How Accountants

enhance their Wealth.

Presented By. CPA. Barikieli Somboi (ACPA,

ACPB,International Certificate in Wealth and
Investment Management- CISI UK, Certificate Of
Proficiency In Insurance(ip), Msc Finance &
Investment, BA- Accounting & Finance
Email: bsomboi@gmail.com
Mobile: 0766 947 376
 Define Wealth?

‘Wealth is total assets

less total liabilities’
 How
Accountants/Person
enhance their Wealth?
As Accountants/Person
you should have a
Good Plan…
What is Financial
Planning?
What is financial planning?
Financial Planning is an ongoing
process to help you make
sensible decisions about money
that can help you achieve
your goals in life
Plan your finances for the future you want

• What are your goals in life, in short, medium and

long term?

• Can you prioritise them?

• What is the likely cost of those goals and when you

need the money?
Ways to Grow Wealth…..

• Planning your Income (Increase)

• Planning your Savings (Save More)
• Planning your Investment (Invest on Good
Asset)
• Protect yourself and Protect your Asset
1. Increase Your Income

• Stable Income i.e salary, Bonus, Allowances,

Overtime, Venture into Business (use Online
based business)
• Improve Your Skill Set (Read books, News,
Getting a degree, Masters’, Professional
exams i.e CPA, CIA, ect, Webinars, Excel etc
• You can either lower your expenses or
increase your income
Income Planning Template (Net of Taxes)
Details Estimated Amount per Number of Months Expected Annual
Month Income (TZS)

Salary 1,000,000 12 12,000,000

Allowance if any 300,000 12 3,600,000
Bonus if Any 1,000,000
Annual Leave 1,000,000
Other Income 1,000,000

Total 18,600,000
2. Save More

• Remember, saving small amounts regularly

compounds to substantial wealth over time
• Create a Budget, One of the most popular and
effective budgeting techniques is the 80/20 rule.
Spent 80 save 20 and other Income (1/3).
• Build an Emergency Fund, for unexpected events,
Two common outcomes are selling the investment
or incurring debts. So, to avoid such scenarios,
build an emergency fund as your backup money
to settle surprise expenditure
• Live Below Your Means, Cut spending on
unnecessary.
Saving Planning Template (80/20)
Details Estimated Number of Expected Annual
Amount per Months Income (TZS)
Month
Saving From Salary 200,000 12 2,400,000
Saving From Allowance if any(1/3) 100,000 12 1,200,000
Saving Bonus & others 2,000,000
Total Saving 30% 5,600,000
Other Expenses 70% 13,000,000

Total 18,600,000
3. Invest
• Once you’ve set aside a monthly saving goal, it’s
time to invest.
• What is investing? Giving up of something
important to us now in order to get something
better in the future
• Why do we invest?
– To accomplish our personal and family goals
– To have resources for retirement, education,
etc.
– To grow our financial assets
• The earlier you start investing, the easier it will be
to establish a large amount of money
Knowing Yourself: Risk Tolerance
• A measure of how much risk you can
handle as an investor
• Factors which determine your risk
tolerance?
• Amount of money you have to lose
• Your time frame
• Emotional ability to handle risk
• Determines what kinds of investments
you should pursue
• There is no right or wrong way to invest
Where to Invest?
Buying Good Assets will Grow your Money

• Good Asset
–Generate Income and Increase in
Value

• Bad Asset
–Do not generate Income and
Decrease in Value.
Circle the Good Assets
• House
• Plot of Land
• Car
• Smart Phone
• Furniture
• UTT Amis
• Stocks (CRDB Bank Plc etc)
• Government Bonds
• Holiday
• Jewelry
Invest Planning (Assume from 2016- )
Details Estimated Number of Expected Plan (6-10 Estimated
Amount per Months Annual years) Investment
Month Income
(TZS)
UTT AMIS (Liquid Fund) 100,000 12 1,200,000 6 7,200,000
CRDB Shares 100,000 12 1,200,000 6 7,200,000
UTT AMIS (Liquid Fund) 1,000,000 6 6,000,000
Add
CRDB Shares Add 1,000,000 6 6,000,000
Total Investment 4,400,000 6 24,400,000
Emergency Fund 100,000 12 1,200,000 6 7,200,000
Total 5,600,000 6 33,600,000
Challenges

• Units might depreciate

• Share might depreciate
• Fail to find a buyer incase of shares
4. Protect yourself and Protect your Asset

• Health Insurance to yourself and your loved

ones
• Insure your Assets ( House, Vehicle)
• Life Insurance (Nishike Mkono)
• You can use your emergency fund to pay
primiums.
It’s a six step process…
1.
Establish
your goals
6. Monitor
and 2. Gather
regularly data
review

2. Evaluate
5.
your
Implement
current
your plan
position
4. Develop
a plan
your financial plan, It’s your future

Building wealth is not a rocket science

process. With dedication and discipline,
you can grow your wealth fast. Before
starting on this journey, it’s important to
equip yourself with financial education.