Culture of Saving to Change Fortunes
George Wachiuri, Chairman of the Optiven Foundation and Founder of the George Wachiuri School of Mentorship has called on parents to educate their children on debt management. Speaking on K24, Wachiuri advised that the same should be replicated in learning institutions in order for debt management to be a culture.
Engaging with Mungala Mbuvi on the breakfast show on 1st March 2022, Wachiuri called on the masses to manage their finances to ensure that they are able to meet their needs. Wachiuri said, “it is a matter of managing what you have based on a zero based budget and for many we spend everything without saving in case there are any emergencies.“
As a mentor he recommended a formula for how to spend the income in order the budget appropriately. He says, “there is a formular that I recommend 50:30:20. The bigger chunk should go to necessities including rent, travel, clothings and food. The 30 goes to debt payment while 20 goes to savings and insurance. The key is to live within that particular income to avoid a deficit which means you must borrow and getting into a cycle of debt.”
He advised that the issue of lifestyle cycles is catalysed by living according to other people’s opinions and living to impress them. Bottomline, live according to your means”. For those living in that cycle of debt, Wachiuri advised that there is need to seek counselling.
He decried most people who do not do financial planning and budgeting including Kenyans who are at 8% in terms of not saving. Wachiuri advised that the masses must be schooled to continue saving as a culture as opposed to borrowing. On corporate borrowing.
George Wachiuri is a leading Entrepreneur, a Published Author, Philanthropist, Youth Empowerment Enthusiast, a Family man and CEO of Optiven Group.