Budgeting for Wealth Creation

Samwel Ndandala (MA, ACCA (UK), CPA(T), BAF)

January 2024
 Agenda
• Why Budget
• Purpose of Budgeting
• How – Mechanics
• Living your budget
• The ‘Anti-Budget’ Method
My Moshi Story
Why Budget?
• Helps you to reflect
on your position.

• It forces to you to
put your plan to
paper.

• Imposes control.
You can say NO
easily.
Why Budget?
• Increases the sense of
urgency.

• Factors in
emergencies.

• Creates margins.

• Tool for compounding

and wealth creation.
Purpose of budgeting

• Budget for survival

• Budget for margin

• Budget for wealth creation

• Budget for wants

Budgeting for survival

Needs: Things we would not Wants: Things we would love to

survive without have but could survive without

• Food • Kisinia

• Housing • Fancy house / apartments

• Clothing • Multiple change of clothes

• Transport • Uber / Car

Budgeting for margin
• Three to six months of
monthly expenses.

• This is not an
investment, it is akin to
INSURANCE. It is your
FIRE EXTINGUISHER.

• One time saving that

remains LIQUID and
ACCESSIBLE.
Budgeting for wealth Creation

•The first item on your

budget MUST be saving, or
it won’t be on your budget.

•Budget for debt repayment.

•Budget for investing targets.

Budgeting for wants

• Short term wants

• Long term wants

• Budget for dreams

Really living your budget
• Budget on EVERYTHING.

• Agree with significant

other (if any).

• Agree on
WHAT AN EMERGENCY IS.

• AUTOMATE.
Living your budget

• Learn to say NO, act

your wage

• Enforce boundaries by
giving prior warning to
those around you.

• Iterate, improve and

solidify habits…
The ‘Anti-budget’ method

• Decide on a savings rate

• Automate the savings /

investing into a special
account

• Spent the rest guilt-free.

• Downside is you won’t

know what you are
spending on.
 Budget sample – Last month
Sam's Budget Last Month
Others
5%

Charity
7%

Fuel & Transport

2%

Learning &
Recreation
7%

Utilities (Incl. phone,

insurance)
6%

Housing
16% Savings & Investments
Food 53%
5%
Asanteni sana

:@SNdandala