This Week’s Article
This Week, I wrote about why saving challenges like the “52 Week Savings Challenge” don’t work. It comes at a time when everyone is hyped up about the new year and we come up with big goals but only slip back to our normal patterns after a few weeks.
Main Highlight:
The main highlight happens to be a quote from Nick Maggiulli’s book, “Just Keep Buying:
“Saving rules like ‘save 20% of your income’ are so misguided. Not only do they ignore fluctuations in income, but they also assume that everyone can save at the same rate, which is empirically false.
When we have the ability to save more, we should save more. And when we don’t, we should save less. We shouldn’t use static, unchanging rules because our finances are rarely static and unchanging.
That is why the best saving advice is: “Save what you can.”
The only savings challenge that works is challenging yourself to save what you can at all times.
You can read the entire article here:
Thread of The Week
This week I shared about bond laddering. A bond ladder is a portfolio of different bonds that mature on different dates. Strategy is designed to provide current income while minimizing exposure to interest rate fluctuations.
Instead of buying bonds that are scheduled to mature during the same year, you purchase bonds that mature at staggered future dates.
You can read the entire thread here
What I’ve Been Reading:
Getting Wealthy vs Staying Wealthy by Morgan Housel
Why Investing is Hard by Jack Raines
Inconvenient Truths Worth Your Attention in 2023 Investments by Rufus Mwanyasi
Meme of The Week
This week, there was a lot of talk about just how much Kenya Power takes in taxes compared to the tokens they actually give. Most of the money is spent in taxes and not in tokens. It therefore gives the impression that KPLC is a tax collecting company and not a power distribution company.
This Week’s Chart
This weeks chart is a summary of the tax changes that will be in effect in this new year. This chart is summarized by the team from Mwango Capital
That’s it for this week! See you next week. I wish you a happy new year and the very best in the financial markets this year.