Do You Consider Yourself Rich?

This is not my question. It's from one of my favorite columnist in today's Daily Nation. And coming from a weekend its a timely question. Did you drink all your money like there will be no Monday? Are you the type always broke by the 10th of the following month? This article is all about being organised with our finances. Read on. With all the new cars, one would be forgiven for wondering where reports of the economy going south are
coming from, that people are living on shoestring budgets.

If things were so bad, how is it possible, then, that poorly done apartments are being sold for ridiculous amounts?

If you are one of those people who are wondering all the above, stop kicking yourself for ‘not working hard enough’ to keep up with the Kamaus next door because you — although you might be living in Umoja but would prefer to live in Kilimani, although you might be a regular matatu customer but you would be happy to drive even a Probox — are probably in a better financial position than the guy who seems to have all you would like to have. Confused? Not for long, just belt up mon ami.

To the naked eye, Kenya is full of rich people. You would be forgiven for thinking that you, your neighbours and the guys in Kakuma are the last lot of poor people, but you couldn’t be far from the truth.

Many people are living way beyond their means.
They might be smiling on the outside, but on the inside, they tread like they would on a minefield.

They pray a lot; not for world peace, but that they do not lose their job for at least three years — enough time to sort their debtors.

There are a lot of big salaries, but very few people can claim to be rich. Ideally, it would be wise for the big salaried to immediately start investing a fraction of their money, if only to be ready for a rainy day (which always comes at some point), but we live in a cosmetic world, our priorities tend to be warped, we want the good things in life now.

Before you consider yourself rich, ask yourself these questions.If you answer ‘yes’ to more than two, you, my friend, are living beyond your means.
If you lost your job today, would you be able to survive for a year without asking for bailouts from friends?
Are you saving less than five per cent of your salary?
Does a third of your salary go to your rent? (How could you?)
Are you taking loans to buy luxury items, for instance installing a Jacuzzi?

Do you have more than four items in your house on loan; for instance the car, the 50” flat screen, the leather sofas?

Do you use your credit card more than your debit card, and do you have more than one?

I hope our MPs will read this because I believe the reason they are so resistant to the idea of paying taxes is that they have been living way beyond their means.

Not to say debts are a no no because big economies are driven by borrowed money, but we need to know what we can do without.

What do you think? Are you living within your means?