If you are in your twenties, you have the best time to take care of your future, and the best way to do so is through investing the right way.
You may think that you have a very long way to go, but the fact is the earlier you start investing, the better. However, it’s important to seek guidance before pouring your money into a certain investment to avoid regrets.
You may also need knowledge of how money works to avoid making unproductive investments. This post focuses on money lessons some top CEOs and business people in Kenya wish they had learned in their twenties.
Carole Kariuki, CEO of Kenya Private Sector Alliance (KEPSA)
According to her, she wished she learned the importance of taking loans for investments while in her 20s.
‘‘If you must be in debt, let it be by taking loans for investment. Take loans when you are young, in your twenties. This is when you have fewer obligations, not to mention a lifetime to pay it back. When you are older, banks will lend you money for a shorter period, and it will be late in life.’’ she said.
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Einstein Kihanda, CEO of ICEA Lion Asset Management
He believes that if he had known the beauty of compound interest in his 20s, he would be in a better place than he is today.
Compound interest means that your investment earns interest, and the principal of that investment also earns interest. This means the amount you have invested will grow faster than if you were to let it sit in a savings account.
”Start saving as early as possible. Compound interest is like magic. It just accumulates. It is interest on interest, so it keeps growing, and as long as you are consistently saving and investing, the money keeps growing. You do not need significant amounts of money to save and invest. There is an erroneous way of thinking that to invest; you need to accumulate a large pool of funds. Start with what you have and build on that.’’ He advised.
James Nyamai, Founder and Managing Director at Bioafriq Energy
”What I wish I knew then is the importance of mentorship and coaching in business and how instrumental it is in the success of a business,’’ he said.
Various studies show that having a mentor is essential for business growth. Experts say that one of the reasons why some businesses, especially startups, go belly up a few years after starting is due to a lack of mentors to guide them in their ventures.
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Wambui Mbarire, CEO of Retail Trade Association of Kenya
She regrets not starting her investing journey early to give her money enough time to multiply. She also had no knowledge about the best investment havens.
”I wish I had invested early. One of the things I think about often is how liquid I was when I was in my twenties, in my first job. I wish I had put it into something like stocks, bonds, or such instead of keeping it in a bank account. It would probably have grown way more and probably diversified my portfolio earlier in life. If I had invested it better in land, property, or shares, that would have, over the years, given me better returns.”
”In addition, the power of insurance policies or insurance investments is lost on many people. It helps you save even if you don’t think so. Just invest the money. Don’t leave it in a bank account.” said Mbarire.
