The high inflation in the country which has prevailed for the better part of the past few years has eroded the income of most Kenyans. With high inflation, purchasing power has waned which essentially means you get fewer commodities for the same amount of money than you did in 2007. High inflation undermines your ability to not only grow wealth but to also preserve it. The inflationary pressure has been a source of stress and concern amongst most Kenyans.
Every New Year, it’s always imperative that you set realistic financial goals that indicate what you set out to achieve for a given year. The next step will be staying focused and observing budgetary discipline in order to attain your goals.
For a start, you could eliminate all expenditure that you deem non-essential. You need to tighten your belt by slashing from your budget most luxuries to enable you save more and make ends meet. How many times in a week have you been eating meat? Thrice weekly ? Well you could need to cut down on that to probably once a week and instead take up alternatives such as beans which provide the same nutritional value.
Have you been driving to work daily? You need to drive less often and use public means more frequently. Your income has been stagnant for a year and a half now. It’s always advisable for individuals to have several income streams. With diversified revenue streams, you’ll find that you have more money at your disposal to save as well as invest. One of your resolutions for next year should be to diversify your income sources.
You can make use of your professional skills to get an income especially during your free time like in the evenings and during the weekends. You could undertake consultancy as part of your side hustle and that will ensure you are able to make some extra coins during your free time. Consider venturing into business. There are numerous opportunities around you and the key thing is identification of markets gaps and needs.