Financial lessons for young adults from a rich ‘villager’ you can’t ignore

This Christmas, I had to cut my holiday short and return to Kampala to deliver a client’s work which they needed within the first week of the year. Kampala’s hustle never ends!

Family members I had traveled with were not ready to return yet, so they connected me to Omugaiga (rich person) in the area James to bring me to Mbarara.

From unsolicited information I got, he owns several plots of land, commercial buildings, and a fleet of taxis, and is the driver of one of them. Having been the first passenger, I sat in front, and we traversed villages going through banana plantations, light forests, then the good, and some muddy, bumpy, murram roads picking up other passengers who had booked him the night before. What an experience!

Along the way, we picked a young man roughly in his early 20s, who I will call John since I didn’t ask his name.

 John owns a phone repair shop in Mbarara town and makes good money according to his father. However, his father doesn’t see what his son uses the money for, except recently when he bought a motorcycle. John’s father fears asking him about it, so he requested James to talk to his son and advise him about putting his money to good use.

In the vehicle, James asked John what his financial goals for 2024 were. Guess what John mentioned first-buying an iPhone, and a car later.

Everyone in the taxi burst out and laughed, and an open conversation about money ensued. Some admitted to spending their hard-earned money on booze, girls, the latest phones on the market, shoes, and watches just to keep up with the trends. While others have saved, bought plots of land, and have plans for these lands.

So, James in his 50s also laughed and said “Phones, cars, and all those other things are luxuries. You need to learn to put your money to good use when you are still young.

The young people were eager to tap into his knowledge. So, they asked him for financial advice. Here is what he told them.

First, you are never too young to start saving and investing. He recalled that in his 20s, he bought a motorcycle, and would ride people from Isingiro to Mbarara, but most of the money earned, he spent it drinking alcohol and partying with friends. He started serious saving and investing while in his late 20s. Though he still succeeded, he believes if he had started earlier and not wasted his money, he would have more riches.

He said it is important for young people to start saving and investing early when they still have the advantage of time and youthfulness, adding that when they can no longer work in their declining years, it is the money they made, saved, and invested in their youthful days that will save them.

Second, don’t run after shiny objects all the time. Using the example of phones, he said every day, new phones are manufactured, and as young people spend their hard-earned money buying these gadgets, they are supporting these companies to build their dreams, when will you build your dreams?

He advised young people to first focus on working hard, saving, and investing, adding that when one has money, they can always afford these luxuries without having to worry about where the next meal or rent will come from after spending money on non-essentials.

Third, look at life with a long-term lens or perspective. He said some young people make the mistake of mismanaging their money or resources with the attitude that ‘life is short, noting that this is a very wrong mentality. He joked and said God may bless you with resources, but you misuse them thinking life is short, then you live to old age wallowing in poverty and regrets.

Don’t wait to have regrets in the future, if you have made some bad financial decisions in the past, learn from them, move on, and start over again. Start making better financial decisions in the New Year.

The financial decisions you make in your youthful years will determine the kind of life you live in your evening days, so make the right choices. Don’t mind about the person who gave the advice, or where they are from, focus on the message. Know better, be better. Otherwise, I enjoyed the conversation and also learnt a lot.

I wish everyone a prosperous new year.

Ms Vivian Agaba is  a journalist, consultant writer, and editor