Hustling is not just a way of making money, it’s also a way of cutting down unnecessary spending. Why go to all the trouble of making money only to waste it on things that don’t matter?
There’s no doubt 2022 will be a difficult year for Kenyans. The economy was beginning to recover from the economic effects of Covid-19, but rising prices will force us to adjust our spending habits. To add to the uncertainty is the August 2022 general election. Investors usually postpone making major business decisions until the vote is settled. This means the economy will remain in limbo until at least 2023.
The ongoing war in Ukraine is already pushing up the prices of imported products, such as oil, gas, fertilisers, wheat and metals. Nobody knows how long the war will last, but there’s no doubt everybody will feel its economic effects.
As our incomes lag behind the cost of living, each of us must make individual decisions to cut down unnecessary spending. How do we implement cost-cutting measures at home?
1. Make a budget: Prepare a spending plan and stick to it. As you look at your income, put aside at least 10 per cent of it and not wait to save what’s left after spending. A budget helps you save money purposefully. The budget can be broken down into weekly and daily components to help you monitor expenses.
2. Eat healthy: The rise in prices calls for a review of dietary habits. Possibly the only meal we Kenyans don’t fry is ugali. Can we still get delicious meals with a smaller amount of cooking oil? Must we take tea with sugar? It’s a good idea to start growing vegetables if you have space in your compound.
3. Move to a cheaper house: If you are a tenant, and can get a cheaper home of equivalent quality to your current residence, why not move? Look for a home closer to the workplace to reduce commuting costs.
4. Pay bills and taxes on time: The tax authority imposes penalties for people who are late in filing their tax returns. Some landlords impose a daily interest fee on late payments. Avoid penalties by sorting out your bills on time.
5. Cut down energy costs: Use energy-saving bulbs and switch off electrical appliances not in use. Those using charcoal jikos can get energy-saving types. Households using gas for cooking should avoid turning the knob to the maximum limit. Those roaring flames will cook your meals faster, but it's a waste of gas.
6. Manage motor vehicle expenses: If you have a car, do regular maintenance to keep it running smoothly. A well-maintained car is more fuel-efficient. Shop closer to home to avoid long shopping trips. If you have the time, why not wash the car yourself instead of taking it to a car wash service?
7. Review your TV and Internet subscriptions: List down your household's favourite TV channels. You might find that those channels are already available on free platforms. Cutting down on Internet use is not just good for your pocket; it’s healthy for everybody.
