The 5 Biggest Mistakes That People in The Diaspora Do That Hinders the Ability to Build Wealth

By Isaac Chanakira

I do not consider myself a financial guru, but I have learnt enough about money and how it works to the point where I managed to raise my net wealthy from the very bottom to the seven-figure range.

After living in the Diaspora for more than 20 years, I think I have finally figured out the biggest mistakes that most of us migrants make in the first few years from arriving in our host countries.

We try to assimilate with the way of living with the people in that country and most of these people are merely consumers who are reckless with their spending habits because it is their way of life. Most of us forget that we came here, not just to live, but to excel and build wealth for our families, both here and those we left behind. Yes, I know, “if you are in Rome do what the Romans do” but remember what you came here for. Of course, there are some nice traits that the people in your host country have, and you should assimilate that, but, when it comes to money habits, you must be very careful who you imitate.

Although most people you see in the host country appears to be well off, many of them live from mouth to mouth and relies heavily on credit for most of their gadgets. They drive fancy cars, put on expensive designer clothes and live in massive houses, all on credit and that is the trap that most of us fall into. The moment you join this society the more difficult it will become to untangle yourself. You will also be living from pay cheque to pay cheque and topping your living standard by borrowing from your future income by means of credit cards.

I am not suggesting that you should live like a monk (no shade to monks), but you should know who you are and where you come from. You have more responsibilities back home and the guys in your host country are not even aware of it, so, when they ask you to go to party as if there is no tomorrow, you should politely excuse yourself or be conservative with your money if you decide to go.

So, I am going to share some of the things I have learned about living in a foreign land, not because my way is the best, but because it’s always helpful to have a discussion about diaspora life.

Here are  the 5 best things I have learned:

1. You do not need to go and get a brand-new car on credit just because all your neighbours and friends have flashy cars. Remember, these guys are born here, and they have their entire family here that they can ask for assistance. You, on the other hand,  have the whole village waiting for your assistance back home. You have no one to assist you. Try to use public transport, its very reliable in these developed worlds. If you are wise, a time will come when you will also be driving a nice car.
2. You do not need to buy the biggest house that you can barely manage to pay mortgage on or work two jobs to afford to pay it. If you stretch your self like that you will never be able to put money aside for saving or investing. For 30 years, your investment ability will be on hold, and if you lose your job, you can also lose your house. If you are renting, you do not have to live in the most beautiful and expensive house because you will need to put some money aside for your own house.
3. There is no reason to buy your clothes at the most expensive outlets such as Gucci, no one really cares about what designer clothing you are wearing. If anything, most people will know that you are trying too hard to appear rich. There are plenty clothing shops with decent and fairly priced attires. Keep in shape and even a $5 tee shirt from Walmart will suit you perfectly.
4. If you can, avoid posting or looking at flashy pictures on the social media. Isn’t it amazing that most people on social media appears to be all doing very well except you? Guess what? Most of those people are struggling to make a living, but they are trying to appear rich. If you can be easily swayed, you will fall in the same trap. Davie Ramsay, in one of his YouTube shows once said, “live like nobody else now so that you will live like nobody else later”.
5. I think the best thing that every migrant should do the moment they arrive in their host country is to invest in themselves. I am not saying everyone should go to the university or college, if you can, that will be good. There is an abundance of educational material online one can laterally get a degree in anything without even paying a cent for the education. Whatever you decide to study, you should also improve your financial knowledge. Do not waste time following  You Tube channels that specialises in rumours back home and how Pastor so and so was caught with someone else’s wife. You time is the most valuable asset that you have and do not waste it on useless things. Remember, the willpower and the determination that drove you from your country to try and make it big here? All that can go to waste if you lose your way and when you are old and frail you will go home empty handed and become a burden to those you left behind.

I am still learning, and I still do not know what the heck I am doing in some cases. And yet, I hope some of what I have learned so far will help a few of you.

I love sharing my ideas with people who experiences the same challenges as me, that is, people in the diaspora or anyone else for that matter. It is an incredible privilege for a guy who grew up in the ghetto in a third world African country to be able to sit in front of my computer sharing what I have learnt with the world.

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The 5 Easy Things That You Can Do to Save Money in The Diaspora