Living Without a Budget: The Financial Risks You Need to Know
In a recent discussion, Mr. Peter Macharia Kamau, the Founder and Chief Executive of Jijenge Credit, highlighted the significant risks of living without a budget, particularly as individuals approach retirement age.
Mr. Kamau emphasizes that failing to plan financially can lead to severe consequences later in life. “Many find themselves working well into their 60s and 70s, not out of choice, but out of necessity,” he warned. The unpredictability of life in older age makes it crucial to prepare financially, ensuring that one has adequate funds for retirement rather than relying on a paycheck.
The discussion underscores the importance of not only budgeting but also prioritizing savings for retirement. “You can either budget and save now or be forced to later,” he advised, stressing that proactive financial management is key to avoiding future hardships.
Mr. Kamau encourages individuals to adopt a mindset of saving early and consistently. “The earlier you start, the more control you will have over your finances in your later years,” he said. This preparation can significantly reduce the burden of having to work longer than desired.
He also pointed out that budgeting goes beyond mere numbers; it is about aligning financial habits with personal priorities. “Budgeting directs your money to make every shilling count,” he explained, reinforcing the idea that strategic financial planning is essential for a secure future.
The message is clear: prioritizing budgeting and saving can lead to a more secure and fulfilling retirement, preventing the all-too-common scenario of having to work into old age due to financial mismanagement. As Mr. Kamau aptly stated, “Plan ahead and don’t become one of those who work out of necessity rather than choice.”
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