 Welcome to the Patoxha with me. Dominic it's another day last week, unfortunately we could not have a live show because of the terror attack and I want to first of all send my thousand prayers to all those who lost brothers and sisters, family and friends and co-workers and I want to ask that God may strengthen the new and console you. I know there are no words that I might tell you that might improve the situation, might improve the way you feel, but at the way I pray that you find the strength to move on and we also pray that those who are killed in this terror attack might find justice here or not and in the world to come and to also those who lost business and property we also say Polenissana. At the same time we want to appreciate our special forces who did an amazing job to contain the situation with a well coordinated response and we also ask the good lord to bless you and keep you. So either way we are back here now on the on the Patoxha today we are talking about money minding your money and together with me I have Antoni Mwedega who is the current chief investment officer at the Komashu Bank of Africa so we'll be watching about we'll be talking about what are some of the bad habits we've got when we come when it comes to our money and what are the strategies that we can use to maximize the money that we have the finance that we have so that we can we can do it better okay so and with me back is the at africa band after africa band they have been on holiday kidogo like you know siku ile tu kiwa na the Patoxha kawisi yen mbalitu na ruri baddem damfupi badda the Patoxha, badda the at africa kenya kutumbuiza namimbo moja so at africa let's go nani pepesa come back and mind your money come back and mind your money come back and mind your money come back and mind your money when the muzi bana nani pepesa mwa toto ananja tanga tanga na hata maji rani owa na tanga kumuona kucha and mind your money today's topic so that's the tabrika kenya masanga masanga what was that come and mind your money awesome so guys welcome again to the Patoxha as i mentioned to you my guest today is Antoni Medega who is the chief investment officer at Komashia Bank of Africa and be part of this conversation by sending your opinion your suggestions and questions you can go to y254 twitter instagram and facebook you can see down at the screen there y254 you can see the social media handles that you can go to and talk to us so again we're talking about minding your money and we want to talk about that with the chief investment officer Komashia Bank of Africa karibu to the show thank you, thank you Dominik now i've just spoken about the do-seat attack and all that what are your thoughts about you want to say a word and thank you Dominik and i also wish to do the same like you condol the families friends colleagues who got affected by the attack and those who got injuries and those who passed away we ask our good lord to keep their souls in internal peace and also help those who affected business wise to recover as soon as possible terrible incident you heard some friends there yourself yes i have some business partners who i know and companies i associate with and friends who are affected both by injuries and a few unfortunate who left us quite sad but on the side it was quite well responded to by our security guys they did a terrific job that was recognized globally karibu sana i was just having a conversation with you before we started the show you have worked for quite a number of banks actually yes i consider myself a banker i might consider myself as an investment professional so if you like i am an investment banker i have worked for a number of financial institutions 5 min total 3 banks and 2 insurance groups so yeah i have been in the finance field for the last 18 years 18 years wow that's a i hope you are born by then unfortunately yes i am that old so now what particularly does it mean to be an investment banker yeah this is an extension of banking but mainly it means the profession which assists individuals and institutions to do more with their money than keeping them in a bank account that means investing it for an extra income whether through various investment opportunities public and private and local and international so you as a bank you look for opportunities for investment do you inform the bank that you want to put your money here or you mainly in this environment we identify the opportunities for customers we make those customers aware of those opportunities and we guide them to select those opportunities depending on the amount of money they have and secondly their return expectation objectives and also the ability to storm a risk because return also come with a risk so we help them to achieve their balance to understand what it's going to take so now let's talk about money now why is money essential why would you say really that money is important there are some cliches that say well be happy and all that you need money for some sort of comfort exactly so what's your take on this definitely money cannot be a source of happiness but money is essential to human kind because it enables us as human beings to acquire means of survival makes us move from one point to the next makes us acquire livelihood items like for example the basic food shelter and health education and health and again the entire human kind is meant to work and the only number one compensation of an honest job is money wow absolutely now most of our viewers are young people and young people have some bad habits that you might have noticed and maybe you might want to assist them to be aware of certain bad habits let's call them that way they may do that might actually make their financial status just worse yes young people all over the world Ken included have those habits unfortunately some of us as parents we might have taught them those bad habits or passed it to them but the basic ones the one which is the simplest regardless of whether they are earning or they are not earning there is a tendency to live beyond our means most young people and even adults as human beings they tend to live beyond their means that means they plan or actually spend more as income from whatever they do either as a salary or even as tippet from a parent secondly which is also again a human nature most young people even the most educated financially don't believe in a budget they don't budget they believe the budget is in their head and they spend according to the prioritization they don't just sit down and write this is my income and this is how I am to spend it so they budget with the flow exactly there is a slightly spent habit which fades away when heavier family responsibilities kick in when they mature and grow up thirdly young people and even adults they don't serve in Kenya they are almost the lowest people from the far Asian countries are better savers than Europeans and Africans so our young people the youth is a big problem and then fourthly there is a tendency to enter into unnecessary deaths very unnecessary things from you and with all this what do you call them this Tala mobile lending interestingly what you just say is connected to the very fast that they are living beyond their means and therefore they are taking debts and the debts they are taking for going out it's not like you are taking actually for an investment you are taking to go patting exactly especially the best definition of unnecessary debt is what you've said where you borrow money which you need to pay but for a luxury activity like going out because borrowing should be made for something which leads to a purchase of an item which you are able to use get benefit and pay but there is a tendency for young people to have unnecessary debts the digital financial technology has made them have access to some of those unnecessary debts which can lead to other psychological issues like depression because now you have so much debt you can tell your parents that you have taken you have 20, 30,000 that you have taken to go out and now you need to pay it back and you cannot it's quite a tricky so what I have gotten from you is they use the money more than they are actually making and over borrowing so now on the other hand what can they do therefore what can they do therefore what are the few things that you can say to a young person to start making money, start saving money to start maximizing the financial status that they have now knowing the basic problems or bad habits the best solution is to reverse those habits and the first one is exactly to avoid leaving beyond your means it's very important even if you don't have to write it in a piece of paper or a notebook or on your iPad or laptop or phone it's advisable for a young person as a very early stage even a teenage before even they become older youth and young adults to just learn from a basic budget even if that budget is in your head you know that I normally get 10,000 shillings on my hands every month or 5,000 shillings and I need to make sure whatever I'm doing is within that amount that budget don't complicate it don't try to do a budget like the one drawn by a finance expert so budget and then account I would guess now once you've used so once you have a budget that's the first step secondly once you have a budget there's a chance you might have what you call a deficit or a surplus we encourage you to have a surplus it's not an easy thing even governments don't have surpluses and many African and European governments it's rare but the next stage is to make sure that you have a surplus and if a good chance you have a surplus by leaving within your means then you start to serve because the surplus becomes your second strategy now that's your second strategy of minding your money you have a budget then the budget has a deficit you work harder month after month it turns to have a surplus now that surplus is a stage 2 you start saving now there are many ways to save very many ways including the the traditional of under the mattress under the pillow but our young people are very fortunate that in the modern world there are many ways of saving even using their own fund the fund which is able to borrow money can also help you to save and any other many financial products available for saving including giving a very credible friend or borrower your money to return with an interest that's also saving exactly those are very few then after you learn how to save you need to move to a third stage you need to start investing because the difference between saving and investing saving the money is safe the interest is small or the return is small but the priority is safety but when you have extra amount of money now you've saved for a while you need a higher income a higher interest a higher return you need to start embracing investing now investing comes with risk and return the return can be high but also you can lose money and as a young person or as a youth there's a tendency to be extremely risk seeker just the way our young people when they become drivers they drive faster than their dads or their mums so there's a tendency to seek risk so one of the things they need to understand at that level they need at their age they need to understand what we call their risk tolerance and by risk tolerance I mean what is the adversity for them losing the money they have imagine you've saved a thousand shillings per month or 5,000 shillings per month then end of the year it is 60,000 then you lose all of it so will you be okay with losing that money now that will start measuring your risk tolerance and inform what you can do with the 60,000 or with the 100,000 or with the 12,000 now once the young person or the youth is able to measure his or her risk tolerance they'll know what to invest in because they'll know this return is high but what if I lose my own money this return is low but it's too low for me the middle is not very high it's not very low but it will still guarantee me having my money back plus profit or plus interest and it will be able to evaluate opportunities of temptations come we do business together come we do this venture come we get into this activity the risk tolerance is the one we want to make it guide you to become an investor now let's say I'm saving a thousand shillings a month I have 10, 12,000 shillings now which are the opportunities that I have with 10,000, 12,000 shillings to invest my money if I am not yet capable of being an entrepreneur exactly and I won't tell the youth a thousand shillings per month saving is a lot of money it might have taken your parent 10 years even before starting that saving that 1,000 shillings so anybody willing to save a thousand shillings per month or is already doing that congratulations it is and a good amount the more the better now there are many things you can do but because the amount of money is not a lot it's a thousand per month 12,000 per year you need again to accept the opportunities which can accept that money as an investment so number one there are so many saving products out there now that will not sound like investing because the return will be so low now one of the ways of investing little money is to get into a small business which you know very well and not because someone else is doing it but it has a relationship with your passion every youth, every young person has a passion of something the band we had over here has the band members are passionate about music so when that band member uses his or her 12,000 shillings to buy a guitar I don't know if there is a guitar for 12,000 shillings or a music instrument for 12,000 shillings that is an informed decision investment decision so there are other financial products which can be done but for me to call you an investor I need to see you taking a higher calculated risk but if you are a saver you can save the money through your phone in many banking saving products savings accounts circles there are some instruments called unit trust which have a specific product called a money market fund which even accept 500 shillings per month so that's why I am saying 1000 per month is a lot of money unit trust common in Kenya they admit everyone provide you have an ID so if a youth is above 18 has an ID can open an account and can start saving they are slow minimum amount of 500 and as high as 10,000 so you choose the one which they should not share away from an entrepreneurial activity I mean one of the most best stories of one of our best Kenyans out there they used to make 3,000 chapatis per day for sale 3,000 so you can make 100 so I don't know how many chapatis can be made with 12,000 shillings but I am sure those are very many packets of unga and gano but in terms of entrepreneurship of business I really advise the youth to do an entrepreneurial activity which has a relationship with their passion because is the passion which keeps you overcome the ups and downs otherwise if it's coping a friend you can take the ups and downs or pitfalls before you enjoy the true profits now before we take a break there is something you mentioned about the guitar and I felt probably what you are saying here is the best investment you can make first of all is on yourself probably take the first money you have saved and see how you can maximise your competence within the market economy yes actually you are very right I talked to many young people about this even teenagers and I normally tell them the best asset you have is yourself true without you there is no business your life, your body your mental capacity is just the best gift so sometimes as a youth person you might not want to get into necessarily business but invest in yourself invest in the talent you have invest in training which you need so if you are in music like the band members here you might want to use the little savings to polish your craft through a training through a certification if you are talented in painting or in arts world you can get a trainer if you think there is a unique cause you can do it's better it's actually within the first five years of a young person's life the best investment is actually happening a skill a hobby they have a talent they have that now becomes what is the basis for them going up because any young person who is seeking to be economically engaged unfortunately they will be asked two things one, what is your skill set or what is your education and then they will be asked what is your experience comes with time the best young person should have is a skill and it's very sweet if that skill has been acquired through personal savings because you'll be very proud about it you really want it I really admire young people and they will tell me I have this skill and I paid for myself to acquire it you just said that and you reminded me about the in psychology there is the 10,000 hour rule that means if you want to be really good at a certain field you've got to give yourself 10,000 hours of constant practice of 8 hours a day for 10 years so people who have excelled in particular fields so many studies show that they give 8 hours or 5 hours times at least in every day of practice in every specific field for 10 years and it's rough and I was imagining that so many young people are not willing to put in the work some time after 6 months if I put my investment or I work at something for 6 months and it's not giving me any return any revenue I'm like I'm done exactly our youth have been born but the passion levels are low but let's also remember their understanding and creativity is higher so the reason why they are impatient is because they are also extremely creative and they want instant results the only thing is to have a balance of the two whatever you choose as a money making venture or a skill to lead you to an income should actually be you should accept and comprehend the work required or the time required to do that and when you invest or get into a venture if you want to be a good flute player or a drummerist or you want to be a chef there is some minimum time and training required and unfortunately in any skill you get better than time in fact I normally tell young people and youth don't give up do you know why older people sometimes your parents, your teachers your mentors sound a bit clever or knowledgeable it's not because of anything else just because they've served time so we give yourself some time exactly don't think they are they are more better than you if you work in a company and the boss is a bit older and it sounds very knowledgeable you actually you'll be knowledgeable within half the time he's served that's quite true that's something also I had with Jack Ma at Billionaire from China the first 5 years after finishing university get employed and work for someone who is smarter than you so that you can gain the skills at this half the time and I've seen that someone who has done something for 10 years a young person can duplicate that between 1 and 3 years so don't be discouraged by people talking about like myself, I've been doing this for 18 years I expect the youth who want to pursue my line of career to do it in 9 years at most even 5 years alright so we're going to take a break right now thank you so much Mr. Antoni Medega for sharing those experiences thank you so much for sharing for making money so we're going to take again a short break right now I'm going to give it back to Atafrika Kenya and we'll come back so if you have questions, suggestions and opinions please go to our social media Facebook, Twitter and Instagram we'll back in a minute niki takaa kiya tumzuri ali kua niki takaa jaka tumzuri ana kimbiya dukandi ani lete niki takaa smatphone ali kua ali kua ani lete niki takaa ali lete we're saying mind your money brother pesa ina mwisho dina mwisho pesa dina mwisho mind your money sister pesa dina mwisho dina mwisho pesa dina mwisho mind your money da da pesa dina mwisho dina mwisho pesa dina mwisho mind your money brother pesa dina mwisho pesa dina mwisho dina mwisho mainsha di ni mami mind your money all over Pesa zina mwisho A mwisho Pesa zina mwisho Pesa zina mwisho Pesa zina mwisho Pesa zina mwisho Pesa zina mwisho Pesa zina mwisho Pesa zina mwisho Pesa zina mwisho Pesa zina mwisho Pesa zina mwisho Pesa zina mwisho Pesa zina mwisho Pesa zina mwisho