This archive report was first published on 26 August 2019.
At 25, I was working in corporate audit at my first job and wanted to buy my first car, a Toyota Premio worth Sh500,000. A colleague advised me to save up the money in cash, which would take me three years to do. In retrospect, this was bad financial advice, as it limited the reach of my dreams and ambitions to how much money I could save.
However, I've since learned that taking loans is not an entirely terrible thing, as long as you're using the money for the right purposes and not accumulating bad debt. It's also essential to be liquid and not tie up all your cash savings in an asset that you can't easily liquidate.
When I asked a handful of friends for the worst financial advice they'd ever received, the responses were varied but insightful. Magdalene, a 38-year-old personal fitness coach, shared that someone once told her that taking a salary advance each month was a good idea. However, she now knows that this is an unending cycle and that she should only buy things when she can afford them in cash.
Another friend, Eugene, a 29-year-old financial consultant, recalled being told not to buy a car before buying a house. However, he believes that a car can be a good investment, especially if you can afford to maintain it.
As for Ruth, a 30-year-old chef, she's come to realize that money is not the source of all happiness. She's seen people who have everything but are not happy, and people who have little but are content and happy.
Frank, a 23-year-old copywriter, shared that someone once told him to live for today and that tomorrow would take care of itself. However, he now knows that saving and investing for the future is crucial.
Lastly, Sharon, a 33-year-old product developer, shared that someone once told her to go big every single time when investing. However, she now suggests starting small and growing big, as this is a more sustainable approach.
