5 Major End Month Money Mistakes Kenyans Make & How To Avoid Them

By Elizabeth Benu,

End month is almost here and for those who have a job, it comes with a cheque or  a payslip. Will your salary be enough to last you till the next pay day or you will be in debt or as I have heard people say will you have too much month at the end of your money

It’s not that your pocket has a hole in it; here are 5 end month mistakes to avoid

1. Spending Money Without A Budget
Do you have a fair idea of how much money you spend in a month or are you living an unrestrictive financial lifestyle?

Andrew Makhulo, a Financial Advisor at MGK Consultants says that spending money without a budget is the biggest mistake one makes.

“A budget helps you track your spending and it should be planned and realistic. If it is utilized it can save you a lot of money. Make a budget and stick to it. A budget will help you live within your means and put you in control of your finances,” adds Mr. Makhulo.

2. Feeling Philanthropic
If you are good hearted you are most likely to fall into this trap of helpfulness.

“Some people give too much when they get paid and they forget about the days to come. For example when you get paid and someone tells you they need money for an urgent problem. Think it out properly before lending the money,” says Boniface Njuguna, a Financial Analyst at East Africa Breweries Limited.

3. Expensive Hobbies
We all have hobbies, right? And we all enjoy the hobby but could that hobby be scaling back your finances?

“Some social hobbies for example drinking alcohol goes too far when an employee uses too much of their money in such a hobby leading them to being broke. One can reconsider these kinds of activities and see what other options they may have or cut down on the amount of money they invest in such activities,” advices Mr. Makhulo.

4. Impulse Buying
Impulse buying is an unplanned decision to buy something and it ranges from clothes, shoes (for the ladies), jewelry and even movies.

Mr. Njuguna says that, “Once people are paid they spend money on unbudgeted items that are non-essential. This can get you broke within the next week if you are not careful enough.”

“Impulse buying can be reduced by having a proper budget and having the discipline to stick to it,” advices Mr. Makhulo

5. Failure To Bargain
“When you get paid it’s likely that you do not care about the price of what you are buying or the amount of money you are spending on an item. At this point you end up spending more money. I would advise one to bargain no matter the time of the month. It will save you money,” Mr. Njuguna says.

Any advice for job seekers or entry level employees concerning their money?

“It is important to budget on your salary in terms of expenses and basic needs in comparison to your income. Plan wisely to avoid wasting money. Planning helps you get around a full month on your salary,” Mr. Makhulo counsels.

“Pay all your critical bills when you get your salary for example rent, electricity and water bills. By the time you are getting broke you will not struggle to pay such bills,” advices Mr. Njuguna.

Don’t get broke before your next pay day.

Dont Miss any Job Or Article Subscribe to Career Point Kenya by Email FOR FREE CLICK HERE