Initially, it used to take me aback because I thought, saving is easy: You commit to put aside a part of your income to help you achieve a goal that is valuable to you. Easy? Not that easy, as I have learnt during the four years I have spent building and running an online personal finance and entrepreneurship community.
If you also wonder how you can start saving, here are some thoughts to get you started.
1. Start with a goal. What are you saving for? Take some time to think about it. Write down all the things that are important and valuable to you, and what you want your money to do for you. Then prioritise based on your needs and choose one priority goal to start with.
2. How much do you want to save and how often? This will be determined by your income, income cycle, and your life circumstances. Choose an amount that is realistic and doable for you and a frequency that is realistic. For instance, if you earn a monthly salary, you might choose to save 10 per cent of your income every month, instead of trying to save daily or weekly.
3. Where do you want to save? There are many options for savings accounts, depending on the needs you expect the account to meet. For instance, some people prefer to save on their Mshwari or KCB Mpesa mobile phone savings accounts, because they can easily transfer savings from their Mpesa wallets to their mobile savings accounts. Others will choose a savings account in a Sacco or bank. My preferred method is a money market fund, as it gives one the option of earning compound interest. Think about your needs and think about which savings account best fits your needs.
4. Start saving and keep doing it consistently. Put in your initial savings and keep savings consistently, in accordance to your set frequency/saving schedule. The best way to ensure that you stay consistent, is to automate your savings using a standing order from your current/salary account to your savings account or ask your employer to have your savings deducted at payroll, and remitted to a savings account. Automating your savings ensures that you save without having to debate with yourself about it. It happens automatically, no stress.
5. Get an accountability partner and check in with them regularly, to help you stay on track. Also have money dates with yourself every month to review your progress, troubleshoot challenges and make any adjustments that you need.
6. Seek guidance for the obstacles that are standing between you and your goals.
7. Celebrate once you reach your target, and use the savings to achieve your goal.
Many people like to use a savings challenge chart to guide them for a start or to visualise and keep record of their progress. You can download savings charts by clicking on the links below:
- Daily savings chart (blank) for people who prefer to save daily
- Weekly savings chart (blank) for people who prefer to save weekly
- Weekly savings chart (Sh10) - the amount to save increases every week
- Weekly savings chart (Sh50) - the amount to save increases every week
- Weekly savings chart (Sh100) - the amount to save increases every week
- Monthly savings chart (blank) for people who prefer to save monthly
- Monthly savings chart (Sh6,000)
- Monthly savings chart (Sh11,500)
