In theory, money management should be easy. Its key principle is to spend less than we earn.

In practice, very often we struggle to make ends meet and save money for a rainy day. Overspending, lack of control over day-to-day finances, bad time management – all these factors can contribute to your bad financial situation.

Saving – your second nature

Stress-free budgeting is all about earning money and spending it in the right way. Often you are hardly making ends meet, and it seems impossible to find some extra funds for the future. Remember that even small savings are crucial, especially in low- and moderate-income households. Building savings for the short-term is the first step towards your financial stability. The next one is to get your money working for you.

Look for some income-producing solutions

Passive income is crucial to make your budget safe. Leaving your money idle is a senseless way of losing its potential! However, you must tolerate some risk to get your nest egg working. For the beginning, you can look for some interest-earning deposits. Although you surely won’t make a killing on a single deposit, it would work against inflation and save some purchasing power of your hard-earned savings. Fixed deposits are highly liquid, so you can withdraw your funds whenever you need them.

Find thrifty friends

We often compare ourselves with others, don’t we? Unfortunately, sometimes our friends make it hard for us to be literate about money.  The fact is that when we surround ourselves with high-spending folks, the chances are that we would make the same money mistakes over and over again.

Cut on (unnecessary) consumption

Sadly, keeping up with the Jones makes us poorer. Overwhelmed by aggressive wealth signals, we tend to overspend to impress others. Sometimes we do not realize that we are driven by artificial needs displayed on TV and social media.  Buying consumer goods that we do not really need makes us lose control over our finances.

Take a closer look at your monthly expenses

Do you realize that subscription services can wreck a havoc on your budget if you are not planning it right? Being signed up for many services like Netlix, gym membership, Spotify, cable TV etc. can altogether be very expensive. Instead, find some free entertainment options: walking, running, listening to the radio, borrowing books and films from a local library.

…and everyday expenses

You can save a little fortune when doing your groceries. Cooking from scratch is much cheaper than eating out. You can buy basic food items in bulk and look for cheaper alternatives like generic brands. This tactic might be the best saving tip to keep your budget safe.

Educate yourself

Educate yourself

Lack of basic knowledge about financial processes can get you into trouble. Money gaffes often happen when people do not understand how financial tools really work. As long as ignorance of the law is no excuse, financial illiteracy is no excuse, either. Lack of basic knowledge about credit, interest and debt can lead people into trouble when they sign documents they do not fully understand.

Look for trustworthy providers

In pursuit of instant gratification, we want to live here and now, leaving worries about the future behind. The consequences of bad financial choices can really painful. No matter if you want to invest your savings or to apply for a personal loan – always turn to trustworthy financial providers.  Zenka, one of the best mobile loan apps in Kenya, not only gives you a chance to get your personal loan when you run out of money, but also – to top up your existing loan, and even postpone your due date. Zenka offers you a transparent and flexible financial tool, which will back up your hard-earned savings in times you need it.

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