With many people currently going through financial hardships in Kenya, one has to live within their means. Every spending decision has to be accounted for. If you want to pay off debt or save money for a rainy day, it is then crucial to get a grip of your finances in order to achieve the intended goal.
Save in any way possible
Start by setting a weekly or monthly budget for yourself and use a budget planner to help you. Track all your expenses by keeping a detailed record of all your expenses, in order to understand where your money is going. Set goals and cut down on spending. As the saying goes, “Take care of your pennies and the pounds will take care of themselves.” Review your budget before every payday to make sure you remain on course and meet your saving goals.
Seperate needs from wants
Needs are things people require to survive while wants are things that a person would like to have, but are not needed for survival. Prioritise on essential things, such as house rent, foodstuff, utilities and transportation before you spend on luxurious things. Cut on the non-essentials purchases since they are easy to send you over your spending limit. We all like to treat ourselves, right?
Buy in bulk
The biggest benefit of buying goods in bulk, especially where they are sold in wholesale, is that it saves you money, as it is always cheaper since you usually get a discount. Only do big grocery shopping trips once a month and make smaller trips a few times a month to buy perishable goods, such as veggies and milk. This will help you avoid making unnecessary purchases and save some cash. It will also help you manage food wastage and utilising the amount of packing space.
Learn simple hacks
Keep your wardrobe in top shape and always buy clothes that will serve you for a long time. Buy generic brands or store brands instead of expensive name brands since they are often cheaper and of similar quality. When buying clothes, there is no need to rush and buy all of them at once, gradually purchase the items slowly. It is always advisable to purchase basic pieces that can easily mix and match, such as a black blazer or jacket that can match with a lot of other outfits.
Use surplus and leftovers
The waste bin should not be the recipient of everything you buy; plan well to minimise waste. Learn creative ways to reinvent and salvage. Cooking at home instead of dining out is another way to save money. Plan your meals and buy enough groceries to avoid overspending. If you are an impulse buyer, creating a list before shopping is a great way to keep your supermarket spending in check.
Be realistic, resourceful and resilient
Create a realistic budget by listing all your income sources and expenses. Allocate money to necessary expenses first then discretionary spending. Save on utilities by reducing utility bills and being mindful of energy consumption. Turn the lights off after use, unplug electronics that are not in use and use energy efficient appliances. Looking back at your previous months’ spending can help you decide how much you can realistically budget for the next month.
Start a side hustle
Search online and you will find many ways and ideas to make extra money on the side. For instance, you can make and sell homemade crafts or art prints, or buy clothes at Gikomba thrift market at a wholesale price and resell them at a higher price on the streets. If you work at an office, you can cook nice and cheap food and then you sell it to your colleagues and are sure to make incredible profits. You can also learn something about online businesses, writing, crypto and forex trading, which could be good side hustles.
Open a savings account
Start saving small amounts regularly; set yourself a goal of saving a specific and realistic amount of money every time. If you are not certain about staying motivated, it is wise to set a long time saving goal. Explore savings opportunities by looking for discounts, taking advantage of sales when shopping for essentials. Use a price comparison site to compare prices before making a big purchase.
Cut unnecessary expenses
Identify the non-essentials expenses, so that you can reduce or eliminate them. These may, include unused subscriptions, looking for cheaper alternatives, and eating out less. Find cheaper mobile phone plans; you can save money by reviewing your monthly bill and data usage. Cut costs on expensive trips to the salon, opt for simple and low maintenance hairstyles, such as sister locks, dreadlocks and simple natural hairstyles.
Cut down transport costs
Consider using public transport, or use motorbikes instead of driving your car to save on gas and maintenance costs. If you have a car, you can reduce the cost by shopping around for cheaper insurance and you can also reduce the cost of fuel by consolidating journeys wherever possible. When going for a short distance it is better to leave your car at home and consider walking or cycling instead. By implementing these tips you can help manage your finances more effectively and make the most of your budget. Always stay motivated, remember your financial goals, celebrate small wins and stay disciplined to achieve long-term goals and financial stability.