2024 is the year to budget smarter
When it comes to the word ‘budget’ a lot of ideas and definitions of how and what it is come into play. As the year begins we are all eager and refreshed to get one step closer to attaining our financial goals. For some it’s saving for that vacation, others are to buy their first car or buy their first property, whatever it may be, the principles of making it remain the same.
Now the question is - ‘how do I budget differently this year?’ In the past we have all that we have heard from friends and colleagues, saving in a piggy bank, joining a ‘round’ (mukando) to even giving your trusted friend to keep money for you… we all know how that ends.
As a financial institute, it is our role to advise and help you plan your finances better – for us we understand that every cent counts hence why we are here to help.
Money is a seed, that needs to be nurtured and watered for it to grow. Even though a ‘round’/mukando might seem interesting – the truth of the matter is it doesn’t grow. If you believe in ‘round’ speak to your crew members to consider buying shares or gold coins – these don’t lose value and at the end of it all you are guaranteed a profit. If you insist on the traditional ‘mukando’ ensure that you open a business account or SME account and deposit your funds, there. That way you reduce the risk of losing your money from unreliable people.
Run away from quick returns. Now when it comes to investments there is the temptation to get quick returns that are doubled or tripled in value. When you see someone convincing you to invest and get double your investment in a week or month, don’t blink twice – that is a pyramid scheme or simply a scam. An investment will give you small interest margins which will accumulate over some time.
Invest in that idea – You have been thinking long and hard over the years on which venture to jump on, you have thought of doing a remote job, selling Tupperware or a buying and selling business. 2024 is the year to shake off the fear and start that gig. NMB Bank has a Microfinance division where you can get small loans to boost your hustle.
Time is money – Whatever you do always invest in the time you get. Watching a Netflix movie marathon sounds great BUT that doesn’t edify to your life. Take online courses for things that interest you. Knowledge is power and an Enlighted mind is more valuable in the long run.
Know the difference between needs and wants – This is one of the most common weaknesses we have and as we budget differently let us not forget one of the deterrents that make us lose track of our financial goals. So the next you want to purchase something ask yourself ‘Do I need this?’ and ‘Is this a need or a want’. This is not to say you should not spend money on wants, but it all should be in moderation and you should stick to your budget.
Whichever way you budget your money make sure it is a method that is best for you and your income. You can visit your nearest NMB Branch for advise and financial opportunities in accordance to what you need to do regarding financing or saving.