How To Stop Being Broke Once And For All!

By Susan Gitonga

You know what time of the month it is. Mid-month. The time when most of you are flat broke. Penniless. Living hand to mouth. And I am 100% sure that every person reading this wants to be rich, to have wealth, to travel, to have big cars and live in posh homes, but the sad truth is that most of you are too broke to even start thinking about getting rich.

Without sugar coating anything, the fact is that if you are not faithful with the little money you have today, even if you won 1 Million Shillings, you would be flat broke within 5 years. Why? Because of how you spend your money, however little it is.

You have been given the same brain as Chris Kirubi and Bob Collymore.  The only difference is that you are not utilizing yours to its full potential.

Here’s How to Stop Being Broke Once And For All

1.Stop Lending Money to People All the Time

“Mwangi  si unitumie 1K nitakurudishia next week.” Has anyone received such a text message from a friend, who is not that close by the way? What happens after you ask them to refund the 1K you gladly sent them? They take you round and round and you end up letting them go without repaying you, don’t you?

Listen up. There’s a very thin line between kindness and being unwise. Some of you are very good at loaning friend cash every other day. You are not a bank. Unless you have more than 3 investments, you have to be very strict about where your money is going.

You should only loan out money when you have some extra cash that is just lying around without any use. (How many of you have such money, by a show of hands? I bet none of you.)

Read Also >>> My Boss Borrows Me Money and Refuses to Pay Back How Do I Ask Him without Losing MY Job

2. Use credit cards wisely

You have been invited by a friend for lunch or coffee and you decide to budget 200 bob for your meal. What happens when your friend asks you to meet her/him in Java Restaurant, where the only thing that costs 200 bob is a glass of lemon water?

The natural thing most of us will do is to use our credit cards to buy a plate of chips and sausage which might amount to 500 bob, which is 300 shillings on top of your budget.

In order to avoid being broke, you must remain disciplined. Suggest to your friend a cheaper hotel that is more affordable to you.

This brings me to the next point…

3. Stop comparing yourself to other people

This is one of the main reasons why most of you are broke.  If your colleague can afford an iPhone 7, that’s fine, but you must not compare yourself to them and save up for the iPhone which costs 80K, whereas your salary is 15K. It just doesn’t make sense.

If you’re a mtumba kind of person and you know you can’t afford clothes at Mr. Price and other expensive shops, you must be okay with that.

Self-comparison is the thief of joy, so they say. Buy only what you can afford, and earn your way up to buying expensive items.

4. Don’t hire people to do things you can do yourself.

I’m sure you know of people who hire a ‘Mamafua’ to wash their clothes including their inner wear. They don’t hire these dhobi’s because they have so many businesses and responsibilities. On the contrary, they have so much time to themselves but are simply lazy.

Laziness will make you broke. Laziness will make you buy 10 movies to watch on the weekend, and pay a ‘mamafua’ to wash your clothes as you watch the movies. Whereas you would have saved all that money and cleaned your house and clothes yourself.

Also, cook if you have the time, instead of buying food from a hotel. It is way cheaper!

5. Track your expenses

Finally, be accountable. Track all your expenses. Control your money and don’t let it control you. Have a plan for the month and stick to it, you will be surprised by how much your money will grow.

When you have considered all these things, just know that you will be on the way to financial freedom and wealth.

Read Also >>> 3 Clever Ways I Survived On A 7K Salary

Enjoyed this article? Leave a comment below. Susan is a Communications & Digital marketing Officer at Career Point Kenya. Email: susan@www.careerpointkenya.co.ke