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	<title>johnkaranja.com &#187; business growth</title>
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		<title>Investing by &#8220;Saving&#8221;</title>
		<link>http://johnkaranja.com/2008/11/09/investing-by-saving/</link>
		<comments>http://johnkaranja.com/2008/11/09/investing-by-saving/#comments</comments>
		<pubDate>Sun, 09 Nov 2008 21:59:19 +0000</pubDate>
		<dc:creator>John Karanja</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[business growth]]></category>
		<category><![CDATA[investing]]></category>
		<category><![CDATA[making money]]></category>
		<category><![CDATA[savings]]></category>

		<guid isPermaLink="false">http://johnkaranja.com/?p=64</guid>
		<description><![CDATA[There has been much discussion on how one can make money and get rich, with most ideas revolving around innovation e.g. Facebook. Sadly relatively few people actually end up innovating successes in their lifetimes which means that this is not &#8230; <a href="http://johnkaranja.com/2008/11/09/investing-by-saving/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[<p>There has been much discussion on how one can make money and get rich, with most ideas revolving around innovation e.g. Facebook. Sadly relatively few people actually end up innovating successes in their lifetimes which means that this is not normally the method one can use to acquire wealth.</p>
<p>I think that there is a more simpler but annoyingly harder approach to acquire huge sums of money. Its called &#8220;savings&#8221;. Without savings one cannot do much. That is each shilling not saved is X amount of shillings forgone in the future. For example assuming we had person A who had saved say 50,000 shillings and consequently bought Safaricom shares today at 4 shillings (Wisely i might add) and spent another 70,000 shillings on leisure goods (New Plasma screen). Should Safaricom rise to 9 shillings say by mid next year Person A would have forgone 9-4 x 70,000=5 x 70,000 =350,000 shillings in passive income while the value of his 8 months plasma TV would have depreciated to 25,000 shillings so his total loss would be loss in potential earnings from shares plus depreciation of the plasma TV.</p>
<p>So the rich person accounts for all his shillings and invests them where they can grow and does this all the time over and over again (Notice no innovation just repetition). So that when he sleeps his/her money works.</p>
<p>Become rich today by saving 1 shilling at a time.</p>
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