 years and I was financing them I consolidated those debts and this is what I did I went to our Sacco I told our Sacco look I'm giving so much money to the banks I have to loan to the bank to have one with you they are taking all your interest why can't you just buy off these loans I have and put them all of them in the Sacco let me know you don't have savings I told him look I can accumulate my savings look at the brother picture you will benefit from the interest I'll give this one and you know I was the first person they did that for so what I did is I actually utilized a good relationship as a tool and I was able to consolidate not dead so I moved away from the banks first of all and put it in the circle because the Sacco was more friendly to me we had a good relationship so all the very fast person that knock or did not fall and I was very surprised that I could make them think that me and many others are doing the same and then I just repaid off those loans all right just and it took me a year alone which had I had looked at paying off in ten years took me a year three loans to pay off because I prioritized those loans now after I had paid off those loans I had to tame my expenses to pay off those loans these are some of the things I took I used to go for conferences I have to update my knowledge and I want to be like the doctors in Nairobi I want to go out of the country because this is what I desire so I would go for conferences I'll take my daughter to Abuja we went which are the other day I went to Egypt I go to u.s. Hong Kong I wanted to live that life I still do and I discovered something very interesting as a doctor in Nakuru I had so many stakeholders who have vested interest in me this somebody who had a drug they wanted to start being used in Nakuru and is a very key drug and I'm a very key stakeholders and they'll come here and jockey why don't you push this drug for me in Kourou it's a good drug and if I like the drug I'll push it for them but I know I used to think beyond their reality we don't mean it I want to go for a conference and a lecture presence my experience with this drug how can you help me and don't say oh yeah that's a very good idea in fact we will sponsor you for that conference and that's how I go for the conferences I don't pay from my pocket I utilize a resource of a relationship with a stakeholders and I go and I take my daughter with me my family it may create conflict of interest but when you learn the intrapreneurship speech you will realize conflict of interest is the worst mistake you can make in business don't try to push something because it will give you money and take you for conference no take it because you believe in it you have experienced it it will be okay but it's okay good for the conference's so that's what I started doing first of all to live that lifestyle I want without removing money from my pocket my money was going to my loans number two my shopping culture changed while out shopping knock upon meals and nakamoto pants on sincerely I still army but for the everyday need things me don't go there and shop in bulk you will learn about that and I save so much money from that and risotto with less wastage when you shop in bulk and you create a time for other things but every time if you have to rush to a shop to go buy something there's no time to do more important things this thing called a money track away Sokka will take you through it how to track your money you will understand why someone who is seemingly rich looks so stingy hey they are money and it will make you subconsciously start spending money consciously because before you don't spend money consciously someone just can't see you give me 2 K you give them you don't think twice ok but when you start tracking your money someone just asks you for money you'll think twice not because you're mean is because you know the value of that money and then they'll check you and tell you the value of 2 K when you put it in a place that is generating interest how much a difference of 2,000 will make so you think twice you'll think twice before taking that car every day to a car wash alright so your spending habits change so if you waste five shillings out of every 10 shillings you will definitely waste five million out of every ten million you will not suddenly get the discipline so if you cannot manage small money you cannot manage big money so if you're looking to make it big and you still don't know how to manage your own small personal finances you will be shocked you will mess with your business you will not track money from your businesses now what are the results of my personal money management I'm still spending time on personal I still insist on that one number one is I increased my net worth I started investing more in liquid assets that were generating money from me you will be told go open a CdSe account how many of you know a central bank is in a quorum where me I did not know I knew then and how many have bought a bond a government bond how many know how they calculate those returns you know all these things which seemingly look so challenging they are simplified so much you will start trading in this in fact you're done will be telling them the bonds you want to buy even their shares you will read that can you spit by you know that can use paper which is pink very difficult it's like the color of her lynnie like a pink it's called a business daily it's not easy to read it keep away be quite challenging they talk challenging things but when you go through this course you will understand what that thing says the business segments in the news you will understand so I learned how to invest in liquid assets and to keep money for my emergency funds but this is after I had done away with the debt and all the other things I increased my knowledge on investment in liquid portfolio I'm still learning a lot money market funds how they work market bonds bills and shares very important because this is where eventually your money works for you and even when you become an interpreter you have made a very good supermarket you have a real estate let's bring a new income at the end of a day this income you'll invest it somewhere to work for you so you have to understand these things you know just making money and using it no you can invest it elsewhere and it will generate more money so even if you're doing personal finance or entrepreneurship at the end of a day what is the net thing you are getting an income and you'd like to invest this income somewhere so it's important to have this knowledge now I changed my priorities completely whereas our desire to go and spend money in a holiday I'll take my children to a normal school you know which doesn't make sense so I chose not to use my money to go for holidays and use other avenues and take my children to a good school all right so whereas I thought I was living a life I was compromising my children's education which doesn't make them so I changed my priority I get my money away from death away from extravagant lifestyles and channel it to a better school why you can't pay a little bit more but you give your children a good education I channeled it into getting much my family home where they can stay I could I found out I was having less fight with my partner because initially they were financially related but the scope has all changed and we now sit down and have good financial decisions we make good financial decisions together and leave the fight for better things to fight for and the habits everyday habits will eat less out in the hotels and probably concentrate on cooking how to improve my cooking skills at home and my children still I enjoy it even better when I actually cook for them I did not that later on do it in a hotel okay so I'll concentrate and it was also helping me I was improving my cooking skills you know and I invited my friends to come eat at home still way cheaper than the way we used to go to the hotel I encourage my children to walk more we walk just basically lifestyle improvement because I want to enjoy this world for longer and able to win prioritize my enjoyment as a person if I get a chance to go outside for a holiday which have been sponsored for I'm lucky to get a sponsorship I will I really enjoy it without feeling guilty all right because you have set aside that time for you to enjoy and it's important to enjoy the little luxuries in life but how are you financing them very important so after I had gone through my personal financial journey I thought I was ready for intrapreneurship this happened in 2017 today now we are in 2018 so in 2018 is now when I I don't know whether I'm correct why taka struck I think 2018 is when we heard of the enterpreneurship yeah 2017 we had the personal finance at that point masha came and asked me in Jokke would you like to give a talk or to do a video for st. onami and I asked her I of all people in that class you asking me Shirley then she told me one thing I still remember my mentality still plaguing me she asked me one thing yoky from last year up to now do you think these are difference and that's when I realized hyah actually there's a very big difference I think I'm ready to give this talk I was not feeling ready but when she asked me that question that's when I realized I didn't have a measure of growth but I think I have undergone a dramatic change in just that one year so much' came over and had a video of me in my enterpreneurship place where I was having I was trying to start a business so at that time I was starting a furnished apartment why did I set a furnished apartment it's because I was not getting a tenant in the first place difficult to get a tenant in three bedroom houses six months down the line I still have no tenant and an agent told me through the furnished apartment I felt a bit nervous but I felt strong and empowered enough after the information in sentano me and I started the apartment enterpreneurship and oh I made so many mistakes I wish I had done enterpreneurship cause before I started this apartment number one I started it I have not had a tenant for six months I have had rumors that they are very high returns and I was eyeing my parents Idol flats in Nairobi which I wanted to convert into furnished apartments I decided to I was not even getting clients in my furnished apartment even after spending money to furnish it and I was very upset with that agent sincerely what kind of advice is that so I decided let me just close it down but before I throw in the towel let me attend premiership program now some of the things that it really showed that came out is this when you are unemployed person like me you in a comfort zone you get your salary every day without working you know your salary is guaranteed so your business is known as a side hustle that is where it's not going wrong if you take anything other than your employment as an extra side hustle that's the way you are viewing your business it will be exactly that a side hustle if you start anything other than your employment in fact the person who is not employed is more likely it's more likely to succeed more than you who is employed the biggest enemy to your business is employment once you in that comfort zone and you know at the end of the month I'm going to get my salary you're not going to give your business the attention it needs I have to change that mentality and start reviewing my house my houses as a business that I'm running no matter how small they are and and the first thing I did is just separate their accounts my salary does not touch my house account and any other business other than my employment so every business has its own account it pays itself it pays its own workers when you start putting money from your employment into your business and whether you just mixed up okay you not see where your business is growing and where you're heading the money for your business should be separated each business should have its own account so that you can account for that money and you can see whether your business is sustaining itself and that's a fighting I did I just separated those accounts now the house was supposed to run on its own to employ its own workers and to do its own repair and to sustain itself number two I'm a doctor specifically I'm an anesthetist I put you to sleep and make sure you wake up many people can put you to sleep but make sure you wake up okay after the surgery and I cannot live on the operating room to go n attention to my business it was really difficult the visitor will call me ok I have some visitors who can tell you your keys please are the worst places to stay she has no time they came in when I was going through my journey and they'll tell you who see nd I understand at the time I was running them myself single handedly and I'll try and do these things when I'm in here time picking phone calls so I passed which the patient is there I'm like okay cocoon ammaji yes okay you know and then I'll have to make a dash then come back to the operating room it was really hectic and I said I think I think this business is not for me I can't make it but now when I attended this one and they taught us how to put instructions oh I think life was easier while I used to manage those workers myself I just went and removed all those workers I put one person with a manager and all this you'll be taught how to put structures that's the that girl only the one I asked everything in that house I don't even know who cleans it she gets her own people I just empower her and you know she'll clean it to my standards or come and find the houses clean there's nothing amiss she's the only one I asked and nothing will disappear there's that time I'm trying to juggle work as I find the house is still dirty we quarrel oil it was chaotic now I only deal with one person and she manages the house and I go to the operating room I go and network I have time all right so structure is very important that was what saved my entrepreneurship that class because I was able to actually continue with a business it's sustaining itself it's paying itself and I'm even getting profit from it when I was about to throw in the towel so there are some things which are a bit different when it comes now to the enterpreneur part but most of the things how you manage their finances they are the same as your personal self and it's important to first start with yourself so basically don't forget you have to spend money first of all to generate money let nobody cheat you that you will put ten shillings and win 20 million yeah they are really hammerings at the point but life doesn't work that way it's okay you'll put your 20 shillings you will win 20 million when you bet you could be lucky but that 20 million will disappear so fast you will not believe it 20 million is a little money especially I don't know how to use it so just know that wealth is created over time eeeh and you need to spend money to make money you'd wonder why I'd want to go for another cent oh no my class I have money no I'm still trying to find more ways of getting money and sustaining that money that I already have or making that money I already have to grow more so you'll find these forums unfortunately I still been patronized by people who have money that the ones who are seeing the point they are not for them they probably know a thing or two who wants the recruits who are still looking of ways to make this money very important and I'm happy to see young people even to pull up not started earning coming for these things this is a time if I started when I was your age I ought to be far so last but not this is my last slide yeah those are my enterpreneur mistakes I think I've read it mention them I would give my punished my houses I put nice things and they were still so dissatisfied on this ungrateful customers do they know the cost of my house some would say can't you give me for three thousand what do you mean does it look like a lodging to you this is an apartment I was not enough handing my market and for sure I stripped down to the basics I noticed people are crying about cost in fact this is what I did I'll give them papers I tell them what do you want me to improve and most of them will tell me costs is an issue it's prohibitive and that's what I worked on and that way people are coming to my house it's cheaper all right and I put in structures that I could perform eyes from that cost which you'll be taught I was managing my own business I don't have time all right and I was not giving it the attention it requires and I was pulled out not pulling I was pulling money from my business with my salary and mixing up everything okay so you can't see where you're heading those are money mistakes I made and I'll and employment is the biggest mistake or the biggest threat to your business so if you don't have a job right now I think you have a better chance of starting a business that someone who is employed what you might be lacking is capital by believing me you have a better chance sorry so in summary my intrapreneurship lessons I started thinking of thinking big even if I have this houses may not look like a big investment it's running it's making money I can actually market them to a group of people who even run real estate all right and feel confident enough I don't have to wait until I have you know a million houses for me to say I have a business no I do have a business it's making money someone was getting rent over 30,000 every month me I get a hundred from the same house okay so I can probably say yes it's a business and it's a furnished apartment and you'll love it when you come so I learned to think big I can even sit down with someone who is running a million of them and we'll compare notes on what you are doing right or not it's the way you think where you place yourself is very important think of your business think of it big what you want it to come to go in the next few years and you'll be able to open up and talk to people who'll give you good advice I like to put structures in my business because I don't to be tied down to it I think she brought it out very well we have a supermarket we are together can we close it for 12 weeks and go for centonomyseason12 divorce yourself from your business you can afford to have time to go for sentano me and your business is still running you can afford to have time to go and new things that will help this same business grow so you need to learn how to start your business and free yourself from that business so you can have opportunity to look for more opportunities and to grow that is one thing I II learnt it very well it's okay to talk about wealth I know our African culture our Christian background wealthy people cannot enter heaven even like a camel can entire meal I a middle but not a rich man in heaven it's like it's taboo wealth is criminalized no it's okay to talk about wealth it's okay to say I have I have lost even big companies declare losses to the tune of billions and they declare profits when you sit down with a group of wealthy people they talk about wealth they'll tell you I've been trying to invest in this sector it's not giving me returns on the other hand this one brought me Millions it's okay to talk about health wealth and learn to talk about it that's the only way you can be able to get information from other people in those sectors money management in business is the same principle as your personal finance the principles are the same really difficult manage your finance you will not manage your business well investing money and from enterpreneurship is the same same principle as those ones you used to invest your personal money at the end of a day both will give you money if you are employed you get money if you enter Premiership you get money the goal is still the money where do you invest it same same principles so one of the things that came out very clearly is that not everything is a financial not everything is a financial asset it's not all these money there's something the other non-financial resources and one very non-financial very important non financial resource is relationships when I say relationships that don't mean boy-girl relationship evolved in Latin is okay I mean relationship with people with business partners with stakeholders that is a very imp and vanish and Waiheke will give you examples of people who started from zero but because of good relationships they had with somebody they were able to make it big that is the relationship is the last thing you should sacrifice in anything even with your let me see like my house help before Justin when dokgo you don't know how to work go to hell then she opens a shop next door which is well stocked I have to buy from that shop it's really embarrassing you need to know you know there's no need of banning a bridge the list of countries maybe ignore and move out of their circle but don't burn bridges you never know when you'll walk back on that cringey okay so um relationships are cold and it's and financial investment that is worth keeping alright that's well I'll take my time here and talk for the autonomy building a relationship alright so these things are very good and it's important that you cultivate this relationship and don't compromise our relationship for anything so staying in entrepreneurship conflicts of interests can really break our relationship it's not worth it okay so none financial resources it's good to identify them and know what they are it's not just the money so in summary to be a good entrepreneur you need a solid base in personal finance management fast then you can manage the finances of your app of your entrepreneurship and yeah as the saying goes charity begins at home if yourself in your home you can't manage your finances I'm not so sure what you're busy doing thinking of a business you need to start there fast if you're in debt you need to first sort that out fast before you can think entrepreneurship all right and by that I mean bad debt but debts are consumer loans they're not bringing in income if you're in debt because you have put in a supermarket or real estate that's good it's being itself but if you in debt but that I think hold your horses you need to first sort yourself out then think of big and think of open an entrepreneurship thank you

Channel: Centonomy

Views: 241,770

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Keywords: Centonomy, FinancialFreedom, PersonalFinance, WealthCreation, Centonomy Nakuru

Id: fcDHpz95h3o

Length: 37min 37sec (2257 seconds)

Published: Tue Jul 09 2019