Life as a millennial is fast-paced and challenging, however as you go out to achieve your dreams, it might be time to rethink your finances and how you can make them work for you. It might be time for a reset, work smart not hard.
There are several tried and tested money-saving hacks that to get on the fast-track to financial freedom today.
Here are 4 essential hacks you should test out:
1.Mobile Money savings
Mobile money transfers have made accessing money quick and easy. However, with such simplicity comes the ever-present temptation to make impulse purchases. To make your money work for you, it is advisable that for every mobile money transaction you make, deposit 10% into your savings account. Whether it be a withdrawal or a transfer, depositing a tenth of the total amount into your account will ensure that the money that circulates within your mobile money account is not only in service of your current needs, but more importantly, actually contributes to your savings.
2.Money Market Funds
A simple monthly deposit of a minimum of 1,000Ksh could be just what you need to secure your future. As a millennial, a work smart approach is critical to getting the life we desire. The Britam Money Market Fund offers several benefits that ease away your saving and investment worries. The fund offers trouble-free top ups via the mobile phone, and better still a flexible withdrawal within 48 hours straight to MPESA. The fund manages investor income to ensure a high return, accruing earnings daily, just dial *778# to join.
3. Income: saving ratio
With so many bills to pay, it is important to learn to store away a percentage of your income towards saving and investment. Multi-billionaire and American Business Magnet Warren Buffett says, “Do not save what is left after spending; instead spend what is left after saving.” In the spirit of charting your future, it is essential to divvy up your income accordingly and your savings should always take first priority. The most effective rule regarding your finances is the 20:50:30 rule. The idea is to channel 20% of income towards your savings, 50 percent towards your necessary expenses while 30 percent should towards elective expenses. Following this simple budgeting rule could help you achieve financial freedom with little to no effort.
4.Fun tax
Living young, wild and free is any millennial’s motto. However, this lifestyle comes at a cost that often requires financing. But what if you took up an alternate approach to your fun-loving lifestyle? For every fun activity, whether it be a night out with friends or an afternoon of thrill-seeking ziplining, it is advisable to set up a tax that goes towards your savings. Tax the money you allocate towards your fun and call it ‘fun tax’. So, if you are set to spend Ksh5,000 towards a camping trip in Naivasha, tax yourself 10% and put the money in your savings which you can invest thereafter.
If you are a millennial looking to make your money work for you, sign up for the Britam Money Market Fund from your mobile phone by simply dialing *778# Start with as low as Ksh. 1,000 and earn a rate of return of *10% p.a. You can top up anytime and anywhere from your mobile phone and enjoy flexible withdrawals within 48 hours straight to MPESA.
