The path to financial freedom is so simple: Track expenses for at least 3 months Use the information to create a budget Automate your savings Review your budget constantly Invest in areas where you will earn a reasonable return Avoid unnecessary debt. Anyone should be able to do that. Why is it that very few people are able to do it consistently? Why do we resolve to…
Read MoreIn a previous post, I explained in simple terms why Apple resorted to issuing a corporate bond even with so much cash reserves. First let us recap on the basics of a bond. When a company issues a bond, it is borrowing your money for a certain period of time defined in the bond terms, and it agrees to pay you interest at a fixed rate (coupon rate)…
Read MoreIf you have been following financial news, you have probably seen Apple’s corporate bond announcement seeking to raise $6.5 billion for a share repurchase scheme. This seems puzzling because just a few days ago, we were all aghast at Apple’s huge cash reserves of $158 billion. So why is Apple issuing a bond? First a definition of two terms I used up there: Corporate bond:…
Read MoreMr Kamau: Woow! What a beautiful flat you have built Mrs Otieno. Retirement is certainly going well for you. Share the secret. (Kenyans love to know the secret to wealth and success) Mrs Otieno: (smiling) There is no secret Kamau. I started saving with National Social Security Fund (NSSF) when I first got employed at 22 years old, and last year when I retired, they paid me…
Read MoreTransCentury Limited announced that its profit this year is expected to be more than 25% lower than last year’s profit. See the notice here. This post analyses the notice paragraph by paragraph in ordinary English. 🙂 As required by the Capital Markets Authority and the Nairobi Securities Exchange regulations, TransCentury Limited (“TransCentury” or “Group”) would like to announce that the projected profit for the Group…
Read MoreIt is useful to consider the difficult choices that may be made to ensure that there is meaningful job creation as an alternative merely throwing money at a problem despite good intentions. Two factors determine the employment picture in Kenya, and new policy approaches are required around these because the mere push of funds into the hands of youth and selected entrepreneurs will not work….
Read MoreSo the Uwezo Youth Fund is here! I love the idea of funding youth (and women) for business, and building enterprise. Enabling entrepreneurship is a sure way of creating employment. According to the website, the Uwezo Fund is a youth and women’s fund which was launched by the president, who allocated the Kshs. 6 billion that was meant for the presidential run-off to youth and…
Read MoreThere are many reasons why the hyped Machakos County Development Plan by Dr Alfred Mutua could fail, and we all know them. We all know that the governor is good at PR, and the Machakos City plans are probably more hype than substance. I however believe that are certain things the Governor and his cabinet (which seems very able and active) are putting in place…
Read MoreNo matter what finance experts say about the demerits of home ownership, most of us want to own a home either as an investment or to give ourselves and our families a sense of security. When considering a mortgage, should you go for a fixed rate or a flexible rate mortgage? This post looks at the advantages and disadvantages of each option. Fixed rate mortgages …
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