TOUGH TIMES CAN DETER BETTER FINANCIAL DECISIONS

 A certain youth had to sell off his property to pay off a loan from a loan shark. This was after a series of calls from this loan shark and due to intense pressure he had to do what he never wanted. So many people are facing financial pressure and in the end we make financial mistakes. In the desire to make abnormal profits many people have invested in get rich schemes where they have been badly hurt. Just a year back a certain company closed down shop after conning many Ugandans of their hard earned money. I saw scenes of pain on  media how people were expressing their frustration. Some of them used their retirement funds. 

I have observed that during tough times such as scarcity of resources we tend to make bad financial decisions that we tend to regret later. That is when a youth will think of getting a loan without understanding the terms and conditions. In his book Tough Times Never Last But Tough people Do, Dr. Robert Schuller noted that we shall always face tough scenarios in life. However during such times we need to calm down and make rational decisions. No situation is permanent and very many people have the potential to overcome any tough situations with the right judgement and mentorship. Did we know that the hard financial times that we face have the potential to make us better at financial decision making? True we all face tough times but our attitude matters. We should not allow temporary situations to define our financial future. Will it be easy? The answer is no but if we are determined the scarcity of finances in our current circumstances can become a blessing in disguise. 

Some of the leading entrepreneurs started their companies during tough times. KFC was started by Colonel Sanders in his 60's when he was broke. He had a chicken  recipe which he tried to sell to many companies but they refused. Today his company is a multinational company. Had he defined himself by the tough circumstances he faced we would not have seen KFC. Professor Muhammad Yunus started Grameen Bank as a project in Bangladesh after seeing so many poor people neglected financially. Today Grameen Bank is a pace setter for so many microfinance institutions in the world. Equity Bank which  started as a small building society in Kenya is today a leading financial conglomerate in Africa.

In his book Think and Grow Rich: A Black Choice, Dr.Dennis Kimbro gives several examples of black Americans who came from humble backgrounds but this did not stop them from dreaming big. A case in point is Oprah Winfrey who had an abusive family background but as a little child she had dreams of becoming a successful person. It is not a surprise that she is one of the wealthiest women in the world.

Uganda is a country that has majority of its citizens as youths. The youths are faced with various financial challenges that tend to cloud their enormous potential. I have seen some of the ideas that youths have and they have the potential to start companies. However they focus on their limitations and then their creativity is diminished. The point is we all face tough times but we should never allow them to diminish our unlimited creative potential.

HOW TO MAKE BETTER FINANCIAL DECISIONS

1.Focus on the long term financial potential

2.Sav as you earn

3. Have a positive attitude

4.Read financial literature 

5. Find financial mentors

6.See money as a seed for progress.

7.Live within your means

8. Create a budget

9.Track expenses

10.Celebrate your wins.


Tough times never last but tough people do. As we go into 2025 we need to reflect on the financial lessons that we have learnt throughout 2024. Tough times tend to cloud our judgement yet we can have a great financial future. We are capable of more for as long as we are alive. Let us strive to make better financial decisions.


Phillip Kiryowa

Personal Finance Coach 

Advanced Empowerment Link

+256752615916

Comments

Post a Comment

Popular posts from this blog

A SAVINGS PLAN CAN AID IN FINANCIAL ADVANCEMENT

 I remember during the Trainer of Trainers training conducted by Bank of Uganda we were encouraged to develop a savings plan. This was a key development because without a plan we may live in financial darkness. In my years of providing financial literacy across the country especially youths I have observed that the intangible practices that may be undermined play a big role in the big picture. I have been asked a question, "how can one save yet their needs exceed their income?. It is a tough question but the best practice remains that even in the hardest of circumstances we should prioritize saving .This is because we do not know what the future holds. As humans we forget so fast. Who remembers during the lock down of Covid-19 when people were not working. Life was extremely tough. It was an opportunity to reflect about the importance of savings during good times. A savings plan enables a person to determine why they are saving. It could be for school fees, buying a plot, a car an...
Read more

THRIVING AMIDST UNEMPLOYMENT

 Ask any graduate what their worst night mare is and they will inform you that lack of access to a dignified employment opportunity is a big hurdle. Over 70% of Ugandans are below the age of 30 years of age. There are very many reasons why the unemployment rate needs to be addressed. Uganda has over 30 universities and all universities graduate over 300,000 graduates per year yet the formal sector produces on average 70,000 jobs. This mismatch is an indicator of the frustrations that the young people face. It was on media last year when I saw a group of able bodied youths who wanted to beat up staff of a sports betting company for failing to pay for their "Return on Investment" in Bugiri District. Iam not saying that all youths are involved in crime .What am trying to point out is that the probability of a youth without a job being involved in crime is high( after all there is a saying that an idle mind is a devil's workshop). Just this year there was youth who was killed...
Read more

WE CELEBRATE GRADUATION BUT AFTER THAT WHAT NEXT ?

 Uganda is officially dominated by young people. Over 50 %of the population are youths. With a high population the job market also shrinks yet people need to survive. It is the means of survival that create social pressure. The unemployment dilemma in the country can be dissected from different angles and each person or all stakeholders have a critical role to play.  Universities and other institutions of higher learning produce over 300,000 graduates per year. The job creation rate is about 70,000 jobs per year. This means that the job market is narrow. It is a common sight to see over 100 applicants for one job. This is a signal that something drastic must be done to change this trajectory. Development partners such as government, private sectors and donors such as Master Card Foundation are playing a critical role in addressing youth unemployment. In fact this suggests that fight against youth unemployment must be multifaceted.  During graduation season it is justifiab...
Read more