Ciri's Life Coach

Unit trust are pooled investments. This means the money collected comes from many people. It is collected by a company, which then invests in various financial instruments such as infrastructure, stocks, money market, bonds and many others. As an investor you are relieved of the duty of studying the market, because you have given that responsibility task to the investment company whom you trust will do their best to make your money grow. To better understand what you are getting yourself into, here are 8 things to know about unit trust: There are No Guarantees: As a potential investor you should be aware that the capital investment amount is not guaranteed when investing in unit trust, shares and some other investments. In fact, the value of these types of investments fluctuates according to movements in the financial markets. Match Investments to Needs: It is essential to choose a unit trust that will best meet your objectives. Normally a client's investment needs will ...

When you take out a mortgage, it is helpful to keep close track of your repayments and interest rate changes from time to time. Just the same way you track the price change on the stock exchange after buying shares. Any change, positive or otherwise, is worth an action. To eventually become a homeowner , you should review your mortgage repayments when there is a big change such as a new job, interest rate fluctuation, when you get a big lump sum or a pay raise, or just once in a year. These checks should help you determine a number of issues to assist in freeing you obligation on time or early. they should help you answer such questions as to whether you are still making mortgage payments that are bigger than you can comfortably afford. Whether you can put in more cash to reduce your balance or whether you should call it quits before it is too late. The economic sense of this checks is seen when the answers to the above questions are put to their financial advantage. Like the real...

Making of a Simple Will Making of a will is an important process for avoiding conflicts, which may occur after death. It is a public document and as such, emotional issues or information which may embarrass the family should be avoided. Here is a guide on how to make a will legal. Step 1: Get a piece of paper and a pen, or open a document on your computer. Step 2: Write: " I (fill your name here) or Box (fill your address here) and state you are an adult of sound mind" Step 3: Declare invalid any previous wills in this way: " I, ( name here) revoke all wills, testamentary dispositions and/or codicil previously made by myself wherever and whenever they may be found, and declare this to be my last will and testament." Step 4: Make provisions for the payment of debts and expenses by stating: " I direct that the executor pay all my just debts and liabilities, including funeral expenses, from my assets." Step 5: Name your beneficiaries: "...

What Bank Account Promotions to Avoid Opening a bank account has become a lot easier. All what you need is a passport-size photograph and an identification card and some paper work, and you are ready to go. There is little or no cost at all. With online banking, all you need is in the bank's website. Due to stiff competition, many banks have come up with bank account offers to retain their customers and tempt new ones. As an example, see the below advert: "Our bank account," reads a bank account promotion, " requires no maintenance fees, no monthly charges and no minimum operating balance. Affordable minimum account opening balance, free monthly account statement and no cheque handling charges". One of the most common methods mostly used by banks to lure clients is telling them to open bank accounts that do not incur ledger fees. Many customers open a new bank account believing the accounts are totally free of charges, only to discover later that they a...

When buying a house you should always be aware of all the secondary costs. In order to know more about other primary costs, I am sure you will love reading How to Become a Homeowner for Less . The cost of a house is never just the asking price. I have divided these secondary costs in three parts: maintenance,bargaining power, being money wise and repairs. Maintenance If you plan on buying a town house , you will want to know what the monthly maintenance fees are. These fees will always vary based on the location and the services offered to the residents. Even if you are not buying a house, secondary costs may still be a factor. Some houses fall under the authority of a resident's association that may require you to keep up a certain appearance (which could mean having security guards, water services). Bargaining Power Buying a house is nothing like buying  retail; everything is negotiable. Mak...

Owning a home can be a difficult decision, one that requires the instinct of a psychologist, financial shrewdness of a banker, the property knowledge of a real estate agent, and the building skills of a contractor. Yes, it seems like a headache in becoming a homeowner but it is a positive step towards the right direction. If you enter the real estate market with an understanding of the game and what you can afford, then you will do well. But if you let prestige dictate your expenditures, you will run the risk of failure. Home ownership is at an all-time high as Kenyans seek for security and comfort. It is also perceived as an investment for its owners. With so much riding on your home, you will want to save money wherever you can, as I always say: where you save money, you make money.  Tips on how to become a homeowner for less #1: Study Your Local Market Mostly, the price of your house determines your financial situation. In a boom period, homeowners a...

In a world where change is the only constant, planning ahead and sticking to plans concerning finances is a challenge BUT very essential. Are you on track with your financial plans? What are the vital signs in a good financial run and a strong finish? Stage # 1 This is when one starts earning their own income. Since one is in control of how to spend and save, this is the stage when habits, good or bad form. The habits have consequences as far reaching as into the last stage when one is no longer earning. In this stage: Learn to make a budget and stick to it, differentiating between needs and wants. Establish a saving pattern in an account that would cost the least and yield the most interest. Protect yourself through insurance with a package that cushions you against unforeseen incidents like sickness or disability. Learn about options in as far as financial services such as bank accounts that cost the least to operate and wise borrowing such as through credi...

It is possible to pay less income tax, a fact that many of us fail to take advantage of while complaining about the lack of enough funds to save, to invest and achieve financial security. You can cut down the amount of income tax you pay by taking advantage of the tax laws. # 1 Life Insurance and Education policies Investing in a life insurance policy for nine or more years maturity can further reduce income tax as this qualifies you for income tax relief on the premiums paid. You can get relief amounting to $ 670 a year, or 15 % of the premiums, whichever is lower. # 2 Pension Plans Most employers will only contribute the mandatory minimum amount of 5 % towards employee retirement schemes. If you are employed and your employer has a registered retirement benefit scheme which is a pension scheme, you will notice that on your pay-slip, your contribution is deducted from your gross pay before income tax is calculated. Putting away more than the minimum means ...

Have you ever noticed when you go to a supermarket to pick just one item, and by the time you get to the check-out point you have more than five things in the basket and a bill bigger than you had expected? The reason this keeps happening is because supermarkets or retailer stores use a range of methods to get you to pick those items up. How you are tricked to get spending In most supermarkets, shopping carts are placed right at the entrance and although you may have wanted to buy only one or two items, you find it handy to have the trolley so you can lean on it while moving around and putting stuff in it. Psychologically, it becomes easy to toss in an item you do not need. After all there is room for plenty more. You may also have noticed that the items you are likely to buy on impulse are placed at the check-out points.This is where you will find the latest DVD releases, lifestyle magazines, along with over-priced beverages and candy. Most retail chains locate the most e...

A woman would browse through shops for hours for nothing in particular, or that item in a particular shade or size or design. Men, on the other hand, walk into a shop and go for the kill, and will be done with 'shopping' in a matter of minutes. Money is a loaded topic; perceived differently by men and women, how it is earned, spent and what it symbolises. More often than not, conversations about money among couples amount to arguments about it. Usually, there is one who hoards and the other one spends too much. Of all factors that drive couples apart money is a huge factor. One basic difference in the outlook about money is that men see the world as a battle field where there is a winner and a loser. We are aggressive about how money is sought and having all or most say in how it is spend. Women, on the other hand, concentrates on and would spend big on sprucing up herself and of course her home.thus the uncountable pairs of shoes, constant browsing for home and o...

Do you have the habit of 'keeping up with the 'Joneses'. Striving to achieve or own as much as the people around you. For instance, 'If you want to keep up with the Joneses in certain neighborhoods, you will have to own at least a car, wear designers clothes, take your kids to expensive schools....' To fail to 'keep up with the Joneses is perceived as being poor! Kenyans are notorious for catching a "luxury fever". It does not seem to matter that we aren't rich yet, as long as we look as if we were. Is it difficult to live within your means? If so, then you should start a personal budget system to account for your monthly expenses. An easy, effective, practical method is the Envelope System. 8 tips to easy Envelope Budget System: Start by tracking your daily expenses. List down all your monthly expenses. Refer to your daily expenses notebook. You can start by grouping the list into categories such as Fixed: Rent, Utilities, Transport ...

How financially literate are you? Just the other day, I was organizing my book shelf when I saw 'Winners and Loosers of Capitalism and why Africa is not Winning yet by David Ithaya. What a coincidence when I came across an article touching on the same theme 'Africa's mindset'. Anyway, browsing through the pages of the book, I’m saddened by the fact that much of the details of the story is factual but blurry in our memory. I would like to share the theme here. It is quite educative especially on 'personal financing'. Pl do take the time  to read it and hopefully, it will inspire you to become an agent of change for other Kenyans. " Sometime this year after I made a presentation on the stock market to some 200 or so men, I got a question from one of them asking how I could talk about investing money when a lot of Kenyan's lived from hand to mouth. He said that the average Kenyan's concern, was not stocks, bonds, etc but where their next...

We've attended forums, Sacco meeting, hired personal financiers just to tell us how to spend our money. Don't get me wrong, all this is most appreciated but the best person to guide your finances is YOU. There was a buzz on investing especially in NSE, Bonds plus other avenues. This mode of investments caught Kenyans by surprise. We rushed to our piggy banks broke them open just to buy Safaricom, Kengen shares. Some years down the line we're still broke.Moreover, we're on debt considering we bought the shares on credit from the banks. We are not afraid of investing but where do we start? If you’re this type of person, then here’s a simple investing guide for you. Savings Account Before thinking of becoming an investor, first be a saver. I’ve always believed that more investment builds from savings unlike economist notion of 'spend more and make more'. Having a savings account has three purposes. First , to build your emergency fund. Second is to...

The holiday seasons are over, now back to the reality of the hassle and bustle of life. As, I pass through the shop exhibitions of 'Imenti' building down town Nairobi, Kenya. I realize the pairs of jeans I bought recently is fading away. As usual, being the Kenyan I am. I started blaming the clothes retail seller and wish for the beggars to ride if at all, all wishes were true. Contemplating a change to other retail shops. Clothing is one of life’s basic necessities. But for many of us, it is also one of our biggest expenditures. This is especially true if you’re working in a white collar job. In these professional and social environments, how we physically present ourselves are often as important as our personal skills. The adage, don't judge a book by its cover doesn't suffice in this situation. In case of individuals with children (alike my bros), then their clothing bills are probably sky-high as kids tend to outgrow their clothes fast. So how are you when i...

This is part 2 of when to say YES or NO when handling friends who borrow money. To read the previous article please click  friends & money part 1 You can prepare yourself for the worst case scenario first, by picturing what would happen if your friend doesn’t pay you back? How will it affect your relationship? What if he comes back to you to borrow more money which you could no longer afford to give, are you prepared to say “no” this time? If you can't make up your mind from the previous questions , then I suggest that you reconsider your decision and perhaps try to help your friend through another way. It may also help to be honest and open with your friend and ask how exactly is he planning to pay you back. Where will he get the money? Will he be paying through installment or as lump sum? What will be the payment schedule? When the amount is considerably big, it’s best to get everything in writing. More than often memory loss creeps into Kenyans whenever they borro...

You've managed to improve your personal finances and proud of your achievement so far. Then one day, a friend confides to you about his money problems and hopes you may lend him some. What do you do? Do you immediately dig into your pocket and help your friend? Or like many Kenyans, do you simply keep quiet and pretend you didn’t hear anything and change the topic of the conversation? If you find yourself in this situation with someone you barely know, to me, the best advise is to simply say, “ I’m sorry, but as a rule, I don’t lend money to friends .” This statement is straightforward and gives your message without attacking the character of the person. How about the friends you’ve known for years? Do you treat them the same way or do you give in to their request for the sake of friendship? You know “Friendship is more important than money; it takes time to gain friends but money, you can easily earn with your income.” I agree with the adage, but I also believe that in m...

Recently, my friend and I had an argument. She branded me cheap for buying 'Afia' to 'Delmonte' juice. Later that evening, I thought to myself: if both of the products are apple juices, have the same taste, same quantity. To top it all, Afia is cheaper than Delmonte. So why not? Surprisingly, when I confronted her concerning my thoughts about this, she had various explanations. What’s the difference between being frugal and being cheap? I believe only a handful knows the correct boundary which separates the two. Personally, I believe that one of the main reasons why most people don’t practice frugality is because they fear that their friends will label them as cheap, stingy, miser, mean. In Kenya, you may be branded with negative words such as M'ngumu, m'choyo and 'real kikuyu'. Now who would want to be called that? So what’s the difference between being frugal and being cheap? Cheap people measure things in terms of its price cost while frugal p...