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Peter Macharia Kamau, the Founder, Managing Director, and Chief Executive Officer of Jijenge Credit, Kenya and East Africa’s leading credit-only microfinance institution, has shared a series of valuable financial lessons aimed at helping individuals achieve financial freedom and cultivate prudent money management habits.
Speaking on the importance of financial discipline, Mr. Kamau emphasized the necessity of establishing an emergency fund that covers at least six months’ worth of expenses. He noted that having this financial buffer is crucial for managing unexpected challenges without falling into debt.
“Save money, and money will save you,” Kamau stated, stressing the importance of prioritizing savings over spending. He advised against the common pitfall of spending first and saving what remains, urging individuals to flip the script by saving a portion of their income before planning their expenditures.
In his remarks, Kamau also underscored the importance of avoiding unnecessary debt. He cautioned against making purchases that cannot be paid for in cash, as this is a clear sign of living beyond one’s means. The only exception, he noted, should be borrowing to start or expand a business, where the potential for return on investment justifies the debt.
Kamau warned against the lure of unnecessary spending, especially on sale items. He reminded consumers that the best way to save is not to buy things they do not need, even if the price is attractive. “Every shilling in your possession counts,” he said, highlighting the importance of financial prudence.
The Jijenge Credit CEO also emphasized the significance of budgeting, describing it as a tool for directing your money towards your priorities rather than losing track of it. “Budgeting is about being intentional with your finances and ensuring every shilling has a purpose,” Kamau explained.
He also addressed the dangers of materialism, warning that purchasing unnecessary items may eventually force people to sell things they truly need. He advised against trying to appear wealthy at the expense of financial stability, urging people to live below their means to avoid financial strain.
While acknowledging that money isn’t everything, Kamau pointed out that it is essential for taking care of family needs. He stressed the importance of having a backup plan for life’s uncertainties, such as an emergency fund or life insurance.
Kamau encouraged individuals to invest in personal life insurance, which provides both security and serves as an investment for the future. He also called for breaking the toxic financial culture within families, emphasizing that children should not be viewed as retirement funds, nor should parents or siblings be relied upon as emergency funds.
Through these insights, Peter Macharia Kamau continues to advocate for financial literacy and empowerment. His leadership at Jijenge Credit, a microfinance institution renowned for its customer-centric approach and innovative financial solutions, reflects his commitment to helping individuals and families across East Africa achieve their financial goals.
