Chachanomics Money Talks

Understanding the Nature and Purpose of Money Many people journey through the school of life wondering, ‘What is money really about?’ More importantly, some ask themselves, ‘How can I overcome my financial probl0ems? Moreover, Has  your ATM ever rejected you because of unwithdrawable account balance? Do you usually spend money without a budget? Have you ever spent windfall cash in your account without first finding out the source and budgeting for it? These questions sound simple and commonplace but challenging when it comes to writing down the answers. They have a direct connection with the mind. That is, your attitudes, perceptions, beliefs and feelings which are determined by your sub-conscious mind. The subject of money is very controversial, emotive and tabooed or hardly spoken about in many African societies. Despite its numerous benefits as a store of value and an enabler, money is the most nicknamed concept in all human languages. Some call it a flower, blesser, the hear

 Chachanomics 101: Question and Answer Session on "My Money Conversations" Q1. Who is Chacha Nyaigoti Bichang'a? I am a lecturer at a Kenyan public university,  passionate about teaching people about personal financial matters like financial planning and management anchored in budgeting, saving, managing debts and investments. I am the Founder and Lead-Coach of Chachanomics 101 Mentorship and Coaching Program. Q2. Why did you decide to teach people about personal finance? My passion is informed by the realisation that money matters cause more intolerable stress and suffering to many people than they can dare admit openly because money is a tabooed subject just like sex education. Research indicates that 80% of the domestic conflicts, separation and divorce are due to money-related problems. In fact, money is the number one cause of depression in Kenya and Africa in general.  Q3. Who are your major clients or target audience? I address personal financial matters that touch

The Power of Financial Parenting 1. What financial habits or beliefs are you teaching your children?  2. How do you want your children to relate with money when they grow up?  3. Are you teaching your children how to network, save, and invest their little savings?  These and many other critical questions highlight the power of financial parenting. Your children aren't too young to learn about money. The first school where a child learns about how money works is at home.  The other modelling schools are: the neighbourhood, peer group,  mass media, traditional school system and the church/mosque. Three Key Financial Lessons  1. Teach your children by example. Teach them about savings,  open  a cub or jumbo junior bank account in your name using their birth certificate and reward them gradually to reinforce the saving habit.  2. Guide them in drawing a budget. Show them how you budget for domestic expenses and take them to the shop or suppermarket. Let them pick budgeted items and do

 Lessons learnt from the Covid-19 pandemic: A Compilation of Questions and Answers During the Corona period, things have changed necessitating drastic changes in budgeting, expenditure and wealth creation. #1. Have an emergency fund It should cover 3-6 months. The problem many people have is that they don't write a budget and know where to spend their money.  #2.Have more than one source of income Don't depend on one source. Create multiple streams of income supplementing the active income. Q. Where can you save your money? Your money should be saved where it is in liquid/cash form for easy accessibility e.g. fixed deposit, savings deposit. If you put it in an asset, that is investment, you may not access your money during an emergency. You can save in call accounts, Sacco where it can be used to determine your borrowing ability. #3. Managing debt Go for a loan for investment purposes not consumption. Never take a loan not meant for an income generating project. Beware debt kil

 8 Best Ways of Saving for Investment Although the culture of saving is crucial to attaining personal financial freedom, many people take it for granted due to various myths/wrong mindsets associated with it.  Money speaks one language, "Save me today, I will save you tomorrow." Key Questions 1. What is saving? 2. Why is it important to save? 3. What can one do to get money for saving? 4. Is it possible to save during this tough time of Covid-19? 5. What are the 8 best ways of saving for investment? Meaning of saving Saving refers to the practice of putting aside some percentage of your total income for emergency, investment, funding irregular expenses or retirement. Investment means the process of making your money work for you i.e. mutiplying your savings, using a loan in an income-generating project or buying an appreciating asset. N.B. You can use the 80/20 Rule to determine the amount to save according to your needs. It is known as "Pay Yourself First." That is

What is a budget ? A budget is an estimation of revenue and expenses over a specified future period of time. It should be compiled and re-evaluated from time to time. A budget will show you how much money you expect to bring in, then compare that to both your required expenses, such as rent and insurance, and your discretionary spending, such as entertainment or eating out. Instead of viewing a budget as a negative, you can view it as a tool for achieving your financial goals. Importance of Budgeting 1. It enables you take control of your money. Helps you allocate money to your needs and wants without which you will be spending recklessly. 2. Helps you track and  achieve your financial goals e.g. to pay off debts gradually, increase savings and investments. 3. It opens up  your eyes. You're able to know where your money comes from and where it goes. It helps you to save, plan your retirement and helps you to see what you won't have seen. 4. Helps you to create an emergency fund

  A Recap of Egesa FM Talkshow Presentation about Saving Tips Although the culture of saving is crucial to attaining personal financial freedom, many people take it for granted due to various myths/wrong mindsets associated with it.  Meaning of savin g Saving refers to the practice of putting aside a certain percentage of your total income for emergency, investment, funding irregular expenses or retirement. N.B. You can use the 80/20 Rule to determine the amount to save according to your needs. It is known as "Pay Yourself First." That is, before spending your money, save at least 20% of your total income. Importance of Embracing Saving Culture 1. Mastering your money i.e. becoming financially disciplined and taking control of your money. 2. Helps you achieve your financial goals.  3. Cushions you against any disaster/emergency. Reduces financial stress. 4.  Helps you plan your future i.e. leave a good legacy to your family/ dependents.  5. Boosts your self-confidence and sel