I’d have used some catchy headline like ‘GET RICH NOW’ but that’s almost impossible with that finance bill now signed. So this review has been long overdue and we just need to get to it already. Anyone in their 20s trying to make life happen right now knows how difficult it is to save up some little money. There is pressure and you are never too sure how to invest, where to invest and how to manage an investment. It’s all a trial and error until something works. I’ll just feed you some of the hacks that have sort of worked for me and you can try it out too.
Life savers ya’ll. I have no idea how else I’d have made it this far without my chama. So I try my best to not use my salary/main income for luxuries, strictly for necessities; you know rent, electricity…basically recurring expenditure.
So I make monthly contributions towards a chama and ours is rotational. So when it’s my turn to receive the money, I dedicate it all specifically to buying house appliances. It is actually not easy to raise an entire 30k out of nowhere to buy that Fridge, TV… Even if we slash it down to maybe 10k for a bed, it is still not easy to dig up that chunk from somewhere.
So join a chama or make one with your friends. Think of it as a goal savings plan where you can withdraw your money within a certain period. Some people even save towards holidays.Word of caution, only have members who are consistent and understand the value of the chama investment. I advise pick serious friends and be strict or else you’ll end up inconveniencing each other in the name of friendship, especially when it comes to defaulters. One single defaulter, ruins the entire cycle.
I have not fully wrapped my head around investment, trust me I struggle. I watch property show but I can barely afford my rent so…yeah LOL!. Sometimes you are working on a start up and if you ask for advise from someone with experience, they expect ‘za macho.’ We mwenyewe huoni budget ya lunch. hahaha.
Anyway with your chama you can try out, PRESTA a finacial management platform for lenders. This is just a platform where you open an account and add your chama members. Now to that account, you can add money, as much as you want. Through a USSD code, any member added to the account can request for a loan. The administrator, back end can set loan interest rates and defaulter penalties. I’m guessing as chama members, you’ll agree on all that before hand.
So when members ask for loans, they pay it back with whatever interest rates set. As money flows in and out of the account, we’d like to assume, the interest amount keeps growing consistently. As my chama tries to figure out how best we can make the money grow ; we are currently feeding into PRESTA a quarter of our normal contributions and the rest is rotational as was before. My favourite thing about this is that, you borrow from a trusted source and grow money you have a hand in, instead of enriching all these loan apps that have come up charging ridiculous interest rates.
We are thinking of opening it up to more borrowers in the future. As for now we’ll just borrow among ourselves and I’ll give you a review later on once we can see the fruits.
Goodness, you need to have special type of patience when it comes to money pressure. You can die from just thinking about how much you need money. LoL! Remember Rome was not built in a day, life is not fair, your time is not my time and bora uhai. Remember to always be grateful for the strides you’ve made already and that goes a long way with positive contentment.
If you are in employment or basically have some consistent income you could try the rule. I came across this expenditure plan that I think is really helpful.
50% is for the recurring expenditure. The most basic needs. This covers rent, bills, transport, food. 20% goes into savings and paying up debt. This is long term savings, towards a house, a business venture…not holidays or ruracios please. Try your best not to be in debt and if you are, pay them in time and maintain a clean rating. 30% is now left for your lifestyle accessories. Buy shoes or go on holiday if you want now.
I’m not a Business or Finance guru so if my language is not businessish…forgive me.
Check PRESTA website or call them. Lovely customer service they have. Drop me a comment on what you think; even what you don’t think is fine too…