Personal Financial Management “It begins with simple principles” Presented By:- Mwijage Joe Bishota

Where Do I Start? Know where you are Know where you want to go Know which path you want to take i.e. what course of action to take Look carefully at your options Strategize and create an action plan Go for it and be careful to always remember to re-evaluate and revise, if necessary Learn the following 5 key principles

Principle No. 1: Spend Less Than You Earn How much you make – How much you spend = How much you keep

Principle No. 2: Increase Your Ability to Earn Learn to do the simple things in life Wake up earlier Work Smart Look Presentable Do something useful Give your best Build good relationships Step up to challenges when the opportunity comes Be a leader Own up to your own mistakes Learn to stand up for yourself

Principle No. 2 - Continued The Practical Start a business Develop more ways to make money i.e. Do you have a talent or a hobby that can bring you a little extra? Know how to keep in touch with your friends A little more education never hurt anyone Learn to be financially literate

Principle No. 3: Live Within Your Means Maximize every shilling you spend Know what you need vs. what you want Learn some basic rules Break your bad habits Write a shopping list before you go shopping Always ask for a discount Turn off the lights Buy insurance Keep your hands clean Invest in a deep freezer , if you can Don’t speed Exercise more

Principle No. 4: Manage Your Money This is probably the hardest part for everybody. Extra cash is your ticket to a good future! Build an emergency fund Reduce your debt!!!! Make a list first Make a plan – Snowball effect Consolidate if you can Track your assets, debt, net worth, spending – have goals and maintain a budget! Plan for retirement (at least 10% of your income) Plan for your kids education Invest

Principle No. 5: Control Your Destiny Four levels of wealth Financial Stability – Emergency fund + Insurance Financial Security – Passive income covers basic needs Financial Freedom – Sustain a certain lifestyle Financial Abundance – Desired lifestyle Give Back Dare to make a difference

DON’T FORGET TO SPEND LESS THAN YOU EARN  THE END DON’T FORGET TO SPEND LESS THAN YOU EARN 