On Money: Navigating Investments

It's yet another Friday, and I'm holding on to the tradition of writing articles every Friday. So far, I've managed to keep it going, hitting four in a row! It almost sounds like a line from a rap song. I might even consider resurrecting my rap career, which died on conception years ago.

A few months back, I got married, and I've felt the urge to share a bit about married life. However, I've been told that I'm not experienced enough in life to be making claims in this field. I get where those people are coming from, and I can say that I've got a few articles tucked away, to be released maybe 20 years from now, when I'm, as they say, "ripe."

This whole "not allowed" to talk about marriage thing made me a bit skeptical about the topic of the day. Here's the deal: I want to discuss the need for exercising caution with financial management, particularly in investments. If we draw an analogy with marriage, this article should be coming from the likes of Benedicto Berna Nkhoma and Thomson Mpinganjira. But as a broke student with no practical experience in the field, I feel like I shouldn't be delving into this subject. Yet, I believe my relative lack of experience is precisely what qualifies me to write about it.

This week, mainstream and social media buzzed with news that many people had been scammed after investing in a company called CDC. Reports stated that the company's website, where people had invested thousands, even millions, just vanished, leaving investors wondering if they would ever see their money again. This came after what must have been a strong campaign to lure people into investing and referring others to multiply their money.

If you've been paying attention, you'd know that money-making schemes like these aren't new; they've been around in various forms. AIM Global, Jama Life, Crown Investment, and other platforms have had their time in the spotlight. With the rise of blockchain technology and cryptocurrencies, there were also companies offering trading platforms for these innovative technologies, which were supposedly poised to challenge the roles of central banks. If the previous sentence confuses you, you're not alone. The only difference between you and others is that some ended up investing in different cryptocurrencies and losing money, just as others fell for various trading and pyramid schemes.

I'm not saying cryptocurrencies are scams. Some companies have invested heavily in cryptocurrencies and traded them. However, you need to have at least a basic understanding of how these platforms work before entrusting them with your life savings or tuition fees, hoping to double your money within a week. I attempted to grasp cryptocurrencies and the blockchain technology behind them. After several tries, I realized studying statistics made more sense, so I decided it was better to pursue further education in the latter. My point is just that I'd never invest in crypto because I just don't comprehend how it works. Statistics may not be the most "friendly" subject, but I would rather be struggling with regression than try to wrap my head around Satoshi Nakamoto's white paper on the block chain.

In light of the recent scandal, I noticed people mocking those scammed by CDC online. I tried putting myself in the victims' shoes, and that made it impossible for me to find it amusing. I understand where it's coming from. Poverty in our country has reached alarming levels, and people are desperate to make money. Not a week goes by without hearing of a mobile money transaction scam. We all remember how people flocked to training sessions when one man offered practical lessons in manufacturing, promising to usher in an industrial revolution for Malawi. In these financially troubled times, it's easy to get enticed by the prospect of making money, blinding us to the risks and legitimacy of these schemes. One might wonder if there's a way to evaluate such schemes, and I believe there is.

 As rational beings, we need to understand that there's no such thing as a free lunch. Making money requires initial capital and effort. When someone promises to multiply your money in a short period, you should be suspicious. In short, if it sounds too good to be true, it probably is. We also need to be wary of schemes heavily marketed with referrals as one of the requirements for making money. If someone bombards you with messages and calls to join, they're likely just trying to profit from your referrals. Here's another tip: scrutinize the person recruiting you based on their clothes and shoes. If it doesn't seem convincing, run! Essentially, we need to learn from history.

One solution to these scams would be providing financial literacy in any form. Even though some educated people have fallen victim to scams, I highly doubt anyone with a solid understanding of market principles would be easily duped. The challenge is that we're living in times when even those meant to lead us seem to be making a name out of striking dubious deals.

Ultimately, these issues could be mitigated if people were economically empowered. I firmly believe that the risk of investing in dubious schemes would significantly decrease if the economic environment allowed people to thrive in their businesses and earn money with genuine buying power. The high cost of living, combined with a hostile business environment, drives people to invest in questionable schemes. I could have discussed the dangers of gambling, but I'm aware that my opinion on this topic aligns with what Onjezani Kenani shared. We all know how he was criticized for days after speaking against gambling. Well, it's too late now. You might win some bets, but that's not a sustainable way to get rich. You see, it's not wise to get rich without undergoing the process of becoming wealthy.

That being said, I sympathize with the people who lost money to CDC, although I can't help but wonder how they couldn't see through the deception (excuse the language). I saw a picture of the Regional Manager for CDC and an ad that said people could find him at his base of operations near a bridge in Chikanda, Zomba. If you've been to Chikanda, you'd agree with me that people could have made better decisions. I also saw the Karonga offices. We need to be more discerning.

As we approach the weekend, I urge you to safeguard your hard-earned money. Avoid reckless spending and investments, and if possible, limit the soft loans you provide to family and friends to what you can afford to lose. If someone asks you to invest in something and you don't see an actual product being sold, run and don't look back.

 

Have a wonderful weekend.

Of Opinions, Debates and Conversations

 It's another Friday, and once again, we have a treat on Richie Online. I'm still trying to maintain the groove of writing every week, and so far, it seems to be working. I never thought I still had it.

It's a somber moment for the country as we mourn the passing of Thomas Chenkhumba Chibade, a musician who was once the best-selling artist when he released his Zatukusira album. This comes just two weeks after we lost another brilliant musician named Ahtoti Manje.

The deaths of these artists stirred up discussions, leading to various opinions on the causes of their demise. When Ahtoti Manje passed, it was revealed that he had been dealing with lung issues for some time. Some speculated whether reducing his performances might have extended his life, especially since he died right after a performance. Others questioned whether he should have stopped performing upon being diagnosed with a lung problem. There were also those who linked his death to an upcoming event and criticized the event organizers using harsh language.

Unavoidably, the death of Thomas Chibade has had similar effects on social media conversations. The dominant topic has been whether something could have been done to prevent such an early demise. Regrettably, some have abandoned sensitivity, hurling insults at the deceased, his colleagues, his family, and musicians in general.

As the Chichewa adage goes, "mvula ikagwa kuchuluka zoliralira," meaning people talk a lot when significant events occur. In Malawi, it doesn't need to be a major event; a celebrity breakup or someone going live on social media can capture the entire nation's attention for days. Sadly, the quality of conversations about these issues disappoints me.

Last week, I was scrolling through my Twitter feed when I saw someone express an unsolicited but bold opinion. This young guy, also a musician, suggested that a veteran rapper in the country should leave the rap game and invest the resources in supporting upcoming artists. He decided to tell someone what to do with their time and money without any provocation, based solely on his feelings about the music. While this might seem unique, many of us have poked our noses into matters that don't concern us, offering unnecessary and unsought opinions. Perhaps there should be lessons on minding one's business in the Life Skills curriculum, as such behavior can be toxic. We all need to consider the necessity of our spoken words.

I have also sadly noted that many of us engage in arguments about topics we are not knowledgeable about. Currently, there are numerous opinions and dizzying takes on the conflict in Gaza, similar to the early days of the Russo-Ukrainian conflict. When asked why they support one side or the other, the responses often leave much to be desired. I believe it would be beneficial for us to educate ourselves and understand these issues before engaging in debates.

One essential skill for engaging in conversations on current events is emotional intelligence. We need to manage our emotions while respecting the emotions of those with contrary views. Unfortunately, some people disregard the feelings of others, resorting to name-calling, personal attacks, and even physical confrontation during debates. While we all get emotional, letting emotions control us can have detrimental consequences. It's disheartening to hear about people spending nights in jail due to social media disputes with individuals they have never met in person.

As adults, it's crucial to form our own opinions. We are constantly bombarded with information from mainstream and social media, much of which is misinformation. It's our responsibility to separate facts from opinions and form our own judgments. The way international media have covered events like pandemics and wars over the years shows that the information we receive is influenced by various factors, including media allegiances. Politicians, media houses, academics, activists, and businesspeople provide us with information according to their interests and agendas. Sifting facts from opinions is vital to avoid regurgitating someone else's thoughts mindlessly.

Let's end with Socrates' triple filter test. The ancient Greek scholar, Socrates, had a visitor eager to share some news. Before the visitor could speak, Socrates subjected him to three questions:

1. 1. Have you made absolutely sure that what you are about to say is true?
2. 2. Is what you want to say something good or kind?
3. 3. Is this information useful or necessary to me?

Employing this test before engaging in conversations and debates could save us from discussing baseless rumors that damage others' reputations, without benefiting us or anyone else. It's essential to be sensitive, particularly for the sake of the deceased's families. It's crucial to consider context and the bigger picture and avoid cherry-picking when discussing issues. By the way, anyone claiming they can summarize complex topics like the Russo-Ukrainian or Gaza conflict in a 5-minute video or explain a Bible verse in a sentence is likely oversimplifying these intricate matters.

Have a wonderful weekend.

Entitlement

Woza Friday to you. We are back this week in what is a serious attempt to keep the articles coming every week. Will this be sustained? Not too sure, but the effort is there. Most of these articles come from social media feeds, so if I still have my internet bundle, we should be fine.  

On to the day’s topic. Entitlement! 

I am one of those who like to go through WhatsApp status updates. One update by a colleague in the medical profession caught my attention last week. You see. This good friend of mine happens to be studying for her specialist qualification in obstetrics and gynecology. In English, she would like to be one of those people who are experts in women’s reproductive health issues. On this day, she happened to be helping a woman who had given birth to many children when she offered her family planning methods, to which this woman declined. I will explain further.  

Common sense has it that it is not the best idea to have many children. Whereas the wisdom of the old suggested that children are a symbol of wealth, one more child could also be viewed as another mouth to feed. Here is the thing. Children, when raised well, can be assets to the family and society. Ultimately, raising children requires a lot of investment in time and resources. In cases where the two are insufficient, there is a risk that children end up growing into unproductive citizens or devoid of basic needs like education and good healthcare. As such, it is recommended that people not have many children, especially when you are in a position where you may not be able to give them the best care.  

Having had my share of clinical work, I have had the chance to work with women who came to the delivery suite. Based on the situations then, I was able to advise some to take up contraception which included measures to prevent women from having children again. Irreversible “locking”, you may call it. In cases where I have offered such interventions, it usually was because the women in question would endanger their own lives and those of the children they were carrying if they got pregnant again. From a microeconomic standpoint, such people would also struggle to take care of their children as there would be too many mouths to feed.  

Anyways. Back to the good doctor who offered contraception in good faith hoping that this woman would take it up, only to be greeted with a big fat NO. When she asked as to what her plan for taking care of the children and for providing them with basic needs and education was, she pointed out that there were different organizations that provided educational needs to children in her area. Her response is what will form the basis of the article for the day. 

The views of this woman who felt that other people would be responsible for providing for her children are shared by many. There are many young graduates whose self-development stagnates for the first few years of their career life because they assume the responsibility of educating the clan the moment, they get their first job. Relatives from the clan would suggest which two kids you need to start paying fees for without even asking how much you earn, and many have had to oblige paying this black tax. The family is not the only setting in which this happens, though, and this is not just limited to the issue of the help people give to one another.  

Repeatedly, people fall into financial trouble and find themselves in need of a bailout from friends. In such cases, it is common that people ask their friends and family for a soft loan to be repaid once the financial troubles are over. Under ideal circumstances, the money is supposed to be repaid at an agreed time but based on social media traffic, people are increasingly getting reluctant to lend others money because people just do not want to pay back. Others have ended up losing both money and friends because the borrowers were not honest enough to give back what they owed. One of the causes of this is the attitude of entitlement that leads borrowers into thinking that their creditor can do without the money they gave to them.  

The lack of trust that has come with kusabweza ngongole has created yet another complication. People are increasingly becoming hesitant to lend out money for fear of working for the same money twice. In cases where the borrower meets a response in the negative, the same attitude of entitlement can lead to fractured relationships. And it is not just the loans, even. A few months ago, I found myself talking to a friend who happens to be in the diaspora. The good man shared a story of how his interaction with one of his friends changed the moment he told them he could not manage to buy them a phone. This friend of his, in their entitlement, wanted the good man to buy them a brand-new phone out of their stipend. And just like that, the negative response shattered their friendship.  

And now to general principles. It is important to know that every person on God’s green earth has their own battles. The people we see as rich in finance and other aspects also have their own needs that may hinder them from helping whenever we need them to come to our aid. Your businessperson brother may have MK2 million in his account but fail to give you the 100K you need because he must pay K3 million to his supplier. The friend you think has ghosted you for no reason may be going through issues that they cannot manage to divulge to you in the moment. That lady who did not put you in their bridal party and opted for another may have their own reasons. Also… Even if it is just that they do not want to do what you need or want them to do for you, what will you do? Slander them? Well. Try that and see how that improves your situation.  

One may wonder where I am going with this. In case you are thinking that I am against the spirit of helping one another, you could never be further from the truth. I have spent some time in the UK where there is no community spirit and such a life can be sickening. We all need friends to come to our aid, do us favours, keep us company, offer us emotional support and things of the sort. We have organizations, the church and government to sort out our other needs too. All I am saying is that overdependence and entitlement to things that are not ours is detrimental to our mental health and can lead to fractured relationships.  

I once saw a Facebook post from someone who outlined a story of how his childhood friend came to borrow his car for a “short errand” only to disappear for hours. By the time he heard from the friend, he had been in an accident and the car had been written off. That was the last time he had a proper conversation with this “friend”, who never tried to ask what could be done to make up for the damage. This man concluded that a car is like an underwear or your wife. No one borrows those. Think of this person and the other people who have had their so-called friend default on their so-called soft loans. Sometimes people who decline to help us are only doing it for self-preservation and because of their experiences and observation. Imagine feeling entitled to something belonging to someone who went through such trauma. All I am saying is, sometimes it is best to be open-minded when asking for help. Whenever we get help, it is good to be grateful and to show our gratitude to those who help us by honoring the conditions under which the help was granted.  

I could go on and on and cite many other examples, but you get the idea. Our country is not progressing because we have entitled people who are bearing children to the mentality that their uncles will educate them. We are stagnating because we are borrowing with no intention of giving back both at individual and state level, and one of the reasons for that is the spirit of entitlement. While acknowledging the need for community and helping each other, you should understand that it is safer to live assuming that no one owes you anything and to expect and take a no for an answer when you ask for favors. The people you think are solid and can help may be going through situations that do not allow them to help. No one owes you a job, their time, a place in their bridal party, miles in their car, drinks, or anything of the sort.

Your friend in the diaspora does not owe you a new iPhone. Also, learn to understand that it is entirely possible for someone to have 20K to spend on drinks and not have 5K for your airtime. Does it make sense? Maybe not to you, but it is reality, and it makes sense to them. There is this thing of thinking that just because someone helped you at one point then they need to keep on helping. NOPE. Avoid repaying kindness with unsustainable yokes.  

Let me finish with a prayer. May all of us be redeemed from the spirit of entitlement; and may those of us who owe others remember to budget for debt repayment this coming month.  

Kumakhala ndi ulemu ndi zinthu zaeni. Kumabweza ngongole.