TIPS: How To Take Control Of Your Personal Finances
Feb. 16, 2020
To be in control of your finances, you need to understand where you are and where you want to be. Read these tips to know how to get there.
Record your expenses
First, you need to figure out how much you spend, by keeping track of all your expenses. If you don't know where your money goes or how you spend it, you won't know what habits you can change in order to make your money work for you. Tracking your spending allows you to see where your money is really going. It is essential if you want to understand your financial choices and make changes to them.
Have A Budget
A budget is a way of being intentional about the way you spend and save your money. It is said that with budgeting, you control your money and not your money controls you. Once you have a budget, you will know how much to sepnd on what, and therefore avoid unnecessary overspending.
Set Saving Goals
One of the best ways to save money is to set a goal. Start by thinking of what you might want to save for—perhaps you’re getting married, planning a vacation or buying a car. Then figure out how much money you’ll need and how long it might take you to save it. For example, you want to buy a car worth 600,000 Kshs, while saving 25,000 Kshs monthly within the next two years.