By Godfrey Beinomugisha Banker
Much as the General public is furious about untimely expenditure of 100bn given to MPs to purchase cars to facilitate their work as Legislators, it’s important that these Members of Parliament get financial literacy on how to manage their finances.
Most Members of Parliament have never got a chance to see this 200mn shilling at once on their Accounts especially the new comers, meaning it is their very first time to handle approx. $60,000 which will bring excitement among them and may end up in wasteful expenditure and regret.
I would like to take you through financial management tips to remind you that if not well managed the opportunity you have as members of Parliament may melt away once!
I am very worried that they will spend all this money to buy very expensive cars which if they used these allowances productively, each one of them would establish personal investments to generate income in the long run.
Let’s take an example; if each MP constructed a school in his constituency, at 150 million shillings 3 classroom blocks of 4 classes each, they would accommodate a primary school investment that would benefit constituency, some would chose a hospital, another a small scale processing machine like for cleaning cereals, another would want to put up a grinding machine and packaging flour maize, Milk,wheat, cassava.
I’m looking at each of our 530 MPs investing in their constituencies and reinvesting this car fund to our ailing economy; Such investments would employ many youths who are struggling to survive as the Covid Pandemic rages on.
Someone may wonder why money meant for a car would be diverted into all these but remember they still have monthly pay which can help each one of them to go to bond and get a car on hire purchase.
So as a financial consultant I would like to advise members of Parliament to invest in a permanent income generating activities so that in case any of them loses or leaves Parliament they would have a fallback and talk more of same financial position.
Fortunately, it is still early enough to prepare a good financial plan for oneself; buying a car is very necessary but let it be not more than 50mn and a fuel guzzler.
Lastly it is important that being a Member of Parliament one needs a life insurance cover separate from the Parliamentary insurance and savings scheme.
An insurance plan would safe guard you, your family, parents plus your entire investment from any future unexpected calamities.
Please don’t be like those other MPs who left Parliament only to live a life of regret
Let’s no meet a dirty, shabby and broke ex MP in future, start now, pick out very important advice and take up good financial plans to mitigate such embarrassments in future.
The writer is a financial consultant@ email@example.com
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