LEAVING A LEGACY WORTH LEAVING FOR ?

DREAMS AND AMBITIONS IN LINE WITH RISK MANAGEMENT.
Every one has dreams, and dreams are of many facets according to responsibilities such as:
Owning a debt free beautiful residential or Real estate investment.
Sleek car with first class models
Manage child education at all levels
Take a vacation with my family
To have enough investments to cater for long term goals
To leave a handsome fortune 4 my children to give them a better head start in life and many others.
Unfortunately for many of us in reality our goals are obscured and we realize them, much as we may be fortunate enough to be employed and working in good jobs, we still suffer from stress related illness, we hardly concentrate, in fact if given chance of a higher pay, we would jump to grab it, worst of all we do very little, if any thing, towards achieving our life’s set smart goals, if we have ever set them in any case.
Note: Focus, Accountability and Cohesiveness.
BUT WHERE IS THE PROBLEM?
Every the other month your account is graced with lots of cash, but a few days into the new month, your realize that there is so many months left at the end of your money, actually you are helping others achieve their goals at your own expense.
Very few, if any of us have been taught the skills to manage our money efficiently.Yeah we go about our financial matters with all good intentions but very easily fall prey to the uncompromising push of consumerism, peer pressure, easily accessible salary or business loans and perhaps we are just used to finance a lifestyle that is unaffordable and we order for more credit cards. With such a life style, our salaries dwindle because we accepted to spend more than what we earn which is a serious risk that can ruin our lives.i.e live beyond your means!.

FINANCIAL SUCCESS IS NOT ABOUT HOW MUCH YOU EARN
However much we strive to earn more but don’t put aside /save/pay ourselves first, to achieve our goals, we will not be developing. The rate of ones development is directly related one’s capacity to save ,there is no way ,except through dubious deals like robbery,corrupyion, etc.Savings are a function of our financial activities in a given period and can be achieved by either deliberate efforts or as a common practice left to chance.
CHOOSE TO MAKE FINANCIAL HEADWAYS.

We shouldn’t leave our opportunity of making financial headways to chance .We are bound to make informed, conscious choices about what to do with money that we earn, so that it’s directed in such a way that it helps us make steady progress towards our goals. When we fail to do this, our money will actually end up aiding someone else to attain his/her goals, i.e. entertainment, banks, supermarkets, gifts shops, sleek phone models, automobiles among others it’s where we spend over 85% of our hard earned money not to mention the time and money wasted in lodges in the name of searching for insatiable pleasure and spread the snob effect.

WEALTH CREATION IS A PROCESS!
The gate way towards being a wealthy person is a gradual process, which begins with managing your income properly. At this level we learn and practice the skills to manage our cash flow, by controlling our expenses, avoiding costly and lengthy binding debts and developing our ability to spend less than we earn in order to save. This is the GOLDEN RULE FOUNDATION upon which all our efforts will based /set. During this stage we learn the discipline of developing and using spending plans /budgets to monitor and control the use of our money in a way that helps achieve smart set goals.

MY SPENDING PLAN.
By setting smart goals which are specific, measurable, attainable, and realistic and time bound for them to be worthy pursuing. i.e. ‘I want to retire at the age of 65,I will leave in the house that am yet to purchase in fact it’s a big concern, I also intend to travel to visit my children regularly and be an active member of my local community wherever I will be by then among other crucial dreams in mind. I estimate my monthly expenditure budget will be 0.5million at the start God willing, I will live to a ripe age of 94 years.’ That gives you around 34 years and if you go by what I will be spending, you will find that I will need over Ushs204000000/=at the time of your retirement.
Note: Pride, Determination and Resilience.
MY SMART GOALS EXPECTED TARGET CHART
It will generate a figure that I need to be saving each month or quarterly or biannually or annually. Therefore going by my demonstration, and my next birth day 44years I need to save for fifteen years and the scheme is ENDOWMENT PROFITS.

POLICY TERMS
SUM INSURED
ANNUAL PREMIUM
MONTHLY PREMIUM
MATURITY/FUTURE
VALUE
15 YEARS
98,127,500/=
7,801,136/=
682,600/=
204,000,000/=

This means that I need to save Ushs 682,000/= per month or 7,801,136/=per year to achieve my smart set goals .At the end of the policy term the money is payable to me in lump sum and I will put in my deposit account ,which can make more investment, as I will see it fit. Invest now with no strings attached.
When generating a spending plan it’s advisable to categorize them into two ways:
You have greater say over entertainment, vacation, and lodging, mobile phones among others that decline ones salaries or wages.
Those that are a pre-requisite to your being i.e. food,accommodation/shelter,clothing,medication etc.By doing this you will be able to know where you need to make adjustments in order to balance your spending plan, be certainly sure that you considered all your expenditures.
Your spending plan should be arranged in a format that ensures clarity and simplicity so that it serves your purpose of controlling your spending. At this level you need to harness/harmonize your plan by incorporating your plan into practice.
As you master the game of controlling spending and strict saving, you will find that, to secure your progress, you have to take on an appropriate insurance on your life, health, business assets of all sorts your benefits and those that depend on you and also to consolidate your gains, you will also have to put in place contingency plans to cater for possible emergencies. An emergency fund would cater for you in case you find your self in situation where your income earning capacity has been compromised due to loss of a job, an accident etc.

MY INSURANCE BENEFITS!!
· It’s an investment, with life and pension schemes, the policy owner is assured of the sum assured plus the accrued bonuses presently accorded at 5% compound reversionary interest
· It’s a collateral security, with life and pension schemes once the policy has been enforced for three years, the policy owner can secure a loan from the insuring company or any other registered financial institution in Uganda.
· As a life cover, in case the insured dies, his family is compensated 100% of sum assured should he fail to wake up one day.
· It’s a policy rider in case of any disability from any insured risks.
· It protects against the insured risks i.e. fire, burglary, accidents etc.

At this level you will realize that security measures are needed for those that might leave behind real estate developments should one dies .i.e. writing a will, powers of the attorney, trust, custody of children etc.
The next level of wealth spans the length of our life span that is working, retirement and perhaps beyond. This is investing from short investments .i.e. money markets to medium and long term investments such as real estate development, security/share/mutual fund /stocks/deposit account investments, child education etc.
Investment thus presupposes that you have your cash management in order to have adequately hedged your self against risks or losses. This is because you need to have your working assets before you can venture out on how to take on the risks associated with investing. However many of us are fond of jumping in the more tempting arena of investing before we can come to the grips with less enticing prospect of learning to managing our money and control our expenses which money ends up in the drain and we end up being vulnerable in our evening years.
All the above then ushers us into wealth into wealth generation and propels us to towards our goals. Acquire the skills, plan, be focused, and persistent. This way shift from the rigmarole of struggling to grow our wealth by working progressively harder for more income, to be able to develop a wealth creation process that will allow us to gradually slow down and be ushered in retirement in style. The truth is, it’s not easy, it cannot happen in overnight and most of it will depend on our actions. Wishing you success as you buy the idea of saving, this will head you into secure investment and thus a wealthy /tycoon person.
Compiled by mkz-emma 2008
‘’God abide in my plans’