Finnacle Consulting

Wishing you and your cherished family a joyous Merry Christmas 🎅 🎄 and a New Year filled with endless possibilities and abundant blessings from above🥳🎊🙌

May the warmth of the season wrap you in love, and may the coming year unfold with moments of happiness and fulfillment🤗Here's to a beautiful journey ahead, surrounded by the love of family and God's grace 🌟 🤩

Merry Christmas and a Happy New Year!🎄🥳🎊

📌Money Market Fund (MMF) yields remain on the rise due to the continued increase in returns from government securities. Currently, the average rate for the published MMFs is 12.48%.

What return are you getting from your MMF?  Does it reflect the current published performance?🤔🤔

          

📌Money Market Fund (MMF) yields continue to rise due to the increase in returns from government securities -Treasury Bills & Treasury Bonds- as investors continue to demand better returns given the government’s affinity for debt to plug current budget deficits and concerns over debt sustainability.

🎯Yields on Treasury Bills have increased to 13.7% for the 91-Day T-Bill, 13.5% for the 182-Day T-Bill, and 14.0% for the 364-Day T-Bill from 13.5%, 13.3%, and 13.7% respectively.

🔅We are within the 15-17% returns range on Treasury Bonds with latest bonds issues registering a return of 16.844% and 16.972%.

📌Inflation has been reducing slightly from 7.88% in July from 7.28% in June. However, it is still higher than the CBK target.

🎯The effects of the high CBK continue to be felt as higher cost of loans for individuals continue to bite. Banks have been raising their loan interest rates to reflect the current CBK rate.

👉Liquidity reduced in the money markets, increasing the interbank rate from 11.97% t0 12.08% at the close of the week

📌Meanwhile, the shilling continues to face pressure from the US Dollar due to the high dollar demand arising from imports and servicing the government debt.

📌📌📌Disclaimer!! This post is for information purposes only, and it does not equal investment advice.

What is good debt and bad debt; and how do you differentiate them?

📌Well, here are some pointers:

✅Good debt involves borrowing money for investments that have the potential to improve your financial situation in the long run, such as expanding a profitable business.

👉Bad debt, on the other hand, involves borrowing for things that don't offer a lasting financial benefit or could potentially put you in a worse financial position, like borrowing to buy luxury items.

🎯It's important to carefully consider the potential returns and risks associated with borrowing before taking on any debt.

📌Ever felt baffled by all the financial jargon thrown around when talking about saving and investing? We get it! 🤔

👉Let's tackle one big question together: What's the deal with inflation, and why does it matter?

         

📌Embracing simplicity in managing your money becomes increasingly important as you advance in life and financial situations become more complex.

🌟Simplicity in money management affords you:

✅Clarity
✅Reduced Stress
✅Time Efficiency
✅Lower Costs
✅Better Decision Making

✨How to embrace simplicity in managing your money:

🎯Consolidate Accounts
🎯Automate Finances
🎯Create a Budget
🎯Eliminate Debt
🎯Focus on Key Financial Goals
🎯Avoid Complex Investments
🎯Regularly Review Finances
🎯Seek Professional Help

💡Simplicity doesn't mean sacrificing your financial goals or neglecting important aspects of your money management. Instead, it's about focusing on what truly matters and avoiding unnecessary complexities that might hinder your progress.

💯Embrace simplicity in managing your finances and watch yourself thrive!!!🎊🥳🎉

📌When it comes to fixed income investments like treasury bonds, it's not just the interest rate that determines your success. In such investments, the amount invested is a significant determinant of how much interest income you earn.

⚖️💰Let's compare two scenarios: a Kshs. 1 Million and a Kshs. 100,000 investment in the latest 5-yr Fixed Coupon Bond (FXD) with a 16.844% interest rate and subject to a 15% Withholding Tax.

🌟With a Kshs. 1 Million investment, you'll earn an impressive Kshs. 715,870 over 5 years, thanks to the huge initial investment. That's nearly 3/4 of your initial investment! Imagine earning Kshs. 11,931 every month as passive income, and receiving a lump sum of Kshs. 71,587 every 6 months for the next 5 years!

👉But with a Kshs. 100,000 investment, the numbers shrink. You'll earn Kshs. 71,587 over 5 years, just shy of 3/4 of your initial investment. That's only Kshs. 1,193.12 per month and Kshs. 7,158.70 every 6 months.

💡Clearly, the amount you invest matters more than the interest rate earned.

🔅Don't let smaller investments hold you back from maximizing your returns.

✅Think big and watch your wealth grow!

💰💸 Market Fund (MMF) yields have been on the rise 📈owing to the increase in returns from government securities such as Treasury Bills as investors continue to demand better returns given the government’s affinity for debt to plug current budget deficits and apprehension over debt sustainability.

🎯Yields on Treasury Bills have increased📈 to 12.014% for the 91-Day T-Bill, 12.199% for the 182-Day T-Bill, and 12.250% for the 364-Day T-Bill from 11.904%, 11.947%, and 12.157% respectively.

👉There is a new 5-yr Fixed Coupon Bond (FXD) and a reopened 10-yr- Fixed Coupon Bond (FXD) with 3.2 yrs to maturity on offer until today 11/07/2023. The latter's coupon rate is set at 15.0%, and the new bond’s coupon rate will be determined through average bids on auction. The new bond attracts a 15% withholding tax while the reopened bond, a 10% withholding tax.

📉🎯Inflation reduced slightly to 7.88% in June from 8.03% in May. However, it is still higher than the 2.5% -7.5% CBK target.

🎯The CBK raised interest rates from 9.50% to 10.50% on 26th June to mitigate further the high inflation experienced in the country. This implies higher cost of loans as individuals will be required to pay more to service their loans and take on new loans. Equity Bank became the first bank to raise its loan interest rates from 12.5% to 14.69% to reflect the new CBK rate.

💵Liquidity eased in the money markets reducing the interbank rate from 9.33% to 9.20%

💵🇰🇪Meanwhile, the shilling continues to face pressure from the US Dollar due to the high dollar demand arising from imports.

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🤔Have you ever wondered why we spend money the way we do? It's not just about how much we have in our bank accounts. Our individual beliefs and values play a pivotal role in our financial decisions, thus shaping our spending habits.

👉Here are some fascinating ways our perspectives shape our financial decisions:

💰The Security Seeker: To Emily, a diligent saver, money means building an emergency fund, planning for the future, and ensuring a stable financial foundation. She spends cautiously focusing on essential needs and long-term financial goals.

✈️The Experience Enthusiast: To James, an adventure enthusiast, money represents opportunities for thrilling escapades and unforgettable memories. He's willing to invest in travel, concerts, and new experiences, cherishing the joy and fulfilment they bring.

🌟The Value Seeker: To Amanda, an avid bargain hunter,money means seeking the best deals, comparing prices, and squeezing the most out of every shilling. She's always on the lookout for discounts, coupons, and special offers, ensuring that her hard-earned money goes a long way.

💯The Self-Indulger: To Sophia, a believer in treating oneself, money means indulging in occasional luxuries, pampering oneself, and embracing the finer things in life. She spends on experiences, products, and services that bring joy and happiness to her daily routine.

🗝The Status Chaser: To Ricky, a status-conscious celebrity, money's meaning lies in social recognition and material possessions. His spending habits often revolve around luxury items, designer brands, and indulgent experiences that convey prestige and elevate their social standing.

🤔So, what does money mean to you, and how does it influence your spending decisions?

💡 Picture this: You're eyeing that exciting dream vacation at the end of the year, and instead of spending your money impulsively now, you choose to save like a financial ninja. 💪💰

💫 The magic begins when you embrace delayed gratification. By patiently setting aside a little each month, you're planting the seeds of a future adventure that will make your heart race and your spirits soar! 🌍✈️

⌛️ The journey towards this goal might take a while, but the reward? Oh, it's sweet! 🎁 Imagine stepping onto that sandy beach with a cocktail in hand, feeling the warm sun on your face, knowing that YOU made it happen through disciplined saving. 🏖️🌞

🌱 Delayed gratification is the secret ingredient that transforms mere wishes into tangible triumphs.

💪Remember, delayed gratification isn't about depriving yourself indefinitely!! It's about making deliberate choices to reap greater rewards down the road. Whether it's a dream trip, a new car, or a home of your own, saving allows you to seize the extraordinary! 💫🌙

🌟 So, Dare to Delay, Dream Big, and Reap the Rewards! 💪💰

📌Most of the time, we find ourselves caught up in an illusion of chasing a highly elusive rich life of wealth and material possessions. However, our quest for a truly abundant life is often closer to home than we think.

💯How can you cultivate a rich life for yourself?

🌟 Cultivate Gratitude: Start by appreciating the small wonders that surround you every day. From beautiful sunsets to the comforting presence of loved ones, find joy in the simple pleasures that money can't buy. 💖

🌱 Nurture Relationships: Cherish the people that matter most to you. Intentionally cultivate meaningful connections with friends, family, and your community. Treasure the joy, support, and love that enrich your life. Remember, the richest treasures are the people who surround you. 💞

💰 Discover Your Hobbies and Talents: Dig deep into your passions and skills. Unleash your creativity and unlock new passions through art, music, writing, or any form of self-expression. Harness your unique abilities and watch as they bring immense fulfillment and open doors to exciting opportunities. ✨

💡 Cultivate a Growth Mindset: Constantly seek knowledge and embrace new challenges. Read books, listen to podcasts, attend events. The more you learn and grow, the more abundant your life becomes. 💪

🌍 Explore the World: Seek adventures in your own backyard and beyond. Embrace the beauty of nature, different cuisines & immerse yourself in diverse cultures. Expand your horizons and witness how experiences can shape you into a richer, more enlightened individual. 🌎

🌻 Spread Kindness: Give selflessly, lend a helping hand, and make a positive impact on the lives of others. 🤝

🙏 Nourish your Soul: Embrace a deeper connection with yourself and God, finding meaning and purpose in every moment. Nurture your inner peace and serenity through meditation, mindfulness, and self-reflection ✌️

💪 Nourish your Body: Nurture your mind and body through self-care, exercise, and mindfulness. Remember, your health is your wealth!

🤔What would you want your rich life to look like?