Quitting is sometimes the right thing

An interesting conversation erupted at a chama meeting recently. One member said she had found raising the Sh4,000 we contribute every month too much for her to continue being in the group.

The treasurer quickly calculated her benefits in reference to the constitution which gives an exiting member her shares minus 25 per cent. The refund was not much as most of the group’s savings is attached to properties. So those exiting will have to wait until such property is sold to get their share.

In short, it was not viable for the member to exit. One of us asked why she was finding it hard to raise the monthly contribution when she had a regular, stable job, while some members were hustlers and were totally committed to the group.

The explanation was what everyone else is doing – repaying loans, undertaking development projects such as building a home and paying school fees either for oneself or siblings.

This member’s problem was poor financial management. We spent a great deal of time talking about this issue, which was beneficial to many members including those who suffer silently for fear of being ridiculed.

Here are some of the issues tackled during the debate, which you, too, can pick for sound financial planning:

Never take helplessness as your second name. You can do something about your situation. For instance, if you are spending every weekend in the garage to repair your car, it is time to get rid of it and buy a new one. This is because if you sum up the money you spend to repair it, you will be shocked by the amounts.

Fact is, mechanics take advantage of women’s assumed ‘ignorance’ about cars to exploit them. If you don’t want to know the route to Kirinyaga road where spares are sold, you have no business taking your car to the mechanic now and then; for they will exaggerate the costs and bleed you.

Make it a policy to buy a car and sell it after four to five years when it starts developing mechanical problems. At the end of it, you will be the wiser. Think of the time and money you spend at the garage. A new car gives you peace of mind too. There is also that bit about embarrassment when your car stalls on the highway.

In the same way, if your side business is giving you a headache, count your losses and move on. Is it rental units that are not giving you the expected returns because tenants are reluctant to pay? Get an agent and agree on the commission.

With an agent, you are assured of getting your money and the business running professionally. No attachment to tenants and their myriads of excuses as to why they are not paying in time or at all.

Also end attachment to farming or dairy cows which give little milk. Sell the cows and invest the money in another project with higher returns.

For our friend who wanted to leave the chama, our unanimous advice was that she goes back to school to improve her chances of growing in her profession. She had been at the same level for ten years, with a salary not significantly different from the much she started off with.

Given, the cost of living is higher and the world has rapidly changed in the ten years to suit those who earn super salaries, she cannot afford to sit back and wait for life to ‘happen’. With the advantage of papers, one can negotiate for higher pay or get a better job with attractive remuneration.

Do a check of your aspirations and dreams before you started working. What did you want to have achieved at five or ten years after employment? Have you achieved it? If not why? Find out where you went off-road, engage the gear and reclaim your path to financial stardom.

You cannot say that you can’t improve or change your situation. It is within your powers to do so.