Wikam: My experience taught me that you need a good plan before shifting from employment to business

Roberta Mwikali is the founder and Lead Consultant at AFI Solutions Limited, a consultancy business that helps MSMEs set up business accounting systems. PHOTO|POOL

What you need to know:

  • I left a job in 2018 to set up my business. At the time, I did not have any savings or any other source of income
  • As I went through this experience, I realised the importance of having an emergency fund
  • Looking back, I  would also start investing from the day I receive my first salary and first payment from my first client

It took me a long time to start to save or invest.  When I eventually started, I used to save in the bank. Then I quickly found out that saving in the bank is not an ideal long-term saving plan. I found this out by calculating the difference between the interest money saved in the bank earned and the rate of inflation. I shifted to money market funds, stocks at the Nairobi Securities Exchange, and capital reinvestment in the business. This is not to say that saving money in the bank has no value whatsoever. Banks are good for short-term savings. To ensure that I stay the course in saving and investing, I have a financial coach and accountability partner. We meet monthly to chart new courses for the growth of my business and investments.

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