MODERN DAY POVERTY: What it is and How to Avoid it

By Wanjiru Victor 

Modern day poverty is the kind of poverty that I would define as “the mismanagement of individual resources and opportunities, that could lead to increased number of poor people, living in extreme poverty because of unreasonably high living standards in future.”

Generation X is known for their “YOLO” mentality and instantaneous gratification, always camouflaging in the gradual change in trend in the society. This is a generation notoriously known for their ignorance on matters financial literacy.

Image (c) The Gold and Silver Portal

Financial Literacy

Modern day poverty can also be attributed to the lack of the basic financial knowledge 

about investing. I highly encourage investment, however small. I always think of the biblical mustard seed, starting small.

Investing is diverse. For most of us, still reliant on our parents for monthly allowances, the best investment is to fully equip  yourself with financial knowledge, this will get you prepared; to know how to start businesses, how to handle large sums of money, how to not get old with a file filled up with unpaid loans, mortgages and hospital bills, how not to rely on employment income and 

also how you can make it possible to retire by 45.

Imagine a savings account, you little money slowly growing. That is an investment option but not a good one in my opinion. It is slow. It is lazy. I would rather put that money into work. An actual investment. Create employment and grow the economy at the same time. To me that is money working for itself. 

For employees, knowledge on finance, will give you the motivation to use the saved up money and actually invest in financial instruments (bonds, stocks, shares, property etc). Investment can be hard for 

those having the desire to want to invest but don’t know how, but it is simple if your willingness to learn. Financial intelligence will lift you out of the comfort zone.

Knowledge on financial planning and management give you an advantage on understanding which part of your spending or income lifestyle is most or least taxed.Modern day poverty can be eradicated by creating awareness on the financial components not taught in schools. Example; financial literacy: which is a diverse field that also covers how to invest, and how the law and taxation can be used in 

one's favour.

While matters investment are taught in school, financial literacy is not and it is upon students to grasp something out of business courses that might benefit them in the world outside. While some households actually take their children through apprenticeship that highly influences their futures when it comes to financial management, others do not.

The households influence, in families that don't teach their children on "what we do" or rather "what we should have done" create "Inherited Poverty”.

These types of failures bring out a society that's either wasteful because they don't know how wealth was created or so lazy poor because they have no idea how they can do better than those before them. They have a "it is what is because that is how it was meant to be" mentality. Nauseating. 

Expenditure Vs Saving

We spend more than we invest. Our spending is uncalculated and majorly influenced by our peers.

Always wanting to“look the look”, is not condemned but unnecessarily spending the little money you have when you can invest for a continuous cash flow that will pay for the spending is flabbergasting.

Most young people will want to spend on cars, clothes, shoes, expensive rental houses 

among others. It is sad how people don’t know how or where to spend their little income. The surprising part is that spending money unnecessarily is addictive. It just doesn't go away when you get into it.

Image (c) SME Finance

The Pros of Investment

You are your own boss: When self-employed, or employed and running businesses on the side, you become the final decision maker on matters your investment. You get to decide the HOWs, WHATs, WHENs and WHEREs of your business. 

 

Investment does not require qualifications: It does not specify on age, educational status; certificate holder, degree holder, PhD holder or even a drop out., marital status, employment status or family background. You just have to be willing learn and to know how badly you need not to be poor, to lack especially the basic needs; food, shelter and clothing at any point in your life or of you dependents.

Investing satisfies both the basic and non-basic needs: when you invest wisely, you will never lack when it comes to providing for yourself or your loved ones. You will eat, get clothed and live in a nice comfortable home irregardless of any time of the month. You just need to do your math well.

You enjoy your profits: It is the desire of every business to reap profits month in and month out on every financial year. When you do everything right (always expect to sometimes get some decisions wrong) you reap high profits and enjoy them all by yourself. Of course a wise business person will always put back some of it back into the business as your wish is to expand and grown exponentially.

How to Make it as an Investor

Take the Necessary Risks: Everyone in business will tell you that they saw a gap in the economy and decided to take a risk. No one was a hundred percent sure their investment would work but when it does, then you say, that was worth the risk. If it doesn't, then maybe that approach wasn't it. get back to the drawing board. Strategize. Try again.

Be Determined : What is the point of starting something that you don't want to see come to completion? Absolutely none. When you take the first step, don't you dare look back. See where you are headed to and believe that you will make it. Shaky starts and mockery only mean you know where you are going. They say if you can't run, walk and if you can't walk, crawl as long as you don't stop.

Be Goal Oriented and Stay Focused: You drive towards achieving your goals is by having a plan and achievable goals. Bite what you can chew. focus on it and see it done then move onto the next level

Learn from the Best: No one ever succeeded alone. To best do it is seeking financial advice from experts such as bank and investment agencies and better still, from those who, like you started from low levels and made it. They will advice how they made it, the mistakes they did, the steps they took to correct them and the opportunities they probably missed and do not want you to miss like them.

Always Improve: When you start, mistakes are bound to happen. Some levels will bring you challenges that will leave you clueless. Let your "SO WHAT NEXT?" dilemma not stop you. Maneuver your way out and seek help where necessary. Improve on what you already have and always seek to be better every day.

Uplift Others: Just like others will see you through your investments, customers and all other stakeholders, let others come up with your help. Don't and Never Eat Alone. Make you table big enough for others to join you.

Technological Awareness: Be aware of the current technological advancements in developing your products and solving your problems. Always stay up to speed

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ABOUT THE AUTHOR

The author is a 3rd year student at Catholic University of Eastern Africa pursuing Bachelor of Arts and Social Science, Economics.

Email : agnesshiro67@gmail.com

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