In my 20’s, life was so different compared to now. Getting loans at that age was not possible as compared to the current times where people can access loans as young as 20. As long as you have an ID and a smart phone, you can access loans via mobile apps.
This has led to young people spending money that they don’t have in buying things that don’t generate income to them. As a result, they find themselves in debt that could be avoided. There is this phrase you’ll keep hearing from young people, “Tafadhali nitumie 3kay nilipe loan, nikope alafu nikurudishe.”
Most of the youths in their 20’s don’t know much when it comes to money not because they aren’t smart but because there is a lot of bad advice out there and accessing money has become very easy via mobile loans.
As a young person you need to plan your finances well and avoid being in debt or being listed in CRB at an early age. One may think that he or she has more time to build her future in later years, however, bad financial decisions may cause you a lot of stress in the future. It’s always important to develop good spending and saving habits.
Use the below money skills to plan ahead and you will be amazed how your future will turn out great:
- Always have a budget: In order to manage your day to day expenses always have a budget and stick to it. Make your budget as simple as possible clearly noting down your expenses and income. In case you find out your expense are more than your income, sit down and readjust some expenditures because you should only spend what you have and leave some amount for savings or emergencies.
- Save and invest money: No matter how little you earn ensure you save some money. A perfect savings rate to aim for is 10% – 15% on any amount earned. You can open a savings account or even use the mshwari lock account to save.
- Manage your debts: With a lot of mobile apps loaning money to just about anyone with an ID and smart phone, try to avoid borrowing for items that don’t create income. Before you borrow ask yourself how you will pay the amount.
- Set financial goals and track your progress: As a young person you need to set long term and short term financial goals. For example, when we say long-term, you may be saving up for your retirement. As for short term you could be building up your emergency fund. You need to be specific on setting these goals so that you may work towards achieving them. Goals will help you plan for your future clearly and at your pace.
- Avoid impulse buying: Be a smart shopper and use a shopping list when buying stuff. Don’t buy what is not needed at that particular time. Aim to always stick to your shopping list. This doesn’t mean you shouldn’t buy things you want. It only helps you not to use your savings and plan for a purchase beforehand. When shopping check out for the greatest deals which help you save more money.
- Create multiple income streams: having a side hustle helps in diversification of your income. Multiple income streams offer one with an income portfolio, that means that you’re not dependent on a single source of income.
Author: Nicole Kim
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