This question arises when you have some extra income that you could use to increase your monthly debt repayments, or when you get lump sum income and are considering using it all to repay the loans you have. There are many schools of thought about debt; some people believe debt should be avoided totally. They believe that you should buy only what you can afford to…
Read MoreI’m a member of an investment club (a chama), with 9 other ladies, much older than me. In fact, this is my Mom’s club, she invited me to join after my original investment club went burst. I don’t socialize much with the other members, but this week something interesting happened. One of the members asked me to co-sign for her on a loan she was…
Read MoreOn this blog, I advice that as much as possible to avoid debt, but life is such that at one point or another, you will need to borrow, either to take care of an emergency or to make an investment. Used well, credit could be as much of a wealth building tool as picking the right stocks and investments. Internationally, there are ways to score…
Read MoreMost personal finance experts advice that the best method to get out of debt is to pay off your high interest debts first. While this makes text book and mathematical sense, personal finance success is 80% behaviour, and 20% mathematics. We become good at it by focusing more on methods that reward good behaviour, and keep us going. Recommended by personal finance guru, Dave…
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In Part 1 of the 50,000 dollar problem, we looked at my techie friend’s dilemma. He’d come across Kshs 50,000, and was looking to make “good” and certain returns in a year, and since I wasn’t offering him any viable solutions, he was going to buy the iPad2 instead. My advice to him was to take a SACCO loan to pay for his gadget. Why…
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