It’s no longer hidden knowledge that a vast majority of the employees in
Kenya today actually get a paycheck that they can barely survive on
till the next paycheck. However, irrespective of how much you earn, you
can still do wonders with that little salary of yours.
These are ways thst can help you make something out of that little salary you call nothing
1. Assess the Situation- First off; you’ve
got to access your current financial situation. Assessing your financial
situation lets you gain insight into where exactly you stand with
respect to your finances. And unless you know exactly what money you
have coming in and what you have going out, you can’t know for sure
where you stand and how to make plans towards making it better.
Here are some things to do to accurately assess your financial situation
1.Sit down with your spouse (if you’re married) or alone and get a pen
and paper (don’t underestimate the power of this) and write down all the
money that you have coming in on a weekly, bi-monthly or monthly basis.
2. After you’ve done that, write down all your compulsory expenditures
on a weekly, bi-monthly or monthly basis. The expenditure on this list
should include expenses such as rent, feeding, Phone bills, debts,
fueling for car (if you have one) and generator, transportation costs
etc.
3. Then, write down all other expenses which are not easy to define.
These may include stuff such as clothing, travel costs, medical bills.
This should basically include expenses that happen occasionally or does
not have a fixed amount of money.
Be sure to try as much as you can to be accurate with your assessment, a
reason why you should get a pen and paper in order to properly balance
your household expenses.
2. Re – adjust your Budget- Now that you
know what exactly comes in and what goes out. It’s time to re-adjust
your budget (so as to reduce your monthly expenditure) based on your
assessments above or create a budget plan (if you don’t have one) based
on your current realities. When there’s not much coming in, it’s a very
smart move to be completely aware about what you do have. Budgeting will
show you exactly what you earn and how you’re spending it. The main
objective in re-adjusting your budget is to create a spending plan and
be able to look around to see where you can cut down on unnecessary
expenditure.
By re-adjusting and sticking to a new budget plan, you would be amazed
at how much you were spending on small, unnecessary items that quickly
add up. By restricting your budget and cutting back on unnecessary
expenditure, you’d manage to build up some savings. It may be hard but
the pain you have to bear to put some money aside would be well worth it
in the future.
In re-adjusting your budget (so as to reduce your monthly expenditure), the following tips would be of great help.
The tips may not make you rich by themselves alone but they are sure to help you survive until better days arrive.
1. Look at your grocery shopping and access if you’re wasting money. Buy bulk as much as possible as it works out cheaper.
2. Take a good value packed lunch to work. This helps you cut down on
expenses incurred by eating out and buying expensive readymade meals.
Also avoid throwing food away unless you have to.
3. Cut down on expensive mobile phone calls. You’d be amazed at how much
you can put aside by just reducing the amount of recharge cards you
purchase weekly.
4. Change your shopping habits and look for good value rather than trying to impress people by going after brand names.
5. Spend consciously. Many people just keep spending, spending and spending with little thought. Don’t be one of them.
6. Avoid unnecessary debts at all cost.
However, it must be admitted that sticking to a budget plan may be a
struggle, especially when you have to give into pressures of giving your
family a treat or in situations such as
•A family member coming in for a week.
•When you least expect it, your best friend announces he or she is
getting married and you have to find a way of paying money for dresses
that they decide to use.
•Or you find that your kid (if you have one) is failing math and the
only way to come to his rescue is to get him a tutor that would set you
back a few bucks. etc
The best way to deal with this kind of situation is to come to terms
with the fact that life is not perfect. And as a result, you should
create a little room in your budget for the unplanned. You should also
ensure that while struggling to keep to your budget, you should still
have some fun occasionally. This occasional treat however should be
included in your budget and this can be made possible by practicing the
next step which is….
3. Create and Maintain a Contingency Fund-
Life is not perfect and there is need to always have a back-up plan.
It’s called a contingency plan or plan B because you do not have control
over everything. As a result, you need to create and maintain a
contingency fund where you save a specific amount from your income
weekly, bi-monthly or monthly. It may seem an impossible task to put
something aside considering the fact that you earn so little. But be
rest assured that this can be made possible if you re-adjust your budget
as advised above.
By readjusting your budget and cutting down on your expenditure using a
combination of the tips offered above, you would be left with some lose
funds. These lose funds can be saved in your contingency fund. Keep the
money in a savings account. You would be amazed at just how such small
change adds up over time. And after you’ve done this, don’t just sit and
relax, you must do something to get out of the rat-race and move
towards your dream of financial freedom and you can do this by doing the
next thing which is
4. Create another Stream of Income- Practicing
the above tips alone would not make you rich but like I stated earlier,
but they would sure help you until the better days arrive. The
essential component of getting rich is not just saving money; it’s
knowing what to do with the money you have saved. And this where
creating another stream of income comes in. However, I would be the
first to admit that creating another stream of income while still
holding a day job is not a stroll in the park because there are so many
salient questions that bug the minds of employees trying to create
another source of income.
And these include questions like;
1. How do I create time to run my business such that it does not affect my current job?
2. How do I raise money to fund my business project?
3. How do I get to be involved in a business that’s guaranteed to succeed?
4. Which business is out there that has a high likelihood of success considering the funds available at my disposal
But with advancement in technology and the turning of the world into a
global market place where you do not have to be physically present all
the time to make a business transaction, It’s now been made very easy.
Now it’s possible to get involved in a highly profitable business that
you can start with virtually no money in addition to the fact that;
You don’t need to invest in merchandise
You don’t have to rent a store/office
You don’t have to hire employees
You don’t need to quit your present job (@least not yet)
You may try this business model before you’ll have to make a final decision to quit your job
And this incredible money making business offers fantastic profit potential
There you have them, 4 ways to do wonders with your little salary. Go ahead and act on them and see your life change for good.
This is to your success!!!
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