Personal Financial Hacks
According to the World Bank, about 1.7 billion people do not use any form of money keeping avenue. Also, 80% of those who have accounts do not use them. This has led to the introduction of mobile and digitally-enabled payments. Has this become a double-edged sword? On Thursday, September 10th, 2020, the Alumni team at Strathmore University organized a webinar addressing “Personal financial hacks – you must control your money or the lack of it will control you forever”. Sharing her wealth of knowledge on this topic was Financial Advisor, Susan Nyakiamo.
How do you manage your finances?
There are some practices you can do to improve your money situation. Your money problem may not be solved immediately but the financial challenges will begin to fade. To start you off, write down your short- and long-term financial goals. For example, taking a vacation is a short-term goal and buying an investment property is a long-term goal. Remember, as you set aside funds for your short-term goal the long-term funds are considered too.
Secondly, plan out and actuate how you will fund your short- and long-term goals. For example, money set aside for a vacation can be saved in a Sacco while those for buying a property could be saved in money markets like treasury bonds. Thirdly, befriend your budget. As it allows you to spend while you put some aside for a rainy day. The internet has a lot of budgeting software that will make it easier to stay on track. Another way of managing your finances is by paying off your debt. Even as you make minimum payment try and pay extra. This allows you to pay up sooner and so free your cash for use in other money-generating avenues. Once you have paid off, try to stay debt-free.
Lastly, talk to a financial expert in your bank. They can educate you on ways to grow your wealth. Experts advice that you do not buy into anything you do not understand just because it sounds good.
What are some of the best money habits?
Give back through offering, tithe, or support to a charity. Also, make money before you spend it. This will reduce your risk of getting into debt. Try not to copy the habits of others. It will free you from being cocooned into societal status. Stretch your budget. So that you are not spending all your money at once. Also, save! save! as little as you can. If you save Kshs. 50 every day, it will accumulate to Kshs.1500/- a month or Kshs. 18000/- a year.
Finally, always give back to your parents. You cannot be so poor that you cannot give financial support to your parents. It is not what you give. It is the fact that you have given to them that matters whether through buying them credit or sending them Mpesa.
This article was written by Annete Karanja.
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