You have been living a modest lifestyle, content with you neighbourhood, and was comfortable with commuting in a matatu, until you got a new job – and a raise along with it. All of a sudden your neighbourhood feels unsafe, you no longer feel comfortable riding in a matatu and the desire to change your lifestyle weighs more and more on you until you give in.
You move from a cheap KES 15,000 two bedroom apartment to a relatively expensive KES 30,000 two bedroom apartment. You then take out a loan and buy yourself a car, with it comes an entire lifestyle make over. You are no longer comfortable at the affordable local pub you used to frequent and instead opt for the more expensive lounge. You initially thought that with a pay rise, you will be able to save more but in the long run you find yourself unable to save at all.
A few paychecks down the line, and what once felt like a healthy boost and a windfall suddenly is just another part of the budget, spent on some new services or habits.
The biggest enemy of savings is lifestyle. Money that should have gone into savings is instead used to support your new lifestyle, one that is very expensive. We tend to forget the old saying that goes: “If you didn’t need the money before, you don’t need it now.”
Be wise, the secret to a secure financial future is to live below your means. , remember; pay yourself by saving for the future.
Click here to read a related post on: Living Better Means Living below Your Means