Many employees suffer in Kenya due to poor planning of their salaries. A poor saving scheme may lead to financial constraints and increased borrowing capacity. I know you may be interested to know how to save money from your salary. There are several ways how to make your salary last longer in Kenya.
This article provides, some of the best ways how to save money from salary every month in Kenya.
Step 1: Understand Your Monthly Salary
As a responsible employee, you need to know your monthly net salary and your gross salary altogether. Your budget should be absolutely reasonable with your monthly earnings.
So that, as your budget you don’t budget from your gross salary. Net salary is the money you receive after all the deductions have been done.
Step 2: Identify Your Standards Of Living.
Your earnings at the end of the month strictly limit you to a kind of life you can embrace. The standards of living entail; residential area, types of purchases, and number of individuals you can among others.
People with a low salary count can consider starting a low-level life as they advance to better grounds.
Step 3. Have An Ideal Saving Plan
A good saving plan, helps you grow to better financial heights. If you are employed with any kind of salary, you should be able to save not less than 20% of your monthly earnings.
The saving deductions should come first before any other deductions to ensure consistent financial growth.
Step 4. Check Your Rental Expenses
You may be more advantaged if you live in your own house or if you are being hosted. Do you know what that means? No rental deductions.
In case you live in a rental house, then your rental expenses should not be more than 30% of your salary.
Step 5. Account Your Transport Costs
Set aside transport allocations for all the working days and ensure you don’t temper with it.
As a result, you will be able to curb avoidable debts. Alternatively, you can walk to your workplace, if it’s doable.
Step 6: Practice Bulk Home Utilities Purchasing
You can opt to shop for domestic utilities at a wholesale price rather than a retail price. Make use of the available markets near you for food purchases.
By doing so, you will realize you have extra coins to save. You can also buy the needed quantity, to avoid wastage. Learn to spend more on needs rather than wants.
Step 7: Have An Ideal Saving Plan
To have a strong financial backbone, identify a good saving plan. Banks and SACCOs are known to be the most trusted ways one can enroll in a savings plan. You can also decide to open a lock and savings account available on your mobile phone.
The one principle of saving is discipline and commitment. Have a target to achieve with the savings and ensure it is done. You can also enroll in Merry-Go-Round Chamas.
Step 8: Have An Active Medical Insurance Cover
Sometimes health issues may arrive unannounced. You need to have active medical cover for safety purposes. One of the most preferred covers is the NHIF, but there are several others you can choose from.
Ensure your card is activated every month and that it covers you and your family members to cut on your hospital expenses.
Step 9: Plan Your Debt Repayment
In case you have pending debts, come up with a suitable repayment plan. You may need to discuss with the creditor on the payment plan.
Commit yourself to clear any debts to avoid paying higher amounts upon delays.
Step 10: Set Aside Emergency Funds
It’s very important to have an emergency kit to help with essential impromptu expenses. The kit helps you reduce the tendency of borrowing.
Step 11: Find A Side Hustle
Whether you have a good monthly salary or you are a casual laborer, having an income-generating activity is more valuable. Considering the fact that, anything can happen to you or your employer.
A personal business can be your side hustle which may chip into your expense and increase your savings.