Money-Wise: Create, Grow and Preserve Wealth

By Rina Karina-Hicks

Do you want to develop a plan for wealth creation and management linked to your purpose and values? Do you want to understand the basics of investment and the options available to you? Money-Wise provides answers to the above questions and takes you on a journey of discovery as it welcomes you to the world of wealth creation and management by unlocking the secrets and prerequisites to investing. It also explains the investment opportunities available to you while at the same time highlighting the advantages and risks of each investment option. The book also shows you how to protect your assets and excel in the art of giving. In this book, you will discover the common mistakes investors make as they seek to create and grow wealth and also a host of practical tips that will help you produce optimum results in your investments.

• Language: English
• Publisher: Kirimi Barine
• Release date: Feb 4, 2018
• ISBN: 9781386677369

Book preview

MONEY-WISE: Create, Grow and Preserve Wealth

Copyright © 2016 Rina Karina-Hicks

All Rights Reserved.

Reproduction, copy or transmission of this publication may not be made without written permission from the author or publisher or in accordance with the provisions of the Copyright Act of the United States of America.

Published by

P. O. Box 58411,

Raleigh, NC 27658 U.S.A.

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ISBN: 978-1-937455-32-3

Cover Design: Aika-Grace Wangwe Book Layout: Chez Promotions Limited

Unless otherwise indicated, Scripture quotations are from THE HOLY BIBLE, NEW INTERNATIONAL VERSION®, NIV® Copyright © 1973, 1978, 1984, 2011 by Biblica, Inc.® Used by permission. All rights reserved worldwide.

Money-Wise is a guide to personal finance. It is practical but offers no guarantees. Information provided is from the author’s perspective. Readers are encouraged to rely on their own judgment, when making decisions about their individual circumstances. Neither the publisher nor the author shall be liable for damages arising therefrom.

www.moneywise.co.ke

DEDICATION

To my parents, who raised me to believe that I can accomplish anything I desire.

To my husband, who has walked with me throughout this journey and has encouraged, supported, and cheered me on. I love you!

To my children, fearless leaders in the making. Learn to run your own races and don’t let others do the thinking for you.

TABLE OF CONTENTS

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FOREWORD

ACKNOWLEDGEMENTS

PREFACE

01 - WHAT DRIVES YOU?

A Greater Purpose for Money

Personal Values Clarification Exercise

Important Next Step

02 - IT BEGINS WITH A DREAM AND A PLAN

How to Set Your Goals

Your Financial Success Challenge

03 - HOW AM I REALLY DOING?

Determining Your Net Worth

Avoiding Inflation and Negative Net Worth

Calculating Future Costs

Keep Learning

Your Financial Success Challenge

04 - GETTING OUT OF DEBT: Prerequisite to Investing

Paying off Your Debt

Your Financial Success Challenge

05 - CAN’T AFFORD TO SAVE?

Never Too Young to Start Saving

Do What Mike Did

Making Money while in School

The Entitlement Problem

Your Financial Success Challenge

06 - GROWING YOUR NEST EGG

Yes You Can!

Your Financial Success Challenge

07 - MAKING THE RIGHT INVESTMENT CHOICE

Motivation #1: Security

Motivation #2: Income

Motivation #3: Growth

Think for Yourself

Your Financial Success Challenge

08 - PROTECTING YOUR ASSETS

Insurance: Protection from the Unknown

Retirement Planning

Enough Already!

Final Insurance Tips

09 - A LIFESTYLE OF GIVING

Why Should I Give?

FINAL WORD

BIBLIOGRAPHY

ABOUT THE AUTHOR

BACK COVER

FOREWORD

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The only disability in life is a bad attitude.

(Scott Hamilton)

Ifirst met Rina Karina-Hicks as her client at Faida Investment Bank. She later became my student in the Chartered Financial Analyst Programme at Strathmore University. I have known her as a dedicated investment professional. When she told me about her book on money and the management of personal finance, I assumed it would be based purely on the theory of finance. I was therefore very surprised and intrigued when I read this book. She has addressed the subject of wealth from a perspective that has never been apparent to me and - I suspect - many other people.

The important contribution of this book is that it sees the individual as the source of wealth and that wealth creation is both a consequence and a part of achieving our individual purpose. This reminds me of something John Maxwell said, [a quote originally attributed to Mark Twain]: ‘The two most important days in your life are the day you are born and the day you find out why.’ To apply the lessons of Rina’s book: the day you find your purpose is the day you embark on your wealth creation journey. This is distinct from the popular notion that you create wealth when you stumble upon a seemingly great investment idea.

Rina moves beyond abstract ideas in finance and correctly identifies attitude as the critical enabler or inhibitor in the process of wealth creation. She then goes on to address the purpose of wealth past our common notions: that it is a way of satisfying our needs. She shows us that wealth is a means to all forms of creation. While these points seem obvious now that they have been made, they are not that obvious at all. Many assume that you need a degree in finance or accounting to create wealth and that you have to be engaged in a ‘lucrative profession’. Rina demonstrates that any profession is potentially lucrative, provided we apply ourselves consistently, with passion and dedication, to achieve excellence. In fulfilling our purpose, we produce wealth and the wealth we create by the application of our God-given talents is not our own; we are merely its custodians. We have a responsibility to apply it in the best manner possible. This powerful point articulated beautifully and simply by Rina is the essence of successful enterprise and investing.

Successful investing is about postponing present consumption, and applying our wealth in a manner that creates even more wealth, so that we can consequently have greater wealth in the future. Most successful investment strategies that deliver consistent returns into the long term involve the deployment of capital in activities that create more capital. They allow other people the opportunity to fulfill their purpose by providing them with employment, start up capital, or access to extraordinary goods or services. In short, the underlying economic activity that supports the investment adds value to others and enhances the process of wealth creation.

As Rina’s former lecturer and her colleague in the industry, I am pleased that she does not disregard her background in finance and investing. She has successfully applied essential financial concepts to the creation, management, growth, and preservation of wealth. Through relevant and realistic examples, she provides her readers with sound and practical understanding of how to employ different financial instruments to solve challenges, make and keep wealth, and manage risk. I am particularly impressed by the story of Mike and his sister Makena, which powerfully illustrates the impact of compounding and consistent saving. Their account demonstrates that modest funds earning a conservative return have the capacity to yield great wealth in the long term. It dispels the common view that we need high returns and high savings to produce wealth overnight.

In this book, Rina illustrates the immense possibilities available to those who refuse to be denied, to those who set goals, pursue them, and fully invest themselves towards being phenomenal in whatever they do. Wealth is a consequence of excelling in our purpose, regardless of whether that purpose is as a farmer, sportsman, cleaner, chef, doctor, or any other conceivable profession.

I trust you will enjoy and learn from Money-Wise as much as I have and that, in the end, you will develop a plan for wealth creation and management linked to your purpose and values. It is my hope that you will perceive yourselves as stewards of wealth, that you may apply the wealth you generate not only towards the fulfilment of your purpose but towards the fulfilment of many others’ as well.

James Mworia

Group CEO, Centum Investments

ACKNOWLEDGEMENTS

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Iam eternally grateful to the many people who provided encouragement, guidance, expertise, and support during the journey of getting Money-Wise to print.

I am specifically indebted to:

Rose Muiu, Larry Liza, Simon Gitu, Stephen Muthoka, and Martin Mbaya, for allowing me into your lives to understand how you did it.

The Focus Group, Bespoke Life Group members: David Kiragu, Joseph Sawe, Eva Sawe, Geraldine Mwihaki, and Meshack Muchiri, for your patience with me, answering my many questions to help me understand young adults in their 20s.

Boldewijn Sloet, for your

Reviews for Money-Wise

[Reuben Ndumia · Rating: 5 out of 5 stars]

This is so educative and enlightening on the matters of personal financial growth and investment.