Poor spending habits: A major cause of the vicious cycle of borrowing.

Yesterday, I came across a very interesting article in the Daily Monitor Newspaper regarding peoples’ spending habits. I found it related to my previous article titled “Living within our means for a better tomorrow” and was therefore prompted to share it with you this day.

The phrase, “Failing to make ends meet ” is common in Uganda and it means that a person has got into a pattern where their income does not cover the money they spend month after month. In our book, “Make Sense of Your Money” we describe this situation as having more months at the end of the money- meaning the salary gets finished several days before the next pay cheque. 

Recently, a group of people attending a personal money management course that I was facilitating shared with me their major spending mistakes;

Living above means was a major spending mistake mentioned, for instance having expenses to an amount that is twice your income. Another was relying on anticipated income i.e one of the participants said his biggest spending mistake arose out of spending money in anticipation of future income. However, the most common mistake was  the “What will people say syndrome” where several participants said their spending mistake was that they spent money out of fear of the opinion of other people and they cited several examples to illustrate this issue. By James Abola.

Astala vista…

Integrity: A virtue essential for personal and national economic development.

Yesterday, I was part of a market place convention held in Kampala, Uganda. This convention is held once every year and brings together Christians from different walks of life in the job market. For instance, some of the companies that were represented included Renault car company,Insurance Company of East Africa (ICEA), to mention but a few.

The theme for the night was Facing the Giants with the guest speaker being Mrs. Angela Kirabwire from Capital Markets Authority, Uganda. This convention is aimed at empowering christians with knowledge and skills required to prosper and leave a mark in whichever field they encounter. It also offers an opportunity for people to interact, network, and make connections in the job market.

Individuals who have been in the field of work for a long time (20 years or so) are given a platform to share their stories and experience in the job market. They also talk about the challenges encountered, how they handled them, as well as the crucial lessons learnt in the due process. This is meant to provide mentorship to the young graduates and those just starting out in their careers.

Mrs. Angela Kirabwire took the stage and put the theme of the night “Facing the Giants” into context using her story of about 20 years in the job market. She ably illustrated various scenarios in which she had been put in very compromising situations involving graft, bribery and corruption in its ultimate description. Angella then added that she stood firm by her values of Integrity inspite of the insurmountable consequences.

She later on emphasised the importance of giving our best and working diligently however small the tasks at hand seem to be. This lays a firm foundation on which we can slowly and progressively build our careers.

True economic development starts with people in the economy, and Integrity is a core value eessential for personal development.

If only every individual were to steward their resources faithfully, our economy would grow and develop exponentially!

Living within our means for a better tomorrow.

Today, I was priviledged to attend a conference with the theme Power, Sex, and Money, the emphasis being on Money. Majority, if not all of the people in attendance were quite youthful, with some of them being students at university and others recently starting out in the job market.

The discussion at hand was very interesting and it involved the use of money in economic growth and development on a micro level. Very importantly though, it also encompassed how to make clean money that will last for years to come, in the process leading to progressive and sustainable macro economic development.

One of the guest speakers was Mr. Amos Wekesa, founder, Great Lakes Safaris ltd who also happens to be my mentor. He emphasised the importance of saving and living not only within, but also below our means.

He argued that this would potentially reduce the amount of debt that many people usually accumulate from unecessary liabilities like luxurious cars. These spending habits in many cases also result in the vicious cycle of borrowing. However; “When you save money, one day that money will save you.” Amos Wekesa added.

We should always endeavor to live within our means, and use the money that we have to make a positive and significant difference in our economy.

Until next time…

Celebrating the women in my life.

Today’s post is dedicated to the women across the globe, especially those whom I have had the priviledge to interact with in various capacities.

Beautiful woman, come out and play, reveal your inner treasures. The sparkle in your eyes, the natural swing in your walk, you radiate excitement and enthusiasm. You need no latest fashion, No expensive hair cuts, No blinding big accessories. You glow in your passions, passionate in your pursuits you know what you are made of. You are not easily bothered by the mindless opinions of others, you know very well where you want to go. You are a joy to watch, an inspiration to others, your pure soul an endless marvel. Beautiful woman, let your brilliance shine through, your eyes speak of true inner beauty. Fion Lim

Today, I celebrate you. Happy Women’s Day!

Drought resistant crops are the way to go.

Drought normally hits crops at the flowering and seed stages, which is critical in determining the size of a crop’s harvest. Therefore, we need to look beyond the traditional food crops that we have become accustomed to, and start growing those that can withstand harsh weather conditions.

According to Science Daily, lead researcher Dr. Kai Xun Chan from the ANU Research of Biology said that the team discovered an enzyme that senses adverse drought and sunlight conditions, and how it works from atomic to overall plant levels.

This way the crops will be able to react and adjust in terms of nutrient intake. In turn, they will be able to grow to maturity despite the harsh weather conditions.

Given that we can only do much to change the current weather and climatic patterns, why not adapt to them accordingly?

 

Irrigation is the long term solution to food shortage.

The talk of food shortage in the tropical regions has dominated headlines of late. This has largely been because of the prolonged dry spell that has of recent faded away.

Irrigation has proven to be a viable remedy to the unpredictable prolonged dry spells across the globe. Many countries that are geographically located in hot and semi-arid regions ,like Egypt have established mega Irrigation schemes that support plantations in the hottest of times.

In my opinion, countries in East Africa with Uganda being the case in point, ought to borrow a leaf or two and go the Irrigation way. This way, production of food crops could be enhanced, especially among the large scale farmers.

As a result, not only will there be increased production, but the surplus produce could also counter increased demand in times of food shortage.

Food shortage: A result of global warming.

Market days were very exciting and filled with lots of anticipation. Trucks loaded with bags of potatoes, corn, huge banches of matooke (green bananas) moving in and out of the market. Men clad in muddy clothes carrying and delivering these bags to market vendors, who were waiting with big smiles on their faces.

This is going to be a profitable day!” One would hear the vendors whisper. That’s me being nostalgic, dwelling on the good old days. Days where having three meals wasn’t a priviledge, because food was in plenty.

“Studies have shown that the combination of increased  levels of Carbondioxide in the atmosphere, rising temperatures and changes in precipitation may result in significantly lower yields for staple crops such as corn and wheat, particularly in the tropical areas where food production is normally high.” Dr. Sam Myers told Live Science.

This is already evident in Uganda today. A local farmer in Agago District, while talking to BBC focus on Africa said that because of food shortage, a cup of beans previously selling at Ushs 800 now goes for Ushs 2700 for half a cup! In many parts of Uganda, lives are in peril with over 1.6 million people facing starvation and close to 10 million others being underfed.

Inspite of the current rains, this food crisis isn’t over yet because it will probably take 3-4 months before the next harvest.

Global warming is definately playing a big role in the food shortage in Uganda.

Is Climate change a hoax?

There is alot of controversy on this climate change phenomenon. Many people believe that climate change and global warming have been blown out of proportion, most notably being the USA president, Donald J. Trump who famously said that; “Climate change is a scam created by China!

Scientists, however, think otherwise with many study findings alluding to the fact that global warming will and is already having insurmountable effects in the world today.

“While a powerful El nino has faded, the globe’s heat continues to be an enduring aspect. This January was the third warmest January on record according to data released last week by NASA. Large areas saw temperatures that were up to 9 degrees Farhenheit above normal.” Brian Kahn, Climate Central.

In Uganda, the weather-man has of recent failed to make accurate weather forecasts in the past three years or so. The dry spells have been much longer and hotter than earlier predicted. They have come out to say that their mishaps are largely because of climate change.

Recently, the meteorologists predicted that it is going to rain for the next three months, but some areas might only receive small amounts. Lets wait and see how this turns out.

You might be wondering what climate change has to do with the economy. In my next article, I will explore just how significant a role it is playing in today’s economy.

What’s your take on climate change and global warming? Feel free to leave a comment.

Artificial Intelligence: Reality of a jobless future.

After completing campus (University studies), the dream of every graduate is to get a job and apply the knowledge that we have amassed. We spend sleepless nights perfecting our CVs, making numerous job applications, and then dropping them off one office at a time.

Finally, when that lucky break manifests and we get a job, we celebrate and start building a career!

Meanwhile, these celebrations could be short lived with Artificial Intelligence (AI) becoming the norm in not only the developed but also the developing countries.

With the current tough financial times, every employer would wish to reduce expenses and operate at the lowest possible costs without necessarily undermining the quality of his/her product.The advance of Artificial Intelligence in the work-place is gradually making this wish come true, with prospects of not having to pay salaries and allowances.

Recent studies by Carl Benedict and Michael Osborne examined the probability of computerization for over 700 jobs.They concluded that “recent developments in machine will put a substantial share of employment, across a wide range of occupations at risk in the near future” The Economist.

A few years back, the thought of having “driverless” cars moving on our streets was only in sci-fi movies and simply out of the realm of reality. However, times do change, many developed countries like France, German, USA,etc are in advanced stages of making and testing prototypes of driverless cars. The car manufacturers predict that these will be available on the market by 2020!

This has left many bus and taxi drivers in those countries worrying their heads off due to the possibility of losing their jobs to machines and computers.

In Uganda, a recent study shows that one-fifth of the employees in bank related jobs could be jobless by 2021, with most banks resorting to mobile banking and the like.

An AI professor at Stanford University recently stated that “We are just seeing the tip of the Iceberg. No office job is safe” The Economist.

This growing popularity of Artificial Intelligence dictates that only those willing to learn and adjust will have a chance, otherwise, a jobless future is imminent.