An Accountant Assistant, Ibrahim Jama, has shed light on a crucial concept often overlooked in traditional education systems—the secret of the rich and wealthy. According to Jama, this knowledge is essential for young Somali professionals looking to achieve financial independence.
Jama explains that financial behaviors can be categorized into three groups: the poor, the middle class, and the rich. According to him, the poor rely solely on their salaries to cover daily expenses, often struggling to save or invest. This cycle, he notes, keeps them in a constant state of financial insecurity.
He is of the view that the middle class, while earning stable incomes, tend to accumulate liabilities such as mortgages, car loans, and credit card debt. While they may appear financially comfortable, these obligations prevent them from building lasting wealth.
In contrast, the rich focus on creating multiple income streams, Jama highlights. These include rental properties, dividends from investments, and royalties from intellectual property. Such passive income covers their expenses while steadily growing their wealth, he adds.
The key takeaway, Jama stresses, is that building assets that generate passive income is the pathway to financial freedom. But how can young professionals begin this journey? Jama advises looking within and around for opportunities to create value.
According to him, skills already in hand can be transformed into income-generating assets. For instance, those skilled in languages can create and sell Somali language courses online or offer translation services.
He adds that individuals passionate about cooking traditional meals could start virtual cooking classes or catering businesses. Similarly, those interested in history or storytelling could write books or launch podcasts centered on Somali culture.
Jama urges young professionals to identify problems within their communities and think creatively about solutions. For example, developing an app to connect Somali entrepreneurs globally or offering consulting services to help others start businesses are viable ways to build wealth.
“The opportunities are endless when you think creatively and focus on solving problems,” he concludes.
Jama encourages young people to ask themselves: “What am I doing today to build assets and shift toward financial independence?
Source : Joycelyn Marigold – African Property Magazine
