Budgeting is an important skill to ensure that your money works for you. In a fast pacing world, it is essential to know what to allocate where, and when, and ensure that the money you have, or expect is able to allow comfortable living as well as cushion you in case of any eventualities.

Budgeting can be a daunting task, especially when new to it. However, we are committed to supporting you, so here’s how to do it, in 6 simple steps!

  1. Make a list of your priorities

Actually, make a list of what matters to you, and write that down in order of their importance and what you would prioritize.

  1. Make realistic goals

Do you have financial goals? Most of us have big goals, but fail to break that down in smaller, more realistic and manageable chunks, for example in the next month, three months, six months, one year, three years etc. Think about what you want to accomplish and write that down!

  1. Identify your income and expenses, and separate needs and wants

Take a look at your available income. What is your net income? Ensure that you only consider your regular income, not the sporadic ones like overtime pay. In addition to this, keep a track of your receipts and statements to actually know where your money is going to. Fixed expenses like rent or bill payments are easy to predict, unlike those that are flexible and are susceptible to changing like food, clothing and entertainment. If possible, consider a personal finance program available, to guide and help you in tracking these. Your needs come before your wants and that should be reflected in the budget.

  1. Design your budget

Essentially, your budget should be your spending plan, so look at it that way. That way, it is a way to be aware of how much money you have, what you have to spend, where the money needs to go and how much of it has to go. In case your expenses are more than your income, then the budget needs to be readjusted, and spending reduced to what the income can handle. In that case, the expenses should be less than or equal to the income.

  1. Reward yourself

While putting your plan to action, it is important to reward yourself, as well as prioritize saving. It is unfair to make an income and not benefit from it, and we advocate for a saving culture, as saving is a form of financial protection. No amount is ever too small, and that alone can make a very big difference, and as such, it is important to make it a habit. 

Tip: Saving can also be done by reducing expenses such as transaction costs, by using Kyanda in your payments. Little by little, you notice how much you are able to save, by doing that little big thing!

  1. Review your budget

Over time, your needs may change, and that affects your budget. Does the budget still help you achieve your goals? If not, that requires you to make adjustments or create a new budget altogether, that aligns with the person you are at whatever time.


Happy budgeting!

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