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
Why Omtatah wants court to block Sh2.8tr railway works
Road accident-related deaths rise by 3.4pc in 2025
Making agriculture 'cool' again: How to win the youth back into big farming
Alarming clause in Religious Organisations Bill threatens our democracy
Two schools in one: Principals brace for complex CBE transition
Dispensaries to offer maternity services under SHA, says Barasa
Kenya inks Sh40 billion deal to transmit renewable power
Controversial Bill seeking to regulate churches put on hold
Wildlife census report key in increasing action
Algiers shows Africa's struggle between radical zeal and dependency
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.