Financial bondage: 5 tips on how to break free

By Susan Kogi On Fri, 9 Aug, 2019 17:02 | 3 mins read
Breaking free from financial bondage. Photo/ Courtesy
Editor's Review
  • Many Kenyans are constantly broke and probably swimming deep in debt.
  • "Saving is not the way to wealth creation. Go ahead, take the risk and invest," Centonomy CEO, Waithaka.
  • Sure-fire way of enjoying your money guilt-free is to first save before spending.  

How most people survive the better part of the month can only be attributed to the Grace of God. Why? Because they are constantly broke and probably swimming deep in debt.

When the salary checks in, they turn into mother Theresa; so generous to themselves and those around them. A few days down the line, they go back to the church mouse they truly are, and the cycle goes on and on.

We are in awe of those living deluxe life-styles and some won’t stop until they find out the kind of witchcraft used to achieve success because they can’t simply hang on to their money let alone making it grow .

“Wealth creation is like weight-loss; very simple but not easy,” says Waithaka Gatumia, the CEO of Centonomy.

So, why are most people struggling financially?

Failure to plan- 

Have you ever been eaten up by guilt while swiping your card to pay for that drink or delicacy because there is another more important payment waiting to be made?

Of course, yes! The guilt is the fruit of reckless spending.

Waceke Nduati, the founder of Centonomy says that a spending plan is “a foundation that tells your money where to go rather than wondering where it went”.

“There are so many marketers and retailers out there constantly planning for your money. If you don’t have a plan, their’s will work,” advises Waithaka. 

Lack  of a plan is what gets you ogling at everything you set your eyes on in a mall because you do not know what you want. Also, paying in advance saves you sleepless nights. 

Failure to save and invest

“Saving is not the way to wealth creation. Go ahead, take the risk and invest,” says Waithaka.

If there is any sure-fire way of enjoying your money guilt-free is to first save before spending.  

“We lack a saving culture in our society and to be successful, you must save and invest as much as you can,” he adds.

Lack of assets

When the word assets is mentioned, the first thing that comes to mind is a car, a house, a piece of land and so on.

But let’s now talk about investment assets. What are they? “Investment assets are the possessions that increase in value, gives you an income or at minimum, keeps your money safe,” explains Waceke Nduati. 

Have you gotten yourself covered with some investment assets for dry days?

Unhealthy borrowing

Let’s put aside the Ksh5 trillion public debt and focus on how many Kenyans are swimming in personal debts amid the growth of digital lending apps. How do you deal with debts, you ask? ‘You simply pay back each debt at a time,” says Waceke.

She advises all those in debt not to be ashamed and to approach their lenders , although not with cash in hand, but with a plan on how they plan on paying back. 

“Many people are in debt because of their never-ending habits that fuel the debt cycle,” she observes.

Failure to track-down expenses– 

Think of all those small expenses that go unaccounted for; that pack of gum, the small tip you gave the waiter, the Ksh20 bob that the conductor never returned and so on. Have you ever stopped to think of how much money slips through your fingers every day unnecessarily? You would be surprised by how much money you would have saved in a year’s time if it were not for some of the miscellaneous expenses.

“Challenge yourself by writing down all your daily expenses; account for every cent. You will be shocked,” says Waithaka Gatumia.

You could be in a difficult financial situation and living from hand-to-mouth but tell you what? Putting a side a penny a day could be a highway to your success.