DUAL CAREER SETTING FOUNDATION FOR FINANCIAL INDEPENDENCE WHILST

DUAL CAREER “SETTING FOUNDATION FOR FINANCIAL INDEPENDENCE WHILST IN FULL TIME EMPLOYMENT: Getting it Right for Professional Excellence” TRAINING FOR UNHL STAFF Date: 03 Jan 2018

FINANCIAL DOOM FOR THE SALARIED: THE FACTS n Of 100 new 25 -year staff, by age 65, 1 will be wealthy, 4 financially n n n n n independent, 5 still in employment, 54 bankrupt. Balance… Less than 2% of former employees become financially independent on retirement UNLESS…. NSSF/Pension no help; We live 2 lives: one for 8 h/day – it’s organized but cld stifle; the other 16 h/day, disorganized but real; No 1 with sober mind retires - change in what 1 shall be doing; even exciting; Years in retirement roughly equal to years of enjoying a salary; Over time body system begins to slow down; Permanent wealth takes 3 generations of empire growth; Children with good intentions unlikely to help, why? ; NB: Great future requires all the following 3…shock of loss of title and sudden idleness; Financial Independence definition: (a) … and (b) … 2

THE ILLUSIONS ABOUT MONEY n There is a magical amount which solves all your n n financial problems; There is a better place to acquire and manage it One cannot start saving and investing until one achieves a certain threshold of income; Better to enjoy fruits of your sweat right now; Level of education, experience, rank and one’s social class determine access to lots of money. 3

ORIGIN OF THE CONFUSION n We were created to excel in only one particular calling, thereafter retire, hopefully, blissfully: n n I am a civil servant, teacher, politician, reverend only; I am a banker, engineer, auditor, micro-biologist and nothing else; n Share Mulwana’s multifaceted career: n To get a thing done, give it to a busy person; n Wherever you are and whatever you do, seek to be of value…cite also Muyingo… n How you do any job charts your future, why? See below…. n What you repeatedly do shapes your: (i) Attitude/character (ii) Skills/competency levels. Portrait of a serial failure… 4

DUAL CAREER IS ABOUT TIME MANAGEMENT n We live 2 lives: n n Public: 8 hours and structured. Time for start of work, tea break, lunch break, end of day; Private: 16 hours and often unstructured or misallocated. n Secret is in structuring the private time productively: n n n Eat 1. 5 hrs. Lunch time taken care of at office; Sleep 8. 0 hours – should be deep but is it? Family/Emergencies: 1. 5 hours. Also could bond during dinner; Leisure/exercise: 1. 0 hr. Could also be combined with family time; Development: 2. 0 hrs. for professional growth and investments; Saturday and Sunday: Each has 8 to 10 extra hours to allocate; n Time use indicator of one’s self management, discipline, productivity and attractiveness. Marry the 2 lives for great journey. n Advice: Use office as laboratory to super career. 5

CAUSES FOR FINANCIAL STRESS n Impulsive purchases; n Urge to be part of the Joneses; n Lack of self-confidence; n Naïve understanding of loans; n Meeting ‘now’ needs and wants using future fixed and even unreliable income. 6

THE REALITY n Trying to please the public is a vain game; n No matter how long it takes, one shall have to be on one’s own: there is an end game for every staff; a finish line exists; n The mindset and character you cultivate while in full time employment determines who you become after that job. 7

RULES TO STRONG PERSONAL FINANCE MANAGEMENT 1. 0 Have Weekly, Monthly and Annual Budgets: n Recurrent Costs 50%; Financial Independence 30%; Emergencies 10%; God 10%; n Be ruthless with adherence to the budgets. Fit regular expenses into 50% allotment. NB: solutions available as a continuum. Can always graduate along it as income expands; n No matter pay scale do it –habits are by products of repetition. Takes independence and self belief; n Include key stakeholders in the budgeting process to get buy-in and sense of accountability - children, spouse. 8

RULES TO STRONG PERSONAL FINANCE MANAGEMENT … 2. Put Public Opinion in its Rightful Place n n n n Why we listen too much to public opinion… Why people offer opinions … External opinions most challenging to handle. . What others say does not matter BUT what matters is what happens as a result of what you do; Everyone experiences these two voices, which one is dominant for you? Understand why certain new habits do not take root easily and yet others do - new takes 24 m to root amidst loneliness Opposite of courage is not cowardice. It is … 9

RULES TO STRONG PERSONAL FINANCE MANAGEMENT… 3. Get out of Consumption Debt Trap n Do not eat ahead of your income; n Desist from taking internal or external credit facilities if their use does not generate income – Ask yourself: “what drives lenders who come to me? ” When to take a loan …and 5 Cs; n Must have started saving and reinvesting profits; n Keep liquidity at minimum, manage ATM … n Sure evidence of chronic debt trap…. ICU case!! 10

RULES TO STRONG PERSONAL FINANCE MANAGENT CONT… 4. Go for Investments Relentlessly n n n n Start investments immediately; 1 st not final… Start with low hanging fruits: bank accounts with interest; shares; bizs with interest, have knowledge on; biz can push to liquidity with available resources. In all know KSFs; Size does not matter: organic growth evidence of self discipline and license to get external aid; Compete with yourself: accomplish, move…non-stop; Adhere to ‘higher equity than debt’ Starting delivers 6 priceless benefits we yearn for; Once started: (i) Offer value beyond pay (ii) Develop a records culture to cure the 3 African traps in business – the “Toos” (ii) re-invest at least 50% of all profit from business (iii) Respect Mulwana’s 3 secrets to durable financial success…. 11

INVESTMENT OPTIONS TO WATCH AGAINST n Those that create several transactions daily: retail shops/groceries, pharmacies, stationery, fuel, mobile money, produce trading, etc: Sign: Indians in most of them; n Services which may be consumed but evidence difficult to pick: transport, drinks, food, accommodation, cinema, gym, garage, etc. Sign: Indians in most of them. n Social solutions: education, health; etc. Sign: Touch on societal emotions. 12

DEALING WITH RELATIVES n Be a Mentor not a Bank to Relatives n n n Concentrate on getting your relatives to discover and develop themselves; Help them onto the right ladder to success BUT let ascending it be up to them, not you; Push your people off from dependency zone to aspiration… ambition zone; Share investment example that starts with 20 k but hits a billion shilling mark in net-worth within 4 years; Be ready for name-calling and detractors; Abandon the ubiquitous philosophy: “I suffered a lot…” 13

CALL TO ACTION n Put in Writing Action Points Commit to live below REGULAR income; n Deliberately start to love your current job; n Save & invest at least 30% of your income; n Get rid of non-productive debts; n Let income not debts buy luxuries; n Watch your company and reading material; n Develop budgeting habit; and n Start the 3 action planning evenings. n 14

CLOSING QUOTE Life is …% what happens to you; …% how you respond.