If you have been wondering why you are stuck financially, then here are the 8 money mistakes that the majority of Kenyans won’t stop making. And this is even though they do them more harm than good. Kenyans, just like many other Africans, seem not to learn the lesson, especially when it comes to money matters. So which one of these mistakes are you currently making, or are you just about to make? Please let me know in the comment section below if there is any other mistake that I have not mentioned in this list.
Money Mistake No. 1: Unnecessary loans
The first money mistake that the majority of people make is taking loans for non-emergencies. These include things like weddings, entertainment, and bridal showers or baby showers. People out here take huge loans to facilitate their weddings. And because of that, this leaves them paying for the bill for several years after the event. But perhaps before you judge them, how many times do people take Fuliza or mobile loans to buy liquor? Or perhaps to please an admirer.
The other crazy one is when you are included in someone’s bridal shower or a baby shower. And now everyone in the group has to contribute a certain hefty amount of money. And now, because you do not want to be seen as the one who is not happy for them (even though you don’t have that money), you don’t have a choice but are forced to take a loan to fit in with the status quo. Ladies and gentlemen, all these are not emergencies.
A wedding is not an emergency. Yes, it is important, but you can plan for it in advance. On the other hand, the bridal shower, baby shower, or even entertainment If they are because of someone else, please do not allow other people’s emergencies to become your emergencies. But then Kenyans don’t know how to say no, even if saying no is the only word that can save them.
Money Mistake No. 2: Buying Online
The number two money mistake is buying or purchasing goods from social media without doing due diligence. Conmen are making a killing each day online by manipulating innocent Kenyans who don’t have the patience to do due diligence. When the deal is too good, always think twice. But again, this is the part whereby Kenyans don’t have the patience, and those con men have figured this out. They know that all you need to do is sell fear, especially FOMO, which is the fear of missing out.
We all love discounts but don’t jump on any discounts that you see online. Take your time, do research, and if they are telling you that it will run out, let it run out. But please note that not all online businesses are scams. Just underline the part, “Do due diligence.” Have you ever been conned online? You can share with me your story.
Money Mistake No. 3: Get-rich-quick
Number three is one area that affects so many young people, and this is something that is almost built into our DNA. And this is nothing other than putting money into get-rich-quick schemes. Why do we love easy money to the extent that we don’t care where we put our money? And if you are asking where I did that, let me give you three quick examples. How many people do you know who are into betting or gambling? The lure of the jackpot makes you want to do things that are not imaginable.
And second, how many people have joined some funny online apps that tell you that you are doing online marketing and that every day you make easy money by just clicking or sharing links? And now, how many have joined pyramid schemes, which are disguised as multi-level marketing? Where they tell you to buy our kit at, say, Ksh. 50,000 and get us 10 people who will buy a similar one, and you will make millions in a few months. Then they will tell you how you will travel around the world free of charge.
But what they don’t tell you is that it is very difficult to achieve that. How many of your friends can afford to pay the initial 50k capital? This is not to say that there are no legitimate multi-level marketing companies. But my point is that you need to be very vigilant, especially if you are putting money down first as part of the registration. Anyone who has been in any network marketing or multi-level marketing business will tell you that it takes time, and all those things that they show you are glowing do not come easy. The other place is forex business, but are we even ready to have this conversation now?
Money Mistake No. 4: Loans for Friends
Number 4 is taking loans on behalf of friends or family members. Although many may say that this is not something that they could do, I am telling you for free that if you want to cry premium tears, then try this path. I am sorry to break your heart, but this also includes becoming a guarantor for someone else who’s taking a loan from SACCO. Your good will put you in a financial crisis.
Become very, very clear before you get involved in such kinds of commitments because most of the people who give you thorough character development are not your enemies; they are your friends and family. Please make sure you cc this to people in churches and the so-called fellowships where they call each other my brother and sister. I don’t mean to scare you, but that, bro, will break your heart.
Money Mistake No. 5: Beyond means
Number five is overspending to please others, even if you can’t afford it. This is one of the notorious under-money mistakes that touch on many. How many people out here are living in houses they can’t afford? Aren’t there many who are taking children to schools that are too expensive for their salary or income? How many are buying cars even if they can’t afford to maintain them just because other friends or colleagues are already living that lifestyle?
Now you spend your life paying loans or living from hand to mouth just because you have to maintain a standard. You can’t even save or invest because 90% of your income is financing a fake lifestyle. Isn’t that a very expensive price to pay for the status quo? Eh, self-love, my friend.
Money Mistakes No. 6: I qualify so What
Number six, which is rather foolish, is someone taking a loan just because they qualify for it. Without even going far or beating around the bush, how many Kenyans took the hustler fund loan just because they checked and realized, Oh, I have a limit? Are you one of them? I even remember others complaining, saying it was a small limit for starters like 500 or 1,000, but they still took it even if they didn’t need it.
Unfortunately, this does not stop with the hustler fund; it applies even to bank loans, mobile apps that give loans, and so on. Just because I checked and I have a limit of Ksh. 5,000 or Ksh. 10,000, I just requested it even though I do not need the money. And a few weeks down the line, I’m unable to pay, and this throws you into a cycle of borrowing from John to pay Peter, and the cycle never stops. The last two are somehow related, but perhaps they are the most important ones that you need to learn from.
Money Mistakes No. 7: Zero Plan
In number seven, not making financial plans or budgets is one of the money mistakes that many people are making. People know that they might land in an emergency, but they don’t plan for that. They know that they will need to do something at some point, but they don’t save for that goal. People have kids or children, but they do not save for their education, and when the time comes when all this is supposed to be taken care of, then it automatically becomes an emergency, a loan, or a fundraiser, yet none of this is supposed to be an emergency.
If you can only start making financial plans today and start working with a budget, you will automatically become one of the 1% who are doing what is right financially.
Money Mistakes No. 8: Walking naked
Last but not least, at number 8, one of the money mistakes that many people are making and won’t stop making is not taking financial cover or protection. This includes very affordable covers like NHIF or a ‘last expense’ cover. In order to get Ksh. 250,000, all you need to do is pay below Ksh. 2,000/= a year. By doing that, we will not need to create a WhatsApp group to fundraise for a decent send-off or a medical bill, and in other words, you have just paid your bill in advance as a responsible human being.
The last point that I won’t end the money mistakes list without mentioning is taking a life cover. It is very affordable and cheaper than your WiFi subscription. It happens to be the only way to ensure poverty stops with you and is not passed over to the next generation. But then, as Kenyans, we would rather save to eat everything and let our children also struggle the same way we struggled because we think if we leave them with something, they will spoil it or destroy it, and that is how we remain poor generation after generation.
Conclusion
Choose to be a unique individual, a different Kenyan. Try to stay away from these money mistakes. Let me know if you have learned anything from this or if you agree that we tend to make these mistakes. I hope you take a step in the right direction by assessing yourself and coming up with a financial plan. You can check out this link for more guidance. Please share this post and I look forward to seeing you in the next one.
