Being young is not reason enough to be reckless with your finances. While you might not always have a lot of money, here are 6 tips on how to make do with what you have:
- SEEK FINANCIAL LITERACY
Forget about the thousands of shillings needed for a financial course. Start with what you can readily access like a book, podcast, YouTube video, or a thread like this!
Make it your number one priority to continuously educate yourself.
- MAKE A BUDGET
Learn to make a proper budget and stick to it. This will help you allocate money accordingly while meeting your needs and working towards a financial goal.
- SAVE
You’re young and likely don’t have children or a mortgage to pay off. While this might seem like a good time to splash all your money on parties, saving will literally save your future.
Through saving, you can tick off short and long-term financial goals.
- TAKE GOOD DEBT
Getting a bank loan to watch Beyonce or the World Cup is not smart.
Take a debt only if it has the potential to provide long-term benefits or generate income. Such a debt may include an investment or a student loan.
- SIGN UP FOR INSURANCE
Most of us are one health bill away from poverty! While this might seem harsh, it’s the bitter truth.
Ensure your health, house, vehicle, and business are adequately insured. When disaster strikes, you’ll have something to fall back on.
- LIVE BELOW YOUR MEANS
Moving houses just because you got a KES 5000 monthly increment is not the best idea. Learn to live comfortably yet reasonably below your means.
Instead of constant lifestyle inflations, focus more on saving and investing.
Recognize the importance of financial responsibility, even in your youth, as taking control of your finances now paves the way for a brighter and more secure financial future.
