Many people ask me for advice on how to manage their personal finances better. It’s a question I’m always happy to answer because it’s one of my favorite things to talk about. Because the topic affects us all, we’re not born geniuses at managing our money, but we can achieve success in this area through knowledge.
Kenyans at various stages of life have come to me for my advice on this matter, and today, I’d like to share some of that.
Here is how to better manage your personal finances
Experts all over the world always advise people to put away smaller amounts more regularly. Though many people fail to follow this advice because they think it’s too difficult, Kenyans, in particular, do so because of cultural reasons.
I want to tell you how to be good at budgeting in simple steps:
- If you can, start small: When you have a small salary, it’s challenging to see the big picture. If you start with Ksh 50 per day and allocate Ksh 10 of that for savings, you will always focus your mind on the little money left for other expenses. This will make you more careful about where your money is going because you would not rather miss a meal or buy something that costs Ksh 10.
- Work with a bank: I know many of you will say they can’t save because they don’t have enough money. But saving from the little you do have is better than nothing, so start by working with your bank, and as time goes on, increase your savings goal.
- Be open to learning: We often work hard and spend all we have without expecting to get better or learn something about money management. If you follow the above tips, your mindset will improve, and before you know it, you’ll be a pro!
Obviously, there are many other ways to manage your finances better, but these three steps will definitely help you achieve what you set out to if you keep working at it.