The art of saving money is a culture embraced by very few people in our society as the majority are impulse buyers and generally spends money extravagantly. In our setting for example many entry-level staffers survive paycheck to paycheck as they spend the money entirely in pretext that the following month will enable them recover.
These spending habits and social circles pressures may push an individual to a point of no savings at all as the money available is spent in drinks, parties or other luxuries. Lack of plan may be a problem because in an event that extravagant individual loses income with little or no savings, they will be heavily dependent on family or friends. i have five tips on how embrace art of saving money;
Keep track of all the expenses and categorize them accordingly such that gives it clearly gives you an overview of how each category costs you for example grocery, mortgage or fuel. Use MPesa or credit card in transactions since you can easily trace and account for them and estimates be accurate.
Depending on your paycheck and the expenses you incur, draw a reasonable budget that will outline clearly how you’re spending measure up with the income. You can draw monthly budgets for convenience. A clear budget will enable you plan monthly or weekly spending and limit overspending.
Live within your means
If your expenses are astronomical high and leave nothing to save in the income, the best strategy is to cut them significantly. This is living within your means possible and unnecessary expenses for example nonessentials like entertainment should be significantly trimmed. These are instances where you can minimize spending on:
a. Attend free events of low-cost ones to reduce the entertainment spending
b. Purposing o eating out once in every month and go to the restaurants or joints that fall within your range
c. Cancel unnecessary subscriptions and memberships
Have savings goals and objectives
Pick savings objective like a vacation or building a house or even buying a piece of land, child education and retirement and set the timeframe of savings to hit that target. Savings when you have a clear objective is important as guides you. Consider liaising with financial institutions so that they may guide you on how viable you can go with your savings plan, the time and amount to be invested to hit the target.
Whenever you have had to budget, recorded savings and so on, how to prioritize needs with savings is important at the end so as to ensure you put your money on the right place in terms of investments or retirement plans. Know the needs that are essential and needs to be addresses first for example building a house.
In conclusion, the habits that we have had needs a dynamic shift to encourage the culture of savings. Impulse buying and general extravagance are draining our source of livelihoods and may render us poor but if we manage our resources prudently with clear savings plan while monitoring the spending habits, then we will certainly save more and achieve prosperity