By Mumba Kalifungwa
Take care of your health and/or invest in insurance. If the pandemic has taught us anything, it’s that your entire savings and investments (your life’s work) can be wiped out by a single medical emergency.
Diversify your savings and investments. This presents some shields against the depletion of savings or business losses in one option and the disillusionment that comes with it.
Learn to manage inherited wealth. Inheriting property, stocks, cash etc. doesn’t mean you should go on a spending spree & sometimes, these come with tax implications. Learn to grow that wealth or bring in professionals that know how to. Lawyers, tax advisors, wealth managers etc.
Compounding is king. Save incrementally, invest incrementally. The earlier and longer you do it, the better.
Constantly educate yourself on the different options that earn passive income. Agriculture, boda bodas etc. can be great side hustle options if you’ve hacked effective management, but the financial & stock markets also offer low-risk long-term options to make money passively.
Growing wealth very often boils down to which luxuries you are willing to forego. Growing assets > stacking liabilities. Always.
The writer is the Managing Director, Absa Bank Uganda.