Knowing how to save money in Kenya is a problem to most people, simply because we love spending every penny we earn. But before saving, you should know the real purpose.
The ultimate reason why people save is to achieve financial freedom that reduces financial challenges in the future. Savings today guarantee security and the possibilities of tomorrow.
READ ALSO >>> How To Budget Like A Pro: 5 Very Simple Tips For You
Tips on How To Save Money in Kenya
1.Have a personal savings account
Learning to handle your finances responsibly can do a lot to help you save money. It can help you avoid paying interest on debt, avoid unnecessary bank fees and save on other costs. How do you do it? Open a personal savings account.
The money saved here cannot be used anywhere. No matter what you go through. It can only be invested. Think of this as paying your taxes; something mandatory that you must pay whether you like it or not.
2.Carry packed lunch to the office
Buying lunch every day is an expensive affair. So what do u do to curb this? The ultimate solution is to cook yourself a meal at home. Carry the packed lunch to the office. By doing this you are saving the amount that would have used to buy lunch.
This can cut your weekly lunch cost by 80% and makes it easy to stay away from things like pizza and others. At the end of the month you will save a lot. Every young worker starting their career should consider this.
RELATED ARTICLE >>> 5 Ways To Save Money On Your First Job
3.Know your expenses
If you’re not a consistent money saver, then it might really be difficult to start, especially in the first couple of months when you realize that your savings are not growing as fast as you want them to. So, instead know your expenses.
Spend the next 30 days noting down every transaction you make, so that by the end of the month, you will have detailed understanding of how exactly you spend your money.
You can therefore deduct the expenses in those areas that don’t have big impact on your life. For example, instead of buying tea every morning, you can make that yourself and save the money.
4.Use public transport to the job
Instead of driving, use public means to and from your job. It is more affordable and convenient than a taxi or uber. Maintaining and driving a car can be very expensive. When you have a car, you definitely have more independence, but you also have a car note, a car insurance bill, payments for car maintenance, and payments for any car emergencies that come up.
However, if your workplace is accessible bus, train or metro stations, just walk and save on the fare. Not only will you be saving money, you might lose some weight, which is healthy too. Also, if your job does not involve going into the field it is cheaper to use public transport.
Another tip on how to save money in Kenya is that whenever you buy something, use cash always instead of using credit/debit cards. It’s definitely much more convenient and affordable.
The same applies to M-Pesa. Instead of doing all your transactions via M-Pesa, withdraw the amount you want for that week and save hundreds of shillings in transaction fees.
If you must Credit card, use it only if you have discipline in spending otherwise you will find yourself in a lot of debt.
SEE ALSO >>> 6 Ways To Make Money When You Are Unemployed
By Tobias Kibet