How to Save Money in Kenya With 7 Simple Effective Steps

How to Save Money

Here’s how to save money and increase your savings account balance.

Yes, many of our readers have been looking for the answers to this popular question; how to save money in difficult economic times.

How to Save Money 7 steps:

  1. Create a Budget: Budgeting is the first step to saving money
  2. Track your Spending to Control Impulse Purchases
  3. Pay off Your Credit Card or Mobile Money Loan App Debt
  4. Open at Least One Savings Account to Help Save Money
  5. Reduce, Manage, and Control Recurring Bills
  6. Find or Create a Side Hustle to Save Money
  7. Invest to Save Money

Here is an in-depth discussion on the question: how to save money.

Today how to save money is answered and solutions are also proposed for each step to help you realize your financial dreams.

Yes, we have gone far beyond giving tips to providing how to deal with this issue.

1. How to Save Money by Create a Budget: Budgeting is the first step to saving money

This section introduces you to the basics of budgeting.

It explains what a budget is, how it can help you save money, and why it is crucial to have a budget.

A budget is a tool that helps you plan your finances.

It’s a way to organize your income and expenses to know where every dollar goes and how much money you need for each plan.

Having a budget gives you the power to make conscious spending decisions about your money.

You can decide which bills are important enough to pay on time, the bills that need more work, and which ones don’t require as much of your money as they do now.

It saves time in the long run.

Why?

Then you won’t have to worry about whether or not there is enough money left over at the end of the day.

Why is a budget important?

A budget can help you save some money, which you can use to make your lifestyle more comfortable or reinvest in some area of your life.

Or, you could use the money to increase your finances further.

Whatever is your case, having a budget is wise.

Why?

To know what kind of changes need to happen for your finances to improve.

Budgeting benefits and reasons are many:

  • It helps people plan and be more accountable for their spending
  • it helps control the number of credit cards they have and prevents overspending
  • and it can help them save money by maximizing investments
  • budgeting helps find money to save from you regular income
  • it helps find money to invest in passive income streams
  • it helps get you on your way to financial freedom
  • it takes care of money related stress issues
  • it earns you respect in the community when people realize you are financially astitue and disciplined

Budgeting Tools: What tools help create a budget?

Some of the most popular budgeting tools include:

a) Mint Money App

Mint helps you create your budget with six options to choose from – Personal, Family, Business, Organization, or Goals & Tasks.

There is a section on the left to track how much spending is in total for each category.

Mint is a popular budgeting tool that helps you stay on top of your finances.

With the help of AI, it gives personalized recommendations and insights to people based on their financial data.

Mint’s AI not only lets it work with millions of users at once but also helps people manage their money and make smarter financial decisions.

The AI-powered service can help you pay down your debt, save for the future, and learn about better ways to spend your money.

b) Quicken Budgeting Tool and Software

The Quicken budgeting tool helps you manage your money.

It also helps to track your expenses, income, balance, and much more.

Quicken is one of the most popular software for managing your finances.

Quicken was first introduced in 1982 and has provided users with helpful financial software for over 30 years.

Quicken is one of the most well-known budgeting tools that help people manage their finances with ease.

Whether you are an individual or a business owner, they can use this software to track their income, expenses, balance, etc.

c) Personal Capital

Personal Capital is an online personal finance tool.

It is free, web-based software that lets users track their spending and retirement savings.

Personal Capital is one of the best investment tools out there.

With its user-friendly interface, all you have to do is scroll through your transactions and download your reports to know how your investments are doing.

You can also find information about your investment on this website.

2. How to Save Money by Track your Spending to Control Impulse Purchases

It’s crucial to track your spending to control impulse purchases.

You may think that you can resist temptation and save your money on impulse purchases, but it turns out that these daily treats add up.

Just think of all the little things you might be spending on!

It is not always easy to track spending, as you use your credit cards for most of your purchases.

There are a few ways to track and manage your spending, however.

  • The first way is to keep a budget and log all expenses on it.
  • The next step would be to use online tools such as Mint and Quicken to help you keep track of your spending.
  • Finally, if you want an even more detailed view, try using a personal finance app such as LearnVest or Digit that will help you map out where all the money goes.

What is the importance of Tracking your Spending?

Tracking your spending is one of the most important things you can do to keep yourself on track with your financial goals.

With just a few clicks, you can quickly see what you are spending and how much it costs.

Simply put, personal money management is about being proactive in managing your finances by tracking expenses and investments.

It offers a great opportunity to save for future needs or big purchases.

Tracking your spending is an incredibly useful personal finance tool – which allows you to easily see how much money you are making, where it’s going, what’s coming in, and what’s going out.

This way, you can make sure that everything aligns with your overall financial goals – whether that is saving for retirement or paying off debt faster

If you are struggling to save money then it’s time to get your finances in order.

It is time to start tracking your spending.

How to Track Money Spending

To track your money spending, you need to know the type of expenses that you incurred. In general, expenditures fall into four categories:

a) Fixed expenses that stay constant even when income changes

b) Expenses that vary with income

c) Assets purchased with cash and consumed in their entirety over

d) Expenses for which it is difficult or impossible to calculate a cost per unit

There are three different ways to track your money spending in the digital age:

  • With budgeting tools that help users keep tabs on how much they spend in different categories each month.

These tools are incredibly helpful when it comes to self-awareness and financial planning.

  • With data tracking apps which offer reports about the amount spent on specific products or categories over time.

They also offer analytics about how much people are spending or saving on certain items, which is an important step in understanding why their spending habits are changing over time.

  • With apps that provide information about the general cost of cars to help consumers make more informed car-buying decisions

The key to a healthy budget is a clear understanding of where your money is going. It’s not just about tracking how much you have, but also about understanding what you have spent on and how much money is left.

The easiest way of staying on top of your budget and financial situation is to use a spreadsheet that includes all expenses you make each month; categorize them into different accounts.

3. Pay off Your Credit Card or Mobile Money Loan App Debt

Credit card debt is a major problem for many people.

There are steps that you can take to minimize your credit card debt.

Paying off your credit card on time can help you save money and prevent further economic damage.

How to Pay off Your Credit Card Debt:

Credit card debt is a common dilemma faced by many people. But it doesn’t have to be this way.

Here are some ways to pay off your credit card debt.

a) Pay more than the minimum payment on your credit card every month, even if that means you end up with a slightly higher interest rate.

b) Try an interest-only plan for one year, then switch to a fixed-rate loan for another year after that, then switch back to an interest-only plan for the last year of the loan period before paying off your credit cards in full.

c) Apply for a personal loan from your bank or another lender. Use the money to make your monthly payments on credit cards and avoid using any of it on other expenses during a cash crunch.

d) Pay Off Your Debt

You should start paying down your debts with the smallest balance first since it takes less time than transferring everything at once.

Begin with paying just the minimum due on each credit card to ensure that you don’t get hit with interest rates while still making progress on getting rid of your debt.

e) Use a Credit Card Balance Transfer

This is the best way to balance your credit cards and pay off debt. It is very easy and can be done online.

Just transfer a portion of your debt from one card to the other and you will have an instant balance transfer fee refunded.

How to Pay off Mobile Loan App Debt:

If you are keen on paying off your Mobile Wallet Loans, there are certain things that you can do.

a) You can reduce your expenses

This is the most popular financial solution for people who are struggling to pay off their mobile loan app debt.

b) You can raise your income

Simply get a job that offers more flexible hours and offer more time to yourself.

This will allow you to work towards paying off your mobile loan app debt without any constraints.

c) You can sell some of the assets

If you have some things in life that are worth selling, then this is another way of paying off your mobile loan app debt by selling them and buying yourself new assets with the money gained from the sale of old ones.

Or if you want it done sooner, try setting up a payment plan for $50 every week and then increasing the amount incrementally until your entire balance is paid off.

4. Open at Least One Savings Account to Help Save Money

What is a Savings Account?

Savings accounts are deposit-only accounts that allow the customer to earn interest on the money that is held in these accounts.

These accounts often come with monthly maintenance fees and minimum balance requirements.

They generally offer better interest rates than checking accounts, but usually have higher minimum balances and monthly fees.

Opening at least one savings account is a great way to start saving.

It will make it much easier for you to save money in the future because you’ll have a designated account for savings.

You can set up an automatic transfer from your checking account to your savings account every month – this will help to ensure that you are saving money without sacrificing the things that are important to you.

Saving money takes time and discipline, which not everyone has, but if you want to be successful with your financial goals then it’s important that you take any steps necessary towards reaching them!

What are The Most Important Reasons to Have a Savings Account?

a) Emergency Fund

Nobody knows what the future holds and emergencies happen all the time.

b)Peace of Mind 

You can’t predict what your future expenses will be and you’re not always able to predict your earnings, so having an emergency fund is important for peace of mind.

c) Savings Account as an Investment 

Savings account offer some of the best interest rates around and they’re a great way to save for any goal that is more than just one year away.

What are The Best Savings Accounts?

The best savings accounts have the following characteristics:

  • The interest rate high: 

If your money is just sitting in an account earning next to nothing and it’s not compounded, then your money is only growing by the same amount every year. Go for an account that offers competitive interest rates.

Money in a savings account earns interest. Interest is determined by the account’s APY (annual percentage yield). The higher the interest rate, the better.

  • The fees are low: 

These can vary from bank to bank; some charge monthly fees while others charge yearly or quarterly fees. Go for a savings account that offers few or no fees.

  • The convenience of the bank: 

Think about where the nearest branch location is and whether or not they provide mobile banking services.

  • The account has state protection:

 Savings accounts are insured by the Federal Deposit Insurance Corporation (FDIC).

  • Low or zero-minimum balance requirements
  • Restrict withdrawal of funds from the account

Where Can You Put Your Money to Earn the Most Interest?

  • High-Yield Savings Account:

High-yield savings accounts are different from ordinary bank accounts because they offer more attractive interest rates on balances up to a certain level.

There are many types of high-yield savings accounts; however, they usually come with an annual fee and require a minimum balance to earn the highest rate.

  • Credit Union or Savings and Credit Cooperative Organization

Credit Unions are financial institutions that offer credit services for their members.

The main difference between a credit union and a bank is that credit unions are member-owned, not shareholder-owned.

The primary purpose of the organization is to provide financial services to its members.

These may include savings accounts, personal loans, mortgages, and insurance products.

Credit unions also often share an affiliation with another organization such as a labor union or fraternal group.

SACCOs offer better interest rates than a bank savings account and not forgetting cheap loans.

  • Money Market Savings Account

Money market accounts can be seen as savings account that offers more than just the standard nominal interest rates associated with them.

Money market accounts may offer compounded interest rates, which means that the money in your account will continue to grow over time.

When it comes to savings and financing, a money market account is one of the safest and most affordable options.

It provides a much higher yield than a traditional savings account, and the risk of loss is also much lower.

  • Money Market Fund

The money market is where banks and other financial institutions invest short-term funds, which are not required for the near future.

The primary function of this type of investment is to provide liquidity in the event that either the bank or an institution has a sudden need for cash.

Money market instruments are much different from other types of securities because they are not traded on an open market.

There are two main types of money markets:

a) “Prime” money market funds

These funds invest in short-term debt securities issued by U.S. government agencies, states, municipalities, and certain corporations–typically with credit ratings in the A range or higher.

b)“Government” money market funds

These funds invest in short-term debt securities issued by government agencies with credit ratings and higher than average yields.

Money market funds are the best options for people who want to invest in a conservative way.

These funds invest in short-term debt securities issued by government agencies with credit ratings and higher than average yields.

Money market funds provide a steady cash flow and safety net for investors.

Info graphic on how to save - how to save money
Infographic on how to save

5. Reduce, Manage, and Control Recurring Bills

The recurring expenses that you need to reduce to save money can come from many different places.

  • Insurance:

Health, Life, Auto, Homeowner,

  • Utilities:

Electricity and Gas Bills, Water and Sewer Bills

  • Childcare:

Daycare and Preschool Costs

  • Entertainment:

Monthly Memberships and Expenses for Transportation; Movies; Restaurants; Concerts; Sporting Events; Sports Tickets; etc.

Focusing on recurring expenses is a great way to save money.

It is important to identify recurring expenses and address them to reduce the total expenditure.

How to reduce recurring expenses to save money

Building a budget is not always easy, especially when your income might not be stable.

But you can save money with the help of some simple tips.

The first thing you should do when creating a budget is to make sure that all of your recurring expenses are in one place.

You can list them in various categories to make it easier to track them and know what exactly your monthly payments are going towards.

The best way to reduce expenses is by cutting back on things that you don’t need, like cable, gym membership, or even groceries if they are too expensive for you.

But there are also some more drastic measures like changing your lifestyle altogether – for example by moving out of the city or downsizing your living space.

What Apps Can Help Manage Recurring Expenses to Save Money?

It is important to monitor your money and expenses.

Track how much you spend, what you spend it on, and when you make those transactions.

This can be done by using apps that are made for managing recurring expenses.

There are many apps available for managing your recurring expenses to save money.

You can choose the app which suits your needs best, depending on whether you want access to all of your accounts or just one or two of them.

The most popular apps that help with managing recurrent expenses are:

-PocketSmith

-Billshredder

-Everyday Expenses

-Omniwallet

-Toshl Finance

6. Find or Create a Side Hustle to Save Money

What is a side hustle?

A side hustle is a small business that’s run on the side of your main job. It could involve anything from pet sitting and house-sitting to blogging and freelance writing.

The point is, it’s something you do on the side to make extra money, either as a supplement to your existing income or as an alternative if you’re not satisfied with your full-time work.

When it comes to saving money, you’ll need many different strategies.

There are many ways to save money in the modern economy, but one of the most common options people choose is to find a side hustle.

Side hustles are an excellent way to save money in a variety of ways, from cutting down on your monthly budget for things like food and transportation, to earning extra income that can be used for savings or paying off debt.

Some people think that you need some kind of special skillsets like coding, designing, or professional cooking to start a side hustle.

The truth is that everyone has something they can offer the world and every skill we have inside us we can learn and hone if we try hard enough.

Side hustles provide people with an opportunity to make more money and a pathway to small business ownership.

How to find a side hustle

The first step is to assess what you are good at and what you like doing.

That way, your side hustle will be more likely to be successful.

With that in mind, here are 5 ways to find a side hustle:

– Look for things you enjoy doing

– Figure out if there is an opening in that field

– Find out what people in that industry are doing

– Investigate the most successful people in the field

– Discover what skills you already have

How to find a side hustle online

Finding a side hustle online is not as hard as it may seem at first.

You just need to know what to look for and how to go about finding the right job for you.

There are many ways one might find an online side hustle.

Social media, freelancing websites, ads on Craigslist, etc.

The best way is to research each option before beginning your search so that you can find out which will work best for you and which sites offer the highest payouts in exchange for your time and skillset.

7. Invest to Save Money

Investing is the best way to save your money.

Investing in income-generating activities can help you build your financial stability and save money.

The only way to make your money grow is to invest it.

Investing in bonds, stocks, and other types of investment vehicles will help you make more money off of the money you already have.

Investing can be a scary word for some people.

It might sound complicated or confusing to someone who hasn’t done it before.

However, investing can be as simple as opening a Money Market Fund account with one of the many money market funds, e.g., Britam or Zimele in Kenya, and depositing a set amount each month.

When investing, make sure that the company is reputable and has a lot of resources.

Be patient with your investments because it may take some time for your investments to grow into this larger sum that you are looking for.

Investors should also diversify their investments so that they don’t have all of their eggs in one basket.

How to invest money

It is important to have a plan on how to invest money.

And it is not always about investing in stocks or equity.

Different types of investments are available for people who want to get higher returns on their money.

Below are the possible investment types that are available for people.

a) Equity investments

Investing in equity means buying shares, stocks, or any other kind of ownership-related security that will give you some rights or benefits of owning a company’s assets or profits.

b) Debt investments

Investing in debt means lending money to an organization, individual, etc., expecting the borrower to repay with interest at a specified date in the future.

c) Real estate investments

An investment in real estate means buying property to make a profit on rental income and/or reselling at a higher price

Conclusion: How to Save Money

The takeaway from this is to make a conscious effort to save money. It doesn’t mean you need to subsist on a diet of rice and beans.

You can live a comfortable life while saving money, while still doing the things that make you happy.

Following these tips will allow you to save money without compromising on the quality of your life

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By Steve Wanjie

Steve Wanjie is a digital marketing specialist, SEO Expert, expert article writer, blogger, sex educationist, and businessman. He is the founder of Dijito Marketing and Laikipo.com. He works and lives in Nairobi Kenya.

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