While many end up in high-end joints with their friends for some bites and drinks, other visits boutiques to change their wardrobes. This is but the beginning of money problems unless soon addressed.

BT spoke to Jackline Mugo, a certified investment adviser, about the smartest things to do with your money when you start earning.

Before throwing an expensive bash, thinking of a vacation or going on a shopping spree, consider these money moves.

1. Seek financial management tutorials

According to Ms Mugo, you can start seeking for financial advice long before you have the cheque in hand or the money hands in your bank account. This, she says, will give you a better guide and knowledge on how to prioritise your spendings, doing your budgets and starting early savings.

“ Many people who lack financial management skills do not actually know what to do with their cash. As a result, they might end up squandering the whole amount and more especially when they know that they are on payroll,” she says. Your money will always wait for you so take time and understand how to manage it before making a move.

2. Settle you debts

First jobs come with their own challenges. For example, lack of fare to your workplace can compel you to borrow from friends or relatives with the hope of paying with your expected salary. Before you do this, you need to do your maths and know the amount of debt you can pay with ease.

“ Never go for debts that will take you long to pay. When you get your money, prioritise clearing all the debts so that you can have easy in planning with your cash,” she says.

Paying debts on time also increases your credit rating among friends and relatives when you get back to them for more debts. Do not go for debts if you can survive on minimal finance.

3. Start an emergency fund

This might seem to be a long term plan, yes, but remember sometimes life takes its own course. You can lose your job anytime, get sick or even find your house broken into and everything gone. It is important, according to Mugo, to have a safety net just in case. Ideally, you’ll never need this money — and it’s important to keep your hands off it for anything other than a real emergency.

Having multiple accounts is one of the tricks that will help you keep off from this money until real emergency strikes. Always consider putting it in a high-yield savings account, which offers a higher interest rate,” she says.

4. Set specific saving goals for future expenses

Once you start earning, expect bigger expenses in future, such as buying a car, home or educating your kids. The earlier you start setting aside money for these expenses, the better.

” The most effective way to save for these big-ticket items is to have a certain amount of money automatically deducted from your bank account and sent to a savings account, says Mugo

“Do it on the same day you get paid. You’ll never even see that money and it’s a really easy way to make sure you stay consistent with your savings.”

5. Get the insurance you need

Many people have the habit of evading insurance covers with a feeling that they can make monthly savings. However, according to Mugo, this might turn against you at the end of the day.

Buying the right insurance policy for your situation is critical to a healthy financial life. “Try and shop around for the best policy and start your contributions as early as possible,” she says.

Insurance, according to Mugo, is a very important part of our daily lives and as such, should be given a key priority. “ Never let it wait if you can pay it,” she adds.

6. Start some side hustle

Does this look unrealistic to you just because it is your first pay? If it does, then look at it positively. There are simple businesses that one can start with as low as Ksh 500.

“ Walk around, identify what is lacking in your area, you can capitalise on that to help you in other areas,” she adds. Starting a small business is also important because you will no longer rely on your salary alone since once it establishes itself, you can easily settle your daily expenses with the profit and invest your salary in other venture.

Credit: Cavin Odhiambo reporter with Business Today

But an overflowing bank account isn’t out of reach for every millennial. In fact, there are plenty of millennials who will take the same route Mark Zuckerberg and Snapchat’s Evan Spiegel took. Here are eight things millennials can do to have a shot at becoming multimillionaires by 2027.

Start a business.

This option gives you the best odds of becoming a multimillionaire in the future, but success is obviously not guaranteed. A winning idea is, of course, a very important ingredient, but you should also know other things you’ll need to do to improve your odds of success. Above all, be prepared to put in years of hard work and overcome multiple obstacles before you achieve your dreams.

Find a mentor.

Some of the most successful people in business today will readily admit that outstanding mentors played a significant role in their career growth. Studies connect mentorships to a surprising number of success stories. Find someone who has achieved the type of success you hope to earn someday and ask for the opportunity to learn from that person. Their insight and experience may make the difference that helps separate you from other millennials looking to succeed.

Develop a product.

In today’s Shark Tank-Kickstarter environment, it’s possible to invent a product concept, create a prototype, and get funding to begin manufacturing and distribution. There are multiple ways to approach taking your idea from concept to reality, but you’ll give yourself a great head start if you create something that is inexpensive to produce.

Take over an existing business.

Why start at the beginning when there are existing businesses that need ownership? Search for a business with an owner who may be interested in retiring or who is actually ready to move on. Be prepared to work with the business for some time before eventually offering to take it over. If you have difficulty locating one, a business broker can help you identify the perfect business to suit your personal and professional interests.

Invest

Investing can be tricky, but it’s one of the best ways to get a return on the money you currently have. If you want to make significant money quickly, you’ll need to take some major risks, which means being willing to lose all the money you put in. For best results, start by investing a good amount of money. You can make more potentially if you risk more. Pick certain sectors that you find yourself most interested in and concentrate on investments in those spaces. Before any of this though, take time to learn as much as possible about the stock market.

Save

With the nearly nonexistent interest rates on savings accounts today, you likely won’t see the money you put into the bank multiply. However, if you make significant sacrifices, such as living at home with your parents, working multiple jobs, or sharing a place with one or more roommates, you may be able to set aside a considerable part of your salary each month. Like my mom always said, you can’t save much money if you’re busy spending it just to live. If you conserve over time, you’ll have a nest egg you can put toward investing or purchasing rental property that can more rapidly multiply your monthly income.

Start a side hustle.

If you need the security and benefits that come with a salaried position, a side job may be a great way to generate extra income. This could be something as simple as delivering pizzas or bartending or something as complex as starting your own business on the side. The former can bring immediate cash, but the latter can give the long-term benefit of eventually being able to turn it into a full-fledged business.

Boost your salary.

The key to successful saving and investing is to first bring in the best income possible. Don’t settle for a substandard salary. Look at the market rates for your skills in your area and make sure you’re at least within the range. If not, search for a different job with people who will appreciate your education and experience. Learn top salary negotiation strategies to get the most out of every job offer.

With hard work and sacrifice, millennials can significantly increase their income over just a few years. While there’s no guarantee of becoming a multimillionaire, it’s well worth the effort. If you don’t succeed in that timeframe, at least you’ll have a good start at becoming a multimillionaire in the years that follow.

Credit: John Boitnott, contributor at Entrepreneur

God helps those who first help themselves. In the world today, we ought to treat money with some care and respect. You will always want things to buy, but you don’t have to. One must have a plan of where they want to go, more so a discipline to execute the plan.

With money, comes responsibility, which many people lack. There are things that could be keeping you from being money-savvy. It is time you jumped off that bandwagon of mistakes and correct them.

Dr Manyara Kirago, who is a well-known personal finance coach and trainer in Kenya, currently running online training on financial management, gives a ten-point guide to mistakes that people often make.

Not having a plan for your finances

As individuals, we ought to have financial goals in life and a plan of how to achieve them using the only money we earn, not what we yearn to have. This is the only way you will live a debt-free life, translating into a stress-free life. Always plan what to save or spend and how. “First analyze your financial position then set goals according to you cash flow. Most importantly, have regular review of your progress,” advises Dr Kirago.

Focusing on lifestyle instead of financial security

“Financial security equates to ownership of invested assets,” says Dr Kirago. Lifestyle includes things such as buying clothes for show-off or going with current fashion rather than investing, as well as eating in the finest restaurants in town.

Not having a budget

This could lead to living from day to day without saving, or spending all your money and ending up borrowing to continue spending. A wise man would put in his budget what he or she plans to spend. This will have your money in order.

Not having an emergency fund

We are advised to always expect the unexpected. A good example of this is a job loss due to retrenchment. You are not ensured against job loss for the rest of your life, there is always someone coming up and taking over. “In case anything happens, you ought to have money that will keep you going a good 3 to 6 months,” he says.

Getting in trouble with loans

Most people lose their hard earned properties to loan recovery agencies, who auction them to recover defaulted loans. Dr Kiragu advises that you should service your loan promptly, and if you can’t don’t take one.

Guaranteeing other people’s loans without regarding the repercussion: This will see the loaners come after you if the debt is not settled because your name is on the paper. Unless you are prepared to pay for it, don’t be a loan guarantee.

Not saving for retirement

It is said that one should start saving for retirement immediately they get a job. By doing so, you are securing yourself financially in the future when you are at a much older age.

Not having health insurance

In most cases, people start seeking fundraising in order to seek medical help. If you paid for health insurance, it becomes an easy ride.

Not having life insurance

This money will provide cover for daily living expenses and any outstanding debts such as credit cards and car loans, in case you die or are not in a position to work.

Not having a will, especially if you have minor children

This is your final will and testimony. You have the power to distribute your life-earned money and assets to your family ensuring they continue living comfortably after you are long gone.

Credit: Abigael Tairo, contributor at Business Today

While most people would consider themselves pretty financially savvy, I’d say that can be attributed to the fact that no wants to admit they’re bad with money. As cash rules almost every decision we make, it can be tough to swallow when we haven’t held ourselves to the best standard.

Granted, for most of us, it’s easier said than done, but that’s why getting into good habits while you’re young is so imperative. That’s why I’ve compiled a few tips I wish I knew when I was in my 20s. Following these could lend you a better path and help you save quite a bit as well.

1. Report your rent to credit bureaus

Although a relatively new development in the credit reporting world, according to NerdWallet, nearly every major credit bureau allows you to report your rent. Although less than 1% of credit files contain rental information, this can increase your credit score tremendously.

2. Learn how to use a credit card the right way

This is something that we probably should’ve listened to the wisdom of our elders more, but then again, sometimes it’s best to learn on your own. As creditcard.com notes, while younger generations tend to utilise their credit for clothes, entertainment and gas, older generations use it for travel and major repairs. Granted, having a budget and sticking to it with a credit card can be a good way to build your score, but using your card like boomers is an effective strategy.

3. Don’t inquire until you know for sure

Credit inquiries can negatively impact your score up to five points, which is especially damaging to young people. The rule of thumb here is to shop around a bit when it comes to buying something that could need to be purchased on credit.

4. Build your credit

Your credit is the number-one key you have to financial freedom, so utilise it wisely. As CreditRepair notes, there are numerous ways you can start on this, as it’s never too early to start thinking about your credit.

5. You don’t have to be rich to invest

There’s a big notion that only those with a lot of money should invest in stocks or mutual funds. In fact, a recent study by Bankrate showed that just one in three millennials are investing. Even though you most likely won’t be rich overnight, it’s never a bad idea to use investments as a way of saving. Some good sources to check out are Acorns and Stash.

6. Save enough for rainy days

According to a study by GoBankingRates, 72% of millennials have less than Ksh 103,235 (US$1,000) in savings. That’s a pretty astounding figure, especially when you consider that money could be drained pretty quick in the event of an accident or unexpected event. Try to set aside a little more from each paycheck, as you never know when it might come in handy.

7. Hold off on buying a car (even if you can afford it)

While a lot of folks tend to follow the 20% rule (that is, only dedicate 20% of your income to a monthly payment on a car), even if you can afford that, it’s still not your best investment. First, cars are depreciating assets, meaning as soon as you drive off the lot, it’s automatically worth less than what you paid. Additionally, as you never know what’s going to happen with your car (whether it’s new or old), the unexpected maintenance or expenses are going to cost you regardless.

8. Beware of predatory lending

Predatory lenders can potentially destroy your financial status, with the average interest rate clocking in around 400%. In short, this is the quickest path to bankruptcy, so if you’re looking for some extra financial help, exhaust all your resources, as well as possibly talk to a financial advisor.

9. Stop spending so much money on socialising

Like most millennials, I too have fallen victim to spending money for what I consider “the short term.” You know, things like going out to eat or going to shows, which for the time being is great, but as you get older, you realise this money is well spent other places. Plus, as millennials spend nearly 44% of their food budget on going out, cutting back can be an excellent way to save money.

10. It’s harder to get yourself out of a hole than it is to get in one

It’s no secret that getting into debt is relatively easy. But the getting-yourself-out part? Not so much. As The Nest points out, the average time to pay off Ksh 980,399 (US$9,500) with monthly payments of Ksh 47,575 (US$461) will take approximately two years, with Ksh 160,476 (US$1,555) paid towards interest. In short, being in debt is expensive, and as such, you should put a lot of consideration into what you incur before pulling the trigger.

Perhaps one of the best pieces of financial advice I ever heard tackles this subject very well: if the debt you’re incurring isn’t helping you make money, is it really worth putting on?

Credit: Andrew Medal, contributor at Entrepreneur

For every quote on resilience there is probably a failure business that motivated its birth. Chances are you will not make it big in your first venture or first try at your business. Failures are part of entrepreneurship and success stories are easier to sell, you might not hear of the failures of many people who have made it.

Successful entrepreneurs are defined by their attitude. The willingness to learn lessons from your business failure will determine your chances of being successful. 20% of new businesses fail after a year in operation with about 40% of the successful businesses closing after 5 years.

While failure in business is common, it is however not a walk in the park. A business failing can strain your finances, relationships and your confidence in yourself.

What to do after a business fails.

Analyze your failure to figure out what went wrong

You may not feel like dwelling on it, but when a business fails, it is crucial to analyze every aspect that could have led to the failure. Find out what went wrong, where, how and why. Start by looking at what you wanted to achieve when you started the business and if you were able to accomplish it. If not, why not.

Did your product or service fill a noticeable niche in the market, did it have any competitive edge and did you communicate your value proposition clearly. Did you collaborate well with partners and employees? Look for any blind spots that could have contributed to your business failure to avoid the same mistakes costing you more in future.

After pinpointing what went wrong, you will be in a better place to determine whether you can improve on your idea or get a different one and start over.

Is Entrepreneurship the right choice for you?

Businesses are not for everyone, depending on your strengths you may realize that your personality and skills might not be sufficient to run a successful business. Before starting another business that could damage your finances, consider getting a full-time job for the immediate future to get back on your feet.

Read more on if entrepreneurship is the right thing for you at http://milhanaccesscapital.com/determine-whether-entrepreneurship-is-the-right-path-for-you/

Stay Positive

Getting excited again after a business failure is not easy, staying down is not an option either. Take note of things you enjoyed doing in your business to remind yourself of your passion for starting out in the first place. Look for ways you can maximize on the returns while noting down things that strained you that you can delegate or hire someone.

Look for mentors that can guide and jumpstart your enthusiasm. Talk about what you are struggling with, your mentor can offer business tips that might steer you in the right path.

Rise above your failure

Failing means you took a risk and went for what you wanted, not everyone can do that. If anything, it should give a boost to your confidence. Embrace the lessons that your failure brings. Do an audit/SWAT analysis. Determine the mistakes that you can correct and pick yourself up.

How to be a successful entrepreneur

Your success as an entrepreneur will be determined by your mental and emotional strength. Be of strong mind, have a willingness to sacrifice, be able to commit and have unwavering determination.

Be mindful of your circle of friends and have the right mindset

Mindset changes that successful entrepreneurs make.

Complaining does you no good– Complaining is a complete waste of time, hardships and challenges will undoubtedly arise, complaining about them gets you nowhere. Have the will to pick yourself up after difficulties and learn from your mistakes.

Learn from your failures– Every failure is a learning opportunity. Do not allow your mistakes to define you. Treat failures and mistakes as learning opportunities.

Get used to being uncomfortable– Comfort zone is not even an option when it comes to entrepreneurship.  Discomfort is part of running a business, you will have to push yourself outside your usual limits to stay on top of your game.

Keep an open mind- When times are good, you may be tempted to maintain the same way of doing things. It is however necessary to find keep abreast with new technology earlier on.

Take risks– Your business success and growth will be determined by your ability to take calculated risks. Challenge the status quo, have a curious mind, question everything, seek knowledge, understand why what works, works.

Believe in your idea– Your faith in yourself and your ability to execute your business idea and prevail in times of hardship is the make or break of your business. Believe in your eminent success and work diligently to make it happen.

Refinancing your car loan means getting a new loan with a different lender to replace the existing auto loan. Your new lender will clear off the remaining loan after agreeing how much you will be paying, hopefully with lower interests. You can also choose to extend the term of the loan if you were straining with the installments.

Auto loan refinance is right for you if your credit score has greatly improved and you can qualify for lower rates or smaller monthly payments.

How to Refinance your Auto Loan

Gather your documents

You will need at least a recent payment of your Auto Loan to determine your remaining balance and current monthly payments. Note down the interest you are currently paying and the amount of time left until you can clear the loan. Your driver’s license, car identification and proof of payment may also be required.

You should also check for penalty that could have accrued on your auto loan contract.

Check your Credit Report

Find out where your credit score stands. Chances are it is good if you have been consistent in your auto loan repayment and other financial commitments in your life. There are online sites that you can check your credit score ratings.  Your credit score determines the kind of interest you will get in your new loan. It might not make sense to refinance with bad credit score.

Compare loan offers

Refinancing your car loan will save your money if you spend time shopping for a better deal or a reliable lender that you can refinance with. Refinancing your loan doesn’t take long and a lender can decide in less than hour.

Since we all have different credit rating the score you might get from your own research might not tell you exactly how much interest rates you will be charged. The alternative is to apply for the loan to find out how the interest that your good credit will earn you.

Work the numbers

Start by entering your current car loan information i.e. the original loan amount, the interest rate, the remaining balance and the months left till you pay off the loan. Then enter the approximate interest of the new loan, the months it will last (Loan Term). You will be in a position to calculate how much you will be saving. However, if the remaining amount is greater than your car’s worth, refinancing will be impossible.

After making the appropriate moves and calculations, you can then decide if refinancing is the right choice at the moment. If you are close to the end of your Auto loan, refinancing might not make sense or if there isn’t much difference.

You can decide to refinance if you want to pay off the loan quickly or lengthen the time you will take to repay the Auto loan.

Apply for Refinancing

After doing the math and choosing to refinance, the next step is to complete the process with the lender of your choice. You can then agree with the lender on the new loan details, including the interest rates and the payment length. The refinancing company will then pay off your remaining balance of the old loan.

The process can be completed within a few hours. Refinancing is not expensive since most car loans lacks a prepayment penalty. Also, there is no application fees for refinancing.

When refinancing makes sense

 A dealer marked up the interest rates- Your car dealer might have charged you higher interest rates at the point of purchase if you had not shopped around for better deals, refinancing can help save lots of money.

Interest rates have dropped– Interest rates going down is another reason to consider refinancing.  Increased competition among lenders, change in the economic status and policy changes are some contributing factors to low interest rates.

Late or unable to keep up with payments– Financial challenges pop up every once in a while and you might find yourself straining to make monthly payments. Refinancing your car loan might salvage the situation and give you enough time to pay off the loan.

Refinancing might mean paying more because of increased duration of the loan.

The time of getting yourself a car has arrived, depending on your budget and the kind of car you have always wanted, you are now trying to decide whether to put your money into a new or a used car. While buying an old car can save you thousands upfront, buying a new car has its advantages.

However, before you are enticed by the feel of a new car, start by evaluating how much you will be saving by buying a used car instead. The average person in Kenya owns about 6cars in their life time, if each of these cars are about 3year old, you can calculate how much you will be able to save on each car purchase.

How Depreciation can save you money

Depreciation has been used in negative light but when it comes to buying a car, it is the real money saver. Understanding how car depreciation work equals to figuring out car buying’s secrets. A car loses 20% of its value the moment you buy it, after a year of mileage, wear and tear, it loses about 10%, and this is barely noticeable until the day you decide to trade in or sell your car.

Let’s take a look at two similar vehicles, a new car and a used car.

New Car Depreciation– A new car loses around 30% of its value after one year. If you bought the car at Ksh 3m and sold it 3 years later for Ksh 1.5m, the car will cost you Ksh 1.5m in depreciation.

Old Car Depreciation– On the other hand, if you had bought the same car but three years old at Ksh 1.5m, you can sell the same car after a 3 year period for Ksh 1m at a deprecation cost of Ksh 500000.

Driving a new car feels terrific but it will cost more in the long run. Of course there are stigmas surrounding buying used cars but that shouldn’t stop you from saving a huge amount of money.

Advantages of buying used cars

Vehicles are now more dependable than ever before in two ways;

Maintenance– One can drive today’s cars for longer periods in between regular maintenance like oil change, brake jobs or tire rotation. Tires and brake pads last longer in today’s car than earlier versions.

Reliability– Today’s cars can deliver up to 100,000miles without requiring any major repairs hence you will not be buying someone’s problem according to common misconceptions.

Lower car insurance rates– A car’s value determines the insurance rates especially collision and comprehensive coverage, the less the car’s worth, the less it will cost to insure.

Cheaper Registration– The cost of registry renewals/ registering a used car lowers each year.

Less stress– We all spend more time paying attention to a new car, the first dent on a new car is likely to give you more headache compared to a dent in an old car

Get a Luxury car– Buying a used car saves you enough more to buy a more luxurious car than a cheaper new one.

Advantages of buying a new car

Buying used cars has one great benefit of saving you money, however buying a new car has its perks.

Better financing options– Auto and Logbook loans lenders offers better interest rates on new car loans or car buying incentives like Import Duty Financing.

Shopping is easier– Compared to buying used cars, new-car shopping is easier. All new cars are assumed to be in perfect condition and do not require being taken to a mechanic.

Advanced Features– New cars has enhanced technology for better performance, safety, and comfort, a feature obviously that lucks in old cars.

Prestige– New cars gains you respect and envy from peers, it is hard boasting of buying an old vehicle.

Peace of Mind- A new car comes with a warranty of up to 3 years or 30000 miles, it’s also more reliable than a used one.

So, New or Used

There are times when purchasing an old vehicle will not cost more than buying a 2 year old vehicle. This is because not all car brands depreciate at the same speed. Some brands maintain their value well for longer periods of time.

Depreciation can be your dirty little car buying secret. If going for a used car, go for one that can hold its value, this will minimize any effects. If you are not still sure, use a car loan calculator to see the difference if you choose to buy a new one instead.

Millennials generally are an optimistic group, while this is a good way to live life, being overconfident sometimes can be costly. Compared with older drivers, 35% of millennial aged 20-30 do not have car insurance.

When it comes to car Insurance, being a terrific driver is not enough, something is bound to happen to your car that may have nothing to do with your skills as a driver, and as such you need to be prepared.

To avoid chances of ending up in financial hardships, car insurance is critical. Read on to know what kind of coverage you will require.

Collision Coverage

Accidents happen on the daily more so during the festive seasons and these are the ones that are reported. Accidents are costly to drivers with collision claims costing approximately half a million, paying such a hefty amount from your pocket is draining.

Car Insurance is not a fun way to spend money but it does comes in handy in such instances. Auto Insurance may not as fulfilling or exciting as getting the latest phone in the market or vacationing in a beach yet, it has been made a legal requirement in many countries for a reason.

Uninsured Motorist coverage

In case your car is hit by someone without an auto insurance, the uninsured motorist coverage will cover your car repair costs, medical bills, funeral expenses in the worst case scenario and any pain and suffering costs.

Body Injury Liability Coverage

As the name indicates, this auto insurance will cover expenses like legal fees, medical bills, rehabilitation cost, funeral costs and any other expenses occurring as a result of an accident that causes injury to you or your passenger as well as the driver and passengers in other vehicles or pedestrians.

Property Damage Coverage

The property damage liability coverage protects one in case of an accident that harms or destroys people’s property for instance a fence, it will help pay for the repairs or replacement if need be. This however might not cover the damage to your own car and you will require the Collision coverage.

Comprehensive Coverage

Comprehensive coverage does not mean it covers everything, it however covers damages to your car that are not as a result of collision for instance vandalism, theft, natural disasters, riots, fire, damages by animal and falling objects among many others. Comprehensive covers also pays for theft of your car or any of its part.

Insurance rates for new vs. old cars

Unlike the popular belief, new cars are not more expensive to insure than old ones. Advanced Safety features in new cars ensures that damage if any will be minimal hence low rates unlike old cars that might cost more to fix. Auto insurance are mostly determined by the expected amount of damage to your car.

Car Insurance during Leasing

When leasing a car, dealers may require you to get gap insurance in case the car is stolen or involved in any accident. Gap insurance covers the difference between the value of the vehicle and the amount you owe on the lease, some lenders already have this kind of insurance, be sure to go through your lease contract carefully.

What contributes to Car Insurance Rates?

Deductible– This is the amount you pay out of your own pocket in the event of an accident. The higher the deductible the lower the car insurance.

Gender– Men pay more than women

Age– The younger the driver the higher the rates

Demographics– City residents are more likely to get in accidents than rural areas, same as areas with more people.

Violations– Moving violations like speeding can also increase your rates, obey the law to keep your rates low

Claims– The number of claims you file increase your rates, the higher accident prone you are, the more you will pay.

Type of vehicle– Sports car insurance cost more than sedans. The more expensive the car, the more you pay.

Tips for lower Auto Insurance

Avoid gaps in coverage– Ensure you are covered at all times even when you are changing policies.

Compare rates for different cars- Compare premiums from different car insurance when shopping for a new car.

Claim your discounts– You are eligible for discount depending on your insurer if your car has advanced safety features, anti-theft or anti-locks brakes.

Auto insurance is a must have with many types of coverage being mandatory in certain countries. Besides legal reasons, car insurance protects you against financial hardship in the event of theft, damages and injury to others and yourself. While car insurance is of utmost importance be on the look out to avoid for paying for coverage you might not need or use.

Shop around to get the best auto insurance company that can offer you a reliable deal. Based on your financial status and the age of the car, you can get quotes from different car insurance companies to compare their policies.

We all love the idea of being self-employed and at some point we have had a side hustle to supplement our employment. While most of us toy with the idea of starting a business, entrepreneurship is a bumpy ride especially for the first timers. Before you quit your job to become an entrepreneur, it is important for you to examine if it is the right fit for you.

Finding the right business for you will determine your resilience when you experience any challenges. Put into considerations your passion, skill sets and your ability to solve problems for your target audience

How to determine whether or not entrepreneurship is for you.

To determine whether you want to venture into entrepreneurship, start by asking yourself;

• Are you risk tolerant? A big chunk of entrepreneurship involves taking risks every day to support and expand your business.
• Can you handle different responsibilities each day? Starting your own business means you have to think about all angles and cover them before the business matures enough to hire professionals.
• What’s your income preference, monthly paycheck or potentially unlimited earnings? Depending on the kind of business you want to start, chances are what you earn depends on the risks and the effort you put.
• Are you truly passionate about the business idea you have? While you may think passion is overstated, it usually comes in handy in terms of your commitment and the energy you put on it.
• How good are you in decision making? It goes without saying that you will be in charge of all the decisions need to be made pertaining your business and this can make or break your start up.
• What are the thoughts of other stakeholders in your life? Not everyone has your best intentions at heart, but getting the support of your friends and family is essential since they may be able to evaluate your idea in ways you hadn’t figure out.

Are you confident that you can take on the risks, responsibilities and rewards?

The next step is discovering your passion and learning how to turn it into profits. If your business is to stand the test of time, your motives for starting it should not be purely money. Turning a profit will eventually come into play and sure, the chance to earn more than your job feels like reason enough to start your own business but your reasons for staying in business will be determined by your passion.

Position yourself to solve the problems of your audience that you truly care about. Aligning your goals with those of the people you will be helping will give you more satisfaction when you are able to handle any challenges coming your way. The temptation to give in when pursuing a business opportunity that you are not into is high especially in the face of the first failure.

Set yourself up for long-term success in entrepreneurship

Discovering your strongest passions will help you determine which one has the highest potential that you can monetize for a long last successful business. Answering the following questions is a great starting point.

• What is the best part of your day?
• What is your favorite hobby?
• What do you love and enjoy doing?
• What topics are you an expert on?
• Which topics do you enjoy talking about with your family and friends?
• What issues do you feel strongly about?
• What skills can you boast of?
• What topics are you an expert on?

How you spend time after your 8-5 job is a great starting point to finding out what genuinely interests you. Another way to discover your passion is by doing a SWOT analysis on yourself to find out area you are really good at and the skills you will contribute as an entrepreneur. You will then be in a position to know if the business idea have in mind match your current skills.

For instance, what do your friends consult you mostly on? Then come up with a business model that clearly outlines what problem your skills will solve.

Which type of Business is the right for you?

You are now in a better place to decide which business idea suits you best. There are different ways you can monetize your passions and strong skills, for example if you are good in web design, writing or graphic design, you can turn it into a freelance hustle. You can also choose to manufacture a product or supply one, sell digital products, and start a blog or podcast

Being an entrepreneur means taking a lot of action daily, connecting with acquaintances and a lot of networking. Determine what problem you will solve and how and learn how to best reach more people with your solution.

Almost every business needs some form of capital to kick off. While some people are capable of funding their startups, not everyone has the same ability. There are different kinds of financing for your business including borrowing from friends and family, loans or saving. However, depending on the size of the business and the opportunities for growth, entrepreneurs might consider other sources of funding like Angel Investing.

Angel investors are individuals who invest their money, not to be confused with money managers who invest other people’s money. Angels are well off individuals in different fields or successful business owners who can offer finance as well as expertise on different fields.

Angels are willing to take a risk on startups and unique ideas than lenders, venture capitalist and professional investors. The internet has eased up the process of searching for angel investors with many funding websites coming up every day such as Kenya Angel Investors.

The difference between Angel Investors and Venture Capitalists

While angels exist to offer seed financing to startups, venture capitalists rarely provide funding for startups and prefer becoming involved after the business has kicked off. Venture capitalists seldom use their money to fund business, they use institutional money to invest. Venture capitalists have the responsibility to invest in companies that will earn high rates of return, they can also be part of the board to ensure the company is going on the direction they see fit.

Angels put money in a venture that appeals to them personally. This doesn’t mean that they are ready to invest, however, this makes them an easy target to reach than venture capitalists since they are easy to research on. Venture capitalists on the other hand are a tougher crowd to capture, because they will invest more money than angel investors since their main aim is reaping more from their money.

Create a sales pitch about your business, the shorter the better since you do not have much time to convince them. Seek to capture their imagination immediately. Angel investors are more like mentors while venture capitalist function as the board of directors, both of them however will require you to give away part of the ownership (Equity) of your business.

Almost every business needs some form of capital to kick off. While some people are capable of funding their startups, not everyone has the same ability. There are different kinds of financing for your business including borrowing from friends and family, loans or saving. However, depending on the size of the business and the opportunities for growth, entrepreneurs might consider other sources of funding like Angel Investing.

Angel investors are individuals who invest their money, not to be confused with money managers who invest other people’s money. Angels are well off individuals in different fields or successful business owners who can offer finance as well as expertise on different fields.

Angels are willing to take a risk on startups and unique ideas than lenders, venture capitalist and professional investors. The internet has eased up the process of searching for angel investors with many funding websites coming up every day such as Angel Investment Network

So how do you find Angels willing to take a leap with your business?

Networking Events and Investors websites

Lenders are coming together and providing a platform for entrepreneurs and small-business owners to showcase their business or pitch their idea. Be on the lookout for such events happening around your area with an elevator pitch ready that shows the enthusiasm you have for your venture.

Angel Investors are mostly interested in the person behind the project, your drive, your decisiveness and innovation and how you are able to sell yourself and the project. There are different websites where small businesses can meet angel investors including Angel Capital Association, Angel Investors can join as an individual.

Angels are unconventional and some may not resonate with your idea, a rejection should not be interpreted to mean that your business is not viable or sustainable, they personal belief, interests and preferences may not agree with your new business.

While Angel Investors will take a risk on you, you are more likely to land a backer if you do not require a whole lot of money since essentially our idea is unproven hence uncertain. Angels tend to start small before pouring all their money into your business depending on how it is shaping up.

Tips for finding an Angel investor for your business.

What are you looking for?- The typical angel investor is over 40 years old, has a net worth in excess of 1 million with an income exceeding hundred thousand, has successful entrepreneur experience, can hold on the investment for not less than 3 years and has knowledge on your industry. Angel Investors search for companies with potential for growth, they may not mind waiting till their investment pays off but expect to be compensated handsomely for their risk.

The closer to home the better– Many angel investors are likely to play an active role in the business hence they prefer investing in businesses that are close to them.

Network, network and Network some more- Chances are you will meet your Angel investor through referral, for this to happen, you will need to build a good network. Be active in your local business and social scene, attend networking events and get your company name out there by meeting as any people as possible. Look out for business owners they might be angel investor you need or know one.

Angels rarely fly solo– There are many Angel who invest on their own, but the majority work as part of a group or network where they can pool their resources together, this in part means they share the risk.

Get your proposal to a wider audience– There are dozen websites providing a platform for angels to connect with small business owns looking for funding. They include Angel Investment Network

Angel investors are not just good for financial help, they come in handy with the know-how of certain industries which can be key in your business success.