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Key Highlights
- I worked tirelessly but spent every dollar on rent, tuition, and small luxuries
- Marriage and parenthood brought financial strain
- A pandemic layoff forced a financial reset
As a Ugandan business consultant who moved to Detroit, Michigan, in 2010, I arrived with dreams but little financial know-how.
My journey through my 20s, 30s, and 40s was marked by costly mistakes—spending without saving, hiding debts, and neglecting planning.
Sharing my story, I hope to guide fellow diaspora Africans to avoid these financial mistakes and build a secure financial future.
The Hustle in My 20s: No Savings, No Plan
In 2010, I arrived in Detroit with a single suitcase, a second-hand Dell laptop, and $287 in my pocket. Enrolled at business school, I juggled two part-time jobs—waiting tables at a diner and stocking shelves at a local grocery store. 
My hands were rough, my back ached, and I survived on instant noodles. My mantra was, “Work hard, and it’ll all work out.”
I spent every dollar I earned. My paychecks went to rent ($450/month for a shared apartment), tuition ($8,000/year), and small luxuries like eating out ($50/week). I had no savings account, no budget, and no understanding of financial planning.
I didn’t know compound interest existed or that a Roth IRA could secure my future. I was surviving, not planning.
Start saving early, even if it’s $20 a month. Open a high-yield savings account and learn basic budgeting using apps like YNAB or Mint.
The Chaos in My 30s: Poor Communication and Debt
By my mid-30s, I had a business degree, a junior analyst job at a Detroit consulting firm ($55,000/year), and a used 2010 Honda Civic. I married my wife, but our finances were a mess. We argued over money constantly—bills, daycare costs ($1,200/month), and credit card debt ($15,000 at 22% interest).
We didn’t communicate openly. I hid my spending on gadgets (like a $1,000 TV), and she concealed her online shopping ($200/month).
We had no joint budget or financial goals. Instead of tackling our debt, we took out a $10,000 personal loan to “consolidate,” only to rack up more credit card debt. We also neglected life insurance, leaving our kids vulnerable if something happened to us.
Create a shared budget with your partner using tools like Google Sheets or EveryDollar. Hold monthly money meetings to align on goals. Pay off high-interest debt using the snowball or avalanche method and secure term life insurance.
The Wake-Up Call in My 40s: Rebuilding with Purpose
Now in my mid-40s, I reflect on my choices. My wife and I were drowning in stress, with only $3,000 in savings by 2020. A layoff during the pandemic forced us to confront our habits. We realized financial mistakes stemmed from poor priorities, not just low income.
I didn’t invest in my 20s or 30s, missing out on stock market growth (the S&P 500 grew 10% annually from 2010-2020). I also ignored retirement planning, assuming Social Security would suffice. We splurged on non-essentials like vacations ($3,000/year) instead of building an emergency fund.
In 2021, we started budgeting rigorously, allocating 50% of our income ($90,000 combined) to needs, 20% to savings, and 30% to wants. We invested $5,000 in a low-cost ETF (Vanguard VTI) and opened 529 college savings plans for our daughters ($100/month). We also built a six-month emergency fund ($12,000).
Prioritize long-term goals like retirement (max out a 401(k) or IRA) and invest consistently, even small amounts, through platforms like Fidelity or Robinhood. It’s never too late to start.
Financial Mistakes: The Gap in Financial Education
My biggest regret was not learning about personal finance earlier. Growing up in Uganda, money management wasn’t taught in school or at home.
In the U.S., I didn’t know about credit scores (mine dropped to 580 due to missed payments) or the power of compound interest (a $5,000 investment at 7% grows to $19,000 in 20 years). I also avoided financial advisors, thinking they were for the wealthy.
Read books like The Millionaire Next Door or Rich Dad Poor Dad. Take free online courses on Coursera or Khan Academy about budgeting and investing. Consult a certified financial planner (CFP) for personalized advice—many offer low-cost initial sessions.
The Strength of Community
Living in Detroit’s tight-knit African diaspora community taught me the value of collective wisdom. At a 2022 community event hosted by the African Bureau of Immigration and Social Affairs, I learned about homeownership programs and matched savings accounts from peers. A mentor from Nigeria shared how he paid off $40,000 in debt by negotiating interest rates.
I isolated myself in my 20s and 30s, too proud to ask for help. I missed out on resources like the Detroit Black Wealth Collective, which offers free financial workshops.
Join diaspora groups on platforms like Meetup or Facebook. Attend local financial literacy events or connect with organizations like the African Communities Together network for support.
Conclusion
My journey from Kampala to Detroit has been a rollercoaster of financial mistakes and hard-earned lessons. In my 20s, I spent recklessly. In my 30s, I hid debts and fought with my wife. In my 40s, I rebuilt through discipline and community support.
If you’re a diaspora African in your 20s, 30s, or 40s, know this: financial mistakes don’t define you. Start today—educate yourself, communicate openly, save consistently, and lean on your community.
