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HOW TO MAKE SAVINGS ON YOUR LITTLE INCOME

Today’s world is so dynamic that every other day passes by with a new development such as; changes in fashion tastes and designs, technology among others these come with desires for the new developments which usually involve extra spending, interestingly the suppliers see this as way of increasing sales by addressing these needs and also to ensure comfort to their clients so that they keep on spending.

 This additional comfort is a cost that that service users have to pay for instance a phone with an additional feature like a camera will be more costly than one without, a self contained house is not at the same rental cost like one not self contained, the list is endless and I know you can name it because you are a spending on them daily.

One of the questions you should ask yourself is are really these costs worth your hard earned money or can you really do without them and make a saving for future investment?
Before I make a purchase I ask myself very many questions these days regarding my income and expense because at the end of the day I have to see whether it is worth it, necessary and will I have saved for the future at the end of the day?

Just imagine why you have to work hard for thirty days to earn your salary and then spend it in the first two weeks of the following month leaving you with no finances to take you through until the next pay day; I surely know that this is familiar and is happening to many of the young working professionals’ including probably you. Have you ever asked yourself why this happens every now and then; is it that you are earning less, have many responsibilities or have many needs not yet met? The origin to all these questions comes to the way you spend your income and in this lies the answer to all these questions.

I believe that even salary increments, other additional income will not solve this for you to live comfortably and so will the need a better paying job unless you watch your spending.

I have come to know that my income is an equivalent of my expenses and savings therefore no savings made. Let me ask. What is the ratio of your monthly savings to you salary or income? Is it a half, a quarter or nothing at all? If nothing at all then you are living dangerously.

Costs are of two types. Those you can control (avoidable) and those beyond your ability to control (uncontrollable) such as rent, food and health, these are basic cost of life). My emphasis will be on the avoidable costs, these are not necessary; you can do without them therefore easy to control.

Whenever I visit supermarkets, I see these items which attract my income and yet I have always done without. Have you ever bought something and later realize that the expense was not really called for, don’t you think you missed on controlling a cost that you should otherwise have made a saving on?

A quick analysis of my life and many of my colleagues reveals that we spend luxuriously, without planning and without any financial literacy.

So back to controllable costs, where are they? They are with us every day for example if you decided washing your car yourself could save you minimum 5000 shillings a week and therefore 300,000 shillings per annum as opposed to taking it to the washing bay, airtime is another unnecessary expense because in most cases most of us just gossip on phone, it could save you a lot if you minimized on the number of calls you make from your cellular.  Do you really need that three bed roomed house before you marry? Is your expenditure on 20 suits you seldom wear justifiable? These are out of the many controllable costs which we should look at, I know some of your controllable expenses may not be included in here but I urge you to analyze your costs to make a saving.
I have also realized why we make unnecessary expenditures, some want to be at the level of their peers, others simply don’t know why they are working and have no clear vision in life to achieve.
In conclusion saving is the only way to go for you to benefit from your income. It’s through this that the comfortably life you have dreamed of will come to pass. Many of us are fed up of reminders to pay rent name it and just can’t wait when we will be free of all this, but if you don’t save how will you reach there?

May God help you control these expenses and give you divine wisdom to spend wisely, plan well and multiply your savings
Richard Magoola Opolot
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