10 Tips to Help You Save Money in Kenya.
Saving money is a habit that can help you achieve your financial goals, such as buying a house, paying for education, or retiring comfortably.
However, saving money in Kenya can be difficult due to factors such as inflation, unemployment, and lack of financial literacy.
Therefore, it is important to learn some effective tips and strategies to save money in Kenya on a low income.
In this article, I will give you 10 tips to help you save money in 2024.
10 Tips to Help You Save Money in Kenya
1. Create a budget
A budget is a plan that tells you how much money you earn and how much money you spend each month.
It helps you to track your income and expenses, and identify areas where you can reduce spending or increase income.
You can use a spreadsheet or a budgeting app like My Budget Book or Money Manager to create and manage your budget.
2. Have savings goals
Having savings goals means setting specific and realistic targets for how much money you want to save each month or each year.
Goals motivate you to save more and avoid spending impulsively.
You can use the [Zero budgeting method] or the [50/30/20 budgeting rule] to allocate your income to different categories based on your needs and wants.
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3. Set financial priorities
Setting financial priorities means identifying the most important and urgent expenses that you need to pay first, such as rent, food, utilities, and debt payments.
By prioritizing your expenses, you can free up more money for saving and investing.
4. Automate savings
Automating savings means setting up a regular transfer from your bank account to your savings account or a high-interest savings account.
This way, you can save money without having to think about it or be tempted to spend it elsewhere.
You can use online banking or mobile apps to automate your savings.
5. Stay away from loan apps
Loan apps are applications that offer short-term loans with high-interest rates and fees.
They may seem convenient and easy to access, but they can also trap you in a cycle of debt and prevent you from saving money for the future.
Therefore, it is better to avoid loan apps and instead use other sources of financing, such as family support, personal loans from reputable banks, or government schemes.
6. Clear outstanding debt
Clearing outstanding debt means paying off any loans or debts that you have accumulated over time, such as credit cards, personal loans, or mortgages.
By clearing outstanding debt, you can reduce your monthly expenses and increase your cash flow.
You can use the [snowball method] or the [avalanche method] to pay off your debt faster and more efficiently.
7. Watch your money grow (invest)
Watching your money grow means investing your savings in assets that can generate income or appreciate over time, such as stocks, bonds, mutual funds, real estate, or business ventures.
Investing your savings can help you achieve higher returns than saving alone and also protect your wealth from inflation and market fluctuations.
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8. Try the Mshwari 52-Week Challenge
The Mshwari 52-Week Challenge is a savings program by Safaricom that encourages customers to save with Mshwari for a year. The aim is to save Ksh 68,900 by the end of the year, and here’s how it works:
You start by saving Ksh 50 in the first week into your Mshwari account, Ksh 100 in the second week, Ksh 150 in the third week, and so on. By the last week of December, you’ll save Ksh 2,600 (Ksh 50 multiplied by 52 weeks).
When you add up all the amounts saved each week, it totals Ksh 68,900. Since the 52-week challenge is a savings plan, the money earns an annual interest of 6%.
9. Cook at Home Often
Cooking at home frequently is a smart move. Dining out at restaurants and grabbing coffee from local cafes every day can quickly add up and strain your budget.
Relying on meal delivery services whenever you’re at home isn’t necessary, especially if you have the time to cook. Instead, consider buying groceries and preparing meals yourself. This practice can save you a significant amount of money in the long run.
You can even pack homemade meals for work or school, which not only saves money but also ensures healthier eating habits for you and your family.
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10. Cancel Unnecessary Subscriptions/Memberships
When you’re trying to save money, it’s important to reassess your subscriptions and memberships. For instance, consider cutting out unnecessary expenses like streaming services such as Netflix and ShowMax, or pay-TV subscriptions.
While free-to-air TV channels may not offer premium content, they still provide entertainment options at no extra cost.
As for memberships, you can consider canceling gym memberships and opt for home workouts using resources like YouTube or free mobile workout apps. This way, you can save money while still staying active and healthy.
Take a look around and identify any subscriptions or memberships that you can cancel to kickstart your savings journey.
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Wrapping up
These are some of the tips that can help you save money in Kenya in 2024.
By following these tips, you can build a solid financial foundation for yourself and your family and achieve your financial dreams.
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