Five useful money habits for 2023 and beyond

The economic situation demands greater attention on how to use money

In Summary

• Regardless of your earnings, there are ways to help you make the most of your cash

Kenyan currency
Kenyan currency
Image: FILE

It's once again that time of the year when we think of making changes to our lives. With current economic circumstances, we could all use some fresh ideas on how to manage the Big M: Money.

Studies show that more than half of New Year's resolutions fail. Forbes magazine quotes an 80 per cent failure rate. A BBC article describes a survey which shows at least 50 per cent of people who make New Year resolutions manage to achieve some of their goals.

Everybody wants to make more money. The question as we cross into 2023 is: Where does it come from?

There aren't many jobs available. For the unemployed, the struggle to get a job will continue. For those already employed, switching jobs for higher pay seems a risky move. In the business sector, 2022 was tough as the economy recovers from Covid-19 and the uncertainties surrounding the General Election.

The ongoing scenario demands greater attention on how to use money. It also calls for careful decisions on increasing our incomes. In short, better management of money. Regardless of how much or how little you think you are earning, there are tips to help you make the most of your money.

1. Save purposefully: There will always be a demand for money: household bills, school fees, assistance to relatives, taxes, business licenses, holidays, loans and tithes. Without a savings plan, you will keep running out of money. Don't wait to save what's left after spending. Saving purposefully means setting aside a specific amount of money as savings.

2. Make a budget: A budget is a plan that helps you balance your income with savings and expenses. With a budget, you can set limits on how much to spend so you have money for more important things. A budget will help you avoid impulse buying; that is, buying unnecessary items on the spur of the moment.

3. Manage your debt: Instead of hiding from creditors and constantly changing your phone number, face your debts head-on. Debts include loan repayments, unpaid bills, fines and any other money you owe. Sort your debts in order of importance by identifying who you owe money, how much you owe and the due date for repayment. Explore which debts can be paid in instalments to reduce the financial pressure you may be facing.

4. Shop around for better deals: Whether it's buying clothes, getting a TV subscription, home Internet, or shopping for household goods, compare prices from different sellers before making a decision. You may find a sales outlet whose prices are lower than the rest. Don't buy low-quality goods or services because they will either disappoint you or not last for long.

5. Avoid get-rich-quick schemes: This is a regular reminder in this column. The fastest way to lose money is by investing in schemes that promise huge profits. Avoid ventures that require you to recruit more people as a condition for making money. Gambling and betting are not the way out of poverty; you are more likely to lose money than make it through games of chance.

May the New Year 2023 be financially rewarding for you!

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