6 Steps to Save Money for Your Future

Most people have grand ideas for their future. However, if you want to make your ideal future a reality, you must devise a strategy. Whether it’s a dream home or a honeymoon, having enough money saved is essential for providing the life you want for yourself and your loved ones.

Saving money is only possible if you know where to begin.

According to CEIC data, Kenya gross savings rate was measured at 12.8% in December 2020 and the lowest savings growth rate was 6.0 % in December 2013. Saving money may be done in Savings bank accounts, Sacco and high yielding accounts such as Money market funds. Sometimes you would say that saving is hard because you receive low income, or you have high expenses.

Many people, including me, find it difficult to save money. We all know that saving money is important, but somehow we always find excuses not to do it.

We have made an easy 6 step guide on how you can save money for your future.

1.Know how much you earn

The first step to start saving money is figuring out how much money gets into your pocket. How much you earn per week or month. This includes all the streams of income. It also includes gifts received in cash.

2. Know how much you spend

The second step is knowing how much you spend on a weekly or a monthly basis. This does not only include your monthly bills i.e rent, water, electricity bills but it also includes the 1 dollar you use to buy gum, the 2 dollars you tip the waiter, even the 1 dollar you give to a beggar by the road side or the 10 dollars you give to your friend who is in a fix. You can Keep track of all your weekly and monthly expenses by using a pen and a notebook or an excel sheet. If you don’t know how to use an excel sheet you may register for ADVANCED EXCEL TRAINING (EXCEL) – ACCOUNTING SOFTWARE – FINSTOCK EVARSITY COLLEGE

3. Know how much debt you owe

The third step is to know how much debt you owe to the shylock, loan applications, the Sacco or bank. Also, the money you owe your friend or family members is debt. Also ensure to record the interest you are required to pay every week or month. You may learn about debt management from the course BASICS IN DEBT MANAGEMENT (FRDM) – FREE COURSES – FINSTOCK EVARSITY COLLEGE

4. Set up a budget.

The fourth step is for you to plan for the money that you have noted on your first step. Depending on whether you earn money on a weekly or monthly basis you can plan for it on either weekly or monthly basis. As you plan for the money, take into consideration what you recorded on step number 2. Do take note of how much you are spending on things that you need and things that you want.

Ensure you plan for first saving a certain amount from what you earn. This is known as paying yourself first. Even if it is just 10 dollars You can automate the savings. Then paying off the debt that you recorded on step number 3 and spending on needs more than wants.

5.Evaluate your budget against your spending

The fifth step is for you to check how you are spending the money. This will help you to not only stick to your personal savings plan but also identify and fix problems quickly. During this step, you are able to check the progress you have on the amount of money you are saving and the debt you have been able to reduce. Once you have been able to pay off the debt you can channel that amount of money to saving.

6. Set saving goals

The last step is recording your saving goals. As you save the money, you will have to set up goals on where you would want to invest it. This motivates you to save more and reduce the risk of you spending the money on irrelevant items.

There are several areas that you are able to invest the money you have saved so as to make money for you future. You may invest in stocks, cryptocurrency or even forex.

If you want to learn more about stocks you can register in the course BASICS IN STOCK MARKET INVESTMENT (SMI) – BUSINESS AND STRATEGIC MANAGEMENT – FINSTOCK EVARSITY COLLEGE

If you want to learn more about forex you can register in the course BASICS IN FOREX TRADING (BFT) – FOREX AND CRYPTO TRADING – FINSTOCK EVARSITY COLLEGE

If you want to learn more about cryptocurrency you can register in the course BASICS IN CRYPTOCURRENCY AND DIGITAL MONEY (FRBCDM) – FREE COURSES – FINSTOCK EVARSITY COLLEGE

Also you may use the money that you are saving to start a business. To know how to plan for a business you may register for the course BASICS IN BUSINESS MANAGEMENT (FRBM) – FREE COURSES – FINSTOCK EVARSITY COLLEGE