Saturday Nation Magazine Article about What I Know About Money on 3rd October, 2020

1). What is your name, where do you work and what position do you occupy there? What's the business all about? What does it deal in? What makes your business unique?

My name is Chacha Nyaigoti Bichang’a, a Lecturer, Trade Unionist and a Personal Financial Coach. I am the Founding CEO of Chachanomics Limited, a Consulting Company that offers mentorship and coaching programmes. Our mentorship and coaching programmes are unique because we not only focus on personal financial management, but also mental and relationship wellness to ensure that our clients undergo a wholistic transformation. We offer one-on-one coaching sessions, 3 – 6 months’ personal financial and life skills training, corporate and institutional talks.

2). What has been your greatest milestone and how did you come to achieve it? (Please be detailed with a personal example.) What lesson can people learn from this?

My greatest milestone is when I embarked on a journey to self-educate myself on how to manage my money and work on my definite purpose once I discovered it. Having read numerous Personal Finance articles in the Saturday Nation for over 5 years, I began on a journey of attending coaching programmes, reading many self-help books (the first one being Rich Dad Poor Dad which changed my mindset greatly on how money works and opened a new window of the need to learn more that is not taught at school) and watching inspirational videos. After five years of investing in myself, I started teaching my family, friends, colleagues and clients about personal finance through a special purpose vehicle called Chachanomics 101. I have recently authored a book, Mastering Your Money, capturing my experience with money since childhood to date and other people’s real life stories about the financial challenges as well as how to overcome them. The day I discovered my passion in public speaking, writing and teaching people about personal finance was my eureka moment. Nonetheless, this did not come on a silver platter.

Earlier on, I had ventured into various businesses which did not perform well. I equally lacked knowledge on how to budget, save and invest. A case in point is when I lost a lot of money to a fraudster masquerading as a financial advisor who would help me register a company within a short time but ended up taking advantage of my ignorance and simply disappeared with my money. I also entered into partnership business projects that became too risky because of varied interests among partners. All these taught me valuable lessons: the urgent need to acquire personal financial education, discover my passion and pursue it to the end. I learnt the importance of carrying out due diligence before starting a business or investing, the need to put appropriate structures when running a business and establishing the right form of business ownership (such as a limited liability company).

3). What has been your secret to building your career, business or wealth that you wish other Kenyans out there can learn from? How did you get where you are?

First, my secret has been working out on my gradual improvement especially on my weak areas. I have committed myself to interacting with people who challenge and mentor me on how to build my brand. I have learnt that the moment you work on yourself other things fall in place. For example, if you learn how to manage your money well, you become disciplined, accountable and a model to others. Second, I have learnt to set big audacious dream goals that can propel me to greater heights. Third, I read widely in order to acquire knowledge on a number of areas and learn from those who have succeeded amidst certain serious challenges in life.

4). From your personal experience, what is the secret to making it? Where do you think many Kenyans go wrong?

Self-discipline, persistence and patience are key drivers that can lead one to success either in business or advancement of one’s career. Without discipline, for instance, one cannot budget how to spend his or her money, save at least 30% of his or her income and invest where one can earn good returns. Many Kenyans easily fall prey to get-rich-quick schemes, and end up being trapped in huge debts they can hardly manage to repay. We should shun shortcuts because they end up becoming long cuts when we lose our hard-earned money. Many Kenyans are usually impatient and are not ready to learn through the hard way. Many people just want to be told the easiest way of making a lot money without sweating. That is why scammers are common and making a fortune out of gullible Kenyans.

5). What has been your biggest money mistake? What did you learn from this? (Please be detailed with a personal example.)

I made a big mistake to put a lot of money in a partnership project that did not yield profitable or expected returns after many years of working hard. I pumped in more money thinking that the business could improve on its own not knowing that in business much more is required. I even “bought out” one of the partners but this created another problem as the other remaining partner did not like the idea. We quarreled and even fought over control of the business. This made the business to lose credibility and clients. We were left licking our wounds especially myself as the biggest contributor.

I learnt the fundamental principle in business, that is, doing the right thing the right way the first time. It is important to put the required legal and managerial structures in any business venture. Do not just trust your instincts per se but verify whatever you are told and make well-informed decisions when venturing into any business.

6). What has been your biggest loss in your career and what did you learn from this? (Please be detailed with a personal example.) How do you think losses should be handled or mitigated?

My greatest career loss is the fear to get out of an unfulfilling business partnership project with the hope things would work out (as discussed above under Q5. above). As a result, I ended up not reaping the expected returns. One of the best things to do in business once you realize as partners you are not reading from the same page is to count your losses and move on instead of remaining stuck in the blame game. Losses can be mitigated by registering a business as a legal entity that has well laid structures and systems of managing personnel/employees, finances and clients.

On the other hand, in my professional career, I have ventured into union politics with mixed fortunes. I remember one instance I campaigned for a national seat in one of the leading unions in the country using my personal savings. After a mouth-watering campaign, I clinched the seat but my victory was nullified by the industrial court on grounds that my chapter/branch among others were not registered and therefore our delegates were not supposed to participate in the election. I learnt the bitter lesson that politics is a dirty game as they say and unlike any ordinary game it does not have clear-cut ground rules. The experienced strengthened in many ways as I learnt not to give up despite the enormous challenges and financial loss. Even in business, failure should be seen as an important lesson and stepping stone for a mighty comeback.

7). Looking back, if you were to start all over again, what are some of the things you’d do differently?

If I were to start all over again, I would save more aggressively, study the market trends, form strategic engagements with like-minded persons and learn how to invest in diversified investments quite early. There is much I did not know while joining my career due to lack of mentorship and training about hands-on skills. I would have begun working on my purpose had I discovered it early enough. Therefore, it is crucial for parents to teach their children about money like how to save, invest, network and form meaningful relationships as they grow up among other life-long skills.

8). Which method do you use to save? Is it effective? How? Which method did you previously use that wasn't effective?

I have been saving through a reputable Sacco for many years via check off which earns me good dividends at the end of every financial year besides using my savings as collateral to acquire loans for investment projects. This method has been very effective except when I incurred some financial loss on account of guaranteeing members who ended up defaulting paying their loans and I was attached as a guarantor. One has to be careful when guaranteeing a member a loan because it means taking liability to repay the loan in case of the member’s default. The saving method, however, is not helpful as it cannot cushion one against emergencies unless one has a separate emergency fund kitty/account. One may be compelled to apply for an emergency loan instead of withdrawing from an emergency fund in case it exists.

I have learnt to save through unit trusts like Money Market Fund as a safety net for any emergency and other irregular expenses. I make regular monthly deposits and any windfall that comes my way because money market fund is easily accessible and pays better returns that saving in a bank with little interest. I also invest in shares (risky but offers better returns on the investment) and government securities (safe, secure and offers better returns instead of money lying idle in a bank account).

9). Entrepreneurship versus employment: which one would you advocate for? Why?

I would advocate for entrepreneurship even when in employment. It does not necessarily mean that when you are an employee you cannot be an entrepreneur. An entrepreneur is a person who solves a problem affecting the common person.

You only need to identify a problem you need to solve in line with your passion and work it out during your free time by developing a special purpose vehicle that will enable you start a business around an idea that would benefit people. You can keep on refining the idea till it becomes necessary to leave employment and concentrate on your business. Though not everybody is cut out for business, one can still devote valuable to time to learn how to invest and earn passive income while still working in his or her professional career. I have interacted with employees who want to start a business when they are about to or have retired. This is indeed highly risky because at retirement one does not have enough energy and skills to learn how a business operates. It is good to try your hand in business much earlier, and learn from the challenges as you move along or progress in your career.

10). What’s your parting shot? What is that heart advice that you have learned on life and money from other senior persons?

My parting shot is that the road to financial freedom is neither easy nor straightforward. It calls for persistence, integrity, focus and steely determination to achieve the ultimate goal. I have learnt from my mentors and coaches that I should devote valuable time to acquire vital life skills, networks and keep on improving myself. One key lesson I have learnt about life is not to believe anything simply because you have heard it from your trusted friend, partner, colleague or relative. Subject whatever you hear, read, hear, see or believe to in-depth analysis and observation before making a decision especially when it comes to investing your money.