I bet that one of your new year’s resolutions is to save. Well to ensure that you successfully hit your saving goals in 2022 here are a few pointers.
1. Make sure you have a specific target.
For example, if you want to save sh.120,000 by the end of the year, that means you need to save at least sh.10,000 per month. Having a specific target will give you direction and in case you fail to achieve your target in a month, you’ll know what amount you’ll need to top up in the following month to keep you on track.
6 Saving tips for low-income earners
2. Be realistic.
Do not set an overly ambitious target. Such that you’ll forgo your basic needs just to save.
3. Save in an inaccessible place.
Like in a Sacco, money market fund, Chama where withdrawing the money will be hard or too big of a task to do. This will ensure that you save up and hit your target without any hindrances.
Many times you’ll be tempted to withdraw your savings but keep your eyes on the target.
Savings: Where to safely save money in Kenya.
4. Save before you spend.
I bet you’ve heard of the phrase pay yourself first. This is what this phrase means, before you spend, first save. This tip also goes hand in hand with budgeting. Give your money a task to fulfill for you.
5. Save and forget you have any money saved up.
This goes along with tip number 3. In order for you to reach your target in peace, save and leave your money in peace.
6. Avoid loan apps.
Yes, you’ve read that right. Do not borrow unnecessarily. Otherwise, you’ll be doing zero work. Saving up, which is a plus, then borrowing and paying back with interest, which is negative to your personal finance statement.
Moreover this goes back to budgeting, make sure you allocate enough money to your needs. learn more about budgeting in this video below.
7. Don’t lend your savings to anyone.
This is especially for your family and friends. This goes back to budgeting, setting aside money forgiving. learn how in the video above.
8. After saving invest your money.
Saving alone won’t make you rich. You have to invest. Remember to do your due diligence before investing your hard-earned money anywhere.
Bonus tip.
Have an accountability partner or group. This is a tip that worked out for me in 2021. Your accountability partner/ group will ensure that you are on track and give you the necessary push when need be.
That’s all for this article, let me know if you have any other tips you’d like to share and which tip stood out for you in this article.