Jepkorir Lagat: What I learnt from saving money in fixed account vs Sacco

Patricia Jepkorir Lagat is the founder and managing director at Horti Grid Limited, a horticultural firm that provides a blended package of agribusiness and agronomic solutions ranging from enterprise planning, production and market access.

I started my journey as an agri-entrepreneur by managing my parents’ farm. This included searching and showcasing the best practices in horticultural farming. It did not take long before demand for these services skyrocketed. I registered my business and enlisted partners who were willing to venture out with me. We started setting up greenhouses for tomatoes and later branched to other crops. My role today involves business development, financial management, supervisory and execution.

I have gotten to where I am today by clearly defining each of my goals. I follow this up by investing time, energy and resources. This turns every challenge into an opportunity for me to improve myself, learn, and be creative. If you don’t capture your vision clearly, chances are that you will drop it along the way, especially if the going gets tough. It is also important to take on something that makes you want to wake up every day no matter how mundane everyone else thinks it is.

I once spent money that I didn’t have on things I couldn’t afford. At the time, I was low on cash, but I was expecting an initial project cash deposit that would come in within a week. On impulse, I decided to join friends for a trip I could have opted out off. Since I didn’t have cash, I borrowed money to fund my expenditure. My thinking was that I’d refund the money once the deposit came in the following week. Unfortunately, the project was delayed indefinitely. I was left in debt and I lost the trust of the lender who had extended the loan. Never spend before you cash in the cheque you are expecting. In addition, avoid spending on things you cannot afford.

The toughest experiences could be the most important lessons you get. Sometime back, I delegated my role to a third party then failed to follow up with concise instructions. The opposite of what was supposed to be done was done. My failure to oversee the project cost me a substantial amount of money. My reputation was left in ruins. It took me more than two years to recover my confidence. I had to rebrand and reboot. It was a very painful lesson but it was worth it. In retrospect, I have learned why it is critical to assess keenly the team I am about to work with, to stop trusting people on first impression, and to be clear on targets and expectations.

A fixed bank account was my preferred mode of saving when I started my saving journey. I thought it was wise to lock my savings and earn interest. Today, I no longer save through the fixed account. I use the Sacco and chama table banking instead. Unlike the fixed account, both of these methods allow me to access cash and loans whenever need arises.

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Being an entrepreneur in the world of agribusiness, I am a big advocate for entrepreneurship. I believe it is the superior way to create longer lasting wealth. In my time as an entrepreneur, flexibility and creative space have been my major takeaways from entrepreneurship. There are certain limits that employment won’t push you to and certain freedoms you will never get from working for someone. However, the world of entrepreneurship is not for the faint of heart. Income is not a guarantee. The mistake I see people make is to take a sudden shift from employment to business just because it is a better way of making wealth. The shift should be gradual and driven by learning, experience, and capacity.

Money talks; it says goodbye. This is a lesson that I have learned from my father. He always insists that I need to set aside an amount to secure the future in the form of investment that is not necessarily related to the business. I have also learned the importance of taking my time to evaluate every expense. I am able to do this by working within a budget. Tracking spending is mandatory when it comes to planning, controlling, and utilizing finances.

This feature on Patricia Jepkorir Lagat was first published in the Saturday Magazine. The Saturday Magazine is a publication of the Nation Media Group.