Doh ime evolve over the years. From days of barter trade that our ancestors used, then transitioned to currency with cowrie shells (yaani at some point that was the height of innovation. Enyewe tumetoka furthest). It made it’s way to coin and paper currency which is predominantly what we use. But sasa ata stuff imekuwa digital. To be honest salo yangu inaendanga kama sijashika doh yoyote na mkono. Kwanza with iBANK na KCB Credit and Debit card, sijawai pata need ya kuspend physical money. Life is easier now.
Lakini, with the evolution of money comes with the evolution of the best practices around it. Kwanza as much as tumesema kuspend doh nowadays ni more convenient na hizi digital channels, tunaneed sana ku ensure we don’t spend it all in one place. Hii economy haicheki na mtu, and we need to survive with what we have. Hii mambo ya ‘there’s too much month at the end of my salary’ should come to an end. It’s not a flex imagine. You’re huko posting that on social and getting tihihis, shares and comments lakini the people indulging you wamejipanga on their side. Fear Nairobians.
Sa juu tumedecide round this tunaomoka, then we need to act accordingly. Tuko on the road to create financial freedom so where does that start boys and girls? By planning. Imagine hivo tu. Sio ati nini au nini. To get stared on this journey of having our finances in check, lazima tubudget income. Kama ni salo ama uko biz and you pay yourself a certain amount from your proceeds, mwenendo ni ule ule. The word is budgeting. In order to live a debt free life, acquire assets and live a financially free life, then lazima tufollow hizi steps that will structure our financial life and keep us from spending impulsively.
Budgeting is an ongoing process: Sio ati unamake your excel sheet then at the beginning of the month then abandon it until the next month. Zii. Revisit your plan weekly ndio ucheki if you’re actually keeping to it. Analyze your plan na kama it is working, kama haiwork then make necessary adjustments. Make additions, remove aspects that don’t work. Kumbuka, it has to be practical otherwise it won’t work for you. Stay in touch with your plans and income.
Use the 50, 20, 30 rule: Kuna financial geniuses walikaa down and from their analysis of economics and how finances work, they saw that allocating 50% of your income to your needs, 20% to your savings and debt and 30% to miscellaneous is the best way to ensure doh zako zinatumika vipractical. So half of kile inaingia should go to what you need to survive: food, clothing, shelter and transport. Yes, transii iko kwa hiyo category sasa. You need to be mobile. Utaenda job aje bila transport?
20% inafaa kusort deni then kila inabaki usave. From hii bucket ndo mi husort Wafula na Sospeter zile doh wameniokolea nazo the previous month. Pia kuna sacco nakuwanga member. Progressive thinking msee. Saa zingine nitaget kaloan kadogo kusort tuprojects hapa kule. When it comes to paying back, natoanga kwa hii bucket ya 20%. Na kama you’re God’s favorite child na ata hujui deni hukaa aje, then the whole 20% can go into savings. Si heri wewe. Anyway, no time for being salty. Moving on swiftly.
Sasa kuna hiyo 30% imebaki. Sio ati kila saa ni vitu serious. Si wanasemanga all work and no play makes Sospeter a dull boy? Haya. We then had to make room for sherehe. Tunaziita miscellaneous, entertainment and whatever thy heart desireth. (wacha niongee kiShakespeare ata ndio ujue we’re letting loose). Hapa sasa ni hizo roadtrips, kina Naxvegas, Vasha tings, Kina WRC. This is the allocation for it. It’s allowed to nip from this bucket. Lakini, sio ati sasa ikuw msee wa sherehe 24/7. Saa zingine chill. Feel free to not take from the entire pot. You can bakshish some mulla from this allocation and put it into your savings.
Zero based budgeting: Back to the financial lingo but hear me out, the concept is easy as pie. After the budgeting and allocation of funds to their various buckets, you should come to a base of zero. No negatives. That would mean unaspend doh hauna. Na pia if there is any surplus, it means huja allocate do yote yenye inakam through. Basically, tunasema the math should be mathing. Don’t spend beyond your means and don’t squeeze any bucket.
Na hayo machache, si you can now Go Ahead and prosper? Follow these simple rules na utakuwa fiti. You’ll be ahead of the game. Fo’ sho’.
Over&Out,
The Witty Banker
