In spite of the fact that COVID-19 is here, I believe this is an opportune moment to share how I am leveling up in my finances. Even as a second-year student at Strathmore University, I believe this my journey to financial freedom is feasible through three easy steps.
First and foremost, I create a budget so as to be able to keep track of my spending on a weekly and monthly basis. Creating a budget gives me a deep insight on my spending habits and also keeps me away from borrowing which leads to debts.
When making my budget, I always ensure that my expenses are not more than my income and that the budget is one that enables me to save a portion of my money every month. As a second-year student, my spending largely falls within a range of personal items, school supplies lunch money (Breakfast and supper are availed in the hostel) and non-essentials such as going out with friends. This is where the real level happens; Saying no to things that do not help me enjoy my money’s worth.
Secondly, using an M-shwari locked account where I can save money for a specific period with a certain target. Thank you Safaricom for creating a lead generation of saving Billionaires.
Cash is king. My third hack is having a small amount as cash at hand. I put emergency cash on mpesa or credit card. This method is much safer for me as it is not easy to lose money. Not only that, but it is a way to ensure that I do not unnecessarily use money every now and then.
I have also learnt to control my spending habits by distinguishing my wants from needs. My needs are essentials whilst my wants are things I can do without. If I really do not need to buy anything, I refrain from buying it. Instead I put that amount into something that will benefit me. Basically, my needs. I also try as much as possible to acquire important things on what difference a purchase makes to me before giving into pressure to borrow. Right now, being at home helps me to manage my finances by ensuring that I eat most of my meals at home as it is healthier and cheaper.
Leveling up like Ciara sang is so powerful! This is my clarion call to you who is reading this now especially in your finances.