[Update: 13.8.2021]

If you are here it means you have realised the importance of saving and need tips.

In the wake of Covid, millions realized how important it is to have rainy day funds.  Covid was such a blizzard that left many with empty pockets because they were not prepared to be strapped for cash for more than a year or at all!

Irrespective of the past, it’s never too late to start saving as a little goes a long way. Here are some tips to get you started.

Avoid impulse buying

Basic rule: If it’s a want and not a need that you didn’t plan for, do not buy it.

We all like shiny new pretty things. And boy, do shops know how to get your attention. Before you know it, you have spent your ‘fare’ or rent or borrowed from someone and can’t repay.

To reduce such impulses, make a list of short term and long term items that you need and a rough estimate of the cost. Keep a book/ Notes on the phone that you update regularly and check off what’s done.

Research indicates that we spend 20% more, especially on groceries, when shopping without a list.

Cut down on transportation costs

Walking is healthy. Very healthy. Have you been working from home since Covid and you just got back to the office? Put those leg muscles to work and shed off the extra pounds. Hye, you get to save money in the process.

If you want to save, cutting down on transportation costs is a great way to start. How? Start with a distance that can be covered in less than 15 min.

You can also try the less-expensive app-based public transport operators like SWVL, especially when crossing through CBD to your place of work and vice versa.

Automate your savings

Take note of your expenses up to the minute spending. Add that up then do a 50/30/20ratio on total income. Such that,

60% = Savings.

30% =  bills and expenses.

20% = miscellaneous day to day expenses. 

With all that down, set aside some amount that is automatic deducted from your net pay monthly/weekly if you have a steady income or deposit money regularly to your account.

Take advantage of offers, Promotions and Coupons

Freebies! Everyone loves them. This can mostly be found in supermarkets, like Naivas and Carrefour. Contrary to popular belief, you don’t have to shop every end of the month. There are a lot of offers on non-perishable items such as tissues, soaps, cereals, sanitary e.t.c. When the opportunity arrives, buy in bulk on half-priced and discounted items.

If Covid has taught us anything is that the state of the Kenyan economy is not coming down anytime soon. prices keep going higher and higher.

Use traditional methods of saving – Chama

Chamas, also known as round tables, are a common tradition where people contribute a certain amount for a particular goal or investment. It has been proven effective and you can collect the money then transfer it to a bank or SACCOs.

Avoid unnecessary automated subscriptions

There could be chances you have numerous and unnecessary subscriptions like mobile data bundles, Amazon prime, DSTV, Netflix, Wi-Fi, and other memberships like gym associations. The general rule, if you go for 3 months without using it, you do not need it.

You can suspend subscriptions that you rarely use and ensure to turn off ‘Auto-renew’ options. You can re-subscribe when it’s appropriate and fits your budget.

Try running, home exercises, plus, you have already paid for wifi, so there is no need for buying subscriptions for free online platforms.

We hope these tips will get you started to financial freedom. Try as much as possible to embrace these tips to ensure fewer debts because a little goes a long way.

Help us change for the better!
We need your vote to improve further and provide you with the best possible and free loan comparison site in Kenya!

1 Star2 Stars3 Stars4 Stars5 Stars (1 votes, average: 4.00 out of 5)
Loading...