Home My Financial Playbook The Best way to start saving, Kenyan Experience

The Best way to start saving, Kenyan Experience

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The best way to start saving is to start saving immediately. Find a way to have a section of your income into your saving as early as now, because money will never be enough. As your income grows, expenses and responsibilities grow at even a faster rate. You want to move with the latest trends in the market, latest smartphone, and a laptop and in the end you procrastinate on your saving and this consequently hurts your future.

You lack discipline in saving– This hurts most young people. You want to be different from your parents but unplanned expenses emerge from nowhere which forces you to chuck out some of your saving into these unplanned expenses.

You do not have a proper goal towards which you are saving for. Soccer would be of no meaning if there were no goal posts. The test for each team in a soccer match is to breach opponent’s defense and score. So the aim of passing and moving further from your goal is to score.

If you lack goal posts for your savings, you are likely to stagnate where you are in terms of making hay for the rainy day. The best way to overcome is to have a goal towards which you are saving for. That’s why you need insurance.

You are probably myopic: You see two days from now or the next five years. Five years is short term. Consider your life in twenty years from now. Probably you will have a son or daughter joining college. Fifteen years from now you will your child joining high school. So you can start saving now for school fees. Take a cover that will force you to contribute some premium monthly to take care of your child in high school or college.

The best thing to do is to take an insurance plan with a term equal to when your child will need you financially. It might be draining you now but in the end you will rest. You can drop a comment if you require a saving plan for you.