July 25, 2025 • 60 mins
That first paycheck feels amazing until you realize it barely covers your expenses. What if you could break free from the paycheck-to-paycheck cycle that keeps generations trapped in financial struggle?
Financial analyst Patrick Bankwa reveals why most people mishandle their finances and offers practical solutions anyone can implement. Rather than treating savings as leftovers after spending, Patrick demonstrates how intentional budgeting with clear financial goals transforms your relationship with money. "You don't need to keep your savings sitting in your account," he explains, showing how proper investment protects your money from both inflation and your impulses.
The conversation challenges conventional wisdom about job security. Many cling to unfulfilling jobs with modest salaries, fearing entrepreneurship's uncertainty. Yet Patrick brilliantly illustrates how a simple side hustle selling sachet water can generate substantial returns with minimal investment. "The 1,500 job can go just like wind," he warns, dismantling the illusion that employment offers greater security than entrepreneurship.
Whether you're just starting your career or planning for retirement, this episode provides a masterclass in understanding investment options across the risk spectrum. From treasury bills and mutual funds to stocks and cryptocurrencies, Patrick breaks down complex financial instruments into accessible concepts for every risk tolerance and life stage.
Most powerfully, Patrick frames financial planning as a generational responsibility. "Don't put your children in a valley by not taking steps today," he urges, showing how smart investments now can position your children to begin adulthood from a position of advantage rather than disadvantage.
Ready to transform your financial future? Subscribe, share this episode with someone who needs financial guidance, and join us at Konnected Minds Live on August 29th at the British Council.
Watch the video episode of this on YouTube - https://linktr.ee/konnectedminds
Host: https://www.instagram.com/derrick.abaitey/
Join Entrepreneurs Community: https://www.skool.com/konnected-academy
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
If you don't break that cycle of hand to mouth with
your family, you will keep onrunning that cycle.
You'll be out, your childrenwill come and continue and there
will not be any break.
It's always difficult to start.
A thousand five job can go justlike a wind.
The owner can decide to sackyou, so the risk around a
thousand five is equally as highas if you are starting your own
job.
The fear is in your mind.
If you are investing or saving,you should have a clear goal
(00:25):
for that investment or saving.
The goal you have willdetermine the actions that you
take.
You don't need to keep yoursavings sitting in your account.
You push it into an investmentso that you won't even be
tempted to go and see the moneyin your account and withdraw it.
Speaker 2 (00:38):
Now you're speaking about other streams of income.
What can they do to increaseyour cash flow?
Speaker 1 (00:49):
of income.
What can they do to increasetheir cash flow?
Okay, so the business can evenbe performing very well in a
crowd business, once it goesdown, you lose everything.
Speaker 2 (00:54):
Financial instruments that people can invest their
money in.
What would you recommend?
Speaker 1 (00:59):
when you talk about financial instruments.
There are multiple.
I ran through a number of them,so the first thing is that you
need to understand.
Speaker 2 (01:04):
Welcome to Connected Minds Podcast.
My name is Derek Abayite.
Thank you so much for tuning inand being part of the family.
So today I've got Mr PatrickBa-Bankwa here and he's a
(01:24):
financial analyst and an advisorand a planner.
He has a business that helpspeople to step into their wealth
creation properly.
What can you invest your moneyin?
What does the market look likefor you?
What rates are currentlyavailable?
As a matter of fact, if you'renot entrepreneurial, but you're
(01:47):
rather somebody that want to putyour money somewhere that can
grow over time and have a lovelypension, this conversation is
for you, wherever you are on thecontinent.
Today's conversation is packedwith knowledge, experience and
expertise that will shift theway you understand money,
investment and financialinstruments.
And again, you're welcome to mystudio, thank you.
Speaker 1 (02:12):
Thank you.
Speaker 2 (02:13):
I've watched a lot of your stuff, especially on
Facebook.
Sure, you post a lot yeah, I do.
Sometimes you write down somerates I don't know whether it's
banking rates but the engagementis pretty good.
I think that people really likewhat you're doing for them.
(02:33):
Thank you.
My first question to you is whydo you do what you do?
Speaker 1 (02:41):
Okay.
So I think that I developedthis particular passion when I
went into the banking space.
So in 2013, I joined a bank andin the banking space, I met a
number of people young, old andwhat I realized was that a
number of them had little or noknowledge about what they need
(03:03):
to do with their money, and inthe banking space, you get to
learn some of these things onthe job, and at the time I was
entering into the banking space,I was already a chartered
banker, so I had thequalification in banking, but I
was to practice and now getexperience.
So as I met these people, Irealized there was a big gap
between what people actuallyshould do and what they are not
(03:24):
doing.
So then I saw an opportunity totake a step, walk people
through the journey of life whenit comes to their finances, and
so I started somewhere in 2015,16, by beginning to share this
kind of post and later graduatedto do videos, and that's where
I am at the moment.
So there was a big gap, and Idon't think that we are still
(03:45):
there yet.
There are a number of peoplesome are even bankers who don't
even have the basic requisiteswhen it comes to financial
planning.
We shrugged, but we engagedthem, so that, for me, is the
drive towards what I do.
Speaker 2 (03:56):
Amazing.
And what is financial?
Speaker 1 (03:58):
planning.
Financial planning is basicallyhaving a plan around where you
are now financially and whereyou want to get to tomorrow, no
matter your age, no matter yourbackground.
It goes into investment, itgoes into your career, it goes
into your retirement.
All of these things come intowhat we call financial planning.
And if you don't have that, youwill be working, earning some
(04:22):
money, but at the end of the dayyou wouldn't be able to account
for what exactly you used yourmoney for, because now it
becomes, as it were I earn themoney I spend.
There's no plan, there's nogoal that you are pursuing with
your income.
Speaker 2 (04:37):
So that's what having a financial plan is all about
so I have a day job and I earn5,000, sure, every month.
Take me through a plan thatwill help me secure my, to have
a better, you know, pension umtime.
Speaker 1 (04:57):
So the first thing you need to do is that if you
have 5 000 as your income, youneed to draw up a budget, a
budget of how you intend tospend that 5,000.
So basically, a budget.
As you all know, you have theincome side, which is, in this
case, 5,000.
You don't have any other sidehustle.
You stick to the 5,000.
And now you go into thebreakdown.
How do I intend to spend this5,000 every month?
(05:20):
So consider what we call theessentials and non-essentials.
Essentials.
So consider what we call theessentials and non-essentials.
Essentials are basically yourfood, water, transportation and
your rent.
These are essentials.
Sometimes, essentials can benon-essentials.
Okay, in the sense that a rentof, let's say, 2 000 will give
you a place to lay your head.
The same being a rent ofthousand can also give you a
(05:41):
place to lay your head,depending on your level of
income.
If you choose a $2,000 as a wayof classifying as essential, it
may not be an essential for you, because if you take $2,000
from your $5,000, what it meansis that you are just left with
$3,000 that you are going tobreak down to every other
expenses.
Trust me, it will not be enough.
(06:01):
So that means that you willhave enough to spend on some
investment that will help you tobuild the future that you want
for yourself.
So you classify the essentialswell, make sure the figures you
are putting by them arerealistic At the same time
things that will help you tomeet your future goal.
Then you come to thenon-essentials Things that's
maybe additional shoe,additional bag, you've seen
something that is not what youto buy.
(06:22):
You keep them and then you havea portion for investment, and
investment here is not onlyfinancial instrument.
It can be buying and selling ofthings.
These days we do a lot of dropshipping.
We can get some item that youwant to buy or, if you want to
go into a pension plan, you canchannel that investment
component into a pension planand build it over time.
Once you you do this, thisbecomes the base of whatever
(06:46):
plan you want to build.
So when I meet Ipo and we areable to do this patrol budget,
by the time we are done with thebudget, all other questions
have been answered, because yourinsurance will be covered in
your budget.
Your pension will be covered inyour budget.
If you have a business ideathat you want to put some money
aside, you cover it in thebudget and then you now go into
the mood of now putting it intopractice.
(07:07):
Having a budget is one thing,but putting the budget into
practice by way of signing up tothe product that you want, by
way of starting the businessthat you want, is the second
part of it, and that's wheremost people struggle, because
you help them to build a budget.
But in terms of implementation,then the excuses will come in.
Speaker 2 (07:26):
What are some of the things that you can say to help
us to be able to implement?
Speaker 1 (07:30):
it.
So the first thing is that ifwe drop a budget, let's ensure
that we stick to products thatare matched to, especially
issues relating to investment.
So I don't like people tryingto do the investment themselves.
If you can automate, try andsign up a product that will
automate and deduct from yoursource, that's if you are in a
formal sector, so that yourmoney comes on a particular day
(07:53):
of the month you are deductedinto that investment plan.
It's insurance you want to do.
It's done in that way.
If it's about your food and rent, nowadays you can just do a
quota.
If it's about planning for thefood for the month, if it's
buying in bulk, you buy it inbulk and now you go ahead of it.
If it's about transportation,you know that in a month it's
500 CDs.
You do your own breakdown thatin a week you are supposed to
(08:15):
spend less than 100 CDs.
How do you break the 100 CDsdown?
You need to take publictransport Monday to Friday Each
day.
Public transport Monday toFriday each day is 20 CDs.
When you do it this way, you arebreaking everything down and
makes implementation very easy.
If it's about rent, and youknow that currently, as we speak
, you are renting about 1,500.
And you know the 1,500 is notsustainable because you don't
(08:37):
have any extra income, then,whilst you are winding down the
rent, think of a place that islower in terms of the cost, at
the same time, a nice place thatyou can afford.
These are the implementationsthat you need to put in place.
I wouldn't say it's an easytask at all.
It's not easy.
But if you are not able tocreate additional stream of
income to support the 5,000,then taking steps within the
(09:04):
5,000 may not be very pleasant,but it's necessary.
Speaker 2 (09:05):
Do you still think it is possible for somebody that
earns 5,000 cities to still havea good financial plan?
Speaker 1 (09:11):
Positive Even 2,000.
Speaker 2 (09:15):
But from the way you described it, it sounds so
difficult and it sounds almostunable to achieve.
Speaker 1 (09:24):
I wouldn't say it's difficult in the sense of
difficult.
It's just that it needs a bitof discipline to do it.
A number of people are notdisciplined.
Most of us are not disciplined,including myself.
So we set out to say we aredoing this with this amount.
We end up going overboard.
Especially when you havepressure from society, peer
pressure, family pressure, youend up going beyond it.
(09:45):
Even you have pressure fromsociety, peer pressure, family
pressure, you end up goingbeyond it, even when you are not
aware of it.
So it's a discipline that makesit difficult and, as you know,
in this life, if you are notdisciplined in anything that you
do, you'll struggle.
So once you are disciplined andsometimes for those who are
married, you need to have onepartner who is an accountable
partner, as we always say inplanning.
(10:06):
You can't all be the same interms of your mindset.
You can't all be spenders.
Someone should be a spender,someone should be a saver, so
that the person will always putthe other person on track.
So that's what you can do.
If you can afford a financialadvisor, that person also puts
you on your toes.
Monthly.
You engage.
Okay, how far far?
Where are we?
You said you're going to dothis.
Have we done it?
What was the challenge?
That also puts a bit of controlon yourself.
(10:30):
If the person can be yourchurch member, someone that
knows about finance, make sureyou engage the person and that
will help you to staydisciplined.
Speaker 2 (10:38):
I set out to save or invest 3,000 cities out of my
5,000 every month.
Sure, but what happened wasthat you know I went to the shop
and you know I saw some thingsI like.
I bought it.
So that month, when you guyscame to my bank to take the
direct debit, it didn't work out.
(10:59):
The following month mom wassick, so I had to pay out the
following month.
You know I was struggling somuch that I had to take some
more money out.
What does that look like in thelong-term planning of the
person's finances?
Speaker 1 (11:11):
So what I always say is that if you are investing or
saving, if you have a clear goalfor that investment or saving,
the goal you have will determinethe actions that you take.
So let's take an example.
I have a plan to, let's say,buy a land by the end of the
year and the land is, let's say,going for 10,000.
(11:32):
And in that plan I need to saveor invest, let's say, about
1,000 CDs every month.
The moment I miss out on 1,000,what happens?
It means that my target of10,000, I won't be able to meet.
So when I have the urge to gointo the 1,000, because I have a
particular goal of 10,000 bythe end of the year to buy a
(11:54):
land, I restrain myself or Ilook for other options to get
the thing sorted out.
So if you don't have a goalthat you are passionate about,
that is where some of theseassets will happen.
Of course, because we arehumans, once in a while this
will happen.
You can go into your savings orinvestment or you may not
invest they are normal but itshould not be a periodic month
(12:16):
or month, unless maybe your goalthat you have for yourself
you're not passionate about it.
Speaker 2 (12:20):
Well, I mean, you know what happens with habits,
right?
Yeah, I mean you know, whathappens with habits?
Right, yeah, so when you form anew habit and you break that
habit twice.
It will cost you so much to getback on track, back on the new
habit.
So usually what you should dois that you should not default
twice, Exactly Because if youdefault twice, you're back to
(12:42):
default setting Exactly.
Speaker 1 (12:44):
So, as much as possible, try and stick with it,
even if it happens for whateverreason, just go back to it
again.
That's my advice, because ifyou allow it to transcend and it
goes on for a very long time,that's where the challenge comes
in.
You realize that at the end ofthe year your target will not be
met and that means that it evendiscourages you.
(13:06):
So a lot of people they save,they go for the savings.
Then they think that okay, nowsavings is not even important
because I saved this month and Iwent for it next month.
The question is what was thepurpose?
What was the goal for that?
Savings?
Is it just?
And do you know what we do withsavings In this part of the
(13:26):
world?
We classify savings as aleftover.
So we do our expenses At theend of the month.
If I'm left with 200 CDs in myaccount, I call that savings.
That's not savings.
A savings should have a purposeand should channel the savings
into an investment.
So I have told people so manytimes that you don't need to
keep your savings sitting inyour account when you can invest
(13:47):
that savings into somethingelse.
So you have your budget, youhave your living expenses.
That's what you keep in youraccount, day-to-day living
expenses.
You keep that in your account.
Any other thing you callsavings, that you are saving for
the future.
You push it into an investmentso that you won't even be
tempted to go and see the moneyin your account and withdraw it.
You see people who are notquote-unquote very disciplined
(14:08):
with money.
They have empty how do you callit ATM card.
They have signed up to all appsthat can easily move money from
their account.
It will not work because whenyou are tempted, the first thing
you think of okay, I have thecard, let me go and withdraw.
If you are someone who cannotstay disciplined, you don't sign
up to a number of these things.
Speaker 2 (14:27):
Okay, some of the ones we shouldn't sign up to
Don't like.
Speaker 1 (14:30):
ATM card.
Don't be using the ATM card.
Don't link your bank account toyour wallet.
It can easily tempt you, Right?
So, for example, I don't workno matter what.
Unless I know I'm going to takesome money from the bank or
some other transactions oronline, I don't work with it.
I have limited the linkage ofmy bank account to my wallet so
(14:52):
that I won't even be tempted.
Because if you want to go anddo something and I'm thinking of
it, okay, what are the steps?
I need to take a car to thisplace?
Do I go and do this?
Go and do this?
It's a lot of work.
Okay, I won't do it.
I see this nice, I want to buyit.
Okay, I don't have money on me.
I don't have my account linkedbetween my wallet and this thing
.
I have to go to the bank.
Okay, I won't go.
I won't buy it again.
(15:13):
But if you have linked upeverything, trust me, you'll be
tempted.
You just have to fail withincome from other sources and
there are some people that alsodo window shopping.
Speaker 2 (15:33):
Right, yeah, so they just go and walk around the mall
.
Um, and if you're walkingaround the mall and you have
your bank card and you have,money, you'll be tempted so when
the boys call you that, charlie, let's meet at a grandmaramall
and, just you know, go and walkaround.
Yeah, if you know you have abudget you are saving towards
something.
Yeah, defer that Exactly.
(15:53):
Why are you going?
Because when you go you willspend that money, yeah, okay.
So the young man is now sayingthat that 5,000 cities.
You've shown me how I can do mybudgeting, financial planning,
but the truth is it is notenough money.
Speaker 1 (16:17):
Now you're speaking about other streams of income,
what can they do to increasetheir cash flow?
Okay, so, when it comes tostreams of income, other sources
or side assets, as we say, youalways have to understand who
you are, what you can do andwhat you cannot do.
How much time do you have toearn extra income?
And then, when you are able toanswer these questions, they now
(16:37):
begin to narrow down to exactlywhat will work for you.
So you can either go intobuying of products and selling.
You can go into what I calldropshipping, as you all know.
I mean marketing of productsonline.
People express interest, youtake them and you get them the
item.
That's also one of it.
About two months ago, I did avideo on the same side hustle
(17:00):
and I used an example of sachetwater.
If you want to go into sachetwater Currently sachet water.
If you want to go into sachetwater Currently sachet water one
is going for about I think, ifI'm not mistaken, about 50 pesos
.
Okay 50 pesos.
One is going for 50 pesos.
Okay, if you buy the bag, wehave 30 pieces in it.
All right, 30 pieces in there,50 pesos.
So that's 15 CDs, yes, but inthe bag you are getting what?
(17:25):
15 CDs?
Yes, and we are selling one forwhat?
50 pesos?
Yes.
So 50 pesos times 30, how muchare you getting 50?
pesos times 30 is 15.
15 CDs, yes, yes, but the bagis 10 CDs, right.
So you make five CDs, five CDsfrom each bag that you sell.
Okay, so assuming that in theday you are not selling much but
(17:51):
you get somebody to sell it foryou, that the marketplace and
the person is selling, say 10 to15 cds, 10 bucks or 15 bucks,
let's multiply and see all right.
So that means 50 cds a day from10 bags, 10 bucks, 50 cds a day
.
Let's ask the person does thatfor, let's say, maybe 20 days in
the week in the month, okay,times 20.
So that's a thousand cities,thousands, usually such people.
You are paying them aroundmaybe 400, 500 okay, so you take
400 cities out of it.
Speaker 2 (18:09):
That means that they brought you 600.
Speaker 1 (18:11):
let's assume that for the fridge that is making the
world the water code.
Let's assume you spend about100 cities, 200 cities out of
that.
Okay, let's take 200 cities outof that.
How much are you left with 400cities left?
100 cities, the end of themonth 400 CDs.
So in a month you are making anadditional 400.
CDs 400 CDs from just 10 bags 10bags, 10 bags that you bought
at 10 CDs.
So 10 CDs times 10 is 100 CDs.
(18:31):
You have invested 100 CDs bydoing this and you are getting
what?
400 CDs out of that.
It's very simple, but you needto commit your time to it.
You need to get the rightperson to manage it for you,
because perhaps you don't havetime.
And I did this video and I toldpeople that if you want to, for
example, buy a land, build ahouse, you can be earning 2,000
(18:55):
and you'll be able to do thatwith this.
People couldn't believe it.
How, how Because now.
How Because Now, unless we haveused just about, let's say, 10
bags to make 400 series.
Yes, let's use about 20 bags,okay, so if we do, we basically
800.
Speaker 2 (19:10):
800.
Speaker 1 (19:10):
Yep 800 times 12 is how much?
Speaker 2 (19:13):
Times 12, that's 9,600.
Speaker 1 (19:14):
9,600.
You can get a very good placeto buy a land in, let's say in
Samoan and other places outside.
I'm scared of Accra.
Speaker 2 (19:21):
Within a year you can buy a land.
Okay, you see, patrick, youknow, sometimes some of the
problem is right.
I'm saving 500, 100,000 citiesto buy a land in Dodowa.
Yes, it's going to take me ayear and a half to save that
(19:43):
money.
Speaker 1 (19:43):
Yeah, by the time, a year and a half to save that
money by the time, a year and ahalf, is over, that land has
gone up Sure.
How do you?
Speaker 2 (19:50):
mitigate those issues .
Speaker 1 (19:51):
So I just give an example.
That person has just investedabout 200 cities to get to the
9,000.
If I were you and I have spaceI would do more Right To
compensate for the difference.
So, as I do more, let's say weget about 20,000.
End of the year you can get aland somewhere to start the
(20:13):
process.
There are some lands that youcan even do down payment of the
20,000 or 19,000, 15,000.
And you can buy the land andnow you can start the process.
It's all about determining inyour mind that this is what I
want to do, because for some ofus you don't have any support
anywhere.
If you don't break that cycleof hand to mouth in your family,
(20:34):
you will keep on running thatcycle.
You'll be out, someone willcome and continue or your
children will come and continueand there will not be any break.
It takes discipline to breakthat cycle by some of these
initiatives, so this is just oneof them.
There are a number of ladiesthat go and buy ladies' bags,
their rings, and they also sellit.
That's also another way ofdoing this.
(20:55):
I know colleagues who have thatat the back of their car.
They come to the office, theyclose, they move from shop to
shop.
They go to offices, they openit up and people have to buy.
They commit to buy some ofthese things.
These are all things you can doto earn extra income.
Once you see a problem, then yousolve it.
How do you solve it?
You solve it by providingsolutions to the problem.
(21:17):
And once you provide solutionsto the problem that's business
that you have created Over timeyou realize that you'll be
getting so much to do that atsome point you feel like, okay,
let me leave my day-to-day job,which is giving me, let's say,
about two thousand, threethousand, five thousand.
I did a post some time ago.
People were telling me they areearning around eight hundred
cities, thousand cities in ghana, eight hundred thousand cities
(21:38):
in ghana, and you go theremorning to evening.
If you quit that job and youdecide to do this water, at
least you get something overtime and that can make you
stabilize than going tosomeone's shop from morning 8,
to about 7, 9 pm.
Speaker 2 (21:57):
Let me stop you here for a minute.
If you've been watching thisshow, I want you to subscribe
and become part of the family.
We are on a journey of changingthe lives of people on this
channel and we appreciate youfor being here.
But if you haven't become partof the family, connect with us.
Hit the subscribe button Now.
Let's carry on the conversation.
(22:17):
You understand the feeling jobsecurity gives people right.
Yes, you understand thatfeeling.
I understand it can be like aprison, it can be a trap, but
that feeling is also very safefor some people.
Yes, so some people would rathertake 1,500 every single month
(22:44):
without any stress, no pressure,than to go out and start off
making 400 CDs a month.
Then, in about five years, theystart making 20,000 CDs a month
.
You see the way it works, rightFor me.
I would rather earn 100 CDs now, knowing that I can make 20,000
CDs a month tomorrow, yes, butmost people would rather take
(23:07):
1,500 today for the next 10years, because of the feeling
that security gives them.
Speaker 1 (23:14):
It's a mindset, so we have been conditioned to be
afraid to take risks, naturally.
So we are a bit risk-averse.
We don't want to take rakes.
Or if you take rakes andsomething, what if something
happens?
The first thing you need tokeep in your mind is that the
1,005 job can go just like awind.
(23:34):
The owner can decide to sackyou, so the rakes around the
1,005 is equally as high as ifyou are starting your own job.
But the mindset is such that wedon't see it that way.
So it demands that, as peoplecontinue to hear some of these
things, then eventually they'llbegin to see that, oh, I have
(23:55):
better options out there.
It's always difficult to start.
So if you make up your mindthat, okay, I'm going to start
this, I give myself three to sixmonths.
That would be the difficultaspect, the sacrifice aspect.
Beyond that, I expect thatthings will get better.
That will be a better optionand, as I said, it's a mindset.
The fear is in your mind.
The fear of going to startsomething and it will fail is in
(24:17):
your mind.
But if you start and you fail,what next?
What happens?
You're not the only person tohave started something and
failed.
Speaker 2 (24:26):
How about the fact that also sometimes you're
making that 1,500 and family areeven looking up to you that
1,500.
So you quitting that job wouldmean that maybe mom's medication
at the end of the month will bea struggle.
And now you're going to startyour own business and nobody
(24:46):
knows what a hook would happenif you start.
How about all those feelings?
How do we overcome that?
Speaker 1 (24:52):
So that's why it's always good not to just jump
into the business.
You start by managing it littleby little to see and test the
market.
So this water business I'mtalking about, you can get
someone to do just 10 bucks.
10 bucks means that you wouldhave started with 100 CDs to
start with.
So the person is doing italongside your business, so
(25:12):
you're just monitoring andmanaging it.
So with time, as you begin tosee the cycle of that business,
you can now progress and say,okay, I've gotten to the point
where I think I need to put mymaximum effort into this.
By that time you have alreadygained some experience.
But what some people do is thatthey just see of a business.
They think it's a very goodbusiness.
(25:33):
People are talking about it.
They've not tried it, notesting, they just jump into it.
Next moment they quit their job.
And why?
I'm going to start thisbusiness?
You are going to start Meaningyou have not already started.
Speaker 2 (25:48):
You've not even engaged that business.
It's the conversation thathappens on the street.
A lot, yeah, and I'm going todo that for you to hear you call
them the bomb and steal thephone.
So, patrick, there's thisbusiness that I've heard of.
There's so much money in it.
The moment you start seeingsomebody speaking like that, you
know that they are not comingfrom a place of experience yes,
(26:09):
speculative yes.
And then the other person onthe other side are you sure it's
going to make a lot of money?
Okay, okay, I'm going to do itthat person creates their job,
and then they find themselveswanting.
Speaker 1 (26:19):
Different world altogether.
Yes, so you need to always test, because business does not mean
that you succeed.
A number of people have done somany businesses they failed.
There are even good businessmentoday that still have
businesses that are failing, ofcourse, yes, and even you
yourself.
Speaker 2 (26:37):
Yes, you had two businesses that failed and you
spoke about it on your Facebook.
Yes, two businesses.
They all On your Facebook.
Speaker 1 (26:42):
Yes, two businesses, they're all filled.
So now when I'm going toanother business, I have a bit
of experience to know.
Okay, this has the potential tofail again because of the signs
that I'm seeing.
It maybe doesn't match up withmy mindset, it doesn't match up
with my personality, so it maynot help me.
So let me try this, becausethis matches with my personality
(27:03):
.
If you don't do that kind ofintrospection, you end up going
into a business that everythingwill go bad.
And don't forget, when abusiness goes bad, it's not like
maybe I've gone to give mymoney to, let's say, a bank Bank
is no more.
But bank of Ghana says theywill pay.
Even if it takes, let's say,five years, they will pay
Business.
Once it goes down, you loseeverything.
(27:24):
So it's not an addition thatyou take lightly by just going
with here.
See, I've heard this, I'veheard that this one has done it.
The business can even beperforming very well in Accra.
If you don't take care and youlift the idea to, let's say,
kumasi, it will fail Okay.
Speaker 2 (27:41):
So I was having a conversation with my wife
yesterday and then she wasasking me why telehealth
services not doing great in manyparts of Africa?
And I said because the marketis not ready.
We can't just pick it up fromthe UK, the US, canada and then
bring it here.
(28:01):
Sure, the market is not ready.
Recently, recently, there wasnews that came out that Akon's
project of 1 billion USD hasbeen abandoned in Senegal.
It was going to do somefuturistic Wakanda stuff.
I was telling my wife yesterdaythat look, it's a brilliant
idea, but Senegal is not ready.
And then she goes oh, how aboutRwanda?
(28:22):
Maybe Rwanda could work?
And I said no, the magnitude ofproject that this guy is going
to do, even Rwanda does not havethe numbers in terms of
population to even be able topatronize those services.
So sometimes, as business people, we need to understand that
market readiness is very good,because that is what timing,
(28:46):
business timing means.
Yes, when the timing meets, thebusiness will do well.
Yeah, there's been businessesthat we've come to Ghana here to
do.
It didn't work out.
Yeah, purely because the marketis not ripe enough.
Look, there are businesses thathave closed down in Ghana,
maybe because they came in tooearly.
Yeah, if they maybe come backin the next 10 to 15 years, it
(29:09):
might work.
It might work.
Yeah, because market is simplynot ready.
Yes, for it.
Speaker 1 (29:15):
We can't?
Speaker 2 (29:17):
A lot of the tech businesses in Ghana that are
making so much money.
I am seeing them in the fintechbusiness.
Yeah, they make so much money.
I am seeing them in the fintechbusiness.
They make so much money.
Speaker 1 (29:27):
Why?
Speaker 2 (29:27):
Because we're doing a lot of transactions, exactly,
yes, it's always an activity,but you see other people that
are doing other businesseswithin the tech business, but
it's not working out.
They're not getting the numbersbecause we are simply not ready
for certain ideas.
Yes, somebody says, oh, youready?
No, it's difficult to push themarket to be ready Again.
It's like you flow with thetide of the ocean rather than
(29:51):
against it.
So the timing has to be a yearin, year out, perfect.
Speaker 1 (29:57):
Right there, we've had several businesses I mean,
you've seen them Severalbusinesses have left the country
.
Speaker 2 (30:04):
Probably due to, maybe economic reasons, people
not patronizing the business.
Apparently both never madeprofit.
Yes, both food never madeprofit.
I mean, this is a big company,yes, you know global had to
leave.
Yes, even game so I reallythink that, as young people, yes
, you want to do business, butbe very careful with the copy
(30:27):
and paste model that this thingworks in Accra, it may not work
in Kumasi.
Speaker 1 (30:31):
Exactly, exactly, and that's my story of the first
business that collapsed.
All right, talk to me.
So when I qualified as achartered banker, I wanted to
set up a tuition center aroundKaswa.
That was somewhere 2012thereabouts.
So I got some lecturers whowere colleagues, friends in
(30:52):
accounting, banking, to set up aschool for professional
education in Kaswa.
At the time there wasn't any inKaswa, so that was an
opportunity.
So obviously you don't havemarkets as in competitors here.
You are starting to think thatyou have a market over there.
So we went ahead.
We did our flyers, banners.
I printed letters to churches,schools to market it Then on
(31:17):
social media.
That was when Facebook wasbeginning to pick up in Ghana,
so I marketed it.
The first day I got five or fourpeople showing interest coming
for lectures and I had twolecturers to take them through.
Especially that was inaccounting ICA.
The next week, two people came,two didn't come.
The third week, nobody came.
(31:37):
I lost everything.
I lost my flyers, I lost thelocation, lost everything.
I lost my flyers, I lost thelocation.
I had to now get money to paythe lecturers for doing three
weeks of lecture because thosewho came in only one person paid
.
I think about half Everythingwent down.
Why?
Because at the time,professional tuition was
(31:58):
happening in Accra, lagoon andother places and people felt
that that is where, when they go, they'll pass.
They are not ready to come anddo try an error with a news
center, because for them theyare paying money for the tuition
.
They expect to get value out ofthat, no matter who you bring,
because the area is cast by itsvery nature.
(32:19):
They thought that okay, theyare not good schools here, so
let's go to accra.
The same lecturers will come toteach them at Accra, but they
will prefer that than to stay atKaswa.
As we speak today, about 10, 15years time now, there are
schools in Kaswa that people areattending for the same
professional education.
Because, as we said, the timeis right now.
Speaker 2 (32:37):
You are too early.
Speaker 1 (32:38):
Exactly, exactly.
Speaker 2 (32:41):
And this happens day in, day out, every day.
And this happens day in, dayout, every day.
And sometimes, as a youngentrepreneur, the thought of
owning a business can be moreexciting than the time you need
to take to research into yourmarket, exactly.
So you want to tell everybodyoh, I own a business, I have
myself a business, but it's noteven making you any profit, it's
(33:02):
not even paying you well enough, exactly.
But simply by telling people Iown the business makes you feel
good about yourself.
But I tell you something, younglad, very soon you're gonna
start telling yourself the truthnot sustainable at all?
yeah, at all and, by the way, onthe 29th of august, at the
British Council, we have thefirst Connected Minds Live.
(33:25):
It is happening and we'veinvested so much time, so much
resources into that event thatis going to happen.
It's packed with speakers,packed with knowledge, and I
can't begin to tell you some ofthe things you're going to
experience should you show up atthat event.
So reserve yourself a ticket.
I'm going to leave it in thedescription right now.
(33:46):
Or you can go towwwconnectedmindslivecom and
just reserve a ticket.
I'm excited about that daybecause the entire community are
coming together.
We're going to have a networksession an hour before the
program and it's going to lastmaximum three hours and every
speaker is going to speak onwhat they are passionate about
(34:09):
not storytelling, but a teachingsession.
My brother, let's carry on.
Thank you.
Now, financial instruments thatpeople can invest their money
in.
What would you?
Speaker 1 (34:21):
recommend?
Okay.
So, um, when you talk aboutfinancial instruments, there are
multiple.
I'll run through a number ofthem.
So the first thing is that youneed to understand what your
risk appetite is as a person.
When you say risk appetite, youmean that how much risk are you
willing to take?
There are people that when theyhave their money, even with an
institution, and they hear thatthere's fire over there, just
(34:45):
the fact that there's fireoutbreak a branch will make them
not feel comfortable.
That's the level of risk ofsuch people.
So if you are a low risk person, you need to know the kind of
risk instrument.
You need to sell it.
If you are someone who has aheart to, I mean, carry on a
number of freaks, then there's alyrics, an instrument for you.
(35:07):
So let's start with the lowrisk.
So the low risk investment.
Of course, in ghana there arelimited options.
So we have the fixed deposits,we have the treasure bills.
That's the low, low low.
Speaker 2 (35:18):
Why is it low risk?
Let me stop it here for aminute.
If you've been watching thisshow, I want you to subscribe
and become part of the family.
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Speaker 1 (35:40):
Low risk because the possibility of you losing your
money is very low.
It's not, the possibility isvery low.
Not that it can't happen, butso far in Ghana we have not seen
it happen.
So we call those two low rates.
Speaker 2 (35:52):
Okay, before you move up the ladder, if I put my
money in any of these twoinstruments at a certain fixed
rate, is it locked in?
It's locked, Even if there'sfluctuations in the rate.
It's locked.
Speaker 1 (36:04):
For the period that you are doing the investment.
It's locked, all right, cool.
So fix the positive treasurybills and then we have the
medium or moderate rates.
Moderate rates here we aretalking of mutual funds.
In the past, mutual funds usedto be part of low rates in Ghana
, but now mutual funds areclassified as moderate rates.
Why?
Because mutual funds areinvested in some instrument that
(36:25):
has the potential to beaffected by any economic
condition.
So, for example, mutual fundscan be invested in bonds, either
corporate bonds or governmentbonds.
Government bonds here meansthat the institution is going to
give the money to governmentand government will pay you back
your coupons, which is theinterest and the principal.
You back your coupons, which isthe interest and the principal.
(36:47):
We all remember.
In 2022, when government wentinto IMF agreement, there was
this domestic debt exchangeprogram that affected bonds.
So all the funds which were inmutual funds that were invested
in bonds were affected.
So that's why we classifiedthat investment as now moderate
rates, meaning it's in between.
(37:08):
It's not too high, it's not toolow, because the possibility of
that ddp happening againanytime soon is very low.
However, because it hashappened before, we don't want
to say it is a low riskinvestment.
So we can invest mutual fundsand the mutual funds.
They invest in bonds, as I said,some of them to invest in
shares.
So because they areprofessionals, they know exactly
which shares are performingwell and they can invest your
(37:29):
money in shares for you.
So that's a mutual fund.
Then you can do the sharesyourself.
So you can go into stocks.
You can buy local stocks.
You can buy foreign stocksNowadays.
So far year to date, the stockmarket has done around 30% or so
in terms of appreciation ofvalue.
So it means that if you hadinvested in any of the
performing stocks betweenjanuary and now, your
investments would have grown byabout 30 percent.
(37:50):
So that's also another areathat you can consider.
However, it is not low riskbecause the price of stock or
the value fluctuates, so you mayhave a stock performing very
high.
The next moment is going upbecause of um industry
challenges, news around the, thecompany buying and selling.
People are selling their shares.
That will drop their price down, so that's also another option
(38:14):
that you can consider.
Or you can do foreign stocksand nowadays a number of these
foreign companies.
They have platforms that youcan use, even in ghana, to buy
shares in some of thesecompanies as an option.
But then again, as you go into,you need to understand the
market.
Don't go and invest in shareswith the mindset of a fixed
income Treasury bill.
(38:34):
Fixed deposits are fixed income.
It means that if it's 10%, youare short of the 10%.
It will not fluctuate.
Shares is based on the marketcondition.
If it's performing today, itdoesn't mean that tomorrow it
will perform.
A company can even make profits, but the company can decide not
to give shareholders dividends.
They will reinvest into theirbusiness.
(38:54):
So keep that at the back ofyour mind as you go into that.
Then, if you are going to thehigh risk, then we are talking
of issues relating to goldinvestments.
Nowadays, bank of Ghana hasintroduced what they call the
Ghana Gold Coin.
Basically, you are investing ingold, so the price of gold
going up and down will impact onyour investment.
(39:14):
Last year when it started, thegold coin was around 45,000 for
one ounce.
It went high to this year,april 54,000.
As we speak, it's around, Ithink, 38,000, 54,000.
As we speak, it's around, Ithink, 38,000, 35,000.
It's dropped.
It's dropped For two reasons.
One is that gold price has notgone down much.
(39:35):
It's still around 3,400 perounce.
However, it is pegged to theGhana CD to a dollar.
So at the time we are talkingof 54,000, the Ghana CD was
around 14 CDs to a dollar.
Now, as we speak, the interbankrate is around 10.3.
So if you multiply 10.3 by3,400, that's cause the
(39:56):
investment to drop.
If the investment or theexchange rate was still 14, you
would have seen someappreciation on your investment.
So if you are going to GhanaGold Coin or buy gold investment
which is converted to Ghana CDs, you need to keep at the back
of your mind that exchange ratescan affect your investment.
So those who bought it at thebeginning of the year at 54,000,
(40:17):
51,000, today they can sellBecause if you sell it, you are
losing a big loss.
So that's why we say it's ahigh-risk investment volatile
loss.
So that's why we say it's whathigh risk investment, volatile.
However, it also has thepotential to increase your
wealth faster than treasurebills.
Fix the person.
Give you, from beginning of,let's say, 2010 to now, if I'm
(40:38):
not mistaken, 2010, a good one.
Good, I think.
One ounce was around, I'm notmistaken, I think seven700.
That's 2010.
$700, one ounce.
As we speak, one ounce is$3,400.
Check the jump.
And it has the potential to growfurther, because gold is a
(40:58):
commodity that every country isin need of.
So if you want to go into it,keep at the back of your mind
that there can be a fluctuation.
However, it's a long-terminvestment.
So if you want to do long-terminvestment, you go into that.
Then now the usual foreign anddigital assets, the cryptos.
It's also a financialinstrument that you can consider
if you want to be playingaround the market and has the
(41:19):
potential to grow.
Again, there's a risk there.
You need to make sure youunderstand the market before you
go into it.
So all what I'm saying thereare financial products available
to you.
The one you want to take andthe stage of your life will
determine the option you choose.
If you are, let's say, gettingto 60 years, getting to your
retirement, you try as much aspossible to stay within low-risk
(41:40):
investments.
Why?
Because, if something happens,you don't have years to recover.
Speaker 2 (41:47):
I'll tell you something funny.
You don't have years to recover.
I'll tell you something funnybefore you come on.
They say that a man at age 60is more scared of losing their
money than losing their life.
Exactly.
Speaker 1 (41:59):
So they have to be careful.
Speaker 2 (42:00):
Yes.
Speaker 1 (42:02):
People like 20, 25,.
You can take high risk Becauseyou want to grow your wealth
over a period of time.
You know that even if there's aloss this year, next year I can
make a profit.
So you have some time.
But as you get closer to yourretirement you limit your high
and moderate risk to now lowrisk.
So they nearly go for thepension fund.
You go to buy some pension.
(42:24):
Nowadays there's even what youcall annuity.
Annuity basically means that Igo on pension.
Snet gives me my tier two, orthe fund manager gives me my
tier two, which is the lump sum.
I can give the lump sum to apension company or an insurance
company and tell them that outof this lump sum because I'm on
retirement, I want you to giveme, let's say, 10,000 CDIs every
month from it.
They will do the calculationand tell you that if they give
(42:46):
you that 10,000, your investmentcan last for, let's say, 15
years Before it goes down.
So if someone says, okay, Iwant to do that Because on top
of that it is already payingthem their monthly, so they just
want that as a supplement, sothat investment is also there.
Or you can give the same moneyto the pension company and tell
them that I or you can give thesame money to the pension
company and tell them that Iwant you to do your calculation.
(43:07):
Tell me how much money you canbe paying me from now till I'm
no more and they will do thecalculation and tell you and
that will be added to your money.
So there are options out therefor people.
Depending on how aggressive youwant to grow your wealth, you
go for the option that works foryou.
This year, the option thatpeople are going for because
treasury bills have dropped, areequities or shares.
(43:28):
People are investing intoshares.
However, the share market, as Isaid, it, fluctuates.
Sometimes you can even go to abroker, fill a form that you
want to buy shares of a companyA, company B.
It can take like two months.
The share is not availablebecause nobody's selling,
because everybody has seen thepotential in the market and they
are keeping their investment.
So that is an option thatpeople are doing now.
(43:50):
But if you can't go into thatand you still want to do
something that is moderate, thenyou can now go into mutual
funds, which are also doingquite well on the market.
Speaker 2 (44:00):
I think you really need to break it down your top
three options.
For somebody who has a hundredthousand right now to invest.
Where would you advise him toput it?
Speaker 1 (44:12):
If the person wants to take moderate and low risk,
first option would be a mutualfund.
Okay, mutual fund.
Invest in mutual funds.
How much of that money wouldyou put in mutual funds?
If the money is mine, I woulddo 50,000.
Mutual funds Okay, direct mutualfunds, money is mine, I will do
50 000 mutual funds okay,direct mutual funds and how they
get their payback.
(44:33):
So the mutual fund is is aninvestment that you cash out on
your own, at your own time.
Okay, it's not like um, fix thepost where it is for three
months, six months.
It's like a fund for you andthe fund grows with time.
They are investing the moneyand it's always growing right.
So as and when I want it, Icash out.
So currently we have someinstitutions that are doing
mutual funds beginning of theyear to now, around 23.
(44:53):
So that's what you calculate onyour fund.
So 50 000 times 23, that willgive you how much your fund
would have grown as we speaktoday.
So mutual fund will be my firstoption because I'm getting
about 23% out of that.
Then I'll keep 20,000 CDs inbuying shares myself.
And let me go back to themutual fund.
The mutual fund.
(45:13):
There are about three types ofmutual funds.
We have what you call the moneymarket mutual fund.
Here they invest the money intreasury bills and fixed
deposits for you.
But because they are investingin volumes for the fixed deposit
, they're able to get higherrates than if you had gone to
the bank to invest.
Perhaps you go to the bank 100,000, you are getting less,
(45:34):
about 15, 12.
They are doing it in millionsso they can go and negotiate for
, let's say, 20, 19 for the fundand they spread to everybody
within the fund.
So that's what you call moneymarkets.
And because they are investedin the treasure, so that's what
we call money markets.
And because they are investedin the treasury books and fixed
deposits, the risk is, as I said, low risk.
Then you have what you callbalanced mutual fund.
(45:55):
Balanced mutual funds, as thename suggests, they invest some
in fixed deposits, treasurybooks, and some in stocks.
So it's a portfolio ofinvestment that manages by
itself.
Risk here, low rates here.
At the end of the day you getsome value out of that.
Then we have what you callequities as a mutual fund.
Here they invest purely instocks.
So they invest purely in stocksand that gives you some return.
(46:18):
So by 50,000, we go into mutualfunds.
If I'm someone who wants totake moderate and low rates,
then 20,000, as I said, will gointo shares.
Then the remaining 30,000, I'llput them into treasury bills.
Speaker 2 (46:33):
How long will it take you for that money to turn into
a?
Speaker 1 (46:35):
million.
It depends.
If I get in about 30% on themutual fund, it shouldn't take
me more than five years.
I'll be able to grow it to thatpoint.
Okay, yes.
Speaker 2 (46:44):
Do you think?
All right?
You see, for me I always saythat when you're trying to grow
your money, investments aregreat.
It's just one Avenue, yeah,which you've.
You know, you've laid it outbeautifully there is business as
well.
Yeah, and then even business.
(47:06):
You can do several businessesto bring in more cash, exactly.
Then you invest.
Yeah, of course you know itcould be real estate, it could
be whatever.
Yeah, you must have severalavenues to grow your money.
Sure, not just.
Okay, I've got a million and Iwant to invest that money in
mutual funds.
Yeah, just in mutual funds.
Yeah, just as you've laid out.
Yeah, it needs to go intoseveral things.
Speaker 1 (47:27):
Exactly.
Speaker 2 (47:30):
But if you certainly don't have an appetite for
businesses, then this is a greatoption.
Perfect.
Speaker 1 (47:34):
For you Perfect.
Speaker 2 (47:35):
Because there are some businesses that will give
you much, much better cash flowthan putting the money at the
bank.
Yes, I agree, right, I agreeMuch, I agree, right, I agree,
much, much better.
I mean, I know people makingloads of cash every month.
Yes, that's what I asked you.
How is it going to turn into amillion?
Yes, because some of thesepeople I mean a million is like
(47:57):
what the hell.
And this one is just it'staking a bit longer, but it's
safer, it's long term.
You know, the issue we havehere is a lot of young people
will listen to this conversationand think, oh yeah, okay, right
, crypto is going to make memoney, forex is going to make me
money, so I'm going to go invery quickly to turn the money
around.
What do you have to say to them?
Speaker 1 (48:18):
So again it comes back to what is the goal of the
investment.
How much risk are you willingto take?
How much risk are you willingto take?
If I want to take high riskbecause I see a potential, then
I'll keep less about 20, 30% ofmy investment in cryptos because
I see a potential for it togrow there and I have age on my
side.
Speaker 2 (48:37):
Did you see the video of this man that lost, I think,
400,000 cities, that he said hewanted to kill himself?
Speaker 1 (48:42):
Yes, I saw it.
I saw it.
So sometimes it's the way guyswho are into crypto also present
some of these things.
They make it sound like it'sall well and good,
straightforward, cash out seasoninvestment.
It's always like that.
(49:02):
I have done crypto before.
When it started, I went into it.
At the time, the market wasstill developing.
At some point in time, I lostinterest in it.
I know people who have goneinto it.
Just about two weeks ago, I hadan interview with one crypto
expert and he told me how muchhe made and how much he lost.
So if you want to go into thatspace, yes, but give yourself
(49:23):
time.
Don't be in a rush to try toturn things around quickly.
I always say that if you wantto turn things around quickly by
getting so much money, go intobusiness.
Go into business, because allthese instruments I'm talking
about are instruments that willbuild over time and once you
have age on your side, you buildover time, provided you can
have the patience to be able todo that.
(49:44):
This is your crypto matter Ijust made.
Speaker 2 (49:49):
I just remembered something I've invested so much
myself, with my business partner, we've invested so much money,
so much money, into crypto.
We started doing that, I thinkabout what seven years ago.
Okay, we still haven't seenanything.
You know, I keep asking himbecause he's, he's, he's quite,
(50:12):
you know, involved.
I keep asking him, ed, are wegoing to be billionaires?
Is it ever going to happen?
Because we keep waiting, yeah,and it's not happening, exactly
because it's.
You know, we're doing it forthe long term, but when when
it's been seven years, you know.
but recently somebody contactedme.
Somebody I know One of myUgandan mates.
(50:36):
I've done some work with him inthe past and he kept bothering
me I need an account, I need anaccount.
And then I gave him a tradingaccount A thousand pounds Within
three days.
The guy a trading account athousand pounds Within three
days.
The guy blew the account Wow,three days so.
But then I posted it on Twitterand then see this will happen
(50:57):
where young people will say ohno, I can turn it around.
I can Money comes so fast, moneygoes so fast?
Exactly, it's a very's it's,it's a very in-out kind of
concept.
You know, long-term it's, it's.
It's always good, it's alwaysgoing to favor people.
Speaker 1 (51:16):
Yes, Very true we.
We shouldn't see wealthcreation as a a sprint, where
you just go 100 meters, dash you.
Where you just go 100 meters,that's, you are done, you are.
Well you know, if you go thatroute you won't have the muscles
to manage it, even if it comes.
Most people who have made thatkind of wealth in a very short
(51:38):
time, most of them, were notable to manage it.
So it's always good to build itup.
Of course, if you get anopportunity to speed it up a bit
, do that.
But young people, some of themlet me use some we have this
mindset that the world isrunning so if I don't do mine
(51:59):
and cash out now, I'll be leftbehind.
And that is not to say that Imean if you see an opportunity,
you don't take it.
It's good to take it, but thatmindset will eventually push you
into areas that you'll bestruggling to come out.
And that's what is leading somepeople into even fraud, crime,
because we see people 40, 50years driving certain cars.
(52:21):
You have 25 years and you wantto drive the same car.
You don't know how many yearsit took the person to buy that
car.
You even start with a car thatyou can afford.
They want to drive the same car.
So, any opportunity, whether itis bad or good, they want to
jump onto it.
And by the time you realize,they will tell you I'm doing
this and that's what is givingme that, but in reality they're
(52:42):
doing something else, somethingelse, and eventually life will
catch up with them and that'swhere you begin to see oh, this
is what we're actually doing.
So don't just be watchingpeople posting here and there
and they are telling you theirstory and you are just jumping
onto it.
I did this, I did that and youare also going to try it.
You go into it.
It's not like that.
Speaker 2 (52:57):
Then now you have to do what they did to get to where
they are just, basically, youare just covering up, yes,
Trying to do something else tomake it look like that is what
is giving you the money Exactly,but that is not it.
No, wow, sine, is thereanything we can, we could have?
Is there any question?
(53:19):
I could have asked you for usto discuss that.
I haven't.
Speaker 1 (53:27):
I think that, by and large, we've touched on almost
everything within the financialplanning space.
We just need to.
As a matter of fact, if you'rea young person, aside all the
investments I've mentioned, oneinvestment that you should
consider doing is the personalinvestment plan.
It's more like a retirementplan.
It works with compound interestand I believe you understand
that you must have compoundinterest, and I believe you
(53:47):
understand that you must havecompound interest.
Compound interest basicallymeans that you build interest
upon interest, and it worksperfectly with age.
So the longer period you haveahead of you, the looks the
better it grows.
Speaker 2 (53:58):
I mean, it just grows with time.
Speaker 1 (54:01):
It grows with you.
Yes, so it doesn't matterwhether you're in Ghana, you're
outside Ghana, whatever countryyou find yourself, they are
compound interest investment.
In Ghana we call it thepersonal investment plan, for
most of the pension companies,or some banks even do that.
If you're a young person you'rearound 25 years start something
.
You can decide to even do 50CDs every month.
What I always tell people isthat, because we know of
(54:22):
inflation, this kind ofinvestment has what you call
inflation protector.
So it means that every year orevery time, you can decide to
increase the amount you arecontributing by looking at
inflation and as you do that,you see that the fund will also
be growing over a period of time.
So if you're a young person, youjust started your first job.
(54:43):
I mean, buying a car is nice,building a house is nice, but
when you buy the car, you builda house and that is not
generating any revenue for you.
When you go on retirement, youstruggle.
You gotta forget.
Research shows that when youare even paying snits and go on
retirement, whatever snit isgiving you is just covering
about 67 percent of your livingexpenses, my God.
(55:04):
So they're remaining about,let's say, 30.
5%, 5%.
Who covers for that.
And don't forget, when you goon retirement.
That's where you go to thehospital very frequently and you
need to chill.
No stream of income is comingbeyond your snitch.
So that's why they've createdthis additional one, so that you
(55:25):
can contribute into it and youdon't need much to go into that
beyond your other investmentthat you are doing.
So for me, that's one of thethings I would advise people to
do and consider.
I have multiples of thatbecause I think that, however
upbringing that I came from byway of my family, I expect my
children to have a better one.
(55:46):
So if they should have a betterone, they start with me.
I have to take their step today.
I don't have to wait for themto come and blame me tomorrow,
not to say I'm blaming my dad,but at the time, if that option
was there, I'm sure we'd havedone it, and today, by the time
I would have finished university, I would, and 500,000 cities
waiting for me to start lifewith.
Assuming you have that for yourchild to start life, the child
(56:08):
is starting life with somethingthat they can comfortably use to
build and create better wealth.
Wow, but we start or put ourchildren by starting life from
most of us from a valley.
So your child is standing in avalley and he's competing with
someone who is standing on themountain.
By the time the child gets tothe mountain, the guy is already
60 years.
He's going on retirement, wow.
Speaker 2 (56:31):
I hope you get the point.
Yeah, that was a good analogy.
Speaker 1 (56:33):
Yes.
So put the child on themountain at the time they are
ready to start work.
Let them progress from there.
Don't put them in a valley bynot taking the steps today.
Speaker 2 (56:44):
I love that.
Thank you man.
I love that.
Thank you man.
I received that.
What's the best advice you'veever received?
Speaker 1 (56:52):
don't let people see that you are in need of money.
That's the best advice someonetold me.
Don't let people see that youneed money from them.
When people see that you needmoney from them.
When people see that you needmoney from them, they take
advantage of you.
They don't respect you, sodon't create that opportunity
(57:16):
and avenue for them where theysee you, as in quotes, a beggar
requesting or needing some moneyfrom them.
That's the best advice.
So, whatever you you do, everyfinancial decision you take, ask
yourself will this decisionhelp me to stand on my own and
not to be seen as needingsomeone for money?
(57:37):
That's the best advice.
So that means that if you areworking for someone, you don't
eventually rely on your salary.
The moment you have to wait foryour salary to hit your account
before you spend or you getsomething to spend in the month,
you're not there yet.
Get to a point where, even ifyour salary delays for two
(57:58):
months, three months, you arecomfortable.
In that way, people respect you.
Otherwise, nobody respects you,no matter who you are.
Once you get to the point whereyou need people to support you
with money or you need to fallon people for money, there's no
respect, you lose respect.
It's gone.
Speaker 2 (58:18):
And you can't recover .
Wow, yes, motivation ordiscipline.
Discipline Senior.
I'd like you to recommend abook on self-improvement money
finance business.
Speaker 1 (58:35):
I think it's a book that most people have talked
about so many times.
Speaker 2 (58:40):
Richard R Porter, I knew you were going to say that
I knew you were going to saythat for me it's a classic when
you talk of books, just like wehave for movies.
Speaker 1 (58:48):
For me, Rachel Dalport, that is a classic.
It changes your mindset.
You get to see life fromdeveloping and creating assets,
liabilities.
Once your mindset is always howcan I create an asset?
How can I create an asset togenerate income for me?
You don't take certaindecisions.
So that's the book that Irecommend.
(59:09):
Once you get that book sortedout, I'm sure others can just be
an addition to it.
Speaker 2 (59:16):
You heard it here.
Thank you so much for your time, my pleasure.
The circumstances on which wehad this conversation today the
viewers will never get to know,but it was divine.
Thank you so much.
My name is Derek Abayite andyou've just heard everything you
(59:38):
need to know about financialplanning and budgeting, and I
hope you put this into practiceBecause, as he also said,
discipline is more importantthan motivation, and that is
what is going to allow you tostay ahead of the game.
Don't forget that.
If you made it to the end, Ireally want to know in the
comments.
Thank you so much for your timeand share this for somebody
(01:00:01):
else to also get to see you.
My name is Derek Abaiti.
Stay connected, I'm out.
If you don't break that cycle of hand to mouth with
your family, you will keep onrunning that cycle.
You'll be out, your childrenwill come and continue and there
will not be any break.
It's always difficult to start.
A thousand five job can go justlike a wind.
The owner can decide to sackyou, so the risk around a
thousand five is equally as highas if you are starting your own
job.
The fear is in your mind.
If you are investing or saving,you should have a clear goal
(00:25):
for that investment or saving.
The goal you have willdetermine the actions that you
take.
You don't need to keep yoursavings sitting in your account.
You push it into an investmentso that you won't even be
tempted to go and see the moneyin your account and withdraw it.
Speaker 2 (00:38):
Now you're speaking about other streams of income.
What can they do to increaseyour cash flow?
Speaker 1 (00:49):
of income.
What can they do to increasetheir cash flow?
Okay, so the business can evenbe performing very well in a
crowd business, once it goesdown, you lose everything.
Speaker 2 (00:54):
Financial instruments that people can invest their
money in.
What would you recommend?
Speaker 1 (00:59):
when you talk about financial instruments.
There are multiple.
I ran through a number of them,so the first thing is that you
need to understand.
Speaker 2 (01:04):
Welcome to Connected Minds Podcast.
My name is Derek Abayite.
Thank you so much for tuning inand being part of the family.
So today I've got Mr PatrickBa-Bankwa here and he's a
(01:24):
financial analyst and an advisorand a planner.
He has a business that helpspeople to step into their wealth
creation properly.
What can you invest your moneyin?
What does the market look likefor you?
What rates are currentlyavailable?
As a matter of fact, if you'renot entrepreneurial, but you're
(01:47):
rather somebody that want to putyour money somewhere that can
grow over time and have a lovelypension, this conversation is
for you, wherever you are on thecontinent.
Today's conversation is packedwith knowledge, experience and
expertise that will shift theway you understand money,
investment and financialinstruments.
And again, you're welcome to mystudio, thank you.
Speaker 1 (02:12):
Thank you.
Speaker 2 (02:13):
I've watched a lot of your stuff, especially on
Facebook.
Sure, you post a lot yeah, I do.
Sometimes you write down somerates I don't know whether it's
banking rates but the engagementis pretty good.
I think that people really likewhat you're doing for them.
(02:33):
Thank you.
My first question to you is whydo you do what you do?
Speaker 1 (02:41):
Okay.
So I think that I developedthis particular passion when I
went into the banking space.
So in 2013, I joined a bank andin the banking space, I met a
number of people young, old andwhat I realized was that a
number of them had little or noknowledge about what they need
(03:03):
to do with their money, and inthe banking space, you get to
learn some of these things onthe job, and at the time I was
entering into the banking space,I was already a chartered
banker, so I had thequalification in banking, but I
was to practice and now getexperience.
So as I met these people, Irealized there was a big gap
between what people actuallyshould do and what they are not
(03:24):
doing.
So then I saw an opportunity totake a step, walk people
through the journey of life whenit comes to their finances, and
so I started somewhere in 2015,16, by beginning to share this
kind of post and later graduatedto do videos, and that's where
I am at the moment.
So there was a big gap, and Idon't think that we are still
(03:45):
there yet.
There are a number of peoplesome are even bankers who don't
even have the basic requisiteswhen it comes to financial
planning.
We shrugged, but we engagedthem, so that, for me, is the
drive towards what I do.
Speaker 2 (03:56):
Amazing.
And what is financial?
Speaker 1 (03:58):
planning.
Financial planning is basicallyhaving a plan around where you
are now financially and whereyou want to get to tomorrow, no
matter your age, no matter yourbackground.
It goes into investment, itgoes into your career, it goes
into your retirement.
All of these things come intowhat we call financial planning.
And if you don't have that, youwill be working, earning some
(04:22):
money, but at the end of the dayyou wouldn't be able to account
for what exactly you used yourmoney for, because now it
becomes, as it were I earn themoney I spend.
There's no plan, there's nogoal that you are pursuing with
your income.
Speaker 2 (04:37):
So that's what having a financial plan is all about
so I have a day job and I earn5,000, sure, every month.
Take me through a plan thatwill help me secure my, to have
a better, you know, pension umtime.
Speaker 1 (04:57):
So the first thing you need to do is that if you
have 5 000 as your income, youneed to draw up a budget, a
budget of how you intend tospend that 5,000.
So basically, a budget.
As you all know, you have theincome side, which is, in this
case, 5,000.
You don't have any other sidehustle.
You stick to the 5,000.
And now you go into thebreakdown.
How do I intend to spend this5,000 every month?
(05:20):
So consider what we call theessentials and non-essentials.
Essentials.
So consider what we call theessentials and non-essentials.
Essentials are basically yourfood, water, transportation and
your rent.
These are essentials.
Sometimes, essentials can benon-essentials.
Okay, in the sense that a rentof, let's say, 2 000 will give
you a place to lay your head.
The same being a rent ofthousand can also give you a
(05:41):
place to lay your head,depending on your level of
income.
If you choose a $2,000 as a wayof classifying as essential, it
may not be an essential for you, because if you take $2,000
from your $5,000, what it meansis that you are just left with
$3,000 that you are going tobreak down to every other
expenses.
Trust me, it will not be enough.
(06:01):
So that means that you willhave enough to spend on some
investment that will help you tobuild the future that you want
for yourself.
So you classify the essentialswell, make sure the figures you
are putting by them arerealistic At the same time
things that will help you tomeet your future goal.
Then you come to thenon-essentials Things that's
maybe additional shoe,additional bag, you've seen
something that is not what youto buy.
(06:22):
You keep them and then you havea portion for investment, and
investment here is not onlyfinancial instrument.
It can be buying and selling ofthings.
These days we do a lot of dropshipping.
We can get some item that youwant to buy or, if you want to
go into a pension plan, you canchannel that investment
component into a pension planand build it over time.
Once you you do this, thisbecomes the base of whatever
(06:46):
plan you want to build.
So when I meet Ipo and we areable to do this patrol budget,
by the time we are done with thebudget, all other questions
have been answered, because yourinsurance will be covered in
your budget.
Your pension will be covered inyour budget.
If you have a business ideathat you want to put some money
aside, you cover it in thebudget and then you now go into
the mood of now putting it intopractice.
(07:07):
Having a budget is one thing,but putting the budget into
practice by way of signing up tothe product that you want, by
way of starting the businessthat you want, is the second
part of it, and that's wheremost people struggle, because
you help them to build a budget.
But in terms of implementation,then the excuses will come in.
Speaker 2 (07:26):
What are some of the things that you can say to help
us to be able to implement?
Speaker 1 (07:30):
it.
So the first thing is that ifwe drop a budget, let's ensure
that we stick to products thatare matched to, especially
issues relating to investment.
So I don't like people tryingto do the investment themselves.
If you can automate, try andsign up a product that will
automate and deduct from yoursource, that's if you are in a
formal sector, so that yourmoney comes on a particular day
(07:53):
of the month you are deductedinto that investment plan.
It's insurance you want to do.
It's done in that way.
If it's about your food and rent, nowadays you can just do a
quota.
If it's about planning for thefood for the month, if it's
buying in bulk, you buy it inbulk and now you go ahead of it.
If it's about transportation,you know that in a month it's
500 CDs.
You do your own breakdown thatin a week you are supposed to
(08:15):
spend less than 100 CDs.
How do you break the 100 CDsdown?
You need to take publictransport Monday to Friday Each
day.
Public transport Monday toFriday each day is 20 CDs.
When you do it this way, you arebreaking everything down and
makes implementation very easy.
If it's about rent, and youknow that currently, as we speak
, you are renting about 1,500.
And you know the 1,500 is notsustainable because you don't
(08:37):
have any extra income, then,whilst you are winding down the
rent, think of a place that islower in terms of the cost, at
the same time, a nice place thatyou can afford.
These are the implementationsthat you need to put in place.
I wouldn't say it's an easytask at all.
It's not easy.
But if you are not able tocreate additional stream of
income to support the 5,000,then taking steps within the
(09:04):
5,000 may not be very pleasant,but it's necessary.
Speaker 2 (09:05):
Do you still think it is possible for somebody that
earns 5,000 cities to still havea good financial plan?
Speaker 1 (09:11):
Positive Even 2,000.
Speaker 2 (09:15):
But from the way you described it, it sounds so
difficult and it sounds almostunable to achieve.
Speaker 1 (09:24):
I wouldn't say it's difficult in the sense of
difficult.
It's just that it needs a bitof discipline to do it.
A number of people are notdisciplined.
Most of us are not disciplined,including myself.
So we set out to say we aredoing this with this amount.
We end up going overboard.
Especially when you havepressure from society, peer
pressure, family pressure, youend up going beyond it.
(09:45):
Even you have pressure fromsociety, peer pressure, family
pressure, you end up goingbeyond it, even when you are not
aware of it.
So it's a discipline that makesit difficult and, as you know,
in this life, if you are notdisciplined in anything that you
do, you'll struggle.
So once you are disciplined andsometimes for those who are
married, you need to have onepartner who is an accountable
partner, as we always say inplanning.
(10:06):
You can't all be the same interms of your mindset.
You can't all be spenders.
Someone should be a spender,someone should be a saver, so
that the person will always putthe other person on track.
So that's what you can do.
If you can afford a financialadvisor, that person also puts
you on your toes.
Monthly.
You engage.
Okay, how far far?
Where are we?
You said you're going to dothis.
Have we done it?
What was the challenge?
That also puts a bit of controlon yourself.
(10:30):
If the person can be yourchurch member, someone that
knows about finance, make sureyou engage the person and that
will help you to staydisciplined.
Speaker 2 (10:38):
I set out to save or invest 3,000 cities out of my
5,000 every month.
Sure, but what happened wasthat you know I went to the shop
and you know I saw some thingsI like.
I bought it.
So that month, when you guyscame to my bank to take the
direct debit, it didn't work out.
(10:59):
The following month mom wassick, so I had to pay out the
following month.
You know I was struggling somuch that I had to take some
more money out.
What does that look like in thelong-term planning of the
person's finances?
Speaker 1 (11:11):
So what I always say is that if you are investing or
saving, if you have a clear goalfor that investment or saving,
the goal you have will determinethe actions that you take.
So let's take an example.
I have a plan to, let's say,buy a land by the end of the
year and the land is, let's say,going for 10,000.
(11:32):
And in that plan I need to saveor invest, let's say, about
1,000 CDs every month.
The moment I miss out on 1,000,what happens?
It means that my target of10,000, I won't be able to meet.
So when I have the urge to gointo the 1,000, because I have a
particular goal of 10,000 bythe end of the year to buy a
(11:54):
land, I restrain myself or Ilook for other options to get
the thing sorted out.
So if you don't have a goalthat you are passionate about,
that is where some of theseassets will happen.
Of course, because we arehumans, once in a while this
will happen.
You can go into your savings orinvestment or you may not
invest they are normal but itshould not be a periodic month
(12:16):
or month, unless maybe your goalthat you have for yourself
you're not passionate about it.
Speaker 2 (12:20):
Well, I mean, you know what happens with habits,
right?
Yeah, I mean you know, whathappens with habits?
Right, yeah, so when you form anew habit and you break that
habit twice.
It will cost you so much to getback on track, back on the new
habit.
So usually what you should dois that you should not default
twice, Exactly Because if youdefault twice, you're back to
(12:42):
default setting Exactly.
Speaker 1 (12:44):
So, as much as possible, try and stick with it,
even if it happens for whateverreason, just go back to it
again.
That's my advice, because ifyou allow it to transcend and it
goes on for a very long time,that's where the challenge comes
in.
You realize that at the end ofthe year your target will not be
met and that means that it evendiscourages you.
(13:06):
So a lot of people they save,they go for the savings.
Then they think that okay, nowsavings is not even important
because I saved this month and Iwent for it next month.
The question is what was thepurpose?
What was the goal for that?
Savings?
Is it just?
And do you know what we do withsavings In this part of the
(13:26):
world?
We classify savings as aleftover.
So we do our expenses At theend of the month.
If I'm left with 200 CDs in myaccount, I call that savings.
That's not savings.
A savings should have a purposeand should channel the savings
into an investment.
So I have told people so manytimes that you don't need to
keep your savings sitting inyour account when you can invest
(13:47):
that savings into somethingelse.
So you have your budget, youhave your living expenses.
That's what you keep in youraccount, day-to-day living
expenses.
You keep that in your account.
Any other thing you callsavings, that you are saving for
the future.
You push it into an investmentso that you won't even be
tempted to go and see the moneyin your account and withdraw it.
You see people who are notquote-unquote very disciplined
(14:08):
with money.
They have empty how do you callit ATM card.
They have signed up to all appsthat can easily move money from
their account.
It will not work because whenyou are tempted, the first thing
you think of okay, I have thecard, let me go and withdraw.
If you are someone who cannotstay disciplined, you don't sign
up to a number of these things.
Speaker 2 (14:27):
Okay, some of the ones we shouldn't sign up to
Don't like.
Speaker 1 (14:30):
ATM card.
Don't be using the ATM card.
Don't link your bank account toyour wallet.
It can easily tempt you, Right?
So, for example, I don't workno matter what.
Unless I know I'm going to takesome money from the bank or
some other transactions oronline, I don't work with it.
I have limited the linkage ofmy bank account to my wallet so
(14:52):
that I won't even be tempted.
Because if you want to go anddo something and I'm thinking of
it, okay, what are the steps?
I need to take a car to thisplace?
Do I go and do this?
Go and do this?
It's a lot of work.
Okay, I won't do it.
I see this nice, I want to buyit.
Okay, I don't have money on me.
I don't have my account linkedbetween my wallet and this thing
.
I have to go to the bank.
Okay, I won't go.
I won't buy it again.
(15:13):
But if you have linked upeverything, trust me, you'll be
tempted.
You just have to fail withincome from other sources and
there are some people that alsodo window shopping.
Speaker 2 (15:33):
Right, yeah, so they just go and walk around the mall
.
Um, and if you're walkingaround the mall and you have
your bank card and you have,money, you'll be tempted so when
the boys call you that, charlie, let's meet at a grandmaramall
and, just you know, go and walkaround.
Yeah, if you know you have abudget you are saving towards
something.
Yeah, defer that Exactly.
(15:53):
Why are you going?
Because when you go you willspend that money, yeah, okay.
So the young man is now sayingthat that 5,000 cities.
You've shown me how I can do mybudgeting, financial planning,
but the truth is it is notenough money.
Speaker 1 (16:17):
Now you're speaking about other streams of income,
what can they do to increasetheir cash flow?
Okay, so, when it comes tostreams of income, other sources
or side assets, as we say, youalways have to understand who
you are, what you can do andwhat you cannot do.
How much time do you have toearn extra income?
And then, when you are able toanswer these questions, they now
(16:37):
begin to narrow down to exactlywhat will work for you.
So you can either go intobuying of products and selling.
You can go into what I calldropshipping, as you all know.
I mean marketing of productsonline.
People express interest, youtake them and you get them the
item.
That's also one of it.
About two months ago, I did avideo on the same side hustle
(17:00):
and I used an example of sachetwater.
If you want to go into sachetwater Currently sachet water.
If you want to go into sachetwater Currently sachet water one
is going for about I think, ifI'm not mistaken, about 50 pesos
.
Okay 50 pesos.
One is going for 50 pesos.
Okay, if you buy the bag, wehave 30 pieces in it.
All right, 30 pieces in there,50 pesos.
So that's 15 CDs, yes, but inthe bag you are getting what?
(17:25):
15 CDs?
Yes, and we are selling one forwhat?
50 pesos?
Yes.
So 50 pesos times 30, how muchare you getting 50?
pesos times 30 is 15.
15 CDs, yes, yes, but the bagis 10 CDs, right.
So you make five CDs, five CDsfrom each bag that you sell.
Okay, so assuming that in theday you are not selling much but
(17:51):
you get somebody to sell it foryou, that the marketplace and
the person is selling, say 10 to15 cds, 10 bucks or 15 bucks,
let's multiply and see all right.
So that means 50 cds a day from10 bags, 10 bucks, 50 cds a day
.
Let's ask the person does thatfor, let's say, maybe 20 days in
the week in the month, okay,times 20.
So that's a thousand cities,thousands, usually such people.
You are paying them aroundmaybe 400, 500 okay, so you take
400 cities out of it.
Speaker 2 (18:09):
That means that they brought you 600.
Speaker 1 (18:11):
let's assume that for the fridge that is making the
world the water code.
Let's assume you spend about100 cities, 200 cities out of
that.
Okay, let's take 200 cities outof that.
How much are you left with 400cities left?
100 cities, the end of themonth 400 CDs.
So in a month you are making anadditional 400.
CDs 400 CDs from just 10 bags 10bags, 10 bags that you bought
at 10 CDs.
So 10 CDs times 10 is 100 CDs.
(18:31):
You have invested 100 CDs bydoing this and you are getting
what?
400 CDs out of that.
It's very simple, but you needto commit your time to it.
You need to get the rightperson to manage it for you,
because perhaps you don't havetime.
And I did this video and I toldpeople that if you want to, for
example, buy a land, build ahouse, you can be earning 2,000
(18:55):
and you'll be able to do thatwith this.
People couldn't believe it.
How, how Because now.
How Because Now, unless we haveused just about, let's say, 10
bags to make 400 series.
Yes, let's use about 20 bags,okay, so if we do, we basically
800.
Speaker 2 (19:10):
800.
Speaker 1 (19:10):
Yep 800 times 12 is how much?
Speaker 2 (19:13):
Times 12, that's 9,600.
Speaker 1 (19:14):
9,600.
You can get a very good placeto buy a land in, let's say in
Samoan and other places outside.
I'm scared of Accra.
Speaker 2 (19:21):
Within a year you can buy a land.
Okay, you see, patrick, youknow, sometimes some of the
problem is right.
I'm saving 500, 100,000 citiesto buy a land in Dodowa.
Yes, it's going to take me ayear and a half to save that
(19:43):
money.
Speaker 1 (19:43):
Yeah, by the time, a year and a half to save that
money by the time, a year and ahalf, is over, that land has
gone up Sure.
How do you?
Speaker 2 (19:50):
mitigate those issues .
Speaker 1 (19:51):
So I just give an example.
That person has just investedabout 200 cities to get to the
9,000.
If I were you and I have spaceI would do more Right To
compensate for the difference.
So, as I do more, let's say weget about 20,000.
End of the year you can get aland somewhere to start the
(20:13):
process.
There are some lands that youcan even do down payment of the
20,000 or 19,000, 15,000.
And you can buy the land andnow you can start the process.
It's all about determining inyour mind that this is what I
want to do, because for some ofus you don't have any support
anywhere.
If you don't break that cycleof hand to mouth in your family,
(20:34):
you will keep on running thatcycle.
You'll be out, someone willcome and continue or your
children will come and continueand there will not be any break.
It takes discipline to breakthat cycle by some of these
initiatives, so this is just oneof them.
There are a number of ladiesthat go and buy ladies' bags,
their rings, and they also sellit.
That's also another way ofdoing this.
(20:55):
I know colleagues who have thatat the back of their car.
They come to the office, theyclose, they move from shop to
shop.
They go to offices, they openit up and people have to buy.
They commit to buy some ofthese things.
These are all things you can doto earn extra income.
Once you see a problem, then yousolve it.
How do you solve it?
You solve it by providingsolutions to the problem.
(21:17):
And once you provide solutionsto the problem that's business
that you have created Over timeyou realize that you'll be
getting so much to do that atsome point you feel like, okay,
let me leave my day-to-day job,which is giving me, let's say,
about two thousand, threethousand, five thousand.
I did a post some time ago.
People were telling me they areearning around eight hundred
cities, thousand cities in ghana, eight hundred thousand cities
(21:38):
in ghana, and you go theremorning to evening.
If you quit that job and youdecide to do this water, at
least you get something overtime and that can make you
stabilize than going tosomeone's shop from morning 8,
to about 7, 9 pm.
Speaker 2 (21:57):
Let me stop you here for a minute.
If you've been watching thisshow, I want you to subscribe
and become part of the family.
We are on a journey of changingthe lives of people on this
channel and we appreciate youfor being here.
But if you haven't become partof the family, connect with us.
Hit the subscribe button Now.
Let's carry on the conversation.
(22:17):
You understand the feeling jobsecurity gives people right.
Yes, you understand thatfeeling.
I understand it can be like aprison, it can be a trap, but
that feeling is also very safefor some people.
Yes, so some people would rathertake 1,500 every single month
(22:44):
without any stress, no pressure,than to go out and start off
making 400 CDs a month.
Then, in about five years, theystart making 20,000 CDs a month
.
You see the way it works, rightFor me.
I would rather earn 100 CDs now, knowing that I can make 20,000
CDs a month tomorrow, yes, butmost people would rather take
(23:07):
1,500 today for the next 10years, because of the feeling
that security gives them.
Speaker 1 (23:14):
It's a mindset, so we have been conditioned to be
afraid to take risks, naturally.
So we are a bit risk-averse.
We don't want to take rakes.
Or if you take rakes andsomething, what if something
happens?
The first thing you need tokeep in your mind is that the
1,005 job can go just like awind.
(23:34):
The owner can decide to sackyou, so the rakes around the
1,005 is equally as high as ifyou are starting your own job.
But the mindset is such that wedon't see it that way.
So it demands that, as peoplecontinue to hear some of these
things, then eventually they'llbegin to see that, oh, I have
(23:55):
better options out there.
It's always difficult to start.
So if you make up your mindthat, okay, I'm going to start
this, I give myself three to sixmonths.
That would be the difficultaspect, the sacrifice aspect.
Beyond that, I expect thatthings will get better.
That will be a better optionand, as I said, it's a mindset.
The fear is in your mind.
The fear of going to startsomething and it will fail is in
(24:17):
your mind.
But if you start and you fail,what next?
What happens?
You're not the only person tohave started something and
failed.
Speaker 2 (24:26):
How about the fact that also sometimes you're
making that 1,500 and family areeven looking up to you that
1,500.
So you quitting that job wouldmean that maybe mom's medication
at the end of the month will bea struggle.
And now you're going to startyour own business and nobody
(24:46):
knows what a hook would happenif you start.
How about all those feelings?
How do we overcome that?
Speaker 1 (24:52):
So that's why it's always good not to just jump
into the business.
You start by managing it littleby little to see and test the
market.
So this water business I'mtalking about, you can get
someone to do just 10 bucks.
10 bucks means that you wouldhave started with 100 CDs to
start with.
So the person is doing italongside your business, so
(25:12):
you're just monitoring andmanaging it.
So with time, as you begin tosee the cycle of that business,
you can now progress and say,okay, I've gotten to the point
where I think I need to put mymaximum effort into this.
By that time you have alreadygained some experience.
But what some people do is thatthey just see of a business.
They think it's a very goodbusiness.
(25:33):
People are talking about it.
They've not tried it, notesting, they just jump into it.
Next moment they quit their job.
And why?
I'm going to start thisbusiness?
You are going to start Meaningyou have not already started.
Speaker 2 (25:48):
You've not even engaged that business.
It's the conversation thathappens on the street.
A lot, yeah, and I'm going todo that for you to hear you call
them the bomb and steal thephone.
So, patrick, there's thisbusiness that I've heard of.
There's so much money in it.
The moment you start seeingsomebody speaking like that, you
know that they are not comingfrom a place of experience yes,
(26:09):
speculative yes.
And then the other person onthe other side are you sure it's
going to make a lot of money?
Okay, okay, I'm going to do itthat person creates their job,
and then they find themselveswanting.
Speaker 1 (26:19):
Different world altogether.
Yes, so you need to always test, because business does not mean
that you succeed.
A number of people have done somany businesses they failed.
There are even good businessmentoday that still have
businesses that are failing, ofcourse, yes, and even you
yourself.
Speaker 2 (26:37):
Yes, you had two businesses that failed and you
spoke about it on your Facebook.
Yes, two businesses.
They all On your Facebook.
Speaker 1 (26:42):
Yes, two businesses, they're all filled.
So now when I'm going toanother business, I have a bit
of experience to know.
Okay, this has the potential tofail again because of the signs
that I'm seeing.
It maybe doesn't match up withmy mindset, it doesn't match up
with my personality, so it maynot help me.
So let me try this, becausethis matches with my personality
(27:03):
.
If you don't do that kind ofintrospection, you end up going
into a business that everythingwill go bad.
And don't forget, when abusiness goes bad, it's not like
maybe I've gone to give mymoney to, let's say, a bank Bank
is no more.
But bank of Ghana says theywill pay.
Even if it takes, let's say,five years, they will pay
Business.
Once it goes down, you loseeverything.
(27:24):
So it's not an addition thatyou take lightly by just going
with here.
See, I've heard this, I'veheard that this one has done it.
The business can even beperforming very well in Accra.
If you don't take care and youlift the idea to, let's say,
kumasi, it will fail Okay.
Speaker 2 (27:41):
So I was having a conversation with my wife
yesterday and then she wasasking me why telehealth
services not doing great in manyparts of Africa?
And I said because the marketis not ready.
We can't just pick it up fromthe UK, the US, canada and then
bring it here.
(28:01):
Sure, the market is not ready.
Recently, recently, there wasnews that came out that Akon's
project of 1 billion USD hasbeen abandoned in Senegal.
It was going to do somefuturistic Wakanda stuff.
I was telling my wife yesterdaythat look, it's a brilliant
idea, but Senegal is not ready.
And then she goes oh, how aboutRwanda?
(28:22):
Maybe Rwanda could work?
And I said no, the magnitude ofproject that this guy is going
to do, even Rwanda does not havethe numbers in terms of
population to even be able topatronize those services.
So sometimes, as business people, we need to understand that
market readiness is very good,because that is what timing,
(28:46):
business timing means.
Yes, when the timing meets, thebusiness will do well.
Yeah, there's been businessesthat we've come to Ghana here to
do.
It didn't work out.
Yeah, purely because the marketis not ripe enough.
Look, there are businesses thathave closed down in Ghana,
maybe because they came in tooearly.
Yeah, if they maybe come backin the next 10 to 15 years, it
(29:09):
might work.
It might work.
Yeah, because market is simplynot ready.
Yes, for it.
Speaker 1 (29:15):
We can't?
Speaker 2 (29:17):
A lot of the tech businesses in Ghana that are
making so much money.
I am seeing them in the fintechbusiness.
Yeah, they make so much money.
I am seeing them in the fintechbusiness.
They make so much money.
Speaker 1 (29:27):
Why?
Speaker 2 (29:27):
Because we're doing a lot of transactions, exactly,
yes, it's always an activity,but you see other people that
are doing other businesseswithin the tech business, but
it's not working out.
They're not getting the numbersbecause we are simply not ready
for certain ideas.
Yes, somebody says, oh, youready?
No, it's difficult to push themarket to be ready Again.
It's like you flow with thetide of the ocean rather than
(29:51):
against it.
So the timing has to be a yearin, year out, perfect.
Speaker 1 (29:57):
Right there, we've had several businesses I mean,
you've seen them Severalbusinesses have left the country
.
Speaker 2 (30:04):
Probably due to, maybe economic reasons, people
not patronizing the business.
Apparently both never madeprofit.
Yes, both food never madeprofit.
I mean, this is a big company,yes, you know global had to
leave.
Yes, even game so I reallythink that, as young people, yes
, you want to do business, butbe very careful with the copy
(30:27):
and paste model that this thingworks in Accra, it may not work
in Kumasi.
Speaker 1 (30:31):
Exactly, exactly, and that's my story of the first
business that collapsed.
All right, talk to me.
So when I qualified as achartered banker, I wanted to
set up a tuition center aroundKaswa.
That was somewhere 2012thereabouts.
So I got some lecturers whowere colleagues, friends in
(30:52):
accounting, banking, to set up aschool for professional
education in Kaswa.
At the time there wasn't any inKaswa, so that was an
opportunity.
So obviously you don't havemarkets as in competitors here.
You are starting to think thatyou have a market over there.
So we went ahead.
We did our flyers, banners.
I printed letters to churches,schools to market it Then on
(31:17):
social media.
That was when Facebook wasbeginning to pick up in Ghana,
so I marketed it.
The first day I got five or fourpeople showing interest coming
for lectures and I had twolecturers to take them through.
Especially that was inaccounting ICA.
The next week, two people came,two didn't come.
The third week, nobody came.
(31:37):
I lost everything.
I lost my flyers, I lost thelocation, lost everything.
I lost my flyers, I lost thelocation.
I had to now get money to paythe lecturers for doing three
weeks of lecture because thosewho came in only one person paid
.
I think about half Everythingwent down.
Why?
Because at the time,professional tuition was
(31:58):
happening in Accra, lagoon andother places and people felt
that that is where, when they go, they'll pass.
They are not ready to come anddo try an error with a news
center, because for them theyare paying money for the tuition
.
They expect to get value out ofthat, no matter who you bring,
because the area is cast by itsvery nature.
(32:19):
They thought that okay, theyare not good schools here, so
let's go to accra.
The same lecturers will come toteach them at Accra, but they
will prefer that than to stay atKaswa.
As we speak today, about 10, 15years time now, there are
schools in Kaswa that people areattending for the same
professional education.
Because, as we said, the timeis right now.
Speaker 2 (32:37):
You are too early.
Speaker 1 (32:38):
Exactly, exactly.
Speaker 2 (32:41):
And this happens day in, day out, every day.
And this happens day in, dayout, every day.
And sometimes, as a youngentrepreneur, the thought of
owning a business can be moreexciting than the time you need
to take to research into yourmarket, exactly.
So you want to tell everybodyoh, I own a business, I have
myself a business, but it's noteven making you any profit, it's
(33:02):
not even paying you well enough, exactly.
But simply by telling people Iown the business makes you feel
good about yourself.
But I tell you something, younglad, very soon you're gonna
start telling yourself the truthnot sustainable at all?
yeah, at all and, by the way, onthe 29th of august, at the
British Council, we have thefirst Connected Minds Live.
(33:25):
It is happening and we'veinvested so much time, so much
resources into that event thatis going to happen.
It's packed with speakers,packed with knowledge, and I
can't begin to tell you some ofthe things you're going to
experience should you show up atthat event.
So reserve yourself a ticket.
I'm going to leave it in thedescription right now.
(33:46):
Or you can go towwwconnectedmindslivecom and
just reserve a ticket.
I'm excited about that daybecause the entire community are
coming together.
We're going to have a networksession an hour before the
program and it's going to lastmaximum three hours and every
speaker is going to speak onwhat they are passionate about
(34:09):
not storytelling, but a teachingsession.
My brother, let's carry on.
Thank you.
Now, financial instruments thatpeople can invest their money
in.
What would you?
Speaker 1 (34:21):
recommend?
Okay.
So, um, when you talk aboutfinancial instruments, there are
multiple.
I'll run through a number ofthem.
So the first thing is that youneed to understand what your
risk appetite is as a person.
When you say risk appetite, youmean that how much risk are you
willing to take?
There are people that when theyhave their money, even with an
institution, and they hear thatthere's fire over there, just
(34:45):
the fact that there's fireoutbreak a branch will make them
not feel comfortable.
That's the level of risk ofsuch people.
So if you are a low risk person, you need to know the kind of
risk instrument.
You need to sell it.
If you are someone who has aheart to, I mean, carry on a
number of freaks, then there's alyrics, an instrument for you.
(35:07):
So let's start with the lowrisk.
So the low risk investment.
Of course, in ghana there arelimited options.
So we have the fixed deposits,we have the treasure bills.
That's the low, low low.
Speaker 2 (35:18):
Why is it low risk?
Let me stop it here for aminute.
If you've been watching thisshow, I want you to subscribe
and become part of the family.
We are on a journey of changingthe lives of people on this
channel and we appreciate youfor being here.
But if you haven't become partof the family, connect with us,
hit the subscribe button andlet's carry on the conversation.
Speaker 1 (35:40):
Low risk because the possibility of you losing your
money is very low.
It's not, the possibility isvery low.
Not that it can't happen, butso far in Ghana we have not seen
it happen.
So we call those two low rates.
Speaker 2 (35:52):
Okay, before you move up the ladder, if I put my
money in any of these twoinstruments at a certain fixed
rate, is it locked in?
It's locked, Even if there'sfluctuations in the rate.
It's locked.
Speaker 1 (36:04):
For the period that you are doing the investment.
It's locked, all right, cool.
So fix the positive treasurybills and then we have the
medium or moderate rates.
Moderate rates here we aretalking of mutual funds.
In the past, mutual funds usedto be part of low rates in Ghana
, but now mutual funds areclassified as moderate rates.
Why?
Because mutual funds areinvested in some instrument that
(36:25):
has the potential to beaffected by any economic
condition.
So, for example, mutual fundscan be invested in bonds, either
corporate bonds or governmentbonds.
Government bonds here meansthat the institution is going to
give the money to governmentand government will pay you back
your coupons, which is theinterest and the principal.
You back your coupons, which isthe interest and the principal.
(36:47):
We all remember.
In 2022, when government wentinto IMF agreement, there was
this domestic debt exchangeprogram that affected bonds.
So all the funds which were inmutual funds that were invested
in bonds were affected.
So that's why we classifiedthat investment as now moderate
rates, meaning it's in between.
(37:08):
It's not too high, it's not toolow, because the possibility of
that ddp happening againanytime soon is very low.
However, because it hashappened before, we don't want
to say it is a low riskinvestment.
So we can invest mutual fundsand the mutual funds.
They invest in bonds, as I said,some of them to invest in
shares.
So because they areprofessionals, they know exactly
which shares are performingwell and they can invest your
(37:29):
money in shares for you.
So that's a mutual fund.
Then you can do the sharesyourself.
So you can go into stocks.
You can buy local stocks.
You can buy foreign stocksNowadays.
So far year to date, the stockmarket has done around 30% or so
in terms of appreciation ofvalue.
So it means that if you hadinvested in any of the
performing stocks betweenjanuary and now, your
investments would have grown byabout 30 percent.
(37:50):
So that's also another areathat you can consider.
However, it is not low riskbecause the price of stock or
the value fluctuates, so you mayhave a stock performing very
high.
The next moment is going upbecause of um industry
challenges, news around the, thecompany buying and selling.
People are selling their shares.
That will drop their price down, so that's also another option
(38:14):
that you can consider.
Or you can do foreign stocksand nowadays a number of these
foreign companies.
They have platforms that youcan use, even in ghana, to buy
shares in some of thesecompanies as an option.
But then again, as you go into,you need to understand the
market.
Don't go and invest in shareswith the mindset of a fixed
income Treasury bill.
(38:34):
Fixed deposits are fixed income.
It means that if it's 10%, youare short of the 10%.
It will not fluctuate.
Shares is based on the marketcondition.
If it's performing today, itdoesn't mean that tomorrow it
will perform.
A company can even make profits, but the company can decide not
to give shareholders dividends.
They will reinvest into theirbusiness.
(38:54):
So keep that at the back ofyour mind as you go into that.
Then, if you are going to thehigh risk, then we are talking
of issues relating to goldinvestments.
Nowadays, bank of Ghana hasintroduced what they call the
Ghana Gold Coin.
Basically, you are investing ingold, so the price of gold
going up and down will impact onyour investment.
(39:14):
Last year when it started, thegold coin was around 45,000 for
one ounce.
It went high to this year,april 54,000.
As we speak, it's around, Ithink, 38,000, 54,000.
As we speak, it's around, Ithink, 38,000, 35,000.
It's dropped.
It's dropped For two reasons.
One is that gold price has notgone down much.
(39:35):
It's still around 3,400 perounce.
However, it is pegged to theGhana CD to a dollar.
So at the time we are talkingof 54,000, the Ghana CD was
around 14 CDs to a dollar.
Now, as we speak, the interbankrate is around 10.3.
So if you multiply 10.3 by3,400, that's cause the
(39:56):
investment to drop.
If the investment or theexchange rate was still 14, you
would have seen someappreciation on your investment.
So if you are going to GhanaGold Coin or buy gold investment
which is converted to Ghana CDs, you need to keep at the back
of your mind that exchange ratescan affect your investment.
So those who bought it at thebeginning of the year at 54,000,
(40:17):
51,000, today they can sellBecause if you sell it, you are
losing a big loss.
So that's why we say it's ahigh-risk investment volatile
loss.
So that's why we say it's whathigh risk investment, volatile.
However, it also has thepotential to increase your
wealth faster than treasurebills.
Fix the person.
Give you, from beginning of,let's say, 2010 to now, if I'm
(40:38):
not mistaken, 2010, a good one.
Good, I think.
One ounce was around, I'm notmistaken, I think seven700.
That's 2010.
$700, one ounce.
As we speak, one ounce is$3,400.
Check the jump.
And it has the potential to growfurther, because gold is a
(40:58):
commodity that every country isin need of.
So if you want to go into it,keep at the back of your mind
that there can be a fluctuation.
However, it's a long-terminvestment.
So if you want to do long-terminvestment, you go into that.
Then now the usual foreign anddigital assets, the cryptos.
It's also a financialinstrument that you can consider
if you want to be playingaround the market and has the
(41:19):
potential to grow.
Again, there's a risk there.
You need to make sure youunderstand the market before you
go into it.
So all what I'm saying thereare financial products available
to you.
The one you want to take andthe stage of your life will
determine the option you choose.
If you are, let's say, gettingto 60 years, getting to your
retirement, you try as much aspossible to stay within low-risk
(41:40):
investments.
Why?
Because, if something happens,you don't have years to recover.
Speaker 2 (41:47):
I'll tell you something funny.
You don't have years to recover.
I'll tell you something funnybefore you come on.
They say that a man at age 60is more scared of losing their
money than losing their life.
Exactly.
Speaker 1 (41:59):
So they have to be careful.
Speaker 2 (42:00):
Yes.
Speaker 1 (42:02):
People like 20, 25,.
You can take high risk Becauseyou want to grow your wealth
over a period of time.
You know that even if there's aloss this year, next year I can
make a profit.
So you have some time.
But as you get closer to yourretirement you limit your high
and moderate risk to now lowrisk.
So they nearly go for thepension fund.
You go to buy some pension.
(42:24):
Nowadays there's even what youcall annuity.
Annuity basically means that Igo on pension.
Snet gives me my tier two, orthe fund manager gives me my
tier two, which is the lump sum.
I can give the lump sum to apension company or an insurance
company and tell them that outof this lump sum because I'm on
retirement, I want you to giveme, let's say, 10,000 CDIs every
month from it.
They will do the calculationand tell you that if they give
(42:46):
you that 10,000, your investmentcan last for, let's say, 15
years Before it goes down.
So if someone says, okay, Iwant to do that Because on top
of that it is already payingthem their monthly, so they just
want that as a supplement, sothat investment is also there.
Or you can give the same moneyto the pension company and tell
them that I or you can give thesame money to the pension
company and tell them that Iwant you to do your calculation.
(43:07):
Tell me how much money you canbe paying me from now till I'm
no more and they will do thecalculation and tell you and
that will be added to your money.
So there are options out therefor people.
Depending on how aggressive youwant to grow your wealth, you
go for the option that works foryou.
This year, the option thatpeople are going for because
treasury bills have dropped, areequities or shares.
(43:28):
People are investing intoshares.
However, the share market, as Isaid, it, fluctuates.
Sometimes you can even go to abroker, fill a form that you
want to buy shares of a companyA, company B.
It can take like two months.
The share is not availablebecause nobody's selling,
because everybody has seen thepotential in the market and they
are keeping their investment.
So that is an option thatpeople are doing now.
(43:50):
But if you can't go into thatand you still want to do
something that is moderate, thenyou can now go into mutual
funds, which are also doingquite well on the market.
Speaker 2 (44:00):
I think you really need to break it down your top
three options.
For somebody who has a hundredthousand right now to invest.
Where would you advise him toput it?
Speaker 1 (44:12):
If the person wants to take moderate and low risk,
first option would be a mutualfund.
Okay, mutual fund.
Invest in mutual funds.
How much of that money wouldyou put in mutual funds?
If the money is mine, I woulddo 50,000.
Mutual funds Okay, direct mutualfunds, money is mine, I will do
50 000 mutual funds okay,direct mutual funds and how they
get their payback.
(44:33):
So the mutual fund is is aninvestment that you cash out on
your own, at your own time.
Okay, it's not like um, fix thepost where it is for three
months, six months.
It's like a fund for you andthe fund grows with time.
They are investing the moneyand it's always growing right.
So as and when I want it, Icash out.
So currently we have someinstitutions that are doing
mutual funds beginning of theyear to now, around 23.
(44:53):
So that's what you calculate onyour fund.
So 50 000 times 23, that willgive you how much your fund
would have grown as we speaktoday.
So mutual fund will be my firstoption because I'm getting
about 23% out of that.
Then I'll keep 20,000 CDs inbuying shares myself.
And let me go back to themutual fund.
The mutual fund.
(45:13):
There are about three types ofmutual funds.
We have what you call the moneymarket mutual fund.
Here they invest the money intreasury bills and fixed
deposits for you.
But because they are investingin volumes for the fixed deposit
, they're able to get higherrates than if you had gone to
the bank to invest.
Perhaps you go to the bank 100,000, you are getting less,
(45:34):
about 15, 12.
They are doing it in millionsso they can go and negotiate for
, let's say, 20, 19 for the fundand they spread to everybody
within the fund.
So that's what you call moneymarkets.
And because they are investedin the treasure, so that's what
we call money markets.
And because they are investedin the treasury books and fixed
deposits, the risk is, as I said, low risk.
Then you have what you callbalanced mutual fund.
(45:55):
Balanced mutual funds, as thename suggests, they invest some
in fixed deposits, treasurybooks, and some in stocks.
So it's a portfolio ofinvestment that manages by
itself.
Risk here, low rates here.
At the end of the day you getsome value out of that.
Then we have what you callequities as a mutual fund.
Here they invest purely instocks.
So they invest purely in stocksand that gives you some return.
(46:18):
So by 50,000, we go into mutualfunds.
If I'm someone who wants totake moderate and low rates,
then 20,000, as I said, will gointo shares.
Then the remaining 30,000, I'llput them into treasury bills.
Speaker 2 (46:33):
How long will it take you for that money to turn into
a?
Speaker 1 (46:35):
million.
It depends.
If I get in about 30% on themutual fund, it shouldn't take
me more than five years.
I'll be able to grow it to thatpoint.
Okay, yes.
Speaker 2 (46:44):
Do you think?
All right?
You see, for me I always saythat when you're trying to grow
your money, investments aregreat.
It's just one Avenue, yeah,which you've.
You know, you've laid it outbeautifully there is business as
well.
Yeah, and then even business.
(47:06):
You can do several businessesto bring in more cash, exactly.
Then you invest.
Yeah, of course you know itcould be real estate, it could
be whatever.
Yeah, you must have severalavenues to grow your money.
Sure, not just.
Okay, I've got a million and Iwant to invest that money in
mutual funds.
Yeah, just in mutual funds.
Yeah, just as you've laid out.
Yeah, it needs to go intoseveral things.
Speaker 1 (47:27):
Exactly.
Speaker 2 (47:30):
But if you certainly don't have an appetite for
businesses, then this is a greatoption.
Perfect.
Speaker 1 (47:34):
For you Perfect.
Speaker 2 (47:35):
Because there are some businesses that will give
you much, much better cash flowthan putting the money at the
bank.
Yes, I agree, right, I agreeMuch, I agree, right, I agree,
much, much better.
I mean, I know people makingloads of cash every month.
Yes, that's what I asked you.
How is it going to turn into amillion?
Yes, because some of thesepeople I mean a million is like
(47:57):
what the hell.
And this one is just it'staking a bit longer, but it's
safer, it's long term.
You know, the issue we havehere is a lot of young people
will listen to this conversationand think, oh yeah, okay, right
, crypto is going to make memoney, forex is going to make me
money, so I'm going to go invery quickly to turn the money
around.
What do you have to say to them?
Speaker 1 (48:18):
So again it comes back to what is the goal of the
investment.
How much risk are you willingto take?
How much risk are you willingto take?
If I want to take high riskbecause I see a potential, then
I'll keep less about 20, 30% ofmy investment in cryptos because
I see a potential for it togrow there and I have age on my
side.
Speaker 2 (48:37):
Did you see the video of this man that lost, I think,
400,000 cities, that he said hewanted to kill himself?
Speaker 1 (48:42):
Yes, I saw it.
I saw it.
So sometimes it's the way guyswho are into crypto also present
some of these things.
They make it sound like it'sall well and good,
straightforward, cash out seasoninvestment.
It's always like that.
(49:02):
I have done crypto before.
When it started, I went into it.
At the time, the market wasstill developing.
At some point in time, I lostinterest in it.
I know people who have goneinto it.
Just about two weeks ago, I hadan interview with one crypto
expert and he told me how muchhe made and how much he lost.
So if you want to go into thatspace, yes, but give yourself
(49:23):
time.
Don't be in a rush to try toturn things around quickly.
I always say that if you wantto turn things around quickly by
getting so much money, go intobusiness.
Go into business, because allthese instruments I'm talking
about are instruments that willbuild over time and once you
have age on your side, you buildover time, provided you can
have the patience to be able todo that.
(49:44):
This is your crypto matter Ijust made.
Speaker 2 (49:49):
I just remembered something I've invested so much
myself, with my business partner, we've invested so much money,
so much money, into crypto.
We started doing that, I thinkabout what seven years ago.
Okay, we still haven't seenanything.
You know, I keep asking himbecause he's, he's, he's quite,
(50:12):
you know, involved.
I keep asking him, ed, are wegoing to be billionaires?
Is it ever going to happen?
Because we keep waiting, yeah,and it's not happening, exactly
because it's.
You know, we're doing it forthe long term, but when when
it's been seven years, you know.
but recently somebody contactedme.
Somebody I know One of myUgandan mates.
(50:36):
I've done some work with him inthe past and he kept bothering
me I need an account, I need anaccount.
And then I gave him a tradingaccount A thousand pounds Within
three days.
The guy a trading account athousand pounds Within three
days.
The guy blew the account Wow,three days so.
But then I posted it on Twitterand then see this will happen
(50:57):
where young people will say ohno, I can turn it around.
I can Money comes so fast, moneygoes so fast?
Exactly, it's a very's it's,it's a very in-out kind of
concept.
You know, long-term it's, it's.
It's always good, it's alwaysgoing to favor people.
Speaker 1 (51:16):
Yes, Very true we.
We shouldn't see wealthcreation as a a sprint, where
you just go 100 meters, dash you.
Where you just go 100 meters,that's, you are done, you are.
Well you know, if you go thatroute you won't have the muscles
to manage it, even if it comes.
Most people who have made thatkind of wealth in a very short
(51:38):
time, most of them, were notable to manage it.
So it's always good to build itup.
Of course, if you get anopportunity to speed it up a bit
, do that.
But young people, some of themlet me use some we have this
mindset that the world isrunning so if I don't do mine
(51:59):
and cash out now, I'll be leftbehind.
And that is not to say that Imean if you see an opportunity,
you don't take it.
It's good to take it, but thatmindset will eventually push you
into areas that you'll bestruggling to come out.
And that's what is leading somepeople into even fraud, crime,
because we see people 40, 50years driving certain cars.
(52:21):
You have 25 years and you wantto drive the same car.
You don't know how many yearsit took the person to buy that
car.
You even start with a car thatyou can afford.
They want to drive the same car.
So, any opportunity, whether itis bad or good, they want to
jump onto it.
And by the time you realize,they will tell you I'm doing
this and that's what is givingme that, but in reality they're
(52:42):
doing something else, somethingelse, and eventually life will
catch up with them and that'swhere you begin to see oh, this
is what we're actually doing.
So don't just be watchingpeople posting here and there
and they are telling you theirstory and you are just jumping
onto it.
I did this, I did that and youare also going to try it.
You go into it.
It's not like that.
Speaker 2 (52:57):
Then now you have to do what they did to get to where
they are just, basically, youare just covering up, yes,
Trying to do something else tomake it look like that is what
is giving you the money Exactly,but that is not it.
No, wow, sine, is thereanything we can, we could have?
Is there any question?
(53:19):
I could have asked you for usto discuss that.
I haven't.
Speaker 1 (53:27):
I think that, by and large, we've touched on almost
everything within the financialplanning space.
We just need to.
As a matter of fact, if you'rea young person, aside all the
investments I've mentioned, oneinvestment that you should
consider doing is the personalinvestment plan.
It's more like a retirementplan.
It works with compound interestand I believe you understand
that you must have compoundinterest, and I believe you
(53:47):
understand that you must havecompound interest.
Compound interest basicallymeans that you build interest
upon interest, and it worksperfectly with age.
So the longer period you haveahead of you, the looks the
better it grows.
Speaker 2 (53:58):
I mean, it just grows with time.
Speaker 1 (54:01):
It grows with you.
Yes, so it doesn't matterwhether you're in Ghana, you're
outside Ghana, whatever countryyou find yourself, they are
compound interest investment.
In Ghana we call it thepersonal investment plan, for
most of the pension companies,or some banks even do that.
If you're a young person you'rearound 25 years start something
.
You can decide to even do 50CDs every month.
What I always tell people isthat, because we know of
(54:22):
inflation, this kind ofinvestment has what you call
inflation protector.
So it means that every year orevery time, you can decide to
increase the amount you arecontributing by looking at
inflation and as you do that,you see that the fund will also
be growing over a period of time.
So if you're a young person, youjust started your first job.
(54:43):
I mean, buying a car is nice,building a house is nice, but
when you buy the car, you builda house and that is not
generating any revenue for you.
When you go on retirement, youstruggle.
You gotta forget.
Research shows that when youare even paying snits and go on
retirement, whatever snit isgiving you is just covering
about 67 percent of your livingexpenses, my God.
(55:04):
So they're remaining about,let's say, 30.
5%, 5%.
Who covers for that.
And don't forget, when you goon retirement.
That's where you go to thehospital very frequently and you
need to chill.
No stream of income is comingbeyond your snitch.
So that's why they've createdthis additional one, so that you
(55:25):
can contribute into it and youdon't need much to go into that
beyond your other investmentthat you are doing.
So for me, that's one of thethings I would advise people to
do and consider.
I have multiples of thatbecause I think that, however
upbringing that I came from byway of my family, I expect my
children to have a better one.
(55:46):
So if they should have a betterone, they start with me.
I have to take their step today.
I don't have to wait for themto come and blame me tomorrow,
not to say I'm blaming my dad,but at the time, if that option
was there, I'm sure we'd havedone it, and today, by the time
I would have finished university, I would, and 500,000 cities
waiting for me to start lifewith.
Assuming you have that for yourchild to start life, the child
(56:08):
is starting life with somethingthat they can comfortably use to
build and create better wealth.
Wow, but we start or put ourchildren by starting life from
most of us from a valley.
So your child is standing in avalley and he's competing with
someone who is standing on themountain.
By the time the child gets tothe mountain, the guy is already
60 years.
He's going on retirement, wow.
Speaker 2 (56:31):
I hope you get the point.
Yeah, that was a good analogy.
Speaker 1 (56:33):
Yes.
So put the child on themountain at the time they are
ready to start work.
Let them progress from there.
Don't put them in a valley bynot taking the steps today.
Speaker 2 (56:44):
I love that.
Thank you man.
I love that.
Thank you man.
I received that.
What's the best advice you'veever received?
Speaker 1 (56:52):
don't let people see that you are in need of money.
That's the best advice someonetold me.
Don't let people see that youneed money from them.
When people see that you needmoney from them.
When people see that you needmoney from them, they take
advantage of you.
They don't respect you, sodon't create that opportunity
(57:16):
and avenue for them where theysee you, as in quotes, a beggar
requesting or needing some moneyfrom them.
That's the best advice.
So, whatever you you do, everyfinancial decision you take, ask
yourself will this decisionhelp me to stand on my own and
not to be seen as needingsomeone for money?
(57:37):
That's the best advice.
So that means that if you areworking for someone, you don't
eventually rely on your salary.
The moment you have to wait foryour salary to hit your account
before you spend or you getsomething to spend in the month,
you're not there yet.
Get to a point where, even ifyour salary delays for two
(57:58):
months, three months, you arecomfortable.
In that way, people respect you.
Otherwise, nobody respects you,no matter who you are.
Once you get to the point whereyou need people to support you
with money or you need to fallon people for money, there's no
respect, you lose respect.
It's gone.
Speaker 2 (58:18):
And you can't recover .
Wow, yes, motivation ordiscipline.
Discipline Senior.
I'd like you to recommend abook on self-improvement money
finance business.
Speaker 1 (58:35):
I think it's a book that most people have talked
about so many times.
Speaker 2 (58:40):
Richard R Porter, I knew you were going to say that
I knew you were going to saythat for me it's a classic when
you talk of books, just like wehave for movies.
Speaker 1 (58:48):
For me, Rachel Dalport, that is a classic.
It changes your mindset.
You get to see life fromdeveloping and creating assets,
liabilities.
Once your mindset is always howcan I create an asset?
How can I create an asset togenerate income for me?
You don't take certaindecisions.
So that's the book that Irecommend.
(59:09):
Once you get that book sortedout, I'm sure others can just be
an addition to it.
Speaker 2 (59:16):
You heard it here.
Thank you so much for your time, my pleasure.
The circumstances on which wehad this conversation today the
viewers will never get to know,but it was divine.
Thank you so much.
My name is Derek Abayite andyou've just heard everything you
(59:38):
need to know about financialplanning and budgeting, and I
hope you put this into practiceBecause, as he also said,
discipline is more importantthan motivation, and that is
what is going to allow you tostay ahead of the game.
Don't forget that.
If you made it to the end, Ireally want to know in the
comments.
Thank you so much for your timeand share this for somebody
(01:00:01):
else to also get to see you.
My name is Derek Abaiti.
Stay connected, I'm out.
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