What would you do with a million shillings?

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“What would you do with a Million shillings?”

I am almost a hundred percent sure that most people reading this have encountered this question a couple of times. There is no specific answer to it but how you respond can tell a lot about you. The religious person will mention tithe as the first item on their list, the traveller will mention places they have always looked forward to visiting, the shopaholic will have a long list of items they want to shop for and so on. This question is common to people who do not earn millions as salaries and most hope to hit jackpots to get such amounts. We have been seeing people winning in the Shangwe Mtaani promotion and the winners talking about what they would do with the money. So apart from paying your landlord for a couple of months, throwing a huge party, maybe clearing your children’s school fees or going on holiday what else can you do with the money to make the maximum out of that windfall you got out of the blue?

Safaricom Shangwe Mtaani promotion
Safaricom Shangwe Mtaani promotion

Recently, Safaricom Ltd launched Shangwe Mtaani consumer promotion campaign that comes at a time when the company is celebrating fifteen years in operation. The Shwangwe Mtaani campaign will see people win airtime, devices and cash prizes. The Shangwe Mtaani grand prize winners will be awarded with cash prizes amounting between KShs. 250,000 and Kshs. 3 million. This is where I pose the above question. The Shangwe Mtaani winners are free to spend the money as they please but since this money comes as a surprise to many winners, they end up squandering it as it is unplanned for. However, it does not have to be that way. It is important to have a financial plan so that you can plan for any money you may get whether it is planned for or unexpected.

Below are investment ideas that the Shangwe Mtaani winners could consider.

a) Shares

Traditionally, shares have been seen as lucrative investment avenues where investors reap profits after they appreciate in value. However, they are associated with many risks where one may end up making losses. This investment avenue requires that one conducts lots of research and following the financial trends of the company they want to buy shares from. Again, the help of experts such as stock brokers come in handy prior to make that decision. A good way of reaping maximum benefits from shares is by buying large chunks of shares mainly at IPOs as they appreciate very quickly due to the hype and publicity around it.

b) Bonds

These are debt instruments (medium to long-term) issued by companies (corporate bonds) or the Government (Treasury bonds) mainly to raise money in local currency. The time frame is usually one year or longer. This avenue has fewer associated risks than shares. Here, investors are guaranteed of returns periodically over a long period of time. The Government recently rolled out the M-Akiba bonds where members of the public can buy bonds for as little as 3,000 instead of the 50,000 that previously was the minimum amount required to buy government bonds. All transactions will be conducted from a mobile device and this makes it convenient as one can do it from wherever. This is a great avenue to save money for the future instead of squandering it.

c) Land

With the booming real estate business, this is an area that one can never go wrong. The profits that one stands to gain from this investment area are unbelievable. With one million shillings, it is hard to find and buy land an area that is developing at a very fast pace. Land rates have soared to millions in such areas as places near shopping malls, office blocks, hospitals, learning institutions etc. To benefit from this land business, the best idea would be to buy land in some very remote area that has the potential of developing sometime in the future and hold it for a while. Land is known to appreciate and this will give handsome returns after reselling it. However, prior to buying any piece of land, carry out background checks to verify the validity of the documents you get in exchange of the land.

d) Real Estate

Nothing beats the satisfaction of having a roof over your head in terms of a house that you own. Many people are considering owning houses as opposed to renting. This means that this is a lucrative area that anyone with the money could consider. The best idea is to purchase real estate in an area where you will encounter few hurdles when it comes to reselling. Partnering with others with the money to get into major construction ventures such as constructing office blocks could also be a great investment area.

If you get lucky to hit any jackpot and are loaded with lots of money without an idea where to put it, consider the above avenues. Do not squander that money. Remember it is important to plan for the future by creating a financial plan.

Also check out other investment avenues that one can pursue in this article Want to be wealthy? Investment tips 101.

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