Here are three ways to stay afloat after leaving that job

The number one pick in the 2019 NBA draft Zion Williamson is set to earn an annual salary of about Sh1 billion – almost double the amount earned by Ben Simmons, the first player drafted in 2016.

He has also agreed to a five-year shoe deal with Nike’s Jordan Brand worth $15 million (Sh1.5 billion) a year.

That’s the glorious side. The other side of the money splash is dark.

An estimated 60 percent of former NBA players go broke within five years of departing the league — never mind the likelihood of a collegiate NCAA basketball player getting drafted by an NBA team hovers around one percent.

The same story haunts the American football league NFL with 78 percent of former players going bankrupt two years into retirement.

Now, it’s easy to think this is “a fool with money soon parting ways” kind of scenario but the reality is there’s a thin line between going broke and not. In fact, in this country, sliding down into the poor house seems to be an ever-present threat. Today, I highlight three ways to keep afloat.

One; get advice from a financial expert. Now, while this may seem obvious, it’s rarely the practice.

This was proved by the recent 2019 FinAcess report that showed that less than eight percent of Kenyans consult a financial expert at any point. The majority of Kenyans (about 73 percent) depend on their own knowledge and friends/family when making decisions on financial matters.

Nonetheless, the report shows the pragmatism of Kenyans. For instance, only a fifth of the adults polled considered betting as a good income source and that less than two percent of mobile users polled indicated having used mobile money for betting.

That said, Kenyans need to get all the advice and instruction they can get.

Two; embrace other assets (read stocks, mutual funds, bonds) besides real assets. Kenyans obsession with all things land is limiting.

As a matter of fact, according to the Global Wealth Report 2018 by Credit Suisse, financial assets account for the biggest percentage (53 percent) of the global wealth pot compared to non-financial assets (principally real estate).

In fact, post-2007 crisis, the report states that financial assets accounted for the biggest rise in global wealth compared to houses. In this regard, Kenyans need a complete mind shift.

Their investment in financial assets is lagging; there are less than 1.5 million self-directed investors at the NSE, assets under management by collective investments schemes account for less than one percent of GDP and pension assets account for about 10 percent of GDP.

Lastly, stop chasing after high-returning bogus plans (read; Ponzi schemes, multi-level marketing, online forex trading and sports-betting). These “investments” are akin to “chasing after the wind.” They add no value. In fact, they leave one worse off.

One is better off spending their money attending a wealth seminar instead of, of course be choosy here as some are known to peddle bogus schemes.

Always remember Kenyans lost over Sh34 billion in 2006 to 2009 through 166 Ponzi schemes and to date, no recovery of these funds has been made. So, invest wisely, stay awake and don’t go broke.