With the ever-growing Kenyan economy, more people are becoming rich than at any other time in Kenyan history. Every Kenyan has a chance of becoming rich as long as you follow these simple steps on how to become rich in Kenya.
There is no standard measure of richness as it depends on an individual. However, being rich is having enough wealth resulting in financial freedom.
Although there is no timeline as to when this should happen, there are key steps and processes that help to achieve this goal faster. It is key to note the below factors apply irrespective of age, gender, career, or financial background.
This gives every Kenyan a chance to become rich as long as you are prudent and strategic.
1. Working hard
Working hard remains the core to success in life. This has been the case since the early days even before we started to count riches in terms of money. For you to become rich in Kenya, you have to put in the work.
This means you have to work for long hours even when the circumstances suggest otherwise. The main message in this is that hard work pays.
If you are in business, you have to spend long hours growing your networks, especially during the early stages after starting. This ultimately results in growth in the customer list increasing both sales and profits.
If you are employed, you have to work hard in ensuring the timely completion of your tasks and duties. This could mean working longer hours than usual by going beyond your comfort zone. In the long term, working hard ensures there is career growth translating to more income.
Hard work has no substitute. However, it is a sure strategy to win. If you dream to be riches, you need to start working hard as a habit.
2. Doing strategic investments
One of the other strategies of how to become rich in Kenya is through making strategic investments. Keenly note the term strategic.
We all make investments at some point in our lives. However, not all succeed. The goal should be to ensure the majority of the investments you make succeed.
Strategic investments mean investing in sectors with the potential to create more value in the future. Every day, new opportunities are coming up. Identifying opportunities requires constant research and taking risks.
A Key example of such strategic investment is putting your money in growing industries such as real estate. You can also focus on emerging industries such as cryptocurrencies. Others include investing in the green energy and technology sectors.
These industries represent the future and have the highest probability of creating more value.
3. Good money management skills
One of the most common characteristics of rich people is that they have good money management skills. They use a budget to avoid misuse due to a lack of planning.
Good money management skills require self-financial discipline. Some rules guide how to spend your money to avoid missing out on some important areas such as savings and investment. normally, you should spend 50% of your income on things that you need, 20% on savings, and the rest on wants.
This approach ensures you are setting aside enough savings that you should use to invest. Below are some of the tips to ensure you have good money management skills.
- Bargaining where possible to buy at a lower cost
- Cooking at home instead of eating out
- Buying in bulk
- Using public transport
- Saving consistently
4. Taking Insurance
Insurance gives a second chance in case something happens to your investments and assets. As you climb the financial ladder, it is key to factor in chances of loss due to factors beyond your control such as fire or health challenges.
This risk is what makes insurance necessary. It helps minimize the impact of loss assisting in the process of recovery.
As an example, taking a fire cover insurance would help in recovery in case you face related losses. Taking a medical insurance cover also helps in paying for the medical cost in case of a health emergency such as getting sick.
Without insurance, you can only pay for the damages with your funds. A factor that could drain your resources if the cost impact is huge.
Although insurance comes at a cost in form of premiums, it is worth it. You should also ensure to settle on the best insurance service provider by comparing their products and associated costs.
This reminds you that getting rich is not a rush. It takes time, effort, and dedication before getting to a point of comfort. Normally, becoming rich is a long-term strategy that should have a well-done plan.
Just like the saying goes, Rome was not built in a day, it takes time before the effort of hard work and investing starts to pay off.
Being patient also helps you to avoid the schemes that come with getting rich quick promises and end up being Ponzi schemes. There is no shortcut to becoming rich.
As an example, if you want to become rich through growing in your career, you have to wait patiently to climb the ladder through hard work and dedication.
It also takes time for a business to break even and become profitable consistently. Investment also takes time to give adequate returns. If are investing in shares, you have to be ready to wait for the share price to grow. This could take up to 10 years or more.
Hence, getting rich in Kenya takes time. Put in the work and be patient. It will pay off ultimately.
6. Diversify your income streams
Diversification is a strategic investment approach that ensures you focus on different investment assets to achieve some goals such as revenue diversification.
Diversification also enables you to spread the risk across many options. This ensures that in case an asset is underperforming, you can focus on the better-performing options.
Proper diversification needs a plan and adequate market research. As an example, you can decide to diversify your investments in different areas such as real estate, Money market, stock market, and government bonds.
All these industries have unique benefits and challenges making it necessary to balance between income and risk levels when coming up with a diversification strategy.
7. Growing your savings
Savings enable investment. Hence, you require a sizeable savings level to make impactful strategic investments.
You should also note that some of the financial institutions in Kenya such as Saccos require you to have a certain amount of savings before you can access loans. The more savings you have, the higher the loan limit you can access.
To grow your savings, you should start the process immediately you start making some income and increase them as the income levels grow. They may seem a little in the beginning. However, they become sizeable as long you maintain discipline and consistency.
8. Taking risks
Risk-taking is a must-have trait if you want to become rich. You should not shy from making investments as long there are chances of good returns.
Ideally, all investments carry some level of risk. What matters is your risk tolerance and risk management skills. You should ensure to match the risk level with an equal size of rewards.
However, ensure to have a corresponding risk management strategy such as hedging and diversification.
9. Getting a mentor
There is no better mentor than an individual who has taken a similar journey as yourself. If your goal is to become rich, you should get a rich mentor.
A mentor should be someone who can offer guidance and advice to make the process easier by reducing the learning curve. Your role then becomes to implement and follow their steps.
You can also choose to get more than one mentors more so if you are targeting to invest in different industries. The bottom line is that if you have someone offering guidance, the journey and process become faster and easier.
10. Continuous learning
To become rich in Kenya, you should make learning your daily obligation. Only through learning that you can identify new ideas and investment opportunities. It also helps to gain better skills both in money management and business management.
There is plenty of content to learn available either at a cost or with no cost such as online content. In the era of globalization, you can access material across the world easily and cheaply.
Making learning your friend makes you relevant and knowledgeable. It is also a key enabler for career growth. The more knowledge and qualifications you get, the higher the chances of growing in your career both in position and remuneration.
Conclusion on How to Become Rich in Kenya
The question of how to become rich in Kenya is fully answered by the above key steps and processes. Although it takes time to grow wealth, it is not impossible to become rich.
These steps have already created thousands of rich people in the county. Hence, your task is to take and implement them fully.