Due to the high cost of living some people have resolved to cut down on their financial expenditures this year. In today’s world the prices of the products are increasing over night.
Mark, a businessman said, he wants to cut down on his expenses this year. Also he has decided to stop spending on luxury items which cost him over Sh75,000 every month and instead use the money only on what he needs.
His goal is an Sh8million agricultural investment and school fees for his children studying in three international schools in Nairobi. In the beginning of every year there is always a financial hardship for parents with school going children (school fees and related expenses).
Dealing with depleted finances is part of coming to terms with the reality that will help one to take action in the right direction. People find it hard to admit that they are broke, acknowledging this fact helps in devising solutions. Analyzing the situation and agreeing to do something positive about the issue is the first step.
To look at the options you have is the second step. Most of people live in perpetual debt. For instance getting a loan in January to pay off children’s school fees. The cheapest option is to approach a head teacher to agree on a payment plan. It enables one to spread out debts and pay back conveniently.
The financial emergency is an aspect that can be avoided. It is good to maintain your current lifestyle but observe caution. Handling your financial goal in sections also helps ease pressure on yourself and is the third step.
To cover any immediate financial need, one should consider assets that can be disposed conveniently for cash. One also needs to watch their behaviour and attitude towards money keep in check this year. Avoid sourcing money from external sources as this never truly helps your situation, rather lands you in a bigger pile of debt.
Although credit cards make life easier, people should keep in mind that they are extremely expensive. It is advisable to use a debit card instead because you will only spend money that you have.
Lack of motivation is the reason why financial resolutions do not last. Ensure you have something that you are working towards. What are you saving up for? Why? Look for something that will serve as a constant reminder, for example you want to send your children to a good school, put a picture of them on your workspace, in your car, in your wallet!
Now transform resolutions from mere talk to a workable goal and remember to be clear on the rationale behind the set out objective.
Lastly, work in small bits to avoid burn out and come up with clear and specific measures that will give you a head start to your financial resolution.
Finances is the first thing that needs to be taken care off. To handle this situation you need to analyze your finances. Once you find out if you have enough finances work on how to utilize it efficiently, but at the same time if you think you are broke accept the fact. Acceptance is the best solution, this will help you chalk a better plan. Try to avoid unnecessary expenses, this helps solve a major part of it. So do not delay planning your finances.