Are you worried about how to make ends meet during these harsh economic times? Do you feel overwhelmed by the rising costs of living and the decreasing value of your money? You’re not alone! Many Kenyans are struggling to keep their heads above water.
However, slight adjustments to your daily routine can save a coin.. or two to get through the next day.
Here are some tips and strategies to help you make it through:
1. Create a budget and stick to it
Start by tracking your income and expenses to see where your money is going.
Make a budget that accounts for all of your necessary expenses, such as rent/mortgage, utilities, groceries, and transportation. Be realistic and prioritize your essential expenses over discretionary ones.
2. Cut back on discretionary spending
Identify areas where you can cut back on discretionary spending, such as dining out, entertainment, and hobbies.
Consider cheaper alternatives or find free or low-cost alternatives.
3. Build an emergency fund
Aim to save three to six months’ worth of living expenses in an easily accessible savings account.
This will help you cover unexpected expenses, such as car repairs or medical bills, without going into debt.
4. Pay off high-interest debt
Focus on paying off high-interest debt such as your car payment or land purchase as soon as possible. Consider consolidating your debt into a lower-interest loan.
5. Invest in yourself
Invest in your education, skills, and personal development to increase your earning potential. Consider taking online courses, attending workshops or seminars, or reading books and articles related to your field.
6. Diversify your income streams
Look for ways to diversify your income streams, such as starting a side hustle, freelancing, or renting out a spare room on Airbnb. Passive income can easily be reinvested or used to cover your expenses as you save your monthly earnings.
7. Review and adjust your investment portfolio
Consider working with a financial advisor to review and adjust your investment portfolio to ensure it’s aligned with your risk tolerance and financial goals.
