Rent or Buy? Save or Invest? Personal finance tips ft Gichuki Kahome | Ep 65

[@Missmops]

For those wandering whether or not children are bad financial decision, the answer is yes. Why? Because they represent a long term liability like a mortgage. This doesn't imply that having children is a bad decision. People need to differentiate the two. But just like a car you drive isn't a good financial decision it doesn't mean getting one is a bad thing. It just means you need to prepare for these liabilities. Save up and live within your means. If you can not afford a CX5 but you can reasonably afford a Toyota vitz then that's what it takes. If you want to have 10 kids but you can reasonably afford 2 kids. Then that's what it will take. But most Kenyans don't want to have these conversations. It's all about taking on liabilities which you can afford to live by.

[@caroline7634]

I like Gichuki's view on personal finance. It is very personal, but of course, it has to be rational:)

[@jacquiekariuki1484]

Loved this. Especially like how he stresses on the importance of being clear on our personal goals then doing the math. My goals ultimately boil down to my need for security n freedom. While I'd love to own a beautiful home, liquid financial assets make much more sense at this point in time

[@athumanibaya131]

You only know you can afford to buy a certain car if you can pay 20% cash as down payment secondly the total no.of installments should not exceed 48 months and thirdly the monthly installments should not exceed 10% of your monthly income.

[@markkalonzo8798]

Really makes sense

[@crocodilekingdom3331]

Crazy to see you here! Feels like just yesterday you were a class behind me, and now you're dropping knowledge like a pro. Proud of your journey-keep it up!

[@lovegalful]

Bought my first car on loan it was the best decision for my business. Am done with the loan and the vehicle is such an asset for the business. Look at what works for you. What works for you don't make the other a bad financial decision

[@paulkahoro2741]

Yes, but i thought he meant for personal use. for business it might be easier since the business is generating cashflow to pay the loan.

[@jonnesmwangi3250]

You misunderstood him. Your car is an asset.

[@eeeasyyySunday]

dealing with matatus and the issue of safety in cabs also just general convenience, take that car loan girl take it as long as its something affordable that you can manage take that car loan

[@jaymeskuriah]

Very insightful...Personal finance is very personal indeed

[@tnekskazimoto]

Real estate is one of the investment opportunities that has stood the test of time, so using numbers without proper research or consultation can lead to poor decisions, and that should be emphasized. Investors need to rely on well-researched data and expert consultations. Additionally, when discussing investments and mentioning real estate, failing to highlight its strength as a buffer against inflation does a disservice to the audience. Real estate not only appreciates in value over time but also helps preserve wealth during periods of inflation, making it a crucial factor in any real estate conversation. The numbers you are mentioning fail to account for inflation, which is an important consideration.

[@imungukalevera8671]

I would like to see Agatha from The Wealth Tribe here especially to speak on the money habits of millenial women

[@miriamwanjiku6136]

This was so good 👏👏 loved every bit of it.

[@george1528]

Brilliant conversations about money and wealth

[@imaniskandar7500]

From $10K to $30K that's the minimum range of profit return every week I thinks it's not a bad one for me, now I have enough to pay bills and take care of my family

[@timm1414]

This was fairly decent but Steve should have been more specific with some of the answers. Yea a lot of stuff “depends” but it would have been more helpful if he shared specific examples and scenarios. E.g., I was really looking forward to the portfolio question but the answer was disappointing to say the least. Could have shared examples of different kinds of people, like someone aged X and earning between X and X amount who’s just getting started with investments and is single could build their portfolio in this or this way. Same thing with the section on how should one live. Maybe the host should have been more pushy to get specific/helpful answers

[@stanleymumo8548]

Low class rentals have a better yield and an occupancy rate of 90% and more. In a low interest rate environment, bonds have very bad rates. Low class rentals are the way to go and do it in a big way. Instead of buying an apartment, build a whole flat

[@JamesM-wq1vr]

Buying a house will usually be cheaper than renting. If you want to buy a house and don’t have the full amount upfront, then taking a mortgage is better them paying rent for a house you will never own.

[@billyotieno3126]

The idea here is income potential. The opportunity cost of the mortgage. So it could be cheaper or expensive depending on a number of factors

[@armstrongjoshua1356]

Najua hapa tuko mambo serious but i had to ask this,iyo ngoma iko kwa intro ni gani ?...

[@joekangethe376]

Great insights but hapo pa renting pia you forgot to add the factor.. rent appreciates vs the home ownership shields you from that

[@MrRobertmiawa]

The aggressiveness at which the insurance/school fee merchants sell is usually borderline harassment. This alone has always made me cautious of their intents. Kahome, I have read your books👍.

[@_danOkumu]

Quite informative this one !

[@Financially_Incorrect]

Glad you liked it

[@samuelosebemoriasi2217]

"I dont want to answer that qn" technically, if you have self-awareness, you have answered it!!

[@misssassie8296]

Loved this episode, so much wisdom and insight!

[@Financially_Incorrect]

thanks for tuning in!

[@joynettetongi2281]

Hizi other investments to invest in are???

[@pajedetail3301]

The rent vs buy calculation assumes that you have the KES 20m to start with, uts not a rational calculation in my view.

[@johnesmaina8552]

Also can we both expound on this? That after the 10yrs of interest rate harvesting, you will not be an owner of the apartment but still a tenant... Can you please correct me if am wrong..

[@Justchilling8261]

I'll start by saying that kids aren't a financial decision. Raising a kid is expensive, but financial reasons shouldn't be the main reason why you should or shouldn't have a kid. And he should have answered your question, nobody will come for him 🤣🤣🤣

[@gedionfilms]

Whats the reason you have? Logically not Emotionally 😅

[@jacquiekariuki1484]

Actually there are countries where a high cost of living has deterred couples from having kids esp in highly competitive societies (think of countries like South Korea) where the quality of life you give your kid affects their future prospects

[@cikumainone]

Totally disagree.kids are indeed a financial decision. If you cannot afford them, don't have them.

[@ghumovictor7814]

​@@jacquiekariuki1484True. if you compare an individual with 1 kid and the other with 5 kids assuming they earn the same, they are not the same economically.

[@mercynamikoye9084]

​@jacquiekariuki1484 so true. You might want to have them but socio-economic factors in your country will make life even harder with children especially when the government specifically has very punitive unsupportive policies that deter the existence of families. Nobody of sound mind wants to struggle alone then at the same time e also add a new person to add on to the daily struggle

[@wallacetaliani]

Taking an Uber is cheaper than owning and maintaining a car. But people still buy cars. Owning a house gives you the same luxury.

[@Financially_Incorrect]

Guess the difference becomes needs and urgency

[@reine924]

Depends with the type of car whose value you're comparing with using Uber. I've been using Uber every morning to work for 3 months now and I have began toying with the idea of saving towards buying my first car - a locally used basic kadudu. I dread the fact that I'll be fully responsible for its maintenance and security (for instance, unlike an Uber, I can't abandon my car on the road if it halts) but I really need it. The recent digital taxis strike made me hate going to work in the mornings.

[@ghumovictor7814]

I took a mortgage of which I'm paying kes. 27,871 monthly for 15 years. I rented the house for ke. 22,000 monthly. And I'm living in a hse & paying 13k rent.

[@MusicLyf4]

Which country does this apply to? Ubers are for example so much more expensive than cars in Kenya

[@hariton1321]

​@@ghumovictor7814 which houses if o could ask,location,I am interested...

[@edwinkinyua-t4h]

in home ownership you touched on the subjective/relative bit, what about the financial aspect of it?

[@Play_Streams]

Guys should learn to do quick math without calculator, it's a really nifty skill to have.

[@ichooseviolence2532]

You have an echo