Are you making the correct life and financial decisions? 

RONALD MUKASA is a financial literacy coach, consultant, trainer and business development professional.

Also the director Research, Innovation and Learning at Enterprise Uganda, he helps individuals and organizations to navigate personal finances and life choices to become better entrepreneurs. So, in celebration of the Global Entrepreneurship Week (GEW) due for November 14 to 20, Mukasa offers an insightful talk about the grey areas that separate success from failure, writes Yudaya Nangonzi.

Motivational speakers are fond of using persuasive techniques when it comes to success, wealth, and personal development. Their manipulative language alone evokes emotions that make most of their promises seem too good to be true. This was not the case with Ronald Mukasa. He scored highly on igniting a sense of self-discovery and re-orienting one’s thinking toward money by sharing personal stories and real-life experiences.

This method of offering workable fixes to financial and life decisions resonated well with staff who were left yearning for more of his wise talks. Mukasa said it was worth sharing with The Observer staff who play a critical role in informing the public in an “honest and candid way”.

He shared mainly about how to make, save, multiply and safeguard money. According to Mukasa, people have specific mindsets about money which could be created by their families or communities. However, it is imperative to evaluate these mindsets by changing the wrong behaviors and amplifying the right ones.

LIFE CHOICES

In a society with a growing number of entrepreneurs, there are continued intellectual debates about whether one became an entrepreneur by choice or necessity. When he posed a question of how many staff grew up in families where money was openly discussed, murmurs filled the room.

This got him to emphasize that a lot of how we think about money and how we perceive it is born in the orientation we had from our upbringing.

“Many people think side hustle is the thing you do on the side. It’s commonplace for people to run these hustles while chasing white-collar jobs at the same time. When people introduce themselves in public attached to formal jobs, they easily relate well with them as opposed to explaining their side hustles,” he said.

Whereas this person, for instance, trading in Matooke as a side hustle, will be received with sympathy, he or she could be making more money than the formal job. Mukasa said even if people agreed that side hustles make more money, it doesn’t manifest in the way they operate. Some side hustlers also either dedicate less time to their trades or offer shoddy work to clients.

“The real battle with money is about personal behavior, and not necessarily being knowledgeable. When you talk to people about saving and investing money, they easily understand it. Still, the reason why they don’t implement it is because we are battling against a behavioral arrangement,” he said.

He likened this narrative to wealthy Ugandans who often send their children to study abroad – but a few or none target skill-based courses with high returns on employment opportunities in these prestigious universities.

This has led to unending conversations about young people in the informal sector with immense wealth at a youthful stage. Mukasa strongly believes that with the right life choices, there are people who can create honest wealth and multiply it at a young age.

It all revolves around reflecting one’s core beliefs about money. He cited a working environment where staff receive the same salary and one deals with it in two days while another can stretch it to the next month. A person’s expenditure rotates around their life choices.

Here, he hinted at the just-concluded Nyege Nyege festival whose entire four-day festival pass cost Shs 200,000 for East African citizens, Shs 240,000 for Ugandan foreign residents, and $150 (about Shs 565,000) for international attendees.

“The speed with which someone can commit to buy a ticket to Nyege Nyege and feign sickness at their workplace is unimaginable. It is hard to convince this same person to save a similar amount monthly with ease in a staff Sacco,” he said.

With his field experience of about 16 years, he has also observed people procrastinate about fulfilling their life goals. For instance, around 2002, plots of land in areas such as Najjeera, Kira, and Buwaate were priced at about Shs 2.5m.

“At some point, they were asking people to make initial deposits of Shs 300,000. If you asked someone aged 40 and above if they didn’t see these plots, they would comfortably tell you that something big was due to come tomorrow. How much are those plots now if they even still exist?” he asked.

He is disturbed that such opportunities keep presenting themselves to people who can afford them but continue to be laid back.

MANAGING PERSONAL FINANCES

Until people battle with embedded beliefs about money that we shall make it big one day, they will reach 50 years or more while chasing the same dreams, according to Mukasa.

With his first salary of about Shs 540,000 around 2007, he managed to secure a plot along Busabala road after one and a half years of managing his finances. He agreed that this was a hard, painful, but worthy decision today.

“When it comes to money, you need to apply offensive and defensive strategies. Just like in football, every team has strikers [call them offensive] who are the most exciting on the pitch. However, the other half of the team are defensive players and often boring. There’s nothing spectacular about them but they are critical in every team.”

Just like with finances, people need to ensure that they are scoring and that money is staying and multiplying in their pockets. He cited footballers and musicians who get huge sums of money at once but lack the defensive skills to keep the money. It’s not any different from children who inherit property at a young age but when offered formal jobs, they lead extravagant lives.

“If you don’t have any inheritance but with a formal job, the only asset against you is time. Most people think they are employed to work for their bosses yet the best way to play offensive is in your current employers’ place. Just do your job well, improve your skills, and money will find you,” he said, adding that the job market dictates that excellent workers receive better pay cheques while the average ones are left at the periphery.

MONEY TRAPS

Most people find playing the defensive with money challenging because they don’t live within their means. Mukasa said it’s commonplace to see young people earning a salary of Shs 1.2m but renting an apartment of Shs 800,000. How do they survive?

The “see me” pandemic has also penetrated people’s finances as they want to keep up appearances instead of being honest with themselves.

For those who easily fall for fraud and Ponzi schemes in business, he urged them to think twice whenever such glossy opportunities present themselves. He explained that debt traps have also made financial freedom seem impossible for most people in the corporate world.

“Debt is a double-edged sword. Debt is not supposed to cover expenses between your expenditure and income. If you find that you are heavily indebted, it is important to look for help. If you are unable to pay right now, tell the lender the truth. Don’t run away. It is dangerous for you to escape debt,” he said.

RECOMMENDATIONS

Mukasa encouraged staff to embrace the principle of the five Jewish jars to become financially successful in life. This method, he said, will give one a state of comfort to spend wisely and enjoy their hard-earned money.

The five jars are; Dedicating 10% to tithe, saving 10% for emergencies, saving 20% for investments, saving 10% for generosity budgets, and spending the remaining 50% on yourself. He, however, cautioned staff about having limits to generosity.

“Your generosity cannot be just open. Some people may afford to give away their entire salary in a wedding meeting but when they have nothing for rent. If you are in financial chaos, why do you announce a pledge over and above what you ought to spend?” Mukasa asked. He ended his insightful talk with an analogy.

“If your boss offered you two letters; a red one terminating your services and a blue one to start receiving half your salary monthly. To many of us, the blue letter is more appealing as we organize our CVs to walk out. The mere fact that one can accept half their pay today, how do you say the five jars can’t work because they are half your pay.”

Staff were advised to continuously educate themselves about money, live within their means, save, and multiply their money.

nangonzi@observer.ug