5 THINGS YOU SHOULD NEVER GET INTO DEBT FOR.
This valentine saw most people receive gifts across social platforms. The most talked-about stunt pulled was Diana Marua’s and her husband musician Bahati. The couple went onto Instagram to announce their latest purchase, a Landcruiser tx. Most netizens congratulated them. From the comments section, it was easy to tell how many young Kenyans would wish to do the same for their loved ones. Sometimes these wishes can pile up and guide us into making bad financial decisions.
While not all debt is bad, it is important to weigh all your options before borrowing money. According to Steve Down, debt robs you of your financial future. Borrowing money you do not have is stealing from the money you should be making.
Before getting into debt consider;
- Delayed gratification.
- Use the money you have.
- Saying no to yourself and people around you for impulse purchases.
Things you should never get into debt for
1. Borrowing to start a business is a bad idea.
Remember when Raphael Tuju borrowed Sh 1.2 billion for an investment idea that went wrong? Well, that is the risk that comes with borrowing money to finance hope.
Solid business ideas cannot be funded by hope. You have to have a great strategy if you decide to take up a loan for any business venture.
The honorable politician took a loan to expand one of his multiple ventures, unfortunately, it accrued interests and threatened to gobble two of his prime properties.
Whether it is a billion-dollar or a small venture, taking a loan to start your business is a bad idea.
2. Getting into debt to impress your loved ones.
One of Financially Fit’s followers went on to confess that he is still servicing a loan from his wedding day 10 years later. He deeply regrets that he gave into his then fiancee’s exorbitant wishes. As if the Kshs. 5 million was not enough to fund the lavish wedding, he took on another loan to buy his wife a Mercedes Benz as a gift.
Given a chance, he would have made better choices that would not burden him.
Truthfully speaking, some of us are in debt because we are afraid of saying no to our loved ones. Especially with social media, youths are constantly on the financial treadmill.
Interior Cabinet Secretary Fred Matiangi revealed that 50% of Kenyan youths aged below 35 years have been blacklisted by various lending firms after they borrowed money. A majority of the mentioned, borrow m0ney for personal expenditure and betting.
3. Never borrow money for personal expenses
A wealth coach will tell you that if you have to borrow money for personal expenses, you are a poor planner.
Budgeting will save you from getting into debt.
You can learn how to budget from our Instagram page.
