Tuesday, January 26, 2021
  • Bizna Club
  • Directory
  • SME Awards
  • YEA Awards
  • Login
Bizna Kenya
  • SME
  • AGRIBUSINESS
  • SAVINGS & INVESTMENT
  • AUTO
  • REAL ESTATE
  • NEWS
  • EDUCATION
  • HEALTH
  • TECH
No Result
View All Result
  • SME
  • AGRIBUSINESS
  • SAVINGS & INVESTMENT
  • AUTO
  • REAL ESTATE
  • NEWS
  • EDUCATION
  • HEALTH
  • TECH
No Result
View All Result
Bizna Kenya
No Result
View All Result

Home » FEATURED » Ndindi Nyoro: This is why saving money will not make you rich

Ndindi Nyoro: This is why saving money will not make you rich

by Bizna Reporter
29th October 2020
in FEATURED
Reading Time: 3min read
A A
culture of saving
Share on FacebookShare on Twitter

In business classes at the university, the take-home message is that a culture of saving is the gateway to financial freedom. However, nothing can be further from the truth. The school of thought that savings lead to wealth is unyielding.

From the economic pedestal, the culture of saving is supposed to contribute to a pool of money where investors, industrialists and those who engage in economic activities can borrow. The culture of saving from the great majority are supposed to help those expanding their investments by providing new capital.

You can now get your digital driving license in a day at Huduma Centres

Consequently, these investments are supposed to create jobs, more value and spur the economy. However, the modern day hailed call to save, is slavery to doctrines that yield no results. Saving just as a matter of principle leads to a never-ending destination that leads to mediocre lives.

For example, a person who earns Sh.30, 000 and after paying rent and other basic amenities is able to save Sh5, 000. What if this individual is advised to try and save more? This would push him to reduce his expenditure, move to a cheaper house and even park his car at home, in favor of public transport. The other option to more savings would be to cut down on their menu and other such crucial expenditure.

ReadAlso

Kenya to borrow Sh. 1 trillion by end of June this year

How Covid-19 battered Kenyan economy, fueled job losses

NMS to kick out car wash businesses out of Nairobi

Kenya’s 6 billionaires who all come from one village

Therefore, increased savings can only happen if the expenditure is condensed. This means relegating your standard of life. When you work so hard, the intrinsic motivation is to lead a good life with trappings of as much as can be afforded. This, unfortunately, is not possible if all you need to do is save.

On the contrary, to lead a good life, one needs to expand their income streams, not constrain the expenditure. To be wealthy is not a determination of saving from the same stream. It is a variable of having more, not spending less. You make no money by saving money.

Money is only made by engaging in more commercial activities. This, in turn, gives one freedom to actually consume more and delight life with more adornments. Therefore, if your income stream only affords you to live in a Sh10,000 per Month rental house, you make no money by moving into a Sh8,000 house.

You only likely end up in a house further from the road and other amenities. It only makes more sense to concentrate on expanding your current income stream and fostering new ones. This will liberate you to move into a Sh20,000 house which will likely be more comfortable. When this happens, economic activities increase and velocity of money is improved.

Gakuyo rebrands, makes comeback with another land project

The effect of this is a robust and vibrant economy. Reducing expenditure on the other side and almost invariably contracts economic activities. We better learn to spend, live large and indulge in the best that life can offer but we must keep replenishing the source by opening up the supply side of resources.

If employed, a side hustle will do. To those in business, you have less to do; just expand your lines and open new ones. In other words, the only kind of ‘saving’ that makes sense is that which transits to investments.

And the only investments that are worthwhile are those that create more revenue streams. Wishing you well and you plan to save less or none at all.

ShareTweetSendShare

Related Posts

Treasury Borrowing Kenya
FEATURED

Kenya to borrow Sh. 1 trillion by end of June this year

by Bizna Reporter
26th January 2021
Job Statistics Kenya
FEATURED

How Covid-19 battered Kenyan economy, fueled job losses

by Bizna Reporter
26th January 2021
Car Wash Businesses in Nairobi
FEATURED

NMS to kick out car wash businesses out of Nairobi

by Bizna Reporter
25th January 2021
Benson Wairegi Salary
FEATURED

Kenya’s 6 billionaires who all come from one village

by Bizna Reporter
25th January 2021
Kenneth Gichoya
FEATURED

Njoro: From hawking sweets to owning hardware, matatus, clubs

by Bizna Reporter
25th January 2021
Irungu Kang'ata
FEATURED

EACC starts probe on Irungu Kang’ata law business

by Bizna Reporter
24th January 2021
Strongest currencies in the world
FEATURED

Strongest Currencies In The World (Updated List)

by Bizna Reporter
23rd January 2021

Discussion about this post

Follow Us

  • 248.3k Fans
  • 350.5k Subscribers

Recommended

MAF Carrefour App

Carrefour Kenya Launches New Mobile App to Enhance Online Shopping Experience

11 hours ago
attracted

I Love You, But Not Intimately Attracted To You

2 days ago
Potato Value Addition

Simple ways to add value to potatoes for more money

4 days ago
Loon Technology Pilot to be discontinued - Bizna Kenya

Loon Technology Pilot to be discontinued 

4 days ago

Sectors

  • AGRIBUSINESS
    • Crops
    • Dairy
    • Livestock
      • Poultry
    • Rabbit
  • AUTO
  • Bizna Club
  • BIZNA SME AWARDS
  • CUSTOMERS VOICE
  • EDUCATION
  • FEATURED
    • TOURISM
  • HEALTH
  • KENYAN MEALS
  • Life Hacks
  • NEWS
    • Corporate
    • World
  • REAL ESTATE
  • SAVINGS & INVESTMENT
    • Insurance
    • Loans
  • SME
    • BIZNA BASICS
    • Digital marketing
      • Online Bizness
    • E-Commerce
    • Management
      • Career
    • Mentorship
    • PROFILES
  • Sponsored
  • TECH
No Result
View All Result

Highlights

Customers vote Family Bank best tier two bank in Kenya

Always Kenya introduces organic cotton pads in product expansion

Safaricom Launches M-PESA Bill Manager for Businesses  

TSC to promote 1,000 diploma teachers, Here’s how to apply

How Covid-19 battered Kenyan economy, fueled job losses

Carrefour Kenya Launches New Mobile App to Enhance Online Shopping Experience

Trending

Treasury Borrowing Kenya
FEATURED

Kenya to borrow Sh. 1 trillion by end of June this year

by Bizna Reporter
26th January 2021

Treasury Borrowing Kenya: The National Treasury is expected to borrow Sh. 1 trillion in the current financial year...

Second Hand Cars in Kenya

Kenya set to ban importation of all second hand cars

26th January 2021
Warunge Murder Case

Warunge unfit to stand trial over family’s murder, court rules

26th January 2021
Family Bank CEO Rebecca Mbithi receives an award from Kenya Bankers Association CEO Dr. Habil Olaka where the bank emerged as best tier 2 and 2nd best overall in customer responsiveness and satisfactory digital experience - Bizna Kenya

Customers vote Family Bank best tier two bank in Kenya

26th January 2021
Always Kenya - Bizna Kenya

Always Kenya introduces organic cotton pads in product expansion

26th January 2021
  • Home
  • About Us
  • Our Profile
  • Privacy Policy
  • Contact Us

2020 Bizna Digital Services | All rights reserved.

No Result
View All Result
  • SME
  • AGRIBUSINESS
  • SAVINGS & INVESTMENT
  • AUTO
  • REAL ESTATE
  • NEWS
  • EDUCATION
  • HEALTH
  • TECH

2020 Bizna Digital Services | All rights reserved.

Welcome Back!

Sign In with Facebook
Sign In with Google
OR

Login to your account below

Forgotten Password?

Create New Account!

Sign Up with Facebook
Sign Up with Google
OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In