Financial experts argue that saving culture can reduce poverty levels and build a strong foundation for the economic growth. However, many Kenyans are hardly money savers. Instead, we are in an endless sort of completion chain in a quest to posses what our colleagues have, a sort of a rat race. We highlight pointers to successful saving habits today.

  1. Pay yourself first.

In most cases when you get your salary the first thing you do is to pay your debts, rent and save the remaining amount. However, this is not the right way to save. Pay yourself first. The first thing you should do after you are paid is to deduct the standard recommended saving amount, say 10% of your salary. Then, you can pay other bills with the remaining amount.

For those who are working in the informal sector, the same rule applies; you should begin by saving 10% of your profit. Someone may ask what about those who are earning less and have many financial responsibilities, what do you do? It’s all about financial discipline. When you were not employed, life still moved on. It is all about squeezing yourself for a better course in future.

  1. Draw a real budget.

Most people hardly draw a realistic budget. We in most cases write down only the major spending ignoring the minor ones that at the end of the day stretch our financial muscle. In this case, you need to draw a comprehensive budget and stick by it.

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Remember to evaluate it at the end of every month. Do away with unnecessary necessities and remain with basic ones. If you don’t plan on your finances, you’ll always find unnecessary expenditure crippling in your priority list.

  1. Live within your means.

Mwerevu hujikuna penye mkono wake unafika.

It is very interesting how many people in their 20s live a life of competition and excessive expenditures. They are busy, buying cars, living in posh rented apartments and taking vocational trips characterized by extravagant spending. Most people fall victim of this factor and saving is the last thing they ever think about.  Many of these stylish lifestyles are funded by loans and mortgages. You should not borrow money to buy a car simply because your colleagues own one. If your income isn’t sufficient to buy a car, you can forgo it or save for it.

Mark Twain said, civilization is the multiplication of unnecessary necessities.

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  1. Do away with debts.

Anyone who is serious about saving should do away with any debts. Many people take bank loans that accrue lots of interest at the end of the repayment period. If you have a debt today, repay it within the shortest time possible and adopt the cultures of saving for what you want. In case you want to buy your home for instance, save for a stipulated period and later you can buy your home from your savings. That way you won’t incur any unnecessary interest.

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