8 Simple Ways To Save More Money

Savings anyone?

One of the ways to have a personal financial plan is to save. Savings are not just meant for later in life, savings help take care of you in the case of emergencies. Savings can be made to help you get that business up and running. Savings might be used to help you get a career change. You can be saving for your retirement

What are the steps that we can take to save for our future?

Start Now

If you have not started to save, START NOW. Do not wait for tomorrow or wait for the day after. Start now. At the beginning of the year, there was the 52-week Savings Challenge in Kenya and I remember there was so much hype about it. How many are still following through? I know I am, every single week as the year has progressed, and the challenge gets harder and harder. This means making some lifestyle adjustments but still ensure that you do not drastically lose yourself in the process. You don’t want to deny yourself food in the name of savings, do you?

Visualize Your Future

Sit down and imagine the freedom and joy that wealth can buy. Not a generic state. Imagine, not having to worry about food, about cut downs or retrenchment in your work place, not having to worry if I have enough money to pay for my child’s education or taking care of an emergency? Imagine where even when your business is low, you are not worried about making ends meet? Come up with a vision board if you have to. Make the future vivid.

Savings Goals

So, you have decided to save, what are you saving for? Is it for my wedding? Is it for my car? Is it for that mortgage? Is it to set up an emergency fund? Is it for retirement?

Classify your goals to short-term, medium or long-term. Have a clear picture of how you want. Then aim for the goal. Promise yourself not to miss it.

To begin with think about first having an emergency fund and set up a goal and say, by 6 or 12 months I need to have an emergency fund that can last me three or four months based on your current lifestyle.

Automate Your Savings

What does this mean? Are you the kind of a person that saves after spending? (Been there, done that) or are you the kind of a person who would like to save then spend? The best bet to ensure that you save no matter what is to save before spending. The best bet, sign a standing order. Have that money get out of your salary account or business account at a particular time. Is it the funds that you want to save for your child, sign another standing order. The key point is, Automate.

Make Your Phone Your Friend

There are many apps to go around these days to help track everything. Did you know that the weekly savings challenge has an app on google store? There are so many apps that you can choose from to help you set up your savings goals and keep track.

Budget

For those on their first jobs especially the first 3 months, and may be those still in college, you might not have an actual idea of how much your monthly expenses are like. If you do, congrats, you are on your way to financial freedom. I know most of know how much expenses we incur, rent, school fees, electricity, food, transport, and fuel, just to mention a few. You will need to organize your expenses in a workable spreadsheet. Once outlined, try to see how your expenses compare to your income. This will help you determine how much you spending and also limit your spending

Pick the Right Tools

Savings are not to be put under the mattress. They will not grow. Look around, google, talk to your bank, and find out the best bank accounts or products that can give you good returns on your savings. Our banks have come up with Goal accounts with a better interest rate. Take advantage of that. See how it goes.

There is power in compounded interest. Imagine if you started doing this about three years ago, how much do you think you would have?

Watch Your Savings Grow

You have started saving; the most important part is to keep track of your savings. Watch the change in the bank balance. See the interest earned.

Remember it pays to start early.