Strategies for smart saving during tough economic times

Create a budget tailored to the current economic reality. [iStockphoto]

In recent months, Kenyans have been facing a challenging economic environment characterised by a devalued shilling, skyrocketing fuel prices, increased taxation, and an overall rise in the cost of living.

In these tough times, it becomes crucial for individuals and households to adopt prudent financial strategies to weather the storm. While it might seem daunting, there are concrete steps that can be taken to navigate these tough economic waters and continue saving effectively.

Firstly, it is essential to create a budget tailored to the current economic reality. Analyse your income, list your essential expenses, and identify areas where you can cut costs. Prioritise necessities like housing, food, and healthcare while reconsidering non-essential expenses. By having a clear understanding of your financial inflows and outflows, you can make informed decisions about where to save and where to spend.