Personal Finance

Moneywise: The right way to set yourself on financial stability footing


Managing your money wisely comes with excellent benefits. FILE PHOTO | SHUTTERSTOCK

Managing your money wisely comes with excellent benefits. So how do you do it right?

Create a budget: Budgeting is essential to money management.

It helps track your income and expenses, so you know where your money is going and where you can cut back, thus creating financial stability as you avoid spending money you don’t have.

Set financial goals: Envision your short and long-term future - think about the kind of life you want in the next few months or years, and then set Specific, Measurable, Achievable, Relevant, and Time-Bound (SMART) financial goals to help you achieve them.

Read: Financial worry and how to prepare for any shocks

Get granular. Don’t say “I want to save more money, instead say ‘I want to have Sh50,000 in my savings account by end of June 2023”.

Pay yourself first: When you receive any income, set aside some cash for your savings or retirement fund before paying your bills.

Create standing orders, or sit down at the beginning or end of every month to deposit cash into your savings, investment, and retirement accounts.

Use technology: There are many apps and tools available to help you manage your money.

Take advantage of budgeting apps, financial tracking tools, and saving apps that can help you stay on top of your finances.

Seek professional advice: If you're struggling to manage your money, consider seeking the advice of a financial advisor or credit counsellor.

Read: Wealth creation: The right money mindset you need to master

If this isn’t something that’s available to you, scour the internet for personal finance books and courses. This will help you create and stick to a budget, set clear financial goals, and develop a plan to achieve them.

Keep an eye on economic conditions and government policies that can affect your finances. Read the papers, follow key opinion leaders, and stay up to date with industry trends.

Ms Muturi is the managing director at Branch International.