Ever thought of investing in the future? Well the other day I had a conversation with a friend over the issue of saving. A visit to many families today you wouldn’t fail to miss a piggy bank or just a small tin with several shillings in it. What for? You may ask or better still why not spend on today tomorrow will take care of itself? This is the concept that has killed many people’s dreams. Our parents today spend up to half on what they earn to pay our school fees, the rest is on other expenses such as medical, household stuff, mortgage, loans e.t.c. Saving for retirement or for the future is pegged on you to take care of them when you will be in the job market. A certain university lecturer told me that the first few years after you graduate from college are very vital, they could determine whether you’ll live in Runda or Kibera.Therefore, at this moment when most of us are getting few chums from our sponsors, parents why not save aside from your expenses for tomorrow? It may prove difficult as one noted but why live on today and forget the morrow.
The first few years after graduation are very essential for it will determine
The route your life will take-spend wisely
So, let’s get down to the basics, how do you spend your disposable income? Throw a party for your friends, buying credit, an extra for a black forest or chapatti smokie? Whatever you spend on there are some healthy practices you need to adopt.
First, start with a spending record. Yes, you have heard this advice before. This exercise is eye-opening if you do it diligently. If you have been unable to keep such a log because it is tedious or difficult to remember, consider using your debit card for every purchase. Today, you can find the Visa/MasterCard logo nearly everywhere you shop or buy, including many fast food spots. This is a great way to begin to spot patterns and decide where you can cut back.
Secondly, analyze your bank account statement (four weeks is ideal) to help you determine where your money is going. Review your record without judgment. What you have done, in terms of your spending, does not matter – at least not yet. What does matter is that you get a firm hold on your expenses. For example, how much money do you spend on snacks, credit, each week? Dry cleaning? Take out? Movies? You get the idea.
Next, write down all sources of income. With a list of your income and expenses in hand determine your priorities. Begin your budgeting process here. Obviously housing and other fixed costs will figure prominently on your priority list. Now, take a look at the conveniences that represent variable expenses. This is likely where you will find room to make changes. For example, if you subscribe to a video service, can you get the two DVD plan instead of the three or eight DVD plan? If you buy coffee each day, can you bring it from home a time or two each week? Or would you be willing to purchase a smaller or otherwise less expensive cup? Can you clip coupons or eat out a little less?
Afterwards, write a budget in pencil. Writing in pencil will help you remember that your budget is a fluid document. As you live with it you will probably need to make changes. That’s okay. You may even want to include a little mad money each month. It is far better to blow a budgeted Kshs. 500 than it is to impulsively fritter away Kshs. 1500.00.
Lastly, set a savings goal and make it something specific and important. A meaningful savings goal keeps feelings of deprivation away while providing the motivation you will need to stay on track. Be patient with yourself if you do get off track. If it helps, try writing your goals down and posting them or maybe even carrying a picture that represents your goal. Refer to these as often as you need. It may also be useful to try to determine what emotional need your spending fills for you and look for another way to get your needs met.
Remember, developing a new habit takes practice. In time you may even learn to love your new healthy spending habits. It is liberating to be in control of your finances. So, go ahead, write your budget and honor your savings goal. That goal can be in your future if you decide to make it happen.
Sourced from the internet.
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