Tips to save your hard earned cash
As President William Ruto and his Deputy Rigathi Gachagua consistently advocate for a saving culture in the country, there is a need for everyone to see the importance.
On April 23,2023, the Head of State emphasized the importance of inculcating the saving culture as Kenyans and a nation.
Ruto who spoke in Nairobi during a church service at the Friends Church Quakers Donholm, said increasing contributions to the National Social Security Fund (NSSF) kitty has seen the country double the amount saved in just two months.
“We must be a country that thinks about tomorrow. I want to tell you the good news; in just two months we have doubled the amount of money that we are saving as a country,” Ruto said on Sunday.
“I want to promise you that we will build a big fund so that instead of us borrowing from friends and other countries we will be doing how they are doing; they borrow money from their own people and pay them interest,” the president added.
The youthh can develop saving culture through the following initiatives:
1. Imply the 50/30/20 budgeting rule
Every month, you must make a decision to save part of your salary or income. Do not squander everything. Using the 50/30/20 rule will help in cultivating a saving culture.
As you plan, 20 per cent of your salary should go for emergencies, long term expenses such as a deposit for a new house, car and retirement.
On the other hand, 30 per cent should go for flexible spending such as entertainment, purchasing of new clothes etc. finally, the 50 per cent should be used for daily needs.
2. Invest in business.
Youths can leverage diverse channels – including online platforms and physical businesses spanning various sectors, such as agriculture – to make a living and save for their future. Through this, they will not be able to depend on their salaries for survival. They will have surplus and be able to save.
3. Distinguish Between “Want” and “Need”
Understand the differences between needs and wants and identify yours. Be able to say no when something doesn’t align with your financial goals, today and in the future.
4. Do a monthly review
Sometimes we do not even realize what we are spending each month until we examine it. Review everything you pay for. What are you buying that you might not need? If you do need it, is there a way to get it for less?
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