“What mess???” That was a while back when I looked at my financial health.
Left, right and centre nothing seemed to work. I did not have savings, just a salary. No second source of income. No health insurance or life insurance or even a small retirement fund building up somewhere. I was living in a very expensive rental house.
“How can you be able to improve your financial health?” That was the next question I asked myself. And that is when I started the research. The reading and with no time, I was able to pick up a few things along the way that helped me improve my financial wealth.
My top ten tips are listed below?
Start with a Budget
We all love to hate budgets but one thing that is for sure will, what I picked along the way was that, with a budget, you will in control of your finances.
This will give you a good view of your income versus the expenses and when you implement a budget, you will have less stress concerning money and you can actually have money to do what you want.
The journey to financial freedom starts with a budget.
Get a Side Hustle
I realized that to meet my financial goals, I needed to get a side hustle. I did several things until I settled on freelancing. Though it is not stable as I would like, it gives me enough money that I can use to meet some of financial obligations and goals.
If you work in an organization where you can get overtime, spend an extra two hours, work towards a better bonus, pick a side job, start an online business. Just do something
.
Set your Financial Goals
What is the point of having money in your account or spending it all without a care in the world only to start regretting later? Set some serious financial goals.
In an earlier article, I wrote my top 10 financial goals that you can borrow. Get those goals, saving for a car, paying off your student loans, to get out of a debt? Whatever it is you like.
Just make sure that your goals are SMART.
Build an Emergency Fund of at least 6 months
Do you know how good I feel when I am working towards this goal? Knowing that in case worse comes to worst I can be able to sustain my lifestyle as I look for the next alternative and not be worried about going back home?
That is sometimes what I call financial freedom. I am still working towards this goal. Watching my fund grow and you know the best part about all this is what, I am less and less scared of what would happen to me in case of sudden loss of job, an expected medical emergency everything.
This is the true definition of financial freedom.
Start saving for Retirement
Do not wait until you get an employer who will help you start contributing towards your retirement. You do know that there are self-funded pension plans that you can start from saving as little as 500 KES A MONTH!!!
How I wish I knew about these plans back then. Retirement doesn’t have to be until you in your 60s it can be like, I do not want to be employed by 45 and apart from my business, I want to have a fund that will cushion my bad business cycle. This happens, better to be prepared, right?
Start now and do not wait until tomorrow. You can catch up on the same. There are several calculators available online that can help you determine how much you will need for retirement.
Get Insured
Yes, there I have said it. Personally, as an insurance agent I have come across people who ask me during a meeting that they called me for, why do I even need this medical cover? Or personal accident cover or life/education plan? After all, it looks like I am throwing away my money.
When it comes to risk, you never know when it can strike, why take chances? When it comes to life covers. If you married or with kids, it is important to have a form of security such as life insurance to ensure that during the period of adjustment should something tragic happen to you, they will not be left in a rather tight spot.
Plan for your Big Purchases
Take time and plan for big purchases. Be it a TV, a fridge, that cooker. Take time to shop around. Look for what you think would be a good fit for you and at what cost, then start saving towards that project.
I have a friend who we this together and trust me, I have never felt the pressure of buying something just because I have seen it.
Start a Coin Jar Bank
Spare the extra coin. Instead of spending every extra coin why don’t you get a jar or a box and save it up and put a goal on it.
Within a few months, you will be shocked to find that you have accumulated enough money that can do something like get a vacation, pay bills among others.
Last month alone, I used my spare change for all my bills apart from the house rent, my transport, my electricity bill, my groceries, my subscriptions. Do you know what that meant; I put some extra money in my savings account and some extra money in my retirement fund.
Start a Savings Challenge
My favourite this year has been the 52-Week Savings challenge and thanks to the Facebook page and the success stories I have been reading there, I keep on pushing.
This challenge has taught me discipline and has enabled me to track my expenses and actually be more frugal in my spending and lifestyle.
You guys are the best.
Motivate Yourself
Remember that you still are human and you need a pat on the back when you have achieved something. At the end of the month take a stock check of your goals, see what you have achieved. The steps you have taken towards achieving your goals and give yourself a treat.
This reward should not be expensive.
My favourite is to get some grilled chicken and enjoy my prize from me to me. It’s my tradition and it is fun.
I know some who asked me last month, why do you always buy this chicken every end month, my answer, “I might not have achieved all that I wanted this month, I had my good and bad moments, but I take time to reflect on how to keep the good moments and successes and how to improve my bad moments and failures”
So, why don’t you start your tradition?
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