Author: Mwangi Waithaka

Insurance is a legal relationship between you and the insurance company whereby you pay a minimal amount of money in order for this company to support or compensate you for any loss you may incur. This contract is represented by a policy. The company pools clients’ risks to make payments more affordable for the insured. Insurance makes people feel comfortable. They know that should anything go wrong, there will always be another person to cater for the expense of the damage. Why do you need insurance? It is a financial safety net. Also, it ensures that you are not compelled…

Estate planning is the setting up, while you are alive of how your wealth, property and affairs will be protected, managed, and distributed or dealt with in the event of your death or incapacitation. An estate is everything you own, no matter how large or modest. For example your investments, assets like land and real estate, bank accounts, and interests.  Everyone has an estate, and you cannot take it with you when you die. I assume that, ideally, you would like to regulate how those things are delivered to the people and organizations of your choice. To ensure that your…

Travelling is moving or going from one place or point to another by car, train, plane, or ship. A person who travels is often referred to as a traveler or a tourist. What are the different ways through which people travel? Modes of transport are the different ways in which anything can be transported. They are road transport, railways, air transport, and water transport. What are the main purposes of travelling? How to travel – Travelling step by step 1. List your dream destinations and experiences. Make a list of where you want to go, experiences you’d wish to have,…

Shopping is an activity in which a customer visits places where goods or services are sold and browses the available items with the potential intent of buying a suitable selection of them. What is the purpose of shopping? It enables you to obtain and restock whatever you require or desire to lead a daily life. For example food, clothes, and home products. It also enables us to buy technology and other gadgets which make us happy and enhance our standard of living. Shopping can be a fun activity that is both enjoyable and satisfying especially when you interact with friends…

Lifestyle is an extensive term that encompasses the daily pattern of living of any given person, a group of people, or a culture. It includes a set of values, practices, habits, attitudes, tastes, moral standards, economic level, interests, opinions, behaviors, behavioral orientations, etc. that together constitute the mode of living of an individual or group. Your lifestyle is how you live, like what you eat, what you wear and where you reside. It is a reflection of who you are, how you view the world or even the value you place on things and people. A personal life can also be described…

Frugality is the effective and restricted utilization of resources like cash and time to especially when buying goods and services. It is about deliberately avoiding wasteful expenditure, practicing conscious consumption and being satisfied with what what you own. Being frugal is about figuring out what you value and subsequently stopping to spend money on the things you don’t. Frugal living will enable you to manage your finances well and make good use of the money that you earn. You’ll make good purchases which offer quality and maximum value for the the money spent on them. To build your wealth out…

Stocks are financial assets that provides stockholders with an ownership interest in a business organization. A share is one unit and the smallest denomination of a company’s stock. If you own shares in a limited company, you are a shareholder or member. When the shares are bundled into stocks, you become a stockholder.  Difference Between a Share and a Stock If you’ve bought stocks in X, Y, and Z companies and I ask you about your investments, you can tell me that you invest in stocks. If I then asked you to tell me more about your investment in these…

Real estate is property consisting of land and any permanent structures, like a building, or resources attached to the land, whether beneath it, above it, natural or man-made, such as crops, wild animals, water, or minerals. How does the real estate industry work? The real estate business uses properties as an investment medium to profit through the purchase, ownership, construction, development, renovation, lease, management, and sale of real estate property. You can invest in this industry with an aim of increasing the value of the property through various methods, so that can generate higher returns. So, why invest in real…

Cryptocurrency or crypto, is an electronic currency used in trading and purchasing products and services in the same way as any other currency like cash. It’s also used for the speculative investment. It can be bought or sold with the purpose of making profits, like any other financial asset class like stocks. But the use of cryptocurrency is particularly a volatile investment class.  Cryptos do not have a physical form like official currency (like banknotes or coins) that one can touch and feel. Encryption algorithms and technologies, such as cryptography and blockchain, give these entities their names. These algorithms and…

Bonds are debt securities in which the issuer (the borrower) obliges himself/her/itself to pay the bondholder (the lender) the amount of the bond at maturity and to make regular interest payments. A bond is often known as fixed-income security since it typically provides the holder with a consistent or fixed return. Rather than approaching a bank for the money, the company obtains the funds from investors who purchase its bonds. When you buy a bond, you are giving a loan to the entity that issued it. When you buy a government bond you are providing a loan to the government. If you…