Financial freedom is more than just having money. It is the freedom to be who you really are and do what you really want in life.
Many have tried game shows, lotteries, network marketing and other quick get rich schemes but have not yet hit the jackpot. I can confidently say saving and investing your money is the one sure way to accumulate wealth and attain financial freedom.
Having your money work for you and multiply will enable you live your lifestyle of choice without having to work to sustain your income down the line.
One of the easiest vehicles for investment towards attaining financial freedom is through a registered pension scheme. You can invest your long-term savings through a personal pension plan or your employer sponsored pension scheme.
Setting aside part of your income for investment will enable you to meet your financial obligations in old age/retirement. The reality of today’s working environment is that you can no longer plan for a retirement at age 50 or 60.
Many Kenyans have had the experience of early retirement either voluntarily or through layoffs.
Apart from being tax exempt, registered individual pension schemes provide secure, high investment returns and allow the contributor to determine frequence, the level of savings and when to access accumulated savings and flexible way.
Consistency in your savings habits, discipline to preserve your savings and time to grow your earnings will enable you to attain your financial goals. Pension schemes such as Enwealth Pension Scheme commit to your saving objectives which could vary from short-medium term goals such as holidays, creating an emergency fund, education, capital to start a business or buying a car to longer term goals such as property acquisition and income replacement at retirement.
When you contribute to a registered pension scheme in Kenya, you earn tax exemptions for contributions of up to Sh20,000 per month, which may translate to a tax reduction of up to Sh6,000 a month, that is Sh72,000 in accumulated savings annually.
Contributing a fixed amount of Sh20,000 per month to your individual pension plan earning an average annual return of 10 per cent compound interest and annual savings increment of five per cent then it would accumulate to a lump sum of about Sh10.8 million within 20 years.
There are several ways to hit the jackpot, here’s one sure way that you could start now.