5 financial rules to live by in 2023

By , K24 Digital
On Thu, 19 Jan, 2023 06:00 | 3 mins read
Illustrative image.
Illustrative image.

If you splurged a fortune during the festive season and are currently suffering from a financial hangover and rough times given the pending bills, you need to have a financial guide to avoid repeating the mistake.

The guide, which we have developed from various research points, will also shape you up and help you keep afloat this year and in future.

Ready? Read...;

1. Track your spending

'Balancing your money is the key to having enough.'- In the good words of Elizabeth Warren, an American author, finding a way to balance your finances by effectively tracking your spending is a great decision that will help you be disciplined with your finances.

Budget Planning. A businessman using calculator to track his income and expenses. PHOTO/Istock

This will consequently help you build a budget that you can work with throughout the year without finding yourself in financial trouble.

2. Live within your means

As much as you love 'Sherehe na mbogi' and 'Kuchafua meza,' it is important to know and understand how deep your pockets are. Succumbing to FOMO (Fear Of Missing Out) is likely to land you in financial trouble.

Image used for illustration purposes. PHOTO/Internet

This means that you shouldn't spend more money than you actually have or earn. Learning how to live within your means by curating your budget and sticking to it will prevent you from wasting money on non-necessities and deliver you from the shackles of loan apps.

3. Save before spending

As the common saying goes 'save today, save tomorrow' - Saving a portion of your income for rainy days will help you create a financial cushion for rough days and save you from financial troubles.

Save for rainy days. PHOTO/Courtesy

Plan well and execute by creating a financial plan that includes essentials (needs) - 50 per cent, wants ( this are personal desires)- 30 per cent and save 20 per cent.

To make the most out of your savings, you could choose savings or investments account to suit your needs and future plans.

4. Purchase goods in bulk

Save your coins by buying goods in bulk. Purchasing in bulk gives you room to bargain and get goods at lower prices.

Buy goods in bulk. PHOTO/Courtesy

The process involves buying goods in larger amounts than usual at a lower price. You will not have to go back to the store as often as before since you already know the best foods to buy in bulk. However, choose wisely so that you avoid ending up with more than you need.

5. Pay off high-interest debts

Offsetting high-interest debts that are likely to overwhelm you is important since it is likely to cost you the most in the long run.

Image used for illustration purposes. PHOTO/Courtesy

You could be able to lift the weight of your shoulder by negotiating with creditors in order to create a payment plan that will serve you to avoid landing in financial troubles.