Embracing the Culture of Saving

 A Recap of Egesa FM Talkshow Presentation about Saving Tips

Although the culture of saving is crucial to attaining personal financial freedom, many people take it for granted due to various myths/wrong mindsets associated with it. 

Meaning of saving

Saving refers to the practice of putting aside a certain percentage of your total income for emergency, investment, funding irregular expenses or retirement.

N.B. You can use the 80/20 Rule to determine the amount to save according to your needs. It is known as "Pay Yourself First." That is, before spending your money, save at least 20% of your total income.

Importance of Embracing Saving Culture

1. Mastering your money i.e. becoming financially disciplined and taking control of your money.

2. Helps you achieve your financial goals. 

3. Cushions you against any disaster/emergency. Reduces financial stress.

4.  Helps you plan your future i.e. leave a good legacy to your family/ dependents. 

5. Boosts your self-confidence and self-esteem.

 "Don't save what is left after SPENDING, but spend what is left after SAVING." Warren Buffet

8 Tips on How You Can Save

1. Setting a saving goal e.g. Ksh.60,000 by the end of 2020 in order to buy a cow, start reading chicken,  pay shool fees etc. This will be broken down into s monthly target of Ksh. 5,000. 

2. Cutting down unnecessary expenses by budgeting and monitoring your expenses daily, weekly and monthly.

3. Shopping in bulk instead of small portions. 

4. Proper food preservation and utilisation. 

5. Looking for offers and discounts. Getting more value for less.

6. Paying off debts asap - avoid debt trap, consolidate & negotiate for affordable debt payment schedule.

7. Putting coins or loose change in a sealed jar/small container.

8. Using a budget as a guide to achieve your financial goals. 

Parting Shot

1. It is possible to save during these tough times coz saving is a routine.

2. Let's avoid getting into the trap of debt. Don't borrow to consume but to invest in income-generating projects. Passive income.

3. Remember to have money talks with your family, learn how money works and how to increase your income so as to save more.

N.B. Money speaks one language, "Save me today, I will save you tomorrow."

#ChachanomicsSavingTips

#IronSharpensIron

#PersonalDevelopment

Comments

Post a Comment

Popular posts from this blog

The Importance of Writing a Will

Why Should I Write a Will? Writing a will is a very sensitive, emotive and controversial subject especially in the African context. People view discussions about writing a will or death as a bad omen similar to inviting death into our lives.  Many people ask certain fundamental questions such as: 1. Is it necessary to write a will?  2. How will my family benefit from my will in case I write one?  3. What is required for one to write a will?  These and many other confounding questions reveal that many people don't know what a will is all about. You have heard or witnessed numerous cases of children, siblings or wives fighting over the property of the deceased.  This article will focus on the meaning of a will,  myths and facts about writing a will,  and what is required to write a will.  1. What is a will? A will is a legal document with a set of instructions that specify who should inherit what asset in the event of your demise.  2. What makes people not to write a will? i. It is c
Read more

Chachanomics' Advice Published in Saturday Nation on 17th Dec. 2022

Should I use Sh1.25 million to build my house or start a business? My name is Kennedy. I am married with two children. My wife is a trained P1 teacher working at a private primary school. We live in Nyandarua. I am employed on a permanent & pensionable terms with a net salary is Sh36,000 and my expenses are as follows: school fees 6,500, wife 2000, househelp 4000,, shopping 6500, food 3000. I don't pay rent as  I have set up temporary house on my plot. I also have savings of 240k at a Sacco. I want to take a loan of Sh1.25 million and the following projects are running through my mind: 1). Build a 3 bedroomed house worth Sh2.5 million that I have bought materials of approximately Sh370,000 for I sourced thses funds through my monthly salary for the past two years. These materials are at my plot where I live and intend to build a permanent house. I'm dead set against building the house through loans and as such, I was thinking of building the said house using my monthly sala
Read more

Financial Tips: What Are Mutual Funds?

One of the dependable ways of creating passive income is through building a sustainable portfolio income of paper assets – investments literally on pieces of paper that define ownership of assets such as shares, mutual funds, stocks and government securities. This article examines mutual funds as part of the paper assets. Mutual funds comprise a pool of funds collected from investors for the purpose of investing in securities like stocks, bonds, money market instruments etc. Also called unit trusts because one buys a fraction or unit costing kshs. 100 or multiple units. They are operated by professional fund managers who invest the funds’ capital to produce capital gains based on market trends.   Mutual fund providers in Kenya include Britam, Old Mutual, Zimele, CIC, UAP, Amana etc. Interests per annum varies according to market forces – for instance 5 - 12%. They are run professionally by experts who give small investors access to diversified portfolio. They are open-ended and affo
Read more