Living Without a Budget is a Risky Path to Financial Insecurity – Jijenge Credit
budgeting is only part of the equation; prioritizing retirement savings is equally vital.
Peter Macharia Kamau, Founder and CEO of Kenya’s leading microfinance lender, Jijenge Credit, has issued a cautionary message on the risks of living without a budget.
Kamau warns that foregoing a budgeting practice not only jeopardizes short-term financial stability but also poses severe long-term consequences, especially in retirement.
“One major disadvantage of not budgeting is the financial strain that emerges later in life, often forcing people to continue working well into their 60s or 70s when they may not have the physical stamina or the choice to keep up,” Kamau explains.
“Things rarely go according to plan as we age, so building a safety net early is essential. Having the financial resources to retire comfortably in your 60s means budgeting now so you’re not forced to work because you need the money.”
Kamau emphasizes that budgeting is only part of the equation; prioritizing retirement savings is equally vital.
“Either budget and save now, or be forced to make difficult choices when you’re older. In my view, budgeting, saving, and dedicating as much as possible to retirement plans gives you control later in life,” he says.
With sound financial planning, Kamau notes, individuals can avoid the trap of becoming financially dependent on continuous work.
“You’re not controlled by the need to work for money to survive if you’ve saved and budgeted in your earlier years. Without this foresight, many people end up working well beyond 60, not by choice but because they have to.”
The bottom line, Kamau asserts, is that budgeting is more than just balancing numbers. “Budgeting isn’t just about numbers; it’s about purpose. Budgeting directs your money to align with your priorities, making every shilling count.”