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    8Feb, 2024
    Are Insurance, SACCOs, Multilevel Marketing or Businesses Good Investment Opportunities?
    Coin on wooden table in front of green bokeh background. coins a concept of investment and saving moneys.

    In one of our previous blogs, we discussed some contemporary investment opportunities. The article elicited quite some reaction. We hope that it gave you some further insights into the products.

    In today’s blog, we look at more opportunities and discuss their viability for investing.

    Insurance

    Insurance companies have over time sold education policies and life insurance products as investments.

    These products are also referred to as endowment plans.

    The insurance companies receive payments referred to as premiums over a long time in exchange for a lump sum pay out at an agreed-upon time or compensation to beneficiaries in case the product buyer dies before this agreed-upon time.

    So, are these insurance products investments? Well, the reality is that insurance is more for protection rather than investment. In other words, the value of any insurance product is that you get compensated in case of a loss. For these life insurance products, for example, the real utility is the “peace of mind” you get -- That in case you die before the agreed-upon period, your beneficiaries will receive a cash pay out.

    However, in terms of investing, these products will give you a very low return on your investment. They are therefore not advisable for someone looking purely to invest.

    SACCOs

    SACCOs have over the years been a major source of funds for personal improvement and development. Kenya owes a lot of its development to SACCOs. From agricultural SACCOs to employee SACCOS, these institutions have provided pooled funds that have been used for both personal and national development. However, the question we are asking today is this: Are SACCOs a good investment opportunity?

    SACCOs are a major source of funding due to the ease of debt. Members borrow up to 3 times their savings without the need for security apart from a guarantee from other SACCO members. Debt processing is also easy and fast and the interest rate is relatively low. 

    However, the reality is that SACCOs are ideally not for investing but rather for accumulating funds towards taking a loan. For this reason, SACCOs will avoid members withdrawing their saved funds (shares) and rather encourage members to borrow money against these funds. Furthermore, very few people who receive dividends from SACCOs re-invest these dividends; therefore, the SACCO account savings do not compound.

    Running a Business

    Many investors believe that starting and running a business is a way of investing. They will invest their money in a shop or a matatu. Are businesses good for investing?

    Businesses are an ideal source of income as opposed to being an investment. Businesses in most instances require more of your time and effort as opposed to your capital. You will need to actively manage your business for you to make money. 

    It is for this reason that we advise business owners to have alternative investments apart from their business to separate their income from business and their investments. This way, their investments are shielded from business risks. 

    Multi-Level Marketing (Network Marketing)

    Multi-Level marketing (MLM) also referred to as Network Marketing or Referral marketing is another contemporary opportunity. The MLM business model allows members to join a business at a low initial cost. The business will be selling products such as health products, ornaments or services such as travel. Once you join the network, you get to profit every time you refer someone to join the network or buy products from the network company.

    Multi-level marketing has enabled many individuals to make substantive profits by simply referring others to use products or services. It is therefore a worthwhile source of income as opposed to being an investment opportunity. You can therefore consider MLM as a side hustle or alternative source of income and then channel funds made from your MLM to investment products that will grow your funds.

    Other “Investment Opportunities”

    There are other products or opportunities that always come up in our market promising to give good returns to investors. Some of these investment opportunities are indeed credible and you could profit. However, some fraudulent or bad investment opportunities would easily lead you to lose your funds. In our subsequent article, we will review how you can tell whether an investment opportunity is worth considering.

    6Feb, 2024
    Bit Coins, Day Trading and Forex Trading as an Investment Opportunity
    cryptocurrency bitcoin golden coin isolated in white background

    In our previous blog, we discussed the traditional investment products that have been used over the years to grow invested funds. These products have been tested over time and they are reliable for your investments. However, there are new investment products that continue to become available in the market. In this blog, we will discuss some of these contemporary products. 

    Bitcoins and Cryptocurrencies

    Cryptocurrency is digital cash or digital assets that are used to settle transactions similar to physical money. The digital cash is encrypted to regulate the generation of new units and to verify the transfer of the funds. Though there are many cryptocurrencies, the most common at the moment is Bitcoin. 

    The concept of investing in Bitcoin is similar to that of investing in any other asset. You invest in the currency and hope its demand and consequently its value will go up thus making a profit.

    The issue with Bitcoins is that like many other new products, there is quite some amount of misinformation and people taking advantage of a lack of knowledge to defraud potential investors. Furthermore, the usage of cryptocurrencies for transacting is still quite low and therefore, much of the demand for the currency is speculative. This has resulted in these currencies fluctuating and being unpredictable, especially for future growth. 

    Day Stock Trading

    Day stock trading is an aggressive way of trading the stock market whereby you keep buying and selling shares within very short periods in a bid to grow funds more rapidly. Some people offer a service to churn or aggressively trade your cash in the stock market with a promise of high returns. 

    In our experience, day trading in the Kenyan stock market is high risk as many factors make our market difficult for day trading. Firstly, the taxes and charges per transaction are quite high and you therefore need high margins to cover these costs and still make a profit. Unfortunately, most counters do not fluctuate much within the short run making it hard to make any meaningful profits. Secondly, most of those who offer to trade your money in the stock market will make a commission every time you trade. So they intend to trade as frequently as possible to grow their commission as opposed to making you money. For this reason, we find that there is a conflict of interest. 

    We have seen many investors lose large sums of money to these day traders who promise high returns but will often fall short of their promises. 

    Forex Trading

    Forex trading also known as currency trading is yet another contemporary investment opportunity that has gained traction with the widespread use of high-speed internet. The forex market is a decentralized market where the world’s currencies are traded. Online trading platforms operated by currency brokers allow individuals to open and trade in multiple currencies from around the world.

    Trading in forex entails exchanging one currency for another in the expectation that the price of the currencies will change in your favour and thus make you a profit. For example, if you believe that the US dollar will lose value against the British Pound, you can sell the US dollar against the Pound. If your hunch is true and the dollar continues to lose against the pound, then you will make a profit.

    There are various advantages of trading in Forex.

    • Online – Online trading has enabled almost anyone to access the over USD 5 trillion a day forex market. This has made the Forex market more liquid and less prone to manipulation. You can also start your practice on free demo accounts and this enables you to try out the market before transacting with your real money.
    • Easy to Trade – The Forex market is well advanced and is easy for any layperson to join, learn and start trading. There are tools and training opportunities that make it easy to learn and get started.
    • Leveraging – Online Forex is traded using leverage. Leverage means that you get to borrow against the cash that you are trading with so that you can increase your margins. The effect of leverage is that small movements in currency prices result in large changes in your funds. You can therefore make larger profits or lose funds much faster than when trading without leverage.


    Our take on Forex

    • Our caution when trading with Forex is that there are many non-regulated Forex online brokers. This does not guarantee the safety of your funds as you cannot verify the financial health of the broker. In Kenya, there is one online Forex broker who is licensed by the Capital Markets Authority – BrokerEGM Securities Limited. See CMA press release here. 

    There are also several online forex brokers that are credible. Therefore, you must do your thorough due diligence before starting forex trading.

    • Secondly, the use of leverage means that you easily make or lose funds. Many investors have lost a lot of their funds because of leverage. However, on the flip side, you can make substantive profits if you get to understand trends and use the right tools to help with your decisions.
    • There are also Forex traders who offer to trade on behalf of others. Some will even guarantee you a given return on the funds that you place under their trading. You must be extra cautious when allowing someone to trade forex on your behalf. Firstly, many of these traders are not regulated meaning that you do not have a recourse if they do not keep their end of the bargain. Furthermore, many of these traders have lost much of their client’s wealth as the Forex market cannot provide a guarantee.
    • Forex requires your consistent monitoring and taking of positions daily and at times hourly to profit. This means that it cannot be a passive way of investing your funds.

    We hope that the article has given you some insights on these products. We also appreciate hearing from you on the same. Please do get back to us by mail at invest@rubianiwealth.com

    1Feb, 2024
    The Kenya Debt Situation and its Impact on Treasury Bills and Bonds – A Comparison with Ghana
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    Summary
    -Kenya is due to pay USD 2 Billion in June 2024 as Eurobond Matures.
    -If Kenya makes the payment, the economy will experience relief as the next Eurobond maturity is in 2027.
    -Kenya's dollar reserves are low and settlement is dependent on a bailout from the World Bank, IMF and other concessional loans.
    -If Kenya defaults, there will be far-reaching effects that could result in Treasury Bonds being restructured as was the case in Ghana.
    -The risk of defaulting is however low. 
    -If Kenya settles the June 2024 payment, those who will have invested in Treasury Bonds before June stand to gain as interest rates may fall thereafter.

    CBK continues to borrow heavily locally and interest rates are now hitting record highs. Treasury bill rates are now above 16% and in January 2024, CBK issued an Infrastructure Bond and the coupon (interest rate) is expected to get to around 20%.

     

    However, as the government continues to borrow aggressively locally to hedge against foreign debt and raise funds to meet its obligations, questions continue to arise as to whether there is a chance of default on payments from these local Treasury Products.

    This article looks into Kenya's current debt situation and whether there is a risk in investing in Treasury Bills and Bonds. We will look at the 2022 Ghana domestic debt crisis and the chance that Kenya can go in that direction.

    State of Maturing USD 2 Billion Eurobond at the end of June 2024 

    In June of this year (2024), Kenya must settle USD 2 Billion as a Eurobond matures. Settling this Eurobond would bring relief to the economy as the next Eurobond maturity will be in 2027. However, Kenya finds itself in a financial challenge as its dollar reserves are low and the weakening of the Kenya Shilling has affected the government’s capacity to raise the required funds. Kenya is now relying on bailouts from the World Bank, the International Monetary Fund (IMF) and other international institutions.

    Red Flag as President Ruto's Backtracks on Pledge

    Concerns of a potential for default were raised when President Ruto failed to meet a commitment. He had announced plans for Kenya to pay USD 300 million in December 2023 as a partial settlement of the USD 2 billion Eurobond but this did not happen. 

    What would a default mean?

    In the event of a default, Kenya faces dire economic consequences experienced by countries like Greece, Zambia, Lebanon, and Argentina. Consequences of default would include the government's inability to borrow through Eurobonds, a decline in investor confidence, a weakening local currency, and inflation, among other far-reaching and long-term negative impacts on the economy.

    How would this affect your investments in Treasury Bills and Bonds

    Traditionally, governments are considered least likely to default on domestic debt as they can leverage their control over their local currency. However, the December 2022 default by Ghana on its overseas debt and the impact it had on domestic debt challenged this narrative. 

    What happened in Ghana?

    When Ghana defaulted on its foreign debt and sought a bailout from the IMF and World Bank, these lenders of last resort introduced a unique precondition for the bailout that substantively affected the way we look at treasury products. The IMF required the Ghana government to restructure its local debt so that the pain of default would be shouldered by both foreign and local creditors – including Treasury Bond holders. This restructuring saw a reduction in Bond investors’ principal and a lowering of the Bonds’ interest rates (coupon).

     

    Prospects for Meeting the June 2024 Deadline

    However, there is much hope for the Kenya situation. Signs indicate that Kenya will meet the June 2024 obligation especially because the stakes of a default are too high. A default would jeopardise most government projects as the government would be forced to go into survival mode. This would in turn adversely affect a Kenya Kwanza re-election bid. 

    Besides this, the government is collaborating well with the IMF and World Bank and following through with their bail-out conditions – which include increased taxes and reduced government spending. 

    Which way to go

    In light of this, there is a collective confidence that the country will successfully make the June 2024 Eurobond payment. If it does so, there is an expectation that the government will relax its aggressive borrowing and this will in turn reduce the interest rates on Bills and Bonds. If this does happen, those who will have bought Treasury Bonds within this period before June will continue to reap good returns on their investment for years.

    28Jan, 2024
    Infrastructure Bond Offer – February 2024
    Kenya Insrustructure Bond - February 2024-2

    The Central Bank of Kenya has announced a Treasury Bond offer - Ref IFB1/2024/8.5. This is an infrastructure bond. The details of the bond are as follows;

    • Government is looking to raise Ksh 70 Billion. 
    • The tenor of the Bond is 8.5 years and will be redeemed on 9th February 2032
    • Interest on Bond is tax free 
    • Minimum investment is Ksh 100,000
    • Interest will be paid semi-annually
    • Expected interest (coupon) is around 20%
    • Bids must be placed on DhowCDS
    • Eligible bids will need to be placed by 10am on Wednesday 14th February 2024
    • Those who will have successfully bid will receive confirmation of success on Friday 16th February 2024
    • Successful bidders will make payment for Bond by latest 19th February 2024 by 2pm
    • Payment for bid can be made via bank RTGS of deposit bankers check to CBK office

    You can get full details of the Infrastructure bond from CBK website here

    25Jan, 2024
    The Quest For Financial Success and Freedom
    elegant-businessman-with-victory-pose

    Why Pursue Financial Success?

    Do you desire Financial success? Well, this is for you.

    Financial success can be defined as achieving what you hope for or aspire to have financially. Your financial aspirations may change as you go through life. Like you, most people have financial dreams or goals that they hold close to their hearts and earnestly desire to accomplish. These dreams may include owning a home, retiring young, travelling the world, purchasing a new car, giving towards charitable activities, joining politics, building rental properties and the like. Each person has what she/he desires to achieve financially in life. It is these financial desires and aspirations that form the basis for your financial success.  

    In as much as most of us will set out in life hoping to achieve these financial dreams and desires, the reality is that very few people ever get to attain their financial desires.

    Research on Retirement Statistics

    According to the findings of research carried out on the Kenyan retirement environment, out of 100 university graduates who get reasonable employment after college;

    • Only 1 will be wealthy at the point of retirement
    • Only 4 people will maintain their standards of living after they retire (They can afford a lifestyle after retirement similar to what they had when employed)
    • 15 people will take a significant reduction in terms of their living standards after retirement but will be able to survive financially. In other words, they will either move to a cheaper neighbourhood such as going upcountry or spend less for entertainment, holidays and other expenditures.
    • The remaining 80 people (80%) will depend on the government for survival, depend on their children, take on another job, and will be poor after they retire or will be dead.

    The reality is that all these people start life confident that they will become rich. So, why do most people end up not being financially successful?

    Why Most People Never Get to Financial Success

    • Many people have never defined their financial goals and have no plan to get them to their financial aspirations. Their investments are therefore not focused towards any destination.
    • Many people do not understand the various investment opportunities that are available to them to enable them to grow their finances towards meeting their financial goals.
    • Many people do not believe in themselves enough to set and pursue their financial dreams successfully and will generally lose heart and give up when a few setbacks come their way.
    • Many people lose time and money in risky investments that promise much but never pan out.
    • Most people don’t invest consistently but rather invest only when opportunities arise. This haphazard kind of investing leads to the loss of valuable investment time.
    • Many people have bad investment experiences and this makes them afraid or unwilling to invest again.


    How to Avoid the Statistics

    For us to overcome many of these investment mistakes and increase our odds of becoming financially successful, we will need to have an understanding of how the investment world works. We will also need to write down our financial goals and have a plan of how we will fulfil these goals. We will then need a model or system to keep us disciplined and focused on our plan.

    #retirement kenya #financial success #nairobifinancialconsultant #kenyawealthmanagement

    22Jan, 2024
    Tsavo Real Estate Company
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    Tsavo Real Estate is a company established in 2016, and founded by Emily and Leonard Mcharo.  They specialize in constructing small-sized houses, including bed-sitters and one-bedroom homes, targeting investors looking to make a return from rent.

    Leonard and Emily’s Story

    Emily and Leonard Mcharo, the founders of Tsavo Real Estate, have an inspiring back story. They began their marriage with very little money and, like many couples, lived from hand to mouth. However, in those early years of marriage, they set a goal to become financially free within 10 years.

    According to their narrative, achieving this goal required them to forego many of life's pleasures to consistently invest in their dream. They leveraged their expertise, with Leonard being an architect and Emily a financial analyst, to develop student hostels. The project took nine years to complete and with its completion, they were financially free! Emily quit her job as a banker and Leonard quit his employment as an architect.

    With their financial freedom, they established Tsavo Real Estate to build affordable rental properties that they sell to investors. They aim to help others achieve financial freedom as well, by providing them with a reliable source of passive income through their real estate investments.

    Completed Projects

    To date, the company has completed five projects, which are Tsavo Studios in Embakasi, Coral Bells in Thindigwa, Royal Suburbs in Roysambu, 90 Degrees in Embakasi, and Tsavo Skywalk in Wanyee Road and Tsavo Sunset in Thindigwa. The average price of a bed-sitter is Ksh 1,800,000, while the average price of a one-bedroom house is Ksh 2,800,000. The expected rent from the properties is Ksh 12,500 - 15,000 for a bed-sitter and Ksh 18,500 - 20,000 for a one-bedroom.

    Projects Under Construction

    Tsavo Real Estate has several projects currently under construction. These include Royal Suburbs Phase 2, 3, and 4 in Roysambu, Tsavo Fedha, Tsavo Rising in ILRI, Tsavo Step-up in Satellite Estate, Tsavo Premier, Tsavo Sunset 2 in Thingigwa, Tsavo Fedha in Fedha Estate, Tsavo Divine at USIU, and Tsavo Stanley in Kiambu.

    According to the company, these projects are set to be completed within 3 years. The construction of these properties will provide investors with new opportunities to invest in the real estate market.

    Track Record and Performance

    Tsavo Real Estate has a strong track record in terms of project timings, financial integrity, and developing projects as per promise. Given that the return on investment is between 7% and 9%, this is a good investment option that offers considerable passive income.

    Risks Associated with the Projects

    Tsavo Real Estate Company sells its houses off-plan, which means that investors pay upfront for the homes before they are built. This approach is common in the real estate industry as it allows developers to secure financing for construction and buyers to lock in prices for new homes.

    However, it's important to note that when buying off-plan, there is a level of risk involved. One of the main risks is that there is no government regulation for off-plan projects, which means you have to trust the company to deliver the houses as promised. In some cases, there have been large real estate companies in Kenya that have sold off-plan homes and failed to deliver on their promises to their clients.

    In Conclusion

    Tsavo Real Estate has maintained a solid track record of delivering homes as promised. Their financials are also good and their philosophy is promising. Payment of the homes is also done as the project progresses thus minimizing risks. We, therefore, advise that purchasing properties with Tsavo Real Estate is reasonable as a pathway to creating your passive income.

    18Jan, 2024
    6 Myths about Investments That You Should Not Believe
    Stacks of coins arranged in a bar graph, Saving money concept. 3D illustration

    Do you want to be successful in investing? One of the things you will need to do is to differentiate between facts and myths. There is a lot of misinformation in the investment world and this has led to many losing their hard-earned cash to fraudulent investment opportunities or avoiding investing altogether.

    Let us look at some of the common investment myths.

    1. I Do Not Have Enough Money to Invest

    A common myth about investing is that you need to have a lot of money to start investing. This is not true. The amount needed to get started in investing in most of the investment products is low thus allowing anyone to be an investor. Below are the amounts needed for some of the investment products;

           - Shares (NSE Stocks) – As low as Ksh 500.00
           - Mutual Funds (Unit Trusts) – Between Ksh 500.00 and 1,000.00 depending on the fund           manager
           - Treasury Bonds – Ksh 100,000.00


    1. Investment Success is About a Big Break

    Many individuals in Kenya believe that to make it financially, they need to get a big break or ‘deal’. Many will keep hoping and trying to get a big contract, a big job opportunity, a lottery win or some windfall gain.

    However, success in investing has more to do with starting small and being consistent than getting a “breakthrough”. If you gain an understanding of the investment world and develop a habit of investing wisely, you will keep growing your wealth despite your income levels or opportunities available.

    1. The Higher the Risk, the Higher the Return

    Many people have lost a lot of their hard-earned money because of getting into get-rich-quick-schemes that promise much but turn out to be fraudulent or fall short of the promise. The lure of quick gains and exorbitant profiting has deceived many to lose their funds.

    However, to invest successfully, it is advisable to invest in time-tested products that have a sure return. Even when investing in more risky products, ensure that you have done a thorough check and only invest when you fully understand how the investment product works.

    1. To Succeed in Investing, You Must be a Miser

    Another common investment myth is that to be a successful investor, you must forego all the fun and live a poor boring life to save up to become rich. However, this is not true. A successful investment plan ensures that you enjoy your wealth both today and tomorrow. The investment plan must include short-term, mid-term and long-term investment goals that will ensure that you continually enjoy the fruits of your wealth.

    1. Investing is Complicated and is for Experts or Insiders

    Over the years, investment advisors and investment reports in the news have used hard language that has made investing look complicated and only for experts and insiders. But investing is easy to understand and information is easily available.

    Rubiani Wealth Management seeks to demystify investing and give investment knowledge to as many people as possible in an easy-to-understand way.

    1. Investing is Risky - My Money is Safer in the Bank

    Many people shy away from investing because they perceive that investing is risky and that they will lose their funds. However, this is not true. Many investment products ensure that you do not lose the funds that you have invested. Even for products that do not protect your invested funds, there are ways provided to reduce the risk while maximizing your returns.

    There you have it. We hope this will encourage you to get started and keep progressing in your investment journey.

    #nairobi investment consultant #wealth management nairobi #treasury bonds #treasury bills #2024 invest

    16Jan, 2024
    Forex Trading and the Risks Associated with the Trade
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    Ever heard of a millionaire Forex Trader? What about someone who lost so much of their wealth through Forex Trading? Forex trading is a popular high-risk investment opportunity. There are myths and a lot of misinformation about forex trading. This article seeks to demystify this.

    What is Forex Trading

    Forex trading is one of the highest-value trades in the world. Forex trading allows for international trade as it enables traders to access goods in a currency apart from their local currency. If you have ever travelled outside of your country or have imported an item, you must have been involved in some form of forex trading.

    CFD Forex Trading

    However, the common forex trading that is popularly traded as an investment opportunity is called CFD (Contract for Difference) Trading.

    CFD Forex trading is a type of investment that allows traders to speculate on the price movements of foreign currencies without dealing with the actual currencies. This trading is popular among high-risk investors as it offers high leverage, which means that traders can control large positions with a relatively small amount of capital. In other words, when you invest USD 1000, you can receive 100X leverage which enables you to trade as if you had USD 100,000.

    Risks Associated with CFD Forex Trading

    Leverage Risk - Leverage magnifies the small movements in prices so that you make or lose much more than you could have if you were not using leverage. This substantially increases the risk associated with this trade.

    Volatility - Another risk associated with CFD Forex trading is that the foreign exchange market is highly volatile and can be affected by a variety of political, economic, and social factors, making it difficult to predict price movements.

    Unregulated - CFD Forex trading is also not regulated in the same way as other financial instruments. This means that traders may not have the same level of protection against fraud or other illegal activities. Additionally, some CFD Forex brokers may not be trustworthy and may engage in unethical practices such as stop loss hunting, which can further increase the risk for traders. This has happened severally in the past and investors have lost quite a colossal amount of their money.

    Technical - Furthermore, CFD Forex trading requires a good understanding of the market and the ability to make quick decisions based on market conditions. For novice traders, this can be a difficult task and may lead to significant losses.

    CFD Forex trading is a high-risk, high-reward activity and may favour high-risk traders who are experienced and have a good understanding of the risks associated. However, for most investors, it can be a risky endeavour that has led to significant losses. Even for experienced traders, CFD trading still results in major losses. Therefore, whether you are trading personally or investing through a “guru”, only invest the money that you are willing to lose - in case the market goes against you.

    10Jan, 2024
    Valuable Tips for Fulfilling Your 2024 Financial Plans
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    Happy New Year from the Rubiani team.

    Many of us take these early days of the year to set goals for the year. Planning is important - if you are to ever accomplish anything meaningful in your life. There are overused sayings that go, “If you fail to plan, you plan to fail” and “If you aim at nothing, you shall surely hit it”.

    However, many of us know that planning is not enough. It is easy to make plans but following through is where the real challenge is. In this article, we look at various tips that can help you improve your score rate when it comes to your money plans;

    Plan Long Term

    Many of us fail to accomplish a lot financially because we plan short-term. We only think about our current financial situation. Unfortunately, financial issues and immediate financial needs will always be with us. We therefore advise that you make long-term plans for your finances irrespective of your current financial situation. You can then resolve these urgent financial needs from the perspective of your long-term goals. Financial urgencies and setbacks are temporal, but financial success is a lifelong journey.

    We are undisciplined. Change your strategy

    Many of us plan to save a certain amount of money every month but keep falling short and procrastinating. This is because urgent financial needs will come up and take up the money planned for investment. We, therefore, advise that you avoid the need to discipline yourself by setting up automated investing through a bank order or salary dedication. This way, you get to invest before meeting your other financial needs. This tip may just be a deal changer for you in 2024.

    Understand Yourself

    When it comes to investing and money goals, no single strategy works for everyone. We all have different financial situations, opportunities and personalities. Therefore, find out what works for you and stick with it. For some, setting ambitious goals works best as this pushes them to do more while for others, such ambitious goals will only frustrate you.  

    Get Accountability

    Ever thought about keeping your investment journey accountable? The thing with investing is that it is not urgent, but important. If you postpone starting your journey or skip 2, or 3 months of investing, there will be no immediate impact. However, sticking through with your investment plan has a lifelong impact on the quality of your life and that of your loved ones.

    At Rubiani, we have an accountability group - the “Rubiani Master Class”. These are people who have started the investment journey and are intentional and committed to getting to financial freedom. We keep each other accountable, informed and motivated towards this goal. Interested in joining? Email us at invest@rubianiwealth.com.

    Consider the Rubiani Investment Course

    Finally, we also advise that you take the Rubiani Investment Course. This is a 5 consecutive session course that you can take either on Thursday evenings or Saturday mornings. The course concludes with a one-on-one session. You will get to learn how to set SMART investment goals, understand how to overcome personal and societal money setbacks, understand how the investment world works and get to write your financial plan. The goal of this course is to get you on the right track when it comes to investing.

    18May, 2023
    5 Keys to Successful Investing

    We have done some research and compared notes with others who have addressed this subject of investment success and have come up with a list of 5 keys necessary for your financial success.

    1. Writing Down Your Goals, Having a Plan

    Did you know that about one in every 100 people have written down their financial goals and have a plan to meeting these goals. All of us have what we desire to achieve financially. But unless you put these desires on paper and come up with a plan on how to achieving them, then they remain fantasies and dreams.

    In His book “7 Habits of Highly Effective People” Stephen Covey says that the 2nd habit of people who are highly effective is that they begin with the end in mind. Articulating or writing down what you want to achieve through investing enables you to remain focused and motivated towards getting to your goal. So, take some time out of your routine and write down your financial goals, come up with a plan of fulfilling the goals and periodically review the plan.

    2. Desire it, Believe it, See it

    It is not enough to just write your goals. You must believe in them. In his book “Think and Grow Rich”, Napoleon Hill states that you financial success starts with the mind. Unless you visualize success and believe that you have what it takes, you will keep giving up or getting derailed along the way. Some of the things that can help you keep the faith include reading books or watching videos that motivate you towards your goals, constantly reviewing your financial goals and plan, looking for and interacting with individuals who are more successful than you financially and who encourage you to your financial goals and participating in talks, courses and forums that keep encouraging you towards your goal.

    • Our life is what our thoughts make it. – James Allen
    • Whether you think you can or you think you can’t, you’re right. – Henry Ford

    3. Understanding the Money World

    Robert Kiyosaki, a renowned investment teacher puts it this way – “The difference between those who succeed financially and those who fail is knowledge. He says that the reason many of us fail in investing is because financial literacy is not taught in school and many of us are ignorant about the financial world thus leaving us as victims.

    In his book “The Art of War”, Sun Tzu, says that “if you know the enemy and know yourself, you need not fear the result of a hundred battles”. The money world is like war and if you do not understand what you are up against, you will end up being a victim and slaving for those who understand the money war and work it to their advantage. So, for you to be successful, you must understand how the money world works, who are the players and how you can position yourself for success.

    4. Get Started and Be Consistent

    Once we define our goals and gain an understanding of the financial world, we then need to go ahead and get started in our investment journey. A major key to succeeding financially is being consistent. Investing is more of a lifetime marathon rather than a sprint. There are many people who wait for a deal or some financial breakthrough as their key to success. However, one offs have very little to do with your long term financial success.

    In his book “The Richest Man in Babylon”, George Glason states that money laws are like the law of gravity and they work all the time. His 2nd money law states, “Start thy purse to fattening”. He explains that for you to succeed financially, you must pay yourself first by saving part of your income and thus fatten your purse. In his 3rd law of money, “Make thy gold multiply”, he explains that you need to know how to multiply your wealth by wisely investing it.

    5. Overcoming Failure

    In his book “Think and grow rich” the writer says that success is always past failure. In other words, anyone who truly succeeds must have already failed before the success. It is said that on average, you will face a financial challenge that will significantly impact your wealth once every 12 years. Therefore, it is wise to expect failure and protect yourself against the impact of financial crisis. Insurance and having an emergency account is important to protect yourself. You also need to keep getting up once you fail and always know that success is on the other side of failure.