Garissa financial expert Jonah Ogembo says most Kenyan’s poor financial skills lead to financial difficulties especially in the month of January.
He says most Kenyans cannot differentiate between an asset and a liability, something he says has put even the working class in bitter ends, making them struggle financially for the rest of their lives.
“A good finance manager saves before spending and not the remains of spending since we can never have enough. We toil so much from January to December then spend all the money a single day which is very unfortunate,” he says.
I heard of the story of a guy who spent Sh1 million on his son’s birthday then finally he was thrown out since he would not pay his rent. This is the problem of spending then saving," he said.
"He must have ruled out on the probabilities of miscellaneous expenditure as a result of poor financial planning. This is what actually happens and I have advised many couples on this,” he added.
He went on to say most Kenyans are poor since the subject of ‘money’ is not taught in schools, citing that schools teach one how to get money and not how to spend it.
“Most parents will not be able to pay fees in the month of January. This is because they allow emotions to drive their expenditure leading to lots of wastage and financial burden of loans that they are forced to pay later for the rest of their lives,” he added.
“It’s simple, prioritize what is urgent and necessary¸ if possible clear all January fees and bills or set aside the money. This puts you on a safer end. With the remaining money organize how you will spend it as you distribute across your needs. Plan for such occasions early enough and I would advise you buy goods in bulks early before Christmas, compare prices and if possible merge up with other families. This lowers the expenditure. Learn to save the little you have until it becomes a habit," he added.