By Anne Wanyoike
We have at one point or the other made regrettable mistakes when it comes to money. To help you avoid these mistakes, we asked some of our staff about the biggest money mistakes they have made so far so you can learn a thing or two from them. Here is what they had to say…
T, Retail – Some friends had told me about an opportunity to buy land. They had already bought a parcel so I just followed their lead since they seemed to know the process. Without doing my own research, I bought ¼ acre land at 300k. Later on, I found out that the people selling to us the land did not have title deeds. Not only might I lose 300k, but I’m losing even more trying to follow the case in court. That was the last time I made an investment before doing my own research.
T, ABC Insurance Brokers – A relative asked me for 20k, which is all I had in my account. He really seemed to be in a tight spot and I felt obliged as family to help him out as he promised to pay it back in two weeks. The two weeks lapsed and I asked for my money. He asked me to give him more time. I had no option but to do so. I had to take a loan to pay my debts that month. After another two weeks, I asked for the money and he asked for more time. It’s been two years and he is still asking for more time. I learnt to only give money that I would be comfortable not getting back since you end up not only losing your money but also your relationships
E, SME – Going to a restaurant with friends, ordering food and a little too many drinks only to find the bill was more than I had in my wallet and bank account. That night, M-Shwari was undergoing maintenance and I was unable to process my loan request. If it were not for good friends sending money, ‘tungelala tukichonga viazi’(we would have had to peel a lot of potatoes) I learnt not to yield to peer pressure and not get carried away trying to impress people.
K, Diaspora – Taking out a loan from one of the instant loan apps to make what I thought was a sure bet on Sportpesa.I don’t know which was worse, taking the loan or making the bet… I learnt that there is no shortcut to making money. Now, I would rather invest in a sure investment than take a gamble on a bet.
K, Retail – I decided it was about time I bought a car because I had been working for 10 years with no asset in my name to show for it and most my friends had cars. I took a loan and bought a simple corolla. Half way through my payments, I wasn’t able to keep up and I ended up losing the car and all the payments I had made for the car. I will never take a loan for something that is not making me money!
Y, Credit Admin – When I got my first job earning around sh 40k, I decided to show off to my university friends and moved to a bedsitter in Kileleshwa paying 25k every month as rent. The worst decision I made. Eventually I had to move out to a place I could afford. Living within your means is not just a saying, I learnt that quite practically from my experience.
I, CBO – In university I started a business with a good friend of mine taking customer’s electronics to be fixed to a cheap ‘fundi’ and getting a commission. I later found out that he used to make money and not split with me. The biggest lesson learnt, is business and friendship don’t go hand in hand. They are two separate things and should be conducted as such.
O, Credit Admin – I had guaranteed a loan for a friend. Later I got a call from the Sacco telling me I had to pay the loan. I tried to call my so-called friend, she wouldn’t pick my calls. I had to go to her place of work to get an explanation as to why I was being asked to pay for her loan. She had lost the money and I was stuck paying off a loan I did not borrow. I no longer guarantee friends with questionable