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I know the cost of running your household has increased. I know money is tight. I know you’re busy. I also know tackling money issues isn’t the first thing that comes to mind as being fun. But I also know that you wish you could once and for all get your financial house in order.
The idea of money, creating wealth, financial freedom sometimes seems so overwhelming to us that we don’t even want to or know where to start. Maybe your friend keeps mentioning that the sure investment is plots in Kitengela and you cannot fathom how to afford this vehicle that seems to promise financial prosperity. I have one word for you to get started; BUDGET. That’s all you need today and all you can do today. A budget is simply a plan of how to allocate your resources. What is your monthly income? What are you essential expenses e.g. food, rent, transport. What are your non essential expenses i.e. you will not die without them e.g. cable TV (yes – this is actually not a necessity!), entertainment, everyday lunch money etc. Especially now when costs are rising around us, tracking your expenses becomes extremely important. What is the difference between your total income and your total expenses? If there is a surplus, start saving that amount regularly and consistently. If there is a deficit, reduce your non essential expenses so that at the very least you are living within what you earn and even better, are leaving an amount to save.

The discipline of consistent saving is the best start you can make towards Financial Freedom. Once you have identified the amount to work with, set up an automated monthly transfer to a savings account. This is not the amount that is given to relatives! It is considered unavailable. Once you lock into that commitment, rather than waiting to have money at the end of the month to save, it will move out of your account first and you’ll be forced to live below your means at the same time accumulating savings. Don’t procrastinate waiting to afford a plot of land, trying to get to the 10% -30% that various financial experts say you should save, or figuring out how all investments work. Start with what you can. Your initial goal can even be just building up some form of emergency fund in a savings account. Be patient. While you are cultivating the discipline of saving, you can be learning about other investment options or creating networks that will enable you to access opportunities. Just do it and start. Regardless of the amount you move closer to having a robust financial plan for the future.

Waceke Nduati –Omanga| waceke@centonomy.com| www.centonomy.com