Steps to Improve your Finances over the Weekend
A new month begins today. The week is ending, the month is ending and the year ends in just three months. You may not have your finances straightened out yet or maybe you did then started falling back. Here’s how you can get back on track:
Get clear on your goals
It feels good to have something to work towards and having goals keeps you all the more focused.
People’s goals may vary depending on their responsibilities and ambitions. Your goal might be to start a business or give yourself something really luxurious for your birthday or anything in between. It’s important to list your goals, however big or small, so that you can figure out how much you need to fulfill them and in what timeframe.
Create a budget that aligns with your goals
Once you do the math of how much money you need to achieve your goal(s), the next step would be to create a slot for them in your budget. You could decide an amount of money you want to chip in diligently from your monthly earnings for a certain period of time e.g. KES 5,000 ($50)for 12 months.
Make a savings target
When I decided to move out of my parents house I knew I’d need quite a bit of money to purchase the items I needed and to cover bills. I also didn’t want a huge shock in my finances so I made a list of everything I wanted to buy and the bills I needed (and could afford) to pay.
After that I had to figure out how long it would take for me to save enough money and how much money I would have to put aside every month until it was time to move.
Having a target amount and a goal made me quite disciplined, even if I’d buy a few things on impulse I’d never touch the money in my “moving out budget”.
Thankfully, Africa’s Pocket has made this process even easier. Use our savings goal calculator to figure out how much you need to save towards your goals.
Earn interest on your savings
You can do this by putting your money in a high yield savings account like an MMF (Money Market Fund). You can send the money that you’ve decided to put aside to the MMF every month so it’s out of sight and can earn interest as you continue accumulating the money you need - it’s a win-win!
In just 4 easy steps you can get back on track with your finances.
If you need more information or a deeper structure of how to go about this, check out our free guide How to Stop Freestyling your Finances.