16/02/2021
Long but educative 👌
Rented places must not be treated as permanent places.
You must consciously ensure you don't invest too much capital on rent.
1. Before you rent any place, give yourself a timeline to leave and work towards owning your own place.
2. As much as possible, ensure you don't lock your capital in 'luxury' but only the basic needs.
A couple of days ago, I was trying to explain to a colleague of mine why she shouldn't buy a bed, wardrobes and other furniture and appliances.
I also tried to convince her as to why she didn't need a two bedroom place and why she needed to get a house mate to split the costs.
This is the thing, renting a two or three bedroom place, which the mindset that you'd need an extra room for guests is just a waste of money.
Guests are not a constant in our daily lives and investing in a room in anticipation of guests is not prudent use of money.
Also, renting a bigger space, you can do without, results in more running costs.
Young wo(man), get a single room 'self-contain' and put the rest of the money away. The savings could get you between 50 to 100 blocks a month.
I suggest you don't buy a bed, put your mattress on the floor or palettes, save the bed money as investment into your own home. That's about 150 to 300 blocks saved.
Don't buy that wardrobe. Save that for about 200 to 350 blocks. When you get an architect to design a house for you, ask them to have a wardrobe fixed into the structure.
You see the big ass TV you want to buy for 1500 cedis, ditch that for a 32 inch for 700 cedis. You are looking at an extra 200 to 250 blocks.
Sometimes you need fancy stuff in your kitchen. That cooker with oven/grill etc you wish to buy eh, how often would you use it...can you maximise its use? No. Just get a simple two burner gas stove and save yourself some more more. An extra 150 to 300 blocks saved.
Don't buy that electric water heater for the bathroom. Don't buy that heater for the kitchen. Stick to the gas cooker. You'll save on both capital and running costs. That's another 150 to 200 blocks.
Sometimes, we are tempted to tile our rented places if they are not tiled already. We are tempted to get fancy painting and wallpaper to beautify the place. Each square meter you tile in a rented place is a square meter denied in your own place. The wallpaper is a luxury you can live without. Save that money if you can. Buy carpets and use till you move. You won't die if you deny yourself a tiled place for 3 to 4 years to enable you own yours.
That fancy lighting...ditch it. Buy energy efficient bulbs to give you illumination and help reduce your electricity bills.
Don't buy that big fridge yet. Get a small one to keep your food and drinks. It's just you pÉ› and occasionally your mochochomucho. No need to go big on the fridge.
Don't buy that washing machine yet. Instead, buy clothing that are easy to wash. That way, you don't spend too much time doing the laundry. The washing machine money can buy you more blocks.
You don't need the fancy couch. There are simpler ways to enjoy your space.
Let every decision you make lead you out of rent to owning, either by buying or building.
Building is capital intensive...time consuming...but an exciting and liberating experience if you plan and consciously work towards it.
That your car that costs more that 50K no...sell it and get a KIA picanto/morning for 20 to 35K, use the extra to pay for land or begin your project if you have land.
That expensive phone no, ditch it for any of the less expensive but functional smart phones and channel the money into your building project.
While you try to be austere and disciplined to get to your goal...don't forget about . Have a budget set aside to help those in need or devote some time and skills to positive causes. How good is the world if inequality increases?
Little drops
A block a day
Your home tomorrow
Author : Kojo Boateng (Citi FM)
