In this tough economic times, we all need to think about how to save and invest in diverse profitable businesses. It is not always easy to save, especially if you do not know how to do so. It can also be difficult to balance between your low income and the ever-growing expenditures. Here are ideas on how to save and invest:
Spend less and save more
Saving often starts with spending less. Whether it’s a pricey hair salon, daily premium coffee or brand-new clothing at retail prices, you can definitely find something to trim from your budget.When you cut back on spending, deposit your money in a fixed deposit account or invest in something.
Lose a habit to gain savings
Try to reduce one spending habit that is discretionary and bank the savings or put it toward paying down a debt. Paying off your debt is a great way to free up money that you can redirect to save or invest.
Always pay yourself
One way to do this is to set up automatic transfers from your bank account to a savings account or investment account. If you do not earn via an account, you can still transfer the money to mobile saving platforms like KCB M-pesa or M-shwari. For those who earn cash or with low income, you can save in a lockable money box.
Set aside money for emergencies
A true emergency is something you have no control over and little choice about, such as a major illness or job loss. Create a separate account for emergencies so that you do not keep digging into your general saving and investment money.
start small and grow your savings
saving and investing is a process you have to undertake step by step. do not just wake and say you will cut half of your earnings and channel into savings. start saving with say 5% or 10% of your income and grow slowly with time.