It's wise to be financially literate
THE vision of the East African Community is a prosperous, competitive, secure, stable and politically united East Africa.
By Dora Byamukama
THE vision of the East African Community is a prosperous, competitive, secure, stable and politically united East Africa. Its mission is to widen and deepen economic, political, social and culture integration in order to improve the quality of life of the people of East Africa through increased competitiveness, value added production, trade and investments.
In order to achieve this vision and mission, every East African must of necessity adopt its principles in order for us to collectively achieve it expeditiously. Focus on one component–a prosperous East Africa†requires financial discipline, which can be effectively attained only when it is financially literate. Uganda’s vision —prosperity for all is a building block to a prosperous East Africa.
Prosperity for all seemed almost impossible until we started seeing and reading stories of people who were making more that sh20m a year from pineapples, chicken, milk, wine and other ventures. These stories clearly illustrate that one can achieve this vision when there is focus, action and determination. The multiplier effect of these individual success stories will culminate into a prosperous East Africa and improve the quality of life.
Quality of life is to a large extent influenced by management of finances which in turn requires financial literacy. Financial literacy refers to a set of skills and knowledge that allows an individual to make informed and effective decisions through their understanding of finances. It enhances the ability to read, analyse, and manage personal finances. It includes the ability to discern financial choices, discuss financial issues, plan for the future, and respond competitively to life events that affect every-day financial decisions, including events in the general economy.
Financial literacy is even more pertinent today because money is more readily accessible than ever before. There are numerous money-lending businesses some of which are run by people referred to as 'loan sharks'.
Lack of financial literacy has led to many people falling prey to loan sharks. People have lost property; they are imprisoned or are living unhealthy stressful lives because they are unable to pay back the loans with interest. One borrows from loan shark A to pay loan shark B and then acquires a new loan from C!
While researching on management of finances, I came across the following information which I found educative: When it comes to finances, if you are in a job, your boss’s job is to give you the monthly cheque, but it is upon you to make yourself rich. How you use this pay cheque is your business. Unfortunately some of us are not happy with our financial position. We are simply messengers. We receive our pay cheque from the employer and simply hand it over to the creditors.
The governments takes 'pay as you earn', the bank takes mortgage or car payments and then other creditors like electricity, water, fuel and food bills and before we know it, the cheque is spent as soon as it is earned. This goes on month after month; year after year. I have this question for you. How do we achieve financial peace?
Take control of your life: The fact is that you control your life whether you know it or not. You control your destiny. The choices you make every single day determine your future. You chart your course. Those we elect are not the givers of our financial lives. I sometimes think that many people think that if we can just get the 'right' person elected, then their lives will suddenly take a turn for the better. Not true. You determine the outcome of your life.
Be financially literate: It is not how much money you earn that counts but what you do with what you earn. True wealth is built through savings and investments, buying assets and not liabilities; trying to be really you and not trying to impress others. A lot of people you see with flashy lifestyles have borrowed up to their eye balls. What they call assets are not really assets but liabilities. This includes big cars, which are fuel guzzlers.
Wealth is said to be measured in number of days. For how long can you maintain your current standard of living if you are out of job? Let me bring it home! If your monthly expenses amount to sh1m and you have sh2m in savings, your wealth can only sustain you for two months. For many employees, just take them out of job and see their lifestyles deteriorate from day one.
Own a business: The only way you are going to be in charge of your life is to own a business. This business should have a system that can run even while you are away. Start small, work hard, stay focused and you will reach your dreams beyond your wildest imaginations.
Invest in assets: The money you set aside for investments belongs to you and becomes your employee. It will work whether you are sick, sleeping or even away on vacation.
If you are faced with a decision of buying a car or piece of land, I would recommend you buy land. After some time this land will have grown in value yet the car will have lost value. Let your profits from your assets buy you luxuries. Practise delayed gratification and learn the difference between assets and liabilities.
In conclusion, a prosperous East Africa requires that we acquire a set of skills and knowledge that allows us to effectively and efficiently manage our finances.
THE vision of the East African Community is a prosperous, competitive, secure, stable and politically united East Africa. Its mission is to widen and deepen economic, political, social and culture integration in order to improve the quality of life of the people of East Africa through increased competitiveness, value added production, trade and investments.
In order to achieve this vision and mission, every East African must of necessity adopt its principles in order for us to collectively achieve it expeditiously. Focus on one component–a prosperous East Africa†requires financial discipline, which can be effectively attained only when it is financially literate. Uganda’s vision —prosperity for all is a building block to a prosperous East Africa.
Prosperity for all seemed almost impossible until we started seeing and reading stories of people who were making more that sh20m a year from pineapples, chicken, milk, wine and other ventures. These stories clearly illustrate that one can achieve this vision when there is focus, action and determination. The multiplier effect of these individual success stories will culminate into a prosperous East Africa and improve the quality of life.
Quality of life is to a large extent influenced by management of finances which in turn requires financial literacy. Financial literacy refers to a set of skills and knowledge that allows an individual to make informed and effective decisions through their understanding of finances. It enhances the ability to read, analyse, and manage personal finances. It includes the ability to discern financial choices, discuss financial issues, plan for the future, and respond competitively to life events that affect every-day financial decisions, including events in the general economy.
Financial literacy is even more pertinent today because money is more readily accessible than ever before. There are numerous money-lending businesses some of which are run by people referred to as 'loan sharks'.
Lack of financial literacy has led to many people falling prey to loan sharks. People have lost property; they are imprisoned or are living unhealthy stressful lives because they are unable to pay back the loans with interest. One borrows from loan shark A to pay loan shark B and then acquires a new loan from C!
While researching on management of finances, I came across the following information which I found educative: When it comes to finances, if you are in a job, your boss’s job is to give you the monthly cheque, but it is upon you to make yourself rich. How you use this pay cheque is your business. Unfortunately some of us are not happy with our financial position. We are simply messengers. We receive our pay cheque from the employer and simply hand it over to the creditors.
The governments takes 'pay as you earn', the bank takes mortgage or car payments and then other creditors like electricity, water, fuel and food bills and before we know it, the cheque is spent as soon as it is earned. This goes on month after month; year after year. I have this question for you. How do we achieve financial peace?
Take control of your life: The fact is that you control your life whether you know it or not. You control your destiny. The choices you make every single day determine your future. You chart your course. Those we elect are not the givers of our financial lives. I sometimes think that many people think that if we can just get the 'right' person elected, then their lives will suddenly take a turn for the better. Not true. You determine the outcome of your life.
Be financially literate: It is not how much money you earn that counts but what you do with what you earn. True wealth is built through savings and investments, buying assets and not liabilities; trying to be really you and not trying to impress others. A lot of people you see with flashy lifestyles have borrowed up to their eye balls. What they call assets are not really assets but liabilities. This includes big cars, which are fuel guzzlers.
Wealth is said to be measured in number of days. For how long can you maintain your current standard of living if you are out of job? Let me bring it home! If your monthly expenses amount to sh1m and you have sh2m in savings, your wealth can only sustain you for two months. For many employees, just take them out of job and see their lifestyles deteriorate from day one.
Own a business: The only way you are going to be in charge of your life is to own a business. This business should have a system that can run even while you are away. Start small, work hard, stay focused and you will reach your dreams beyond your wildest imaginations.
Invest in assets: The money you set aside for investments belongs to you and becomes your employee. It will work whether you are sick, sleeping or even away on vacation.
If you are faced with a decision of buying a car or piece of land, I would recommend you buy land. After some time this land will have grown in value yet the car will have lost value. Let your profits from your assets buy you luxuries. Practise delayed gratification and learn the difference between assets and liabilities.
In conclusion, a prosperous East Africa requires that we acquire a set of skills and knowledge that allows us to effectively and efficiently manage our finances.