By Kibet Tobias
Do you always find yourself paying debts every end month and are left with little money to survive on?
I know you don’t want to hear about this, but probably you’re making some mistakes that are keeping you there.
Maybe you acquired your car on credit, rely on M-Shwari to pay off your bills or had to survive campus though HELB loans. Whatever the cause, it’s time to move forward.
The good news is that you’re not alone. There are a lot of people sailing in the same boat and most have found ways of gradually working their way out. You can make it out too and be debt free.
Here are the things keeping you in debts and ways to avoid…
1. Spending your money on friends and family
Don’t get me wrong. Spending your money on friends and family isn’t actually wrong but you overdo it.
Your friends and family members are the most important people around you. Often you will have to make them happy and show them love. And one way is taking them out, buying gifts, supporting their projects, you name them.
However, this should be done within your limit especially after you’ve cleared all your bills and put money on all your savings accounts, emergency fund, and other important projects.
Treat them once in a while to ensure you don’t end up interfering with your long-term financial goals.
2. You’re not budgeting your money
Anytime I walk into a supermarket, sometimes I get tempted to buy some nice stuff I had not planned for.
You see everyone else buying expensive clothes and gadgets and you want to try it too. Does this sound like you?
Budgeting ensures you are accountable for your finances. It will ensure you don’t buy things you don’t really need.
3. You don’t control your spending
Sometimes I wake up in the morning with a five hundred shillings note in my wallet butat the end of the day, I cannot even account as to where the money went.
Maybe you like going out shopping immediately after being paid – buying shoes, clothes, expensive drinks and the likes. Two weeks later, you have very litter money left on you.
Unfortunately, this becomes a continuous circle and in the end, you may not save any money.
A great way of securing your financial future is to ensure you control your spending as early as today.
It may seem difficult in the beginning, but learn to always think twice before buying anything. Gradually, you’ll be able to track your expenses.
4. You frequently use credit cards or Lipa Na M-Pesa
If you always use Lipa Na M-Pesa or credit cards to pay for goods and services, most likely you are spending more money compared to cash payment.
Do you know why? When you pay for stuff by cash, you see the cash as it leaves your pocket. Therefore, you’ll feel the pinch. This will prevent you from using all the money you have. unlike when you are paying using your ATM or M-pesa.
This doesn’t mean you should carry all the cash with you. Just carry enough that you have budgeted for.
For instance, if you plan to use 1,000 shillings today, don’t carry 2,000 because you’re going to use the whole amount.
If you always find difficulties managing your finances, consider taking professional finance training accessible to you and start building your wealth soonest.
These are just but a few financial mistakes keeping you in debt. You need to start avoiding them for you to save for your future. Make wise financial decisions today that you are not going to regret 5 to 10 years to come.