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New year resolutions ; I will spend less then I make, increase my savings and investment, work smarter and not harder this year to buy that Y or Z and then all my financial woes will be over.
This is just but a few of the financial resolutions that make it to our to do list at the start of the year, the biggest problem about most of them though is that there is no yard stick and no “How”, that’s the reason they are all broken due to lack of accountability.
To avoid the cycle of broken resolutions come January; the following are simple steps to consider as you start the year……
- Budget, Budget, Budget
I’m sure you have heard it a million times, I cannot stress that enough, and sadly there is no sexy way to put it, YOU NEED A MAKE A BUDGET. The companies you work for or aspire to work for do it at the end of their financial year and because you are the CEO of your own life, you should take it upon yourself to budget your money.
- Increase your savings to accomplish your goals
This is best done if you have a goal in mind, for example if your short term goal is to save up for that to die for HP laptop that costs Kshs 60,000, saving Kshs 10,000 religiously every month for the next 6 months will enable you accomplish that goal.
- Plan for the year
Considering the budget you have come up with you will get a clearer picture of how much you are able to save, for emergencies as well as save for that end of year trip/ related expenses, start saving now and you will end up saving smaller amounts as opposed to crash savings/ swiping you credit card.
- Begin investing
Investing money you have saved allows you to grow your money at a much faster rate, while banks may give you an average interest rate of 3% investing in the stock market may propel the interest you get to on average 10% and some of them as high as 30%, again this will all be determined by the goals you have set for the year.
Contributor Elizabeth Karina.
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