Failing to take risks can sometimes lead to even greater risks, especially when it comes to finances and personal growth, youth advocate Emmanuel Kansake has warned.
Speaking on Voices of Change on Mike FM, Kansake urged young people to embrace calculated risks to achieve long-term success and financial independence.
“It is more risky not to take risks,” Kansake said. “By taking calculated risks, you can potentially achieve greater rewards and build long-term financial stability.”
He explained that financial literacy plays a critical role in achieving financial security, defining it as the knowledge and skills needed to manage scarce resources and money wisely.
“Financial literacy is about having adequate knowledge on how to manage your scarce resources and money in order to stay secure and meet your needs when you run out of it,” he noted.
Kansake differentiated between saving and investing, saying that saving involves setting aside a portion of one’s income for future goals, while investing means putting those savings into ventures that generate profit.
According to Kansake, many young people make the mistake of acquiring liabilities instead of assets. He defined assets as items of value that generate income or appreciate over time, while liabilities, such as car loans, drain resources and reduce net worth.
“Assets generate income or appreciate in value, while liabilities cost money to maintain. Assets can be sold or used to generate income, but liabilities represent debt.” he explained
Kansake also urged caution when taking out loans, emphasizing that borrowing should only be done when it can produce returns capable of repaying the debt.
“I don’t like loans, and I don’t usually advise people to take them. A loan should be able to bring you returns to offset what you borrowed. If it can’t do that, then it’s not worth it,” he said.
He further highlighted the importance of having a scale of preference — listing one’s needs in order of importance — as a key tool in budgeting and financial planning.
Kansake concluded by encouraging young people to broaden their perspective on employment, urging them not to rely solely on white-collar jobs.
“See work as service to mankind, and you’ll realize there are many problems you can solve for people — and they’ll pay you for those services. There is work everywhere,” he said.
Mike 105.3 FM | Navrongo | cynthia Afaah
