I am a resident of Nairobi and have witnessed several people fall from grace to grace for making silly money mistakes. While it’s good to eat life with a big spoon, being sensitive about your spending is paramount. Regardless of where you work and what you earn, these are the worst money mistakes you should not make in Nairobi.
Buying a car on loan when not necessary
Most people have found themselves purchasing personal cars on loan even when they don’t need them. A year ago, I witnessed one incident that scared me like hell.A friend who earns Ksh60,000 took a loan from Equity bank to purchase a car. He went and bought a second hand Toyota Premio.After using it for 6 months, he got an accident and sadly the insurance that covered him refused to cater for repairs.My friend was forced to abandon the car in the garage—the vehicle is there up to now and nobody is willing to purchase the wreckage. Ever since he got the accident, he’s been repaying the loan and he’s always broke. To make matters worse, his life is completely stagnant.
Personal financial experts warn that if you don’t have extra income to pay for fuel, don’t purchase a personal car.
Having more than one girlfriend
The worst mistake you can make in Nairobi is to have a chain of girlfriends. For a man, having more than one girlfriend is a sign of being a conqueror but when it comes to expenses, you will regret why you made the decision.
Most women in Nairobi will love you because they have seen money, they aren’t interested in genuine love. Once the money is depleted, they’ll move to the next prey.
Sharing your hard earned money with friends
Friends are good, they make you feel part of a progressive group, but when it comes to spending, never overspend on friends. We know the best friends can do when you are in trouble—run away.
If you’re clever enough, avoid pleasing friends with money—if they need your company, let them be your friends without benefits.
Living in expensive house
Most of us have an ego that won’t allow us to live in cheap houses. I earn Ksh 100,000 but I want to live in a Ksh40,000 house. I also want to own a car and take my children to expensive schools.
When you live beyond your means,it means you won’t achieve anything constructive other than pleasing friends and workmates.
As a Nairobian,you need to own your home,develop a solid foundation and plan on how to retire gracefully.If you live beyond your means,there are high chances you will retire miserably and friends will laugh at you.
Not having a side hustle
The worst mistake you can make in Nairobi is to solely depend on your salary. Assuming you are living in a rented house and one day the employer fires you,what will you do? Of course migrate to the village after you fail to pay your bills.When you have a side hustle, your life will continue as normal when you lose your job.
Not saving any money
Each month should have a saving target. It doesn’t matter how much you save, what matters is whether you save or not. In Nairobi, you won’t know what happens next.It’s therefore important you save so that when the rain starts beating you, the savings will act as your umbrella.
