“There is no problem unless we choose to make it one, so think carefully before you act.” –David Marshall
Your twenties signify an important point in your life, one that will definitely shape your financial future. It’s while in your twenties that you will probably land yourself a career, get your own place and perhaps start making decisions in regard to marriage and family. Financial decisions you make while in your twenties will to a large extent shape your financial future.
A friend of mine completed high school two years ago but due to financial difficulties he has been unable to continue with his studies. He recently got a job where he earns KES 12,000 per month, so when I asked him what plans he has, now that he earns, he told me he intends to get a place of his own. Is this a wise financial decision? That’s my area of focus today.
When most 20 year olds get a job and start earning, one of the first things that come to mind is getting a place of their own. They have for the longest time longed to escape from the controlled environment of staying with family or relatives’ thus getting a job gives them the opportunity to escape from this and live an independent life.
Back to my friend, I further inquired on the amount of rent he was willing to part with every month and he told me he had in fact got a bedsitter in South B that was going for KES 7,000. Peer pressure and the stigma associated with living in a gheto forces most 20 something year olds to live beyond their means. KES7,000 accounts for about 58 per cent of his income meaning he is left with KES 5,000 for his food, transport, utility bills and entertainment. Under the current financial environment, KES 5,000 is practically not enough to cater for the above expenses.
Take for instance he somehow manages to make ends meet, a few years down the line he will definitely meet a suitable partner and like most twenty something year old’s, he will probably have a “come we stay” type of relationship. This means he is practically be married and perhaps with children. Considering the fact he only has a high school education back him up, the chances of getting gainful employment is scarce, meaning he is stuck in a dead end career of waiting on tables and living from hand to mouth.
The decision to get a place of his own could give birth to a series of more wrong financial decisions that will in the long run shape his entire life.
Picture this, what if he would instead opt to save up for school as opposed to getting a place of his own, wouldn’t it be wiser? In as much as KES 12,000 minus his expenses won’t leave him with much to save, the mere attempt of going to school could open doors for him to finish his studies, you never know, he might even land himself a scholarship and later get a better job.
In as much as independence is a desire by most 20 something year old’s, it could entangle you in a web of financial ruin. A little patience is beneficial in the long run. As David Marshall puts it, “There is no problem unless we choose to make it one, think carefully before you act.” Your financial decisions now will probably have a large effect on your financial future.