10 Tips To Help You Save! 💰💵
By Scott Kisoo
Saving is hard. From what I can see most of us don’t do it very well. The good news is that with a bit of effort and some good advice we can all become better. Below are ten tips to help you along your saving journey.
- Set a SMART goal 🥅
The first money-saving challenge is not having a SMART goal. By smart I mean, to have an idea of how much you intend to save, in what time frame, and for what purpose.
It is not enough to just tell the universe that from now on you will be observing the 50 30 20 rule. Have a very clear vision of what you want to achieve, else you are unlikely to succeed.
2. Budget, budget, budget 📒
After identifying your main goal, BUDGET, BUDGET, BUDGET. A budget allows you to have more specific mini-goals which will help you understand the main goal better and give you little wins along the way. You can use Microsoft Excel or whip out the old-school pen and paper and write down your budget, either is good.
3. Pay yourself first 🙋♂️
This is a tip I got recently from a good friend: pay yourself first! Secure your savings first then plan for the rest.
4. Separate your accounts 🧾
What you need is the main checking account and then other special accounts. The following are suggestions
- A Debit account from which you pay for your utilities and other regular expenditures.
- An Emergency account to have a safety net in case an unforeseen, urgent need comes up.
- A savings account, which I encourage everyone to have regardless of age.
- Any other account which is necessary for you.
5. Save with family or friends 👪
Group saving is a brilliant way of putting money aside. It is particularly good if you lack discipline. Get together with family and/or friends, set yourselves a savings goal, and lock the money away in a shared saving pot. Locking funds up means you can’t access your savings even if you are tempted and the group can hold you to account and encourage you to meet your goals.
Shameless plug, I have been using Moja with a few colleagues and I would recommend it. It is a wonderful product that makes group savings fun and easy. Check it out and tell me what you think.
6. Compare prices & be willing to buy off-brand products 🏷️
Sitting down to budget also allows you to compare prices. Be willing to buy off-brand products in case more common brands are highly-priced. An inferior brand is not synonymous with the inferior quality of the product.
7. Be frugal with your food, but make sure you eat well 🥫
One expenditure I have to be specific about is food. The advice that you often get here is to eat at home. But eating in is only half of what you need to do, the other bit is to pay attention to what you buy!
Eating well can easily get expensive if you are not careful. The cost of ingredients can make it just as costly to eat in as it is to eat out. Be wary of food bloggers who convince you that the only way to make a good healthy meal is by following that 20-ingredient recipe.
I tend to disagree with the strict “don’t eat out” rule since eating out is not all that bad, it depends on where you are eating and what you’re buying. Say you had chapati and beans on the roadside with a slice of fruit. That will set you back 100 shillings or so, not bad for a nutritious meal.
8. Look after your health 👩🏾⚕️
A lot of us are guilty of neglecting our health when we are trying to save. Don’t do that. Unlike a machine, if you don’t service your body well, you can’t get a new one. So in addition to eating well make sure you work out regularly and be sure to pay your health insurance however healthy you feel now.
9. Don’t just cut back when it’s essential ✂️
Often we don’t feel the need to be careful with our spending when things are going ‘normally’. This is a mistake, make sure you save when the going is good, it will set you up for the hard times, so avoid those compulsive purchases. YouTuber Graham Stephen has a good tip here. When you want to buy something, sleep on it then, give yourself time to make sure it’s a sensible purchase. Often you will find you don’t need it at all
10. And one from my Dad 👨🏿
My dad says, if you cannot drive a Mazda without causing an accident, you have no business buying a Range Rover. He has never bothered to explain this, so I won’t either :)
Finally, remember saving is your responsibility and it’s crucial so if you have not started, please do.
If you have any more tips on saving, feel free to share so we grow together
