Story By: Rahamatu-Lahi Zakaria || Sanatu Zambang
To survive in this ever changing and fasting growing world, one needs to have a little bit of financial literacy, for instance how to budget for your daily, weekly and monthly expenditure.
In an age were technology is literary taken up people’s income, financial expectations, Mohammed Isdeen Adam has advice against youngster and people just beginning life to desist living a life that revolves around getting the latest tech invention when they are not earning more or they are not from a very rich and well to do family.
Speaking at Sanatu Zambang Café Experience, Mohammed Isdeen Adam, a worker at the National Pension Regulatory Authority explained that, most young people want to have the latest tech gadget which he says is bad and does not help beginners to save.
The craze to own the latest and the fancy gadgets is on the rise among youngsters. This craze for new tech gadgets allows people to spend above their income and they are unable to save for the future.
Most youngster are living a lifestyle that they struggle to maintain. He mentions how beginners go in for luxurious and spacious apartment when they do not really need it. Some start big when in actual fact they cannot maintain it.
The flashy lifestyle does not give young people that kind of financial freedom they should have. Instead of working for yourself, you end up working to pay the debt.
He goes on to say as someone who earns an income, it is good to have a personal budget. This personal budget helps one to plan his life as well as plan his savings and people will not struggle to live a lifestyle that they cannot maintain.
The personal budget brought the conversation to internet data. On internet data, Isdeen says the best option is broadband. A lot of people spend much on data with the daily subscription.
He explained how telecoms outsmart customers with their flexible daily data subscription. ‘’the telecom companies are smart guys they give options that you feel are cheaper, but in the long run it is going to be a lot expensive for you.’’
He advised against startups from going to the banks to take loans. According to him. When starting your own business, the best option is to take from personal savings, family, friends and banks in that order.
The bank should be the last place to go in for loans. He says the interest on loans is not suitable for startups. The banks are just interested in making their money and do not care if you are a struggling business that needs time to grow before you can be able to pay.
Final on the conversation was on acquiring asset, to reiterate need to spend wisely, Isdeen advised against buying asset that depreciate but rather go in for asset that appreciate.