While a high income makes it easier to live a wealthy lifestyle, it doesn’t automatically translate into being truly wealthy. But these trappings of wealth aren’t wealth itself. These changes come with smaller but expensive lifestyle changes such eating out at fancy restaurants, buying designer clothes, owning expensive gadgets and going on expensive vacations. For example, the Income Tax Act provides a 150 per cent investment deduction if an investor sets up a manufacturing plant outside three major cities: Nairobi, Mombasa, and Kisumu. When you aren’t doing investing correctly, you can lose potential long-term gains by paying high fees and improper risk allocation.

Source: Standard Digital July 05, 2020 05:48 UTC