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    14May, 2024
    Busting the Myths: Separating Fact from Fiction in the World of Investing
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    Investing can be a complex and daunting task for many people, which is why there are many myths and misconceptions about it. Here are seven of the most common myths about investing and the truth behind them:

    1. "You need a lot of money to start investing." This is not true. There are many ways to start investing with little money, such as investing in mutual funds or exchange-traded funds (ETFs) that have low minimum investment requirements.
    2. "Investing is only for the wealthy." Investing is for anyone who wants to grow their money over time. With the advent of robo-advisors, investment apps and online brokerage, investing is easy and affordable for anyone.
    3. "You have to pick the hot stock of the moment." Picking individual stocks can be risky and requires a lot of research and expertise. A better approach is to diversify your portfolio by investing in a mix of different assets, such as stocks, bonds, and real estate.
    4. "You have to time the market." Timing the market is impossible, as no one can predict with certainty what the stock market will do in the short term. Instead, it's better to invest for the long term and let compound interest work for you.
    5. "You can't beat the market." While it's true that most individual investors can't perform better than the market, it's not impossible. Some investors and fund managers can consistently perform better than the market through a combination of skill, research and experience.
    6. "The higher the risk, the higher the return." While it's true that high-risk investments can potentially yield higher returns, it's important to remember that they can also result in large losses. A well-diversified portfolio that includes low-risk investments can help to balance out the overall risk of your portfolio.
    7. "You don't need to diversify your portfolio." Diversification is an important aspect of investing, as it helps to spread out risk. Diversifying your portfolio across different asset classes, such as stocks, bonds, and real estate, can help to minimize losses if one investment performs poorly.

    It's important to understand that investing is not a get-rich-quick scheme. It requires patience and discipline, and a long-term approach is generally the best strategy. Additionally, seeking advice from a qualified financial professional can help to ensure that your investment decisions are based on sound financial principles.

    8May, 2024
    Investing in Treasury Bills and Bonds in Kenya
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    In the recent past, the interest rate on Treasury Bills and Treasury Bonds has been substantively high. The Bills rate has been at around 10% and the Bonds rate at above 14%. This is indeed a good time to consider investing in these treasury products.

    Below is a simplified guide on how Treasury products work and how to invest in the same.

    Investing in Treasury Bills and Bonds

    Treasury Bills and Treasury Bonds are one of the ways that the government funds its expenses through debt or borrowed funds. Treasury bills are used to borrow short-term funds (within a year) to finance the day-to-day running of the government, such as paying supplies, wages, salaries and the like.

    On the other hand, Treasury Bonds are used to borrow long-term funds from the local public (periods of more than a year). These funds are utilized for capital expenditures such as building roads, hospitals, bridges and the like.

    Characteristics of Treasury Bills and Bonds

    •    The government offers Treasury Bills in 3 periods; 91 Days, 182 Days and 364 Days. Treasury Bills are on offer every week. Interest rates are determined through an auction process. Investors place bids and depending on the amount the government want to raise, the interest rate is determined.
    •      Each month, the Central Bank announces the Treasury Bonds on offer. The Bonds differ in terms of; period, interest rate (coupon), and tax implication among other factors. You can get the current offers here - https://www.centralbank.go.ke/bills-bonds/treasury-bonds/
    •     If a Treasury bond does not raise the amount that the government has targeted, the government can re-issue the bond in later months or years.
    •     The Central Bank pays interest for the treasury bonds in intervals of 6 months. The interest rate of Treasury bills is deducted at source. This is called discounting. For example, if you successfully apply for a Treasury bill of Ksh 200K and the interest rate is 15K, you will pay CBK Ksh 185K and receive the Ksh 200K at the end of the investment period.
    •     Treasury Bonds for building infrastructure (Referred to as Infrastructure Bonds) are 0% tax-rated.

    Below is a summary of the characteristics of Treasury Bills and Bonds;

    Treasury BillsTreasury Bonds
    PeriodShort Term (3, 6 or 12 months)Long Term (Over 1 year)
    InterestDiscountedEvery 6 months
    Price DeterminedAuctionAuction
    TransferNon transferableYes - NSE
    Minimum100,000.00100,000.00
    W/Tax on Interest15%15%,10%, 5% and 0% for Infrastructure Bonds
    ReturnsInterestCapital gain/interest
    Interest rates (current season)8-11%13-15%
    CostsNo further costsNSE fee 2.6%
    OffersWeeklyMonthly

    How to trade in Treasury Bills and Bonds

    Opening a CDS Account with the Central Bank of Kenya – To trade in a Treasury Bill or Bond, you need to open a CDS account with the Central Bank. This CBK CDS account is different from the CDS account used for trading in stocks.

    To open the CBK CDS account, you need to visit a CBK near you. There are 7 CBK locations. See locations here - https://www.centralbank.go.ke/contact-us/ . You can also open a CBK CDS from any CBK Treasury Bills and Bonds agents. Agents include stockbrokers, commercial banks and other financial institutions.

    Once at CBK, ask for the Treasury Bills & Bonds desk and request to open an account.

    Opening an account takes about 2 weeks after applying. You will receive a notification from CBK by text once this is done.

    Deciding on the Treasury Bonds on Offer – Once your account is open, you can now trade in both Treasury Bills and Bonds.

    To buy Treasury Bonds, you need to know what is on offer. You can find this information on the CBK website here;- https://www.centralbank.go.ke/bills-bonds/treasury-bonds/

    Make an Application – Once you have determined the Treasury Bill/Bond to purchase, you will apply by filling out an application form with your details and the amount you are seeking to invest and submit it to the Central Bank before the indicated deadline. You can also apply using the CBK USSD code of *866#

    Results Announced - The Central Bank will alert you through a text of the conclusion of a Treasury bill or bond auction. You can check the status of your application via the CBK USSD for Treasury Bills & Bonds (*866#).

    Make Payment – Once your application is successful, you will make the payment for the bill or bond. To do so, give instructions to your bank to transfer funds to the CBK account with your details. Your local bank will help you with making this payment. You can also pay by depositing a Banker’s Check to any CBK office, or Treasury Bills & Bonds counter. Once you make the payment, your CBK Treasury bills & bond CDS account will be updated with the bill/bond.

    Receiving interest for Treasury bonds – The Central Bank will pay you interest every 6 months after purchasing the Treasury Bond until the end of the period of the bond. Payments will be made through the bank account you indicated in your application.

    End of Tenor – At the end of the tenor, Central Bank will pay you back the amount that you invested in the Treasury Bond.

    Selling in the Nairobi Securities Exchange – Treasury bonds are negotiable. This means that you can sell your treasury bond to someone else through the Nairobi Securities Exchange before the end of the tenor. For example, if you buy a 25-year Treasury Bond, you can sell it to someone else through the NSE after 2 years or after any period. The price of the Bond is determined by demand/supply forces.

    We hope this has shed more light on how to invest in Treasury Bills and Bonds. If you have any further queries, kindly feel free to ask by writing to us at invest@rubianiwealth.com

    16Apr, 2024
    The Keys to Successful Investing
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    In our previous blog, we discussed some of the myths that limit us from getting started and succeeding in investing. We have all been victims of some of these myths at one point or another. Now, in today’s article, we will look at what it takes to be successful in investing. We have done some research and compared notes with others who have addressed this subject of investment success and have come up with a list of 5 keys necessary for your financial success.

    1. Writing Down Your Goals, Having a Plan

    Did you know that about one in every 100 people has written down their financial goals and has a plan to meet these goals?All of us have what we desire to achieve financially. But unless you put these desires on paper and come up with a plan on how to achieve them, then they remain fantasies and dreams. 

    In His book “7 Habits of Highly Effective People” Stephen Covey says that the 2nd habit of highly effective people is that they begin with the end in mind. Articulating or writing down what you want to achieve through investing enables you to remain focused and motivated towards getting to your goal. So, take some time out of your routine and write down your financial goals, come up with a plan for fulfilling the goals and periodically review the plan. 

    2. Desire it, Believe it, See it

    It is not enough to just write your goals. You must believe in them. In his book “Think and Grow Rich”, Napoleon Hill states that your financial success starts with the mind. Unless you visualize success and believe that you have what it takes, you will keep giving up or getting derailed along the way. Some of the things that can help you keep the faith include reading books or watching videos that motivate you towards your goals, constantly reviewing your financial goals and plan, looking for and interacting with individuals who are more successful than you financially and who encourage you to your financial goals and participating in talks, courses and forums that keep encouraging you towards your goal.

    • Our life is what our thoughts make it. – James Allen
    • Whether you think you can or you think you can’t, you’re right. – Henry Ford


    3. Understanding the Money World

    Robert Kiyosaki, a renowned investment teacher puts it this way – “The difference between those who succeed financially and those who fail is knowledge. He says that the reason many of us fail in investing is because financial literacy is not taught in school and many of us are ignorant about the financial world thus leaving us as victims.C:\Program Files\Microsoft Office\MEDIA\CAGCAT10\j0298653.wmf

    In his book “The Art of War”, Sun Tzu, says that “if you know the enemy and know yourself, you need not fear the result of a hundred battles”. The money world is like war and if you do not understand what you are up against, you will end up being a victim and slaving for those who understand the money war and work it to their advantage. So, for you to be successful, you must understand how the money world works, who are the players and how you can position yourself for success.

    4. Get Started and Be Consistent 

    Once we define our goals and gain an understanding of the financial world, we then need to go ahead and get started in our investment journey. A major key to succeeding financially is being consistent. Investing is more of a lifetime marathon rather than a sprint. Many people wait for a deal or some financial breakthrough as their key to success. However, one-offs have very little to do with your long-term financial success.

    In his book “The Richest Man in Babylon”, George Clason states that money laws are like the law of gravity and they work all the time. His 2nd money law states, “Start thy purse to fattening”. He explains that for you to succeed financially, you must pay yourself first by saving part of your income and thus fatten your purse. In his 3rd law of money, “Make thy gold multiply”, he explains that you need to know how to multiply your wealth by wisely investing it.

    5. Overcoming Failure

    In his book “Think and Grow Rich” the writer says that success is always past failure. In other words, anyone who truly succeeds must have already failed before the success. It is said that on average, you will face a financial challenge that will significantly impact your wealth once every 12 years. 

    Therefore, it is wise to expect failure and protect yourself against the impact of a financial crisis. Insurance and having an emergency account are important to protect yourself. You also need to keep getting up once you fail and always know that success is on the other side of failure. 

    10Apr, 2024
    5 Investment Products for Your Consideration
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    One of the key factors to successful investing is understanding investment products. Investment products are opportunities available to enable you to accumulate and multiply your funds. Below are some of these products that you can consider for your investment.

    1. Stocks or Shares

    Almost every wealthy and successful investor all over the world has at one point or another invested a significant amount of their wealth in shares or stocks. Shares enable you to own a small piece of a successful listed company and thereby share in the company’s good performance and profits. 

    However, understanding how shares work is paramount to successfully investing in shares. You need to understand the stock market trends and invest for the mid to long-term. Shares are easy to trade and do not require much capital. They can significantly grow your funds. However, they also carry a risk element as your investment can get eroded by lowering share prices.

    1. Treasury Bills and Bonds

    Treasury bills and bonds are investment products that are transacted by the government. When the government wants to borrow funds from the public, they will use these products. Treasury bills and bonds have a low but sure return on your investment. They are ideal when you want to preserve your funds as you cannot lose the funds that you have invested.

    1. Commercial Papers and Corporate Bonds

    When corporations want to borrow funds directly from the public, they use commercial papers and corporate bonds. These work in a similar way to treasury bills and bonds but are issued by a company as opposed to the government. They will usually provide interest rates higher than the treasury bills and bonds but carry a higher risk as the issuing company may be unable to meet its obligations.

    1. Mutual Funds/ Unit Trusts

    Fund managers have products that enable the pooling of funds and investing in a collective fund. They work more like “chamas”. The fund managers pool funds and invest in shares, bank deposits, real estate and other products. The profit from the pooled investment is shared with the members of the mutual fund. Mutual funds are easy to invest as the entry investment is low (about 1000.00). You can also deposit and withdraw funds in a mutual fund at any time.

    1. Wealth Management/Cash Management

    Wealth management, also referred to as cash management, is an investment product offered by fund managers. The fund managers provide a higher, guaranteed interest rate than mutual funds. However, they will have a higher minimum investment amount usually of Ksh 1 Million and the funds will be locked for investment periods of 3 months, 6 months or a year..

    1. Bank Deposits

    Banks will normally provide very low-interest rates on funds deposited with them. However, if you have a large amount of money, you can negotiate for high-interest rates, especially from Tier 2 banks.

    7. Real Estate

    Real estate is one of the most popular and highly effective investment products. With the right strategy, you can make substantive returns on your investment in real estate. There are various real estate strategies including building rentals, building houses for sale, purchase of land for sub-dividing and reselling, purchase of land for speculation and purchase of land for other commercial activities such as farming. However, to profit from real estate, you will need to do some thorough checks and also understand the dynamics of the industry. We will have a more detailed review of real estate investing in one of our subsequent blogs. 

    1. Private Equity

    Private equity entails owning a percentage of a private business that you are not directly involved in running. It is another effective way of investing and growing your funds. Private equity is not a very developed industry in Kenya. However, there are good opportunities available for partnering with budding businesses to profit when the business matures.

    Rubiani Wealth Management provides advice on investing in any of the above products. We have also partnered with fund managers, stockbrokers, banks and other financial institutions to facilitate your investment in these opportunities. If you need any further information about any of the above products, please get back to us by contacting us at invest@rubianiwealth.com


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    4Apr, 2024
    7 Ideas to Build Your Passive Income
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    Passive income is the income you make with little of your effort or time put in. In other words, it is money working for you. Developing your stream of passive income is important for several reasons. Firstly, passive income will increase your cash flow and thereby increase your purchasing power. Passive income will also have the potential to grow exponentially as it is not limited by your time or effort. Understanding passive income is therefore key to growing real wealth. Finally, it’s important to develop passive income as you age. You may not have the energy to work as agile as you did before and at that time, you want to have your money working for you instead.

    There are many opportunities for you to develop your passive income. In this blog, we will look at 7 of these ways.

    1. Real Estate – Real estate includes land and buildings. Rental property is ideal for passive income. If you are looking to develop your rental property, identify a location with a high renters population and with reasonable land prices to maximize your returns. You can also purchase houses or office space to rent out. Centum, Tsavo Properties www.tsavo.ke and The Epic Properties Ltd develop small unit houses (bed-sitters and one-bedroom) targeting investors seeking to make rental income.

    Advantage – Rental income from real estate protects you against inflation by hiking rent as standards of living rise

    Disadvantage – Developing rental property is usually expensive. Furthermore, if you are developing the property yourself, land ownership and developing the property can be hectic especially if you are not experienced.

    2. Treasury Bonds – These are government instruments that allow you to invest long-term with a reasonable return of investment of between 9 – 14% per year. You receive interest every 6 months for the term of the treasury bond and at the end of the term, you receive back your investment.

    Advantage – High, long term and hustle-free passive returns. Also, long Treasury Bonds of over 20 years (Infrastructure bonds), are tax-free. Treasury bonds are also easy to liquidate (through the NSE) if you wish to sell before the end of the term. They are also affordable at a minimum of Ksh 50,000.00

    Disadvantage – The income from Treasury Bonds is not inflation-sheltered and your income remains constant throughout the term of the bond

    3. Wealth Management / Cash Management Product - This is an investment opportunity provided by fund managers whereby investors lock funds for periods of 3 months, 6 months or 1 year and receive interest from their investment in agreed-upon periods. The minimum investment is Ksh 1,000,000.00

    Advantage – It gives you more control of your funds as topping up and withdrawing funds is easy. You can also arrange with your fund manager to receive your interest every month. 

    Disadvantage – The interest rate keeps fluctuating with market performance so mid to long-term earnings prediction is impossible. 

    4. Income Earner and Annuities - Insurance companies also provide products for passive income. You give a lump-sum amount to the insurance company and in return receive a predetermined amount of income every month for a specified amount of time. 

    Advantage – Monthly income ideal for retired senior citizens

    Disadvantage – The returns on your investment are not competitive

    5. Private Equity – Private equity is owning a part of a private company that you are not involved in the day-to-day running. You therefore earn dividends based on the performance of the business. You can directly negotiate ownership in a business in exchange of capital funds or go through private equity companies that give you access to businesses needing funding partnerships. If you are a business owner, you can create systems and processes and hire people so that your business can operate without your active involvement. This way, you can convert your business into a source of passive income.  

    Advantage – Opportunity for exponentially growing wealth. 

    Disadvantage – Long-term passive income is not guaranteed as you are exposed to business risks including losses and closure

    6. Royalties and Residue Income Opportunities – Royalties are the money paid for the use of intellectual property.  It includes payment for a franchise and payment for the use of copyrighted content. Software developers and artists such as musicians can continue earning from their intellectual content many years after production and thus passive income.

    Advantage – Depending on the value and uniqueness of the intellectual property, it can be quite profitable.

    Disadvantage – Income will usually dwindle over time and therefore not a reliable long-term source of passive income

    7. Residue Income – Residue income is income that you continue earning long after you have made a sale. Opportunities such as the sale of insurance and investment products, internet affiliates and agency commissions provide residue income -- as long as the client continues to renew the service.

    Advantage – You do not need funds to generate this type of passive income flow but rather your sales skills and networks.

    Disadvantage – Long-term passive income is dependent on renewals thus requiring some level of customer service input to maintain income. 

    We hope that this list will help you as you think through developing your streams of passive income. Please feel free to revert with comments or enquiries by writing to us at invest@rubianiwealth.com.

    2Apr, 2024
    How to Invest in the NYSE and NASDAQ from Kenya
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    Investing in the New York Stock Exchange (NYSE) and the NASDAQ exchange is a great way to diversify your portfolio and gain exposure to some of the world's largest and most successful companies. However, for us living in Kenya, the process can seem daunting. Fortunately, with these few simple steps, investing in the NYSE and NASDAQ from anywhere in the world is possible.

    First, you'll need to open a brokerage account with a firm that allows international investors to open accounts. Some popular options include Interactive Brokers, TD Ameritrade, and eTrade. Be sure to check that the firm is reputable and regulated and that it offers access to the markets you're interested in investing in.

    Once you've opened your account, you need to transfer funds into it. This can typically be done via wire transfer or credit card. You should also ensure that your account is properly linked to your local bank account so that you can easily withdraw funds if you need to.

    Once your account is funded and set up, you can start investing in the NYSE and NASDAQ. Like any other stock, you can purchase shares of publicly traded companies listed on these exchanges through your brokerage account.

    One important thing to consider is the currency conversion as the shares are bought and sold in US dollars. This will affect the value of the shares depending on the exchange rate of the currency you are using. Given the current unstable state of the Kenyan shilling, this can be an advantage. Also, you should be aware of the taxes and regulations in your country as they may affect your returns.

    It's also worth noting that some companies listed on these exchanges are also traded on other international stock exchanges, so you may be able to purchase shares through those exchanges as well. It's always best to research and consult a financial advisor before investing.

    Investing in the NYSE and Nasdaq from outside the US is doable, but it requires some preparation and research. By following the steps outlined above and working with a reputable brokerage firm, you can access some of the world's most powerful markets and potentially benefit from the growth of some of the world's top companies.

    Also, It’s important to keep in mind that investing in the stock market comes with a level of risk and should be done after research and consulting with a financial advisor.

    Interested in investing in foreign stock markets from Kenya? Kindly contact us at invest@rubianiwealth.com

    26Mar, 2024
    Overview of the Money Market Fund in Kenya
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    In this blog, we will look at what Money Market Fund is, and how to invest in this product.

    Fund Managers

    A Fund Manager is a financial institution licensed by the Capital Markets Authority to collect deposits from the general public for investing. The deposits are put into collective funds called Mutual Funds or Unit Trust Funds and invested in diverse investment products. As of March 2024, there are 41 Fund Managers in Kenya. 

    Mutual Funds

    There are 5 main types of Mutual Funds based on where the fund is invested;

    1.  Equity Fund – Fund invested in stock markets

    2.  Bond Fund – Fund invested in Corporate Bonds and Treasury Bonds

    3.  Money Market Fund – Fund invested in Treasury Bills, Commercial Papers and Bank Deposits

    4.  Balanced Fund – Fund invested in any investment product at the discretion of the fund manager

    5.  Real Estate Investment Trust – Fund invested in real estate

    Money Market Fund

    The Money Market Fund is the most popular Mutual Fund in Kenya. It accounts for over 70% of all the funds under mutual funds. This is mainly because it is risk-free and has performed relatively well over the years – as compared to other funds. 

    Features of Money Market Fund

    FEATUREDESCRIPTION
    Minimum InvestmentDepends on the Fund Manager -Example
    Zimele Ksh 100.00
    Britam Ksh 1,000.00
    Sanlam Ksh 2,500.00
    CIC Asset Ksh 5,000.00
    Risk LevelLow – Since the fund is invested in guaranteed return products like the Treasury Bill, the money that you invest is protected (cannot be reduced in amount). 
    ReturnsConservative – The returns from the Money Market Funds range from 6% to 10% depending on the Fund Manager.
    TermsThe Money Market Fund is Open-Ended. This means that you can withdraw and deposit funds at any time.

    Most Fund Managers request 3-5 days from the time of request of withdrawal to receipt of funds to process and transfer funds to your bank account. 
    Other Characteristics of Money Market Fund- Withholding Tax Levied at 15% of interest earned.
    - Interest is calculated daily and credited back to your account for re-investing.
    - Most fund managers provide a Mobile App to enable you to track the performance of your investment.

    Average Journey of Kshs. 10,000 invested in a Money Market Fund.

    Major Fund Managers Providing Money Market Fund

    See below the key players in the Money Market mutual fund and their market share;

     CompanyFunds Managed(Bn)Market Share
    1CIC 61.338.10%
    2NCBA27.716.90%
    3Sanlam1710.30%
    4ICEA Lion 14.68.9%
    5Britam13.28%
    6Old Mutual85%
    7Dry Associates4.52.7%
    8Coop Unit Trust42.4%

    Performance of Money Market Fund with Major Fund Managers

    Below is a graph that shows the performance of the major Fund Managers over the past 7 years.

    How to Invest in a Money Market Fund

    Rubiani Wealth Management Ltd. is an Investment Agent with the following Fund Managers in Kenya;

    -   Britam Asset Managers Ltd

    -   Sanlam Investments East Africa

    -   CIC Asset Management Ltd

    -   ICEA LION Asset Management

    If you would like to open a Money Market account with any of these Fund Managers, kindly reply to this email and we will assist you to do so. Opening the account is free of charge.

    You may also revert with comments or enquiry by writing to us at invest@rubianiwealth.com


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    20Mar, 2024
    Investing is Not an End in Itself- But a Means to an End…
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    Investment has become a buzzword in our world today and many people are aware of the importance of saving and investing. Nowadays, I hear people ask each other questions such as -- “What are you investing in?”, or “Do you save part of your income?” These are good questions. But they give the impression that you should save or invest because it is the right thing to do. 

    However, we have found that unless you are investing towards a particular goal, your savings and investments will be outright ineffective. It is for this reason, that we advise any potential investor to invest with an end or goal in mind. You need to determine what you are investing for before starting to invest.

    Determining Your Reasons for Investing

    People save and invest for diverse reasons. However, your reasons for investing will normally fall into two categories;

    Afford Expensive Expenditure

    A major reason why you may want to invest is to purchase assets or items which you may otherwise not afford from your monthly income. For example, you may want to buy a car, or house or pay for an overseas holiday but you may not be able to afford these things from your monthly income. In such a case, you may need to accumulate funds over time to afford the items.

    Passive Income

    Another major reason why you may want to invest is to have an income without having to “work”. In other words, you want to convert your active income to passive income. This should be a goal of everyone who is employed as this is the only way you can get to be financially free and retire from active employment.  For example, you can invest towards owning a rental property to earn passive income from the rent. 

    Write Down Your Goals and have a Plan

    Therefore, to become more effective in your investing, you will need to clearly articulate or write down your reasons for investing. You will then need to come up with a plan of how to progressively accumulate your funds towards meeting your reasons or goals for investing.

    Rubiani Investment Course

    If you need some help in writing down your goals and developing your financial plan towards meeting your financial goals, you can consider taking the Rubiani Investment Course. We have tools and one-on-one sessions that will help you easily write down your goals and develop a financial plan for your investments. To learn more about this course, we advise you to attend one of our Free Open Days where we get to share more on what to expect from the course.

    Get in touch via invest@rubianiwealth.com

    14Mar, 2024
    Book Review: “Cashflow Quadrant” by Robert Kiyosaki
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    The "Cashflow Quadrant" by Robert Kiyosaki is a book that explores the different ways individuals can generate income and build wealth. The book is divided into four quadrants, each of which represents a different type of income-generating strategy.

    The first quadrant is the "Employee" quadrant, which represents individuals who work for someone else and receive a pay check. These individuals have a limited potential for financial growth and are dependent on their employer for their income.

    The second quadrant is the "Self-Employed" quadrant, which represents individuals who own their own business but are still dependent on their own efforts to generate income. These individuals have more potential for financial growth than employees, but they are still dependent on their own efforts and time to generate income.

    The third quadrant is the "Business Owner" quadrant, which represents individuals who own and run a business that generates income without their active involvement. These individuals have the most potential for financial growth as they are able to leverage their money and other people's efforts to generate income.

    The fourth quadrant is the "Investor" quadrant, which represents individuals who invest their money to generate income. These individuals have the greatest potential for financial growth as they are able to leverage their money to generate income without their active involvement.

    Moving from the left side to the right side quadrants in the "Cashflow Quadrant" model typically involves a shift in mindset and strategy.

    To move from the "Employee" quadrant to the "Self-Employed" quadrant, an individual can start a side hustle or a small business while still working a full-time job. This can involve developing a skill or expertise and monetizing it, such as starting a consulting business or offering freelance services. As the business grows, the individual can eventually transition to being fully self-employed.

    To move from the "Self-Employed" quadrant to the "Business Owner" quadrant, an individual can focus on building a business that can run without their active involvement. This can involve hiring employees, delegating tasks, and systems and processes to run the business efficiently. The key is to focus on creating a business that generates income without the need for the owner to be involved in day-to-day operations.

    To move from the "Business Owner" quadrant to the "Investor" quadrant, an individual can focus on investing their money and time in income-generating assets such as stocks, bonds, real estate, or other passive income opportunities. This can involve learning about different investment options and developing a diversified investment portfolio.

    It's important to note that, moving from one quadrant to another is a process that takes time, effort and most importantly patience, it's not a switch that happens overnight, but with a good plan, hard work and the right mindset, one can eventually achieve the goal.

    "Cashflow Quadrant" by Robert Kiyosaki has received both positive and negative reviews. Some critics argue that the book oversimplifies the process of building wealth and that the quadrant model is too rigid. They argue that the book does not take into account the unique circumstances and challenges that individuals may face when trying to move from one quadrant to another.

    Additionally, some reviewers critique the author's idea of becoming rich through real estate investments, without providing a deeper understanding of the real estate market and how to invest in it successfully. They also point out that the author's own success story is not representative of the average person's experience and may not be applicable to most readers.

    Another criticism is that the author's writing style can be repetitive, and some of the ideas presented in the book are not original. Some critics also take issue with the author's emphasis on financial independence through aggressive wealth-building strategies, which they argue may not be suitable for everyone and could lead to financial problems if not done carefully.

    It's important to note that, while the book has its criticisms, it still has a number of loyal followers and readers who have found value in the author's ideas and strategies. Ultimately, whether the book is useful or not, depends on the reader's perspective, expectations and the stage of the financial journey. 

    Overall, the "Cashflow Quadrant" provides a valuable framework for understanding the different ways to generate income and build wealth. It is an easy read and it's a good introduction to personal finance, and the author's ideas are clear and well-explained.

    7Mar, 2024
    5 Wealthiest People in the World – and How They Made Their Wealth
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    From Tech Titans to Luxury Moguls: The Stories of the World's Top 5 Billionaires in 2024

    The world's wealthiest individuals have been able to amass staggering fortunes through their business acumen, entrepreneurial spirit, and innovative ideas. As of March 2024, these five people are the richest in the world, with net worths that are nothing short of astounding. They come from various backgrounds and industries, but all have one thing in common: their relentless drive to succeed. In this article, we will take a closer look at who these individuals are and how they have made their fortunes. From tech giants to luxury goods moguls, these people have all left an indelible mark on the world and continue to shape it with their businesses and philanthropy.

    1. Elon Musk - As of 2022, Elon Musk is the richest person in the world with a net worth of over $200 billion. He is the CEO and founder of SpaceX, a private aerospace company, and the CEO of Tesla, an electric vehicle and clean energy company. Musk has also co-founded PayPal, a digital payment company.
    2. Jeff Bezos - The founder and former CEO of Amazon, Jeff Bezos has a net worth of around $150 billion. He is also the owner of The Washington Post and Blue Origin, a space exploration company.
    3. Bernard Arnault - Bernard Arnault is the chairman and CEO of LVMH, the world's largest luxury goods company. He has a net worth of around $110 billion and is known for his investments in high-end fashion brands such as Louis Vuitton and Dior.
    4. Mark Zuckerberg - With a net worth of around $98 billion, Mark Zuckerberg is the founder and CEO of Facebook, the world's largest social media platform. He also co-founded the philanthropic organization, the Chan Zuckerberg Initiative, which focuses on education, healthcare, and science.
    5. Bill Gates - Co-founder of Microsoft, Bill Gates has a net worth of approximately $124 billion. He is also a philanthropist and the founder of the Bill and Melinda Gates Foundation, which focuses on global health and education.

    All of the people above have made their fortunes through a combination of innovation, hard work, and smart investments in various industries such as technology, e-commerce, luxury goods, and media. They are continuing to make impact in their respective industries and also making significant contributions to charity and philanthropy.