Every time we hear the word budget, we think of lofty money and lofty goals with which to spend your lofty money on. And since you have established that you lack lofty money but only have lofty goals, you shake your head and move on with life. Leave budgeting to people who can afford to.
What failing to budget really means that your money is managing you. Repeat after me, “I will always make enough money to budget”. I asked a cousin of mine why she does not budget. Her reasoning was that she makes enough at her job to live just above the poverty line. Now I have seen her clothes and shoes and they do not look like they know anything about poverty lines. And when we got down to it we realised she was getting a few classy (read expensive) items into her wardrobe. Which was money she could save towards getting the TV she was always talking about wanting. Budgets help you to be conscious of your true financial status.
2. Maintain an emergency account
Always. You could save 100 Shillings per week in M-SHWARI or have a standing order for KES 1000 per month into a savings account in your bank at the start of the month when you still feel rich. This will cater for emergencies like;
• Suddenly losing your source of income and needing to have a little money to patch you over as you think through things.
• When your phone is stolen or dies one day and you need to get a kabambe phone to hold you up for a bit.
• When your microwave after serving you happily for years finally meets it end and cannot get up to make things hot again.
• When your landlord asks all the tenants to move and you have to pay the pickup that helps you move, pay deposit for a new place all unexpectedly.
Well the possibilities are endless. An emergency account will cushion you when life happens as it is bound to.
3. Follow your passion but keep your bill-paying job, until your passion can pay.
Imagine a scenario where you quit your bill paying job to pursue your non-paying passion. You will start to loathe your passion when you lacked supper, lack transport to get there. Do not under estimate the security and the possibilities that come with being able to facilitate your passion.