FINANCIAL TIPS FROM FATHER

FINANCIAL TIPS FROM FATHER

At the time, my ninth birthday seemed like the worst day of my life; because instead of the bicycle I was dying for as a birthday gift, my dad gave me a piggy bank. As I stared at the shiny, plastic innate animal (what an oxymoron!), I couldn’t for the life of me imagine what he was thinking!

30 years later, words cannot express my gratitude for receiving a bank instead of a bike; for that was the beginning of my journey in learning financial tips from my father. ?

1.????Spend less than you earn

No matter how much or little you earn, always spend less than you earn. You will never get ahead if you spend more than you earn. As a child, I did house chores and ran errands to earn my pocket money. At first, my tendency was to spend it all, usually on sweets and chocolates – leaving no money to buy anything else. With dad’s help, I learned to always keep some coins in my kitty – and it didn’t always involve making big sacrifices – sometimes, all it took was buying fewer sweets at a time. As an adult, I’ve learned that simply scaling down on some luxuries can cumulative make a big difference to my savings.

2.???Create a budget and stick to it!

An important step to consider when trying to get ahead financially is budgeting. After all, how can you know where your money is going if you don't budget? How can you set spending and saving goals if you don't know where your money is going? You need to set a budget?whether you make thousands or hundreds of thousands of shillings a month.

3.???Have a Savings Plan

You've heard it before: Pay yourself first. If you wait until you've met all of your other financial obligations before seeing what's left over for saving, chances are you'll never have a healthy savings account or investments. Resolve to set aside a percentage of your salary or earnings for savings before you start paying your bills. Better yet, have money automatically deducted from your pay and deposited into a separate account.

4.??Invest

If you're contributing to a retirement plan and a savings account and you can still manage to put some money into other investments, all the better. If unsure of where to start, a chat with a Relationship Manager will put you on the right course.

5.??Keep Good Records

If you aren't careful about keeping thorough records, you're probably not claiming all your allowable income tax deductions and credits. Set up a system now and use it all year. It's much easier than scrambling to find everything at tax time, only to miss items that might have saved you money.

6.????Pay your bills on time every month

Paying bills on time is an easy way to manage your money wisely, and it comes with excellent benefits: It helps you avoid late fees and prioritizes essential spending. A strong on-time payment history can also lift your credit score and improve your interest rates. At BOA you will find a myriad of products like Lipa Na Mpesa and Bmobile that take the stress out of managing your payment systems.

7.???Get your property valued

Knowledge is power and knowing exactly how much equity you’re sitting on can only help inform your personal finance decisions in 2022 and beyond. Whether you own your home with a mortgage or outright, it’ll stand you in good stead for your new-year goals to know how much equity you have in your property.

8.??Guard Your Health

It makes excellent financial sense to build staying healthy into your daily routine as soon as possible. Common-sense health maintenance is very straightforward, and you've heard it all before. Eat fruits and vegetables, maintain a healthy weight, exercise, avoid smoking and excessive alcohol consumption, and drive defensively. Not only will you feel better physically, but these behaviors can also save you on medical bills down the road.

If paying monthly health insurance premiums seems impossible, what will you do if you have to go to the emergency room—where a single visit for a minor injury like a broken bone can cost thousands of shillings? If you’re uninsured, don’t wait another day to apply for health insurance. It’s easier than you think to wind up in a car accident or trip and fall down a flight of stairs.

9.??Contribute to a Retirement Plan

Retirement is a reality. Ensure that you are putting money aside to ensure that once you are no longer able to work, your lifestyle is not adversely affected or worse still, that you do not become a burden to your children.

10.Write a Will

Preparing a Will is easier than ever these days and most financial advisers will be able to put you in touch with a lawyer who can help you with this often-overlooked part of personal finance.

If you have any assets and dependents, then a short amount of time now will avoid a lot of wrangling later on. It will also give you peace of mind that your wishes for your estate will be carried out should something to happen to you.

My daughter’s ninth birthday is coming up soon and I have no doubt what I’ll get her. In fact, I have the surprise planned out. I will drive her to my Bank of Africa branch where she will open a Cool Kids Account and with that receive her first shiny, plastic innate animal – a green hippo!

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ENDS//