Experts warn of financial pitfalls for employees lacking income-earning assets
Business
By
Sharon Wanga
| Jun 12, 2024
Experts are warning against potential financial pitfalls for employees who fail to acquire income-earning assets as a means to achieve financial independence.
In an interview on Spice FM, Chief Executive Officer of Centonomy Limited, Waithaka Gatumia, challenged the complacency that often accompanies home ownership, which he observed many consider a major investment and a retirement benefit.
"Your house, if you live in it, is not an asset, because living in your own home is not free. If you own your own home, it costs you money to live there," Gatumia observed.
He explained that while home ownership is a sound decision, it can lead to stagnation when the owner becomes too comfortable.
"I want you to make sure that you have other assets that pay you to live comfortably in your own home," he said.
READ MORE
Ruto hosts African leaders at State House ahead of summit
Bill for two decades of failure by football officials is now due
Amsons Group pledges Sh4.5b for hospitals
Governor Waiguru banks on street lights to power Kirinyaga's 24hr economy
Governor Nassir launches construction of Kongowea Level 4 Hospital
We can bridge seed access in the face of global disruptions
CHAN rip-off: How weeks-old insurance firm pocketed Sh42 million
Families seek justice over Ishiara killings as anger mounts
KMPDU raises alarm over security and staffing at Ishiara hospital
Gatumia noted that many retirees have expressed concerns about living in their self-built homes but struggling to afford necessities like food.
For those planning to invest, Gatumia advised ensuring they have multiple assets that would provide for them in retirement.
On bad debts, he cautioned employees against taking loans to purchase assets that offer no financial returns.
"When I borrow for something that I'm going to use for myself and not for growth, will that put money back in my pocket?" he questioned.
Despite challenging economic times, he encouraged individuals to consider loans for activities that generate income.
Gatumia further urged people to concentrate on wealth creation by engaging more in creating employment opportunities to support the low-income group.