A Day in The Life of a CEO

Advice for milenials

Being the CEO of a company is about more than monitoring business growth and taking home a large pay cheque. In this article we’re going to cover what it really means to be a successful business professional and CEO, giving advice for millennials that aspire to reach the top of the corporate ladder. Learning where to invest money, save money and manage employees is just the start of it!

Millennials are those hard-working, money making business people born anywhere from the early 80s up to the mid 90s. If you’re somewhere in your mid 20s to late 30s, you are a millennial and this business article is for you.

Do You Have What It Takes?

At this point in your life, you’ve probably already faced the decade old dilemma. Do you focus on having a family or furthering your career? You can try and do both, but most ultra successful CEOs will focus on their career before starting a family.

A day in the life of a CEO usually contains:

  • Making huge corporate decisions to shape the future of your business.
  • Setting long and short term goals (financial goals, ethical goals, productivity goals etc.)
  • Deciding where to invest money, where to save money and how to put funds to good use.
  • Creating business connection with other CEOs.
  • Maintaining the company image publicly at all times, often putting their private life in the public eye.

As you can imagine, this is very draining but ultimately worth it. The pay cheque, the power, the prestige and the feeling that you’re really making a difference to the world are the driving forces behind many great CEOs.

You can say goodbye to conventional working hours and weekends where thoughts of work don’t even cross your mind. Being a CEO means putting your life into the business and its future.

Advice for Millennials

Whether you’re just starting to venture into the market as a new start-up, or slowly working your way up the corporate ladder as an employee, you need to take this advice for millennials!

Firstly, knowing when to invest and when to take a loan is essential. You need to be on top of your finances at all times, but more on that below.

You also need to create a board of directors and learn to delegate. Being CEO doesn’t mean you know everything – it means you know when something falls outside of your expertise and would be better off managed by an expert.

You may be in charge, but you can’t do every task that comes your way.

You also need to find a balance. As a millennial, you’re going to have grown up in an era of financial crisis in one way or another, but you’re also going to be far more competent with technology compared to previous generations. Use this to your advantage! Focus your business growth in a sustainable way, always creating a back up plan for if the markets crash. Use your technological savviness to your advantage and use it to beat the old-time business giants at their own game.

No two CEOs are the same. If you want to follow in the steps of Richard Branson, Mark Zucherberg and Elon Musk, you need to be have a unique edge that puts you and your company in front of the rest.

How to Manage Your Finances Like a CEO

It really doesn’t matter how revolutionary your start-up idea is if you can’t manage your finances properly. That doesn’t just mean managing your income and expenses.

Knowing when to invest money is important. You’ll also be faced with difficult decisions – firing people and even making entire departments redundant. Focus on the overall financial health of the business to make those tough choices.

Knowing when to merge companies, when to squash competitors and when to create strategic alliances isn’t going to happen over-night. Take advice from experts and make wise, informed decisions.

Loaning money out, taking loans yourself and knowing where to invest money for optimum business growth is a full time occupation.

Here at Mombo, our financial app allows you to do all of that in one place. Read more about our services for aspiring millennials here.

 

SACCOs in Kenya: The Benefits of Borrowing

Saccos in Kenya

Besides the best saving plans they offer, registered SACCOs in Kenya offer plenty of borrowing opportunities too. In this article, we’re going to cover all the benefits of borrowing from SACCOs in Kenya and how to get the most from your money with Mombo!

What are SACCOs?

In case you didn’t already know, SACCO stands for savings and credit cooperative organization. So, you can already tell that they’re all about best savings plans, savings accounts and finance. But in this article, we’re going to focus on the credit side of SACCOs in Kenya.

SACCO societies are organizations of savers, investors and finance professionals, so you often have a lot of opportunities to make the most of your money. From higher interest rates on your savings, to lower fees compared to what the traditional banks charge.

The Benefits of FOSA and BOSA

There are 2 types of SACCOs in Kenya, both with unique benefits.

FOSA stands for Front Office Services Activity. It basically means that they offer similar products to the traditional banks in Kenya, and you can access your savings over the counter. You can withdraw from your SACCO account when you like, but there may be small fees and reduced interest rates as a result. These aren’t the best saving plan if you want to get the most interest from your savings. FOSAs are regulated by SASRA (SACCO Societies Regulatory Authority) while BOSAs are not.

Benefits of a FOSA SACCO:

  • You can withdraw money when you like, as you would a bank savings account.
  • As a member of the SACCO you may have access to their loans too.
  • Clearinghouse process also allows you to process your salary and cheques through the FOSA.

BOSA stands for Back Office Services Activity. That sounds shady, and although they aren’t regulated by SASRA, there are very reputable, trusted and regulated SACCOs in Kenya that are BOSAs. The money you put into the BOSA can’t be touched until you leave the SACCO altogether – this usually allows for higher interest rates on your savings and comes with other benefits, as you’re locking your money in. Take Mombo SACCO for example and read more about why we’re so great below.

Benefits of a BOSA SACCO:

  • Higher interest rates compared to banks and FOSA SACCOs on your savings.
  • Money tied into the BOSA can be used to get you a higher loan – 5x your savings in the case of Mombo!

Solely focused on your savings and loans – a BOSA SACCO is dedicated to managing these finances alone.

The Benefits of Borrowing from a SACCO

Here are the key benefits of borrowing from a registered SACCO in Kenya. Can your bank offer you these features?

  • Better credit facilities and more flexibility than the banks.
  • A much smaller chance you’ll be declined a loan from a SACCO you’re part of, compared to traditional lenders!
  • You may be entitled to dividends as a key member, depending on the SACCO.
  • It’s much easier to save large amounts of money without the temptation to spend it – especially with a BOSA.

Extra benefits from Mombo:

  • A completely digital process – from signing up to applying for loans to repaying them.
  • Access and monitor your SACCO activities from anywhere via smartphone.
  • Access to Mombo iCapital for larger loans and investments.
  • Dedicated 24/7 customer support via our innovative Mombo app.
  • Life insurance guarantee – if you pass away while holding savings with Mombo, your loved ones will receive twice the amount you saved.

    Discover Mombo SACCO

Mombo SACCO is a BOSA, meaning we are registered, licensed and regulated by the commissioner of cooperatives under the ministry of industry, trade and cooperatives. As far as we know, we are the leading SACCO in Kenya in terms of FinTech and forward thinking! Not only is our entire application process digital but we’ve gone to lengths to make sure it’s user-friendly and easy to understand.

When it comes to borrowing from Mombo SACCO, you can access up to 5 times your savings, at an affordable repayment rate. And if you need more for a shorter period of time, you can also access Mombo iCapital from the app.

Discover more about Mombo SACCO, one of the leading SACCOs in Kenya here.

Should I Pay Off My Debts or Start Saving?

Pay Off Debt or Save?

Whether you’re always struggling to pay off those small cash loans, or just despairing at the thought of spending hours hunting for the best online savings account, you really need to find a better financial balance.

Instead of going to open a savings account with the biggest or nearest bank, carefully consider how to better manage your borrowings, loans and savings by reading this article!

How Debt Cycles Get Out of Hand

Not only do debt cycles cost you a lot of money and stress, but they also stop you from saving money for the future.

Typically, there are 3 ways that a debt will grow from small cash loans.

  • Interest Rates. A debt will grow naturally over time because a lender will charge you interest on the amount of money that remains outstanding. Banks can charge you interest as high as 15% in some cases – money you could be saving is spent on high interest rates instead.
  • Borrowing to Repay Existing Debt. If your savings are all tied up in a strict savings account (read more about the limits to these below) you might find yourself borrowing more from a different lender just to repay your original debt. Moving debt around like this can ruin your credit score.
  • Fixed Fees. Some lenders will charge you fees if you don’t pay back the loan on time, adding even more to your debt.

As you can see, having debts can often mean that there’s no room to open a savings account or even be accepted for future small cash loans. This is unbalanced and something we at Mombo want to change.

Saving Money

Saving money sounds like a wise financial move, but sometimes the wrong savings plan can be as bad as debt! Take education plans for example:

There are specific bank savings accounts and investment schemes where you open a savings account and pay in a set amount each month for your child’s education. These are generally for around 10 years, but sometimes can be for much longer. Each month you pay in a set amount that you won’t get back until your child needs it for education – this is very limiting and often the interest rate you receive is poor.

What if you were to pass away before you finish paying for your child’s education? What if you or your child are in a serious accident and need that money to pay for healthcare? You may need to result to small cash loans despite having saved money for years.

When you open a savings account with a SACCO however, you can withdraw the money when you need it with little hassle. You can even borrow against those savings for long tenors.

Picking the best online savings account means being wise about how you tie down your money.

Finding A Balance

At Mombo, our vision is to provide customers with full control over their financial situation. Having a balance of finances allows you to be in a better situation.

Furthermore, we believe that you shouldn’t have to be dipping into savings before you’ve saved up for the real reason: a wedding or education fees, for example.

Everyone should have the freedom to borrow, pay off loans and save at the same time. Small cash loans are great for small emergencies while having savings should allow you to borrow for longer periods of time – having a balance of savings and loans allows you to do more with your money.

How Mombo Can Help

When you open a savings account with Mombo SACCO, you can borrow up to 5 times your savings for up to 48 months. Your savings stay where they are, and you get the funds you need in the meantime. When you open a savings account with a bank, you’re often required to provide collateral and charge per annum – sometimes as much as 15%. Mombo SACCO offer you credit based on your savings – and you repay at a cheaper interest rate than banks.

And then there’s Mombo iCapital for borrowing larger amounts and investments. You can borrow up to 50% of your net salary for 6 months, rather than rely on small cash loans. Save with Mombo SACCO for access to big loans and use Mombo iCapital for emergency loans: a great way to avoid the debt cycle and manage all your finances in one place!

All of this is available via the Mombo app, so why not check that out instead of hunting for the best online savings account?

How to Get Same Day Cash Loans – How Do They Work?

Getting a same day cash loan could be the answer to all your money problems… or it could end you in serious financial difficulty if you’re not careful. It’s all about finding a reliable lender, using that cash wisely and repaying it sensibly!

In this short article, we’re going to cover all that you could possibly need to know about same day cash loans, so you can manage money like a pro.

What are same day cash loans?

A same day cash loan is a loan that arrives in your Bank account the same day that you apply for it.

In other words, it’s an instant loan that deposits the money into your account without all the waiting, paper forms and interviews you’d face at the bank.

Generally, same day cash loans in Kenya are small amounts (see what kind of emergencies they can cover in Same day cash loans can save the day! below) that can be secured against your salary, assets (like a car) or savings.

Like nearly all loans, you’ll have a set period to pay it back in with interest and there may be penalties and fees for not paying it back in time.

How to find the best same day cash loans

Finding the best same day cash loan for you really depends on your circumstances. Here are some of the things you need to think about before getting a cash loan:

  • How much you realistically need.
  • How long it will take you to pay it back.
  • If you can pay it back early or in a lump sum.
  • If the money isn’t for an emergency, is the loan really worth it or can you save up the money yourself?

Once you know that, all you need to do is find a reputable lender who has a loan that meets your requirements.

What you need to apply for same day cash loans

Requirements will vary from lender to lender, but most lenders need to see proof of identity, either from driving license, passport or national ID. Some may also need to see your recent bank account statements and others may run a credit check on you.

Online and mobile lenders, like us at Mombo, can do all of this via an app or over the telephone. We want to make same day cash loans as quick as possible, so once you’ve applied with us we can have the money in your Bank account in as little as 10 minutes with the Insta Loans service.

We can deposit money into your bank account or M-Pesa account, whichever is more convenient.

Same day cash loans can save the day!

Here are some examples of how a same day cash loan can really save the day:

  • Emergency car repairs if you break down and need to travel to work.
  • Health care if you or a relative is in an accident.
  • Home repairs if the boiler or electrics break.
  • You need to pay a deposit on a holiday or other item and need to pay it quick before it’s gone!

What could you do with an instant loan? These same day cash loans are small amounts of money that can really save you in an emergency. But if you need some cash for non-emergencies (like your wedding day, a new TV, redecorating the house) you will be better off with a different kind of loan. One that offers you more money and easier repayment terms.

3 tips for repaying same day cash loans

  • Write on the calendar or in the diary when each repayment needs to be made – the last thing you want to do is forget. Late payments can have hefty fees. Our app will notify you if you’ve got a Mombo loan that needs repaying.
  • Work out how much the interest is going to cost you so that you always have enough money to make each repayment and keep the lender happy. Ideally, you should never take a loan that’s difficult for you to pay back without cutting down on living expenses (e.g. food, fuel etc.).
  • Finally, try and balance repaying loans with savings. Some people may tell you that repaying the debt should be ALL that you’re doing, but here at Mombo we really believe that repaying same day cash loans doesn’t mean you shouldn’t be able to save money too! You can read more about debts vs savings in this article.

Same day cash loans are a great way to get instant cash when handled sensibly! Keep checking back to our blog for more great tips and articles on managing your money.

Blockchain VS Supply Chain: How the Blockchain Could Impact Your Business

blockchain technology for businesses

You will probably have heard the words crypto and blockchain thrown around over the last year or so. It seems to be a craze. The latest wave of something that people are getting passionate about. Everyone chasing the dream and wanting a bite of the cryptocurrency apple.

The truth is that the crypto world is still relatively obscure to most beyond these terms. Sure, most people can tell you what Bitcoin is. But that really does sum up the average person’s knowledge. Blockchain technology for businesses is a crucial part of this largely unknown world and it is potentially going to have massive repercussions in the real world.

Here’s the lowdown on Blockchain.

  • Ledger .It serves as a ledger, recording data securely about transactions. The data is secured using cryptography. Each transaction forms a block, and each block is then added to the chain. It is the online equivalent of stringing pearls on a necklace.
  • Can’t manipulate. Like a pearl it is not possible to manipulate the contents of a block. So, with a pearl it is either a natural pearl or it isn’t, with a block you can’t alter its structure. This means the data held on each block is preserved indefinitely.
  • Orphans. As blocks increase the chain lengthens. Occasionally there will be data sets or transactions that divert off the main chain. This could be for any number of reasons but most commonly it is because they don’t fit the original criteria of the chain. These sub blocks can then form smaller chains. These are called orphans.

So hopefully, that has enlightened you about how the blockchain works. And what it would look like if it was a physical entity. It is very much like your transaction history on your bank account, all categorised into blocks and stored securely in a way that people can’t access or manipulate it.

That is the key. The power to be free from manipulation.

And, that is why businesses everywhere are likely to adopt the Blockchain or a variation of the technology to record the data they need within their supply chains. Blockchain technology for businesses will be very lucrative.

So why hasn’t it happened yet?

Well the answer is both convoluted and simple. The simplest answer though is that the Blockchain is not a very quick chain. It takes time to record the data and it takes time for each block to be added. When you take into account the sheer volume of transactions any business makes in say a day then blockchain technology for businesses becomes fraught with problems.

This is partly the reason why there have been so many questions asked of Bitcoin’s credibility. It relies on the Blockchain and the Blockchain is notoriously slow. Meaning people would rather invest in other crypto-currencies that they can exchange faster.

Blockchain technology for businesses is being refined, it is being streamlined. Currently there have been other crypto-currencies using faster variations of the Blockchain or alternate versions. It could, in theory, if fast enough, be integrated to secure the data of all financial transactions made, everywhere, all over the world. Once financial institutions put this into practice the larger businesses tend to follow and this filters down until you have small to medium enterprises all using Blockchain technology for businesses.

Will we see it happening?

As it stands, it is at the toss of a coin. Currently the technology is robust enough to function but not fast enough to function. Businesses everywhere are therefore reluctant to place this otherworldly technology at the heart of their structure.

It is more likely that the Blockchain technology will pave the way for a new type of ledger altogether. One that takes what Blockchain has done and builds on it so that businesses have a technology they can integrate with no hassle. That is where the safe money would lie.

Blockchain has done a lot of the groundwork needed to revolutionise business transactions and supply chains, it is now that the world awaits an innovative successor to take the mantle and form a new and exciting core to businesses the world over.

It will happen one day, with some form of new secure ledger, that is almost a certainty. Is it going to be blockchain for businesses? Only time will tell.

 

Where to Find No Fee Investment Funds in Kenya

Investment funds are potentially a great way to get more from your money, but the fees associated with investment funding can often leave you unsure about whether they’re right for you. Ideally, you want to find a way to make your money grow and be able to withdraw it when you like, without any fees.

Here’s all you need to know about no fee investment funds in Kenya, including what they are and where to find them.

 

What Are No Fee Investment Funds?

Investment funds are made up of groups of people. Those people are investors who have put their money together to invest in corporations, stocks and businesses. You band together to invest funds, rather than buying stocks in the stock market as individuals.

All the risks are shared (therefore minimised) between shareholders and you all receive the benefits of the investment too.

Usually there’s a third party involved. They organise everything, bringing you and other investors together to invest your money. This makes finding an investment fund and managing your money much easier, as you’re not dealing with the other investors yourself.

However, many of those third parties don’t offer no fee investment funds in Kenya, or work for free. Often you’ll find that there are multiple fees attached. Some will charge more than others, but that’s not always a guarantee that your investment will be more successful.

No fee investment funds in Kenya are pretty self-explanatory. They are investment funds that have no fees attached, meaning no fees to start investing or withdraw them. Simple enough to understand, but tricky to find.

 

The Traditional Methods of Investing Funds in Kenya

When it comes to investing money in Kenya, there are 2 other options besides no fee investment funds. Kenya investments can also be bonds and stocks:

Bonds

A large company, or the government, offers you bonds for your money. Those bonds have a time limit, so the money you give to the government (your investment) will come back to you at the end of that term. In the meantime, you receive regular payments for your investment from the interest agreed on.

These are usually issued for businesses and projects that need funding, rather than individuals.

Stocks

You can invest in stocks at the stock market. You can choose to invest in one company (direct) or multiple (indirect) to spread the risk. The main stock market in Kenya is the Nairobi Stocks Exchange. Like investment funds, you’ll most likely use a third party to navigate the share dealing platforms and handle the actual investing.

Both bonds and stocks will have risks and benefits, just like costly and no fee investment funds in Kenya. Unlike investment funds however, you’ll be investing on your own rather than in a group of investors.

 

Can I Invest Funds for Free?

If a broker or third party company is offering an investment fund for free, be wary. There are often fees that the third party has to pay to invest your funds, plus there are usually administration and management fees that cover the costs of the third party handling your money.

If you aren’t paying for those services, ask who is paying for them. If a broker offers no fee services in Kenya and doesn’t sound legitimate, or if you have any concerns at all, it’s best not to invest. It’s not worth losing your money.

 

The Best Places to Buy Investment Funds in Kenya

The best places are those that are transparent with all their fees upfront.

Usually management fees are around 1% or 2%. You should also ask about administration fees, early withdrawal fees and other fees you may need to pay when the investment fund matures.

Some of the biggest investment brokers in Kenya include: Genghis Capital, Dyer and Blair and CFC Stanbic. Their fees will vary; make sure to do your research before trusting your money with any broker, no matter how big they are.

 

Mombo App  is still gearing up to the launch of our investment services, including investment funds. We strive to be transparent with our fees, making it very clear what you will be charged and when.

Our only fee is a 1% withdrawal fee for those shareholders that decide to withdraw their money before the term is up. You can find out more about the launch of Mombo investments here.