Five ways to be smarter about your money

Man counting money. (Courtesy)

There are two ways to build your wealth: earn more cash, or spend less of it. Here’s how to go about things:

1.Circle the waste:

Carry out an audit of your spending every three to six months. Look through your mobile money transaction notices, receipts and texts from your bank to figure out where you’re taking your money. Categorise your spending (under shopping, eating out, fuel, and so on). Look for ways to cut back on each category.

2.Tax yourself:

You’re giving a share of your income to the Government every month through your taxes, so why not add yourself to the list? Set aside at least 10 per cent of your income for savings. You can set up a standing order at your bank to make the process easier.

3.Build an investment chest:

Spare another 10 per cent minimum every month, and after six months or one year, put that money into stocks or some other long-term investment vehicle, like Treasury Bills. You can seek advice from a financial advisor or use the facilities your bank provides to manage this money.

4.Develop a plan B:

Find a side hustle, and rather than spend the extra cash you make, set it aside. You can monetise a talent, like baking or tutoring, or find a freelance gig through online job sites.

5.Tell your money what to do:

 

Don’t be passive about where your money goes. Get proactive by doing all the right things – budgeting, paying off debt and saving.Kagure Gacheche

Five ways to be smarter about your money

There are two ways to build your wealth: earn more cash, or spend less of it. Here’s how to go about things.

1. Circle the waste:

Carry out an audit of your spending every three to six months. Look through your mobile money transaction notices, receipts and texts from your bank to figure out where you’re taking your money. Categorise your spending (under shopping, eating out, fuel, and so on). Look for ways to cut back on each category.

2. Tax yourself:

You’re giving a share of your income to the Government every month through your taxes, so why not add yourself to the list? Set aside at least 10 per cent of your income for savings. You can set up a standing order at your bank to make the process easier.

3. Build an investment chest:

Spare another 10 per cent minimum every month, and after six months or one year, put that money into stocks or some other long-term investment vehicle, like Treasury Bills. You can seek advice from a financial advisor or use the facilities your bank provides to manage this money.

4. Develop a plan B:

Find a side hustle, and rather than spend the extra cash you make, set it aside. You can monetise a talent, like baking or tutoring, or find a freelance gig through online job sites.

5. Tell your money what to do:

Don’t be passive about where your money goes. Get proactive by doing all the right things – budgeting, paying off debt and saving.