Let’s do the maths, even if you were to save for ten years, at no interest, you will only have saved two thousand, multiplied by twelve, multiplied by ten which comes to two hundred and forty thousand, and if you were saving at a compound interest of 10% per annum, it comes to Four hundred and two thousand. Way short of making you a millionaire.
So where is the trick, where is the difference? And I say, the difference is in how you innovatively and ingeniously use this money. As you save, you must put your brain to work every day to find that one thing that you can use your savings to do that can make you a millionaire. Millionaire status will come with the amount of effort and mental power that you put into using your capital as opposed to just leaving the amount in a bank to earn interest.
Saving small amounts is a means of accumulating capital and not becoming a millionaire. Small amounts are any amounts less than one hundred thousand shillings a month. That means if you are saving any amount less than one hundred thousand, count yourself as a lucky individual building capital, instead of counting yourself as a future millionaire. Look at your talents, look at what people are lacking in your environment, and fill this gap, this is where you millionaire status will come from.
Rugs to riches status abound Chris Kirubi, Njenga Karume, Warren Buffet, etc but none acquired their status from mere savings, savings only served as a start, which they turned into un-fathomable business and investment empires.
Being rich and being financially independent is not the same thing, there is a huge difference. Rich means having more than enough while financial independence means being able to service all your financial obligations from your own resources., neither of which can be achieved by only saving, but rather by converting the savings into money-making machines. Therefore as you save, think of ways of investing the money in high return ventures, look for investment opportunities and hone your skills to be able to manage the investments effectively.