A new Pot to Piss in
By Michael Ngigi
Hooray! You just got a job! Now it’s time to start living.
Think about the options that are now available to you. You could move out of your parent’s house. Maybe consider buying that piece of furniture that’s missing in your living room. In short, your options are now more than they were when you were jobless.
A friend asked me to give them advise on what they should do with their first earnings. After thinking about it and realized I was in need of the same advise. So I called up some of my friends who are more successful than I. The conversations we had were mind blowing. I felt like I had wasted my life all along. However, I have made a resolution to tell anyone who cares to listen about this age old secret that determines everything.
So for a moment, imagine me in white flowing robes, floating inside a light bulb. An idea bulb. I am speaking to you in a dream…
You cannot, should not celebrate with your first salary.
Yes I said it!
Come up with a lean budget based on your needs and fight yourself down to stick to it. I’m sure you’ll be left with some change (considering that your first job will most likely suck at paying!). This change is your lifeguard. It is your insurance for the future.
You see, in your early twenties you will be tempted to think you have time to make mistakes. But have you seen the increasing number of millionaires being made every day? Yesterday, my twenty-two year old friend announced to us that he’d bought a house. I was devastated! How did he do it? Maybe he stole, maybe he sold his soul to the devil but he bought a house… at twenty-two! Well I wouldn’t advice anyone to use the means above to get stuff as nothing comes for free (if you know what I mean). But time is closing in on us. If you’ve just started earning, you are lucky and blessed. If you have lost a lot of time like me, this is our last chance.
Eight years ago when I started earning, the year 2010 looked distant. In fact, I thought the world as I knew it would have ended by then.I was scared to invest because I thought I’d lose in the end…but so did John Rockefeller in 1855 and Manu Chandaria in 1955. Get it?
Lesson: The world is going to be around for atleast one more minute so plan for it.
Let me introduce you to an interesting concept in simple math. If you were to buy a 10 year investment policy for Kshs 5,000 a month a, you’d have accumulated Kshs 600,000 in the end. Now let’s go back to the start. Suppose you’re getting a minimum return on investment of 12.5% for your money you’d have Kshs 720,000 after 10 years. What if you bought three more policy’s for the same amount? Does Kshs 2,880,000 sound like music now? I have a feeling that you’re still not impressed…
I know what you’re thinking. Maybe you’ll start a business and make more money than what I propose. Good enough. But did you know nine out of ten businesses fail within the first year? Ok now you don’t believe in statistics? Read the signs puppy. You are young, with very little money to play with. Very little to waste for that matter. But then again, you need to dress up, eat better…
” A girl has needs you know…” says one newly employed young ‘professional’ woman.
” You know I got my people to take care of.” adds another responsible guy.
I wouldn’t want to hurt your feelings but I have to break it to you. You are poor! Did you not get it when I said it the first time? Lean budget. Sharpen the axe first before you begin cutting down the tree! Your family will always need taking care of. Needs have always been there. Investing is about conquering yourself now so you could increase your options tomorrow. Wouldn’t you feel good buying real gold instead of plated junk? I thought so. I’m sure you’d also like to take your mother to the best physician and a list of a million other things that require you to be ‘equipped’.
Where there is smoke there is fire. We know that, even though we cannot verify it. But we are blind to more obvious signs. We walk into burning buildings and saw off the tree branch while we are seated on it. We just never seem to learn!
Well good people, life is interesting. It favors the bold and rewards those who take the narrow road.
Next time, I will tell you why you and I need to be wealthy. I will give you a picture of what money can do for you. For now, study the puppy.
Give him some food in a fancy dog bowl and he’ll wag his tail and be happy. After he’s done, he’ll run round the compound and when he comes across his food bowl, he’ll forget that was where he ate from a few minutes earlier. He’ll wag his tail even more, indicating he is twice as happy.
He has just found a new pot to piss in…