Tired of your own spendthrift habit? Below are some ideas on how to plan your personal finance in Kenya.
Personal finance is the financial management which the individual or the family unit performs to budget, save and spend monetary resources over time, taking into accounts various financial risks and future life events. The tips to do this include;
Learn to budget
This is the first and the most important step in money management. Reading some few personal finance books will help you understand it is important to not let your expenses exceed your income and to watch where your money goes. Creating the budget enables you to truck the money that comes in and going out. This will enable you to keep your monthly expenses low hence putting you in the position of investing in things such as your own home sooner or later.
Start saving
It is important to always set aside some money as you never know which turn your life will take. This ensures that you are prepared for the future emergency and also eliminates the chances of overspending. You should consider automating your savings to help you stay in track and also ensure you are putting money in your savings. Aside from helping during emergencies saving can also be of benefit in assisting you achieve your long- term financial goals.
Avoid debts
Taking loans is the common way to achieve life goals among many people but it comes with its disadvantages due to the high rates of interest that may end up eating your savings. Focusing on avoiding debts means that you pay off the already existing debts and stashing away that credit card to avoid accumulating more as depending on the credit card will cruet the financial burden for you. Being debt free enables you to focus on your savings.
Educate yourself
Take charge of your financial future and learn about personal finance from the few books. This is the best way to cruet confidence on how to ménage your money and studying away from unnecessary expenses such as going on the trip you cannot afford with friends or even family. Learning personal finance can be intimidating but becoming financially savvy efforts. Commit to educating yourself and you will be thankful later.
Protect your health
It may be difficult to recognize the link between health and finance but they have the lot in common. Taking care of your health enables you to prevent diseases that could become financial costs in the future and other consequences that may affect your finance such as the inability to work due to illness. Healthy eating habits can also contribute to savings. this is because cooking is way cheaper than ordering or eating out at restaurants which are usually expensive for simple foods such as pizza that are not even healthy.
The journey to the better finance starts with changing your own habits and although this may be difficult, with the little bit of commitment the transformation will serve your whole life. Also, considering the big picture when making financial decisions will result to the better financial health .it is also important to consult the financial advisors before making huge financial decisions.
Your advice on planning personal finances in Kenya is practical and insightful. Starting with budgeting and emphasizing the importance of saving are essential steps toward financial stability. Advising against accumulating debt and encouraging continuous education about personal finance are also wise recommendations.