How to save money
Usually, when the word “saving” pops up into your daily conversations, one thing that comes to mind is:
“Where is the money meant for savings going to come from?”
Saving is practically putting aside a small portion of what you already have.
Setting aside that extra money torments your comfortable financial status in a way that if you don’t feel the affliction, it is not worth it.
You’ve been earning the same amount relatively for some time now, and you spend it all.
This means that the cash you earn is enough to cater for all your regular typical monthly expenses.
No additions, no subtractions because these are the necessities to keep you alive, at least for now.
Saving is now part and parcel given the fluctuating status of today’s economy.
Parents have started saving for their unborn kids. How lucky are these anticipated beings!
When I get paid, I feel suddenly rich.
At that moment but here is what happens; In a week, weird as it may sound, I never know how my money ditched me.
I know too well that I am not alone in this and for you, member of my not-so-crafty squad, this read is a must.
Set financial goals and objectives
Visualise and detect where you want to be financially at a certain point after saving.
Set timely goals that are manageable. Be realistic with yourself as you set these goals because you don’t want to set goals that will only be achieved in mind than in living.
Let the SMART module guide you.
These may include a checklist of the dos and don’ts in your expenditure.
Always remember that it is essential and reasonable to start small.
Make a budget
Quit spending like you are hypnotised by the “god of scarcity”.
Budget for your expenditure thoroughly. Be sure to stick to your budget because once you go overboard to spend an extra shilling, you encroach on funds meant for savings and other purchases.
Look for budget assistants like Every dollar to help you in cases of inefficiency. Try budgeting in envelopes. Kind of a traditional way to do things.
Spend strictly the money allocated for each envelope and save the balance.
Through budgets, you will know where your money is going and where I should not. The sum of cash you spend on the fare, food, and shopping might surprise you.
Clear any debts or pending bills
You are spending more than you know on debts because of the dire interests you pay for additionally.
Clearing your debts will shift a heavy burden off your shoulders, declaring a new financial beginning for you.
After you let out a sigh of relief, playtime is over. Save that extra cash that was always transferred to your debts and start off building those savings.
Settle better deals for your regular bills
After a little more research, you will be shocked to find that your ignorance made you pay more for less or pay more for what you could find cheaper elsewhere.
Most companies often come up with offers to favour their customers. Try to re-negotiate better deals for your DStv, for those who fancy TV, water bills, insurance, and even data bundles.
You might discover cheaper options like considering monthly wifi other than daily data bundles.
This way, you will gain extra cash for the good of your savings account.
Data bundles are one thing we always need in our daily lives; nevertheless, we spend unnecessarily on their purchase.
Check up these easy bundles options from Safaricom.
Fun at home rather than out
Find alternative modes of having fun and keeping up with your social life at home. Fun at home is not as costly as it would be elsewhere.
You may find some good suggestions here.
Invite friends over for a barbeque at your backyard rather than hitting up the latest club in town.
You could consider having friends over for a movie night. It will save you transport costs, food and drinks bills.
If you must go out, go ahead and look for economical but fun destinations.
Set the amount you are willing to spend and do not carry extra cash as you go to have fun.
Invest in energy-saving electronics
Purchase good quality electronics to save you regular breakdowns and need for repair, which gets costly with time.
Technology-enhanced high-quality electronics have power savers and minimise your electricity usage. Energy-saving bulbs have for long now flourished the market.
This way, you wouldn’t have to pay abnormal power bills.
You have to be keen and get acquainted with the electronics in your house.
Go ahead and control the thermostats of your refrigerator and air conditioners to minimise power use.
Automate your money transfer
Once the money is automatically deducted from your account, you are saved off the burden of physically setting your savings aside which you might forget.
Automation provides accuracy on your financial arrangements. It is easy to keep track of where your money went.
This will save you the hectic part of counting and separating your money for whatever it is meant to do.
However, keep in mind to do a follow up of your accounts from time to time.
Automation of your accounts is bound to help you with the ‘save first then spend’ rule.
Take advantage of purchase offers to save money
I know this sounds quite bizarre and hectic for the human mind but would you rather spend additionally?
Monthly offers at your local grocery store or boutique could save you a bunch. You just need to know when the offer is running. T
here are credit unions and banks that offer free saving accounts, why not take advantage and open as many as the things you are saving up for?
Mshwari offers a free savings account on your mobile phone from Safaricom service providers.
In other words, take advantage of promotions and offers to save that extra cash you think is too little to make a difference.
In circumstances where there is a discount on what you need, take advantage and buy it in bulk.
Take a look at the prices in different shopping centres and be sure to leverage the cheapest products and shop smart.
Consider a “no spending” day
Choose a day of not spending at least once a week or fortnight. All expenses you save for the day will earn you extra credit in your savings.
This habit is meant to build your financial behaviour.
Pack your lunch
This case does not work everywhere but in most places.
Spending about 150 Kshs on lunch daily is not worth it over carrying your homemade food.
I’ll admit it is quite tedious, but brethren imagine if you saved that money for a month.
You would have 3,000 Kshs added to maybe your retirement or emergency savings. Think! It’s easy to save that money!
Make income additions
Get those extra bucks from a side hustle or talent you are well acquainted with.
After all, where will that extra cash-to-save come from?
Spend less than you earn
That is a rule to save you from the deficit situation of your budget. When you make a shopping list, stick to it to avoid going extravagant.
To eat the sweet fruits of saving, you’ll have to go through the bitter taste of patience and endurance.
Embrace these applications to help you sustain your financial management.
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