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5 Financial Resolutions Every Kenyan Needs To Keep In 2018

Posted on 2018-01-10
5 Financial Resolutions Every Kenyan Needs To Keep In 2018

It is that time of year again when we all draft this list of our New Year resolutions that we somehow never get t honor. If most of us are honest, some of our resolutions in this year’s list have been recycled over the years since they are never honored.

Do not beat yourself up about it maybe this year you need to choose a specific area in your life to focus your resolutions on. If that sounds like a plan then how about you put aside all those unreasonable and unrealistic resolutions you have set for yourself and focus on your financial life.

Financial goals and resolutions are often not given much attention when we list down the things we want to focus on in a new year. We often decided to go with the flow of things as far as our finances are concerned but it does not to be like that.

In case you have no idea where to start in creating your financial resolutions for 2018, here is a little help; five top financial resolutions you have to make and work on this year.

  1. Get out of debt
  2. No one likes to be in a debt. A debt is like a burden and you definitely do not want to carry a burden into the New Year. Being in debt means that you cannot execute some of the financial goals that you have set for yourself. Being free off debt gives you more financial freedom.
    I understand getting out of debt may not be easy but the reason why it should be one of your priority financial resolutions is because it is doable. Debt may not necessarily be a big burden in Western countries but in economies like ours, the high interest rates will strangle any financial progress in your life. Paying off debt is therefore a high priority item.
    To help you get out of debt, it would help to come up with a debt payment plan that will leave you with enough room to take care of your other financial needs.
    In the spirit of paying off debt, you can also consider selling things you no longer need or use to help you along as well as getting a side hustle to support the effort as well as reducing your spending on some things to help you along.

  3. Start Budgeting
  4. BudgetingThis is one financial goal that is most often repeated when people talk about setting financial goals. This is however because as simple as it sounds, it is very important. Your finances will never be in order without having to plan for how you spend and on what.
    For example, you cannot just leave the house and randomly decide to buy a car or a house. Or walk by an electronics shop and see a television that looks better than yours and just buy.
    A budget helps you plan for the money that you have. It helps you organize your financial priorities without throwing caution to the wind. So make is a priority this year to create budgets and actively work towards respecting them. For example, create a budget for your spending every month including paying your bills and food and not to mention money to go to work or run the errands that you have to run.

    Make it a point to keep track of every little expense that you incur during the course of the month, for example include that Shs 300 coffee that you have everyday at JAVA, that’s a whopping KSh 9,000 a month on its own. Make that annual and you are spending at least KSh 108,000 on just coffee!
    A budget will help you pin point areas that may be syphoning your money and you can thereafter create a plan on how to curb that loss.

  5. Start Saving
  6. personal savingsI know we live in hard economic times where a majority including those who may not want to admit it live a hand to mouth kind of a lifestyle or simply live beyond their means in a bid to keep up with their peers.
    It however does not need to be like that. First learn to live within your means to ensure one that you do not get into debt and second to allow you to save after you have taken care of your other financial responsibilities.
    It is often said you should spend what is left after saving and not saving what is left after spending. This can only be possible if you have a well thought out plan on your spending so you will notice these financial resolutions eave into each other. Set yourself a goal right at the start, put away x amount of money every week and use a savings tracker to get where you want to be. For parents, education savings insurance plans in Kenya are very popular, they help families have financial discipline when saving for their children’s later education.
    The importance of saving is that it gives you a level of comfort in knowing that you have a fall back plan in case things go south.
    In case you lose that valued job, savings will carry you through until you get another source of income. Savings may also cover you in case of other emergencies such as an illness.
    Another reason to save is when say you are trying to accumulate enough capital for a business or enough money to investment into something so plan to save this year.

  7. Start Investing
  8. investment So you have gotten yourself out of debt, you are sticking to your budget and you are putting some money away for a rainy day. Why not multiply your money by making an investment.
    Some people might shy away from investing because of for example thinking they need extra money to do that or the fear of losing their money if their investment goes wrong.
    But what is life without a few risks. If you do not take the risks then you will never enjoy the profits that the risk might bring a long with it.
    So take the plunge and invest and it is worth noting that you do not necessarily need extra money to do this.

    You could invest the money that you are saving instead of just letting it sit in a bank account. Investing this money will be a great opportunity to grow it at a much faster rate.
    Even with the encouragement to take the risk of investing, it is important to point that you should not invest blindly.
    Before investing, you need to answer these questions, are you ready to invest, what will you invest in, how much will you invest, what are the risks of the investment you want to take up, what is your fall back plan if that investment fails?
    These questions are just meant to show you that it is important to do your research first before investing and maybe even seeking professional financial advice before going ahead with the plan.
    This is however one of the financial resolutions that you need to think about seriously this year.

  9. Get Yourself Insured Comprehensively
  10. insurance Kenya Over time people have become a little less skeptical about insurance but just in case you are not yet convinced, here are a few reasons why you need insurance.
    Before getting into the reasons, it is worth pointing out that there are different kinds of insurance out there designed to cover different areas of your life. Be it your car, property, health, phone…there is almost an insurance cover for everything.
    Being comprehensively insured also allows you freedom to take more risks in your financial journey. While many people have a large cash reserve to cater for emergencies like illness or burglary, once you are comprehensively insured, you can then use this emergency fund for investment opportunities instead of letting it lie in a bank account.
    For example, comprehensive car insurance in Kenya, depending on the cover you take up, you can have your car covered for accidents, vandalism, theft and damage from say floods or falling objects.
    You can get an insurance cover for you house and the contents in the house or just the contents in the house. Again depending on the kind of cover you take up, you can be saved a lot of money and heartache in case of say a fire that razes down your house and everything in it, theft, natural disasters such as floods among others.
    Health insurance is something else you can consider taking up. Healthcare is important and a right for everyone but it is also very expensive and an affordable health insurance plan in Kenya and save you the trouble of paying insane medical bills in case of illness.
    The point is, this year consider taking up an insurance policy that you feel will make your life a lot easier because in the end, it will save you a lot of money and heartache. Insure at least one sphere of your life in 2018.

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