Managing your money using technology

You may have a full-time job, a side hustle or two, a family probably a single mother or married and endless responsibilities, managing your money can become an overwhelming activity to handle. That’s exactly why people find themselves living one paycheck every month and ending up broke wondering where their money went. That being the case, due to lack of Money Management.

When you don’t know where to start, it can seem overwhelming especially when you are planning for a big purchase or saving for rainy days to weather emergencies. During my researches about money I came across these hacks especially about how you can manage your money using technology. Don’t worry you may not have been good in math or accounting during your school days; you don’t have to balance any checkbooks or balance sheets.  Phew!!! What a relief…

These hacks will help you manage your money and also give you the guidance on where to stash it as you save more and move along smoothly with your life using technology. 

• Make sure you know exactly what you earn and spend

Before you start managing your money, make sure you track everything, absolutely everything from what you earn to what you spend. You don’t have to walk around with a pen and notepad to note everything, you will look abnormal; instead use your smart phone; in your play or app store you will find many useful money management apps you can use to do the tracking for you. I have also started using the Money Manager.There are several of them but I find this useful. It’s a free download allowing users to track their finances effectively. 

• Create a budget and be strict with each spending limit set

Once you have a clear picture of your full income and what you spend on a daily basis, while using the Money Manager, use that information to create your weekly, monthly or annual budget. Make sure you prioritize your expenses. Don’t make entertainment your top priority; it can come in at a later stage. You can start with your static expenses such as rent, school fees, medicare, utilities etc, and those expenses that can’t be compromised. Add those up and subtract the total from your monthly take home, see what you are left with then decide on what’s the next important item you need for the month. Lay off the others and stick to the set limit. 

• Be a save monger

When it comes to long-term financial health, there is nothing more important than creating a budget where your savings occupy the biggest stash between expense and recreation. You need to think of saving as the only way out for your rainy days. To increase your savings rate without feeling the pinch, I recommend you save an extra 3% off your monthly income for a period of 3 months. Every after three months stash away 80% of those savings to a retirement account where you won’t have access to withdraw it at any time. Or you can stash the 80% in stocks where you will get returns after a very long period of time.

The remaining 20% is very important for your rainy days (emergencies) this will give you peace of mind. 

Mind the interest with the banks when opening a saving account or you can find an online savings account to use. 

• Use Cash cards/ Prepaid Cards

Every bank now owns a cash card but all serve the same purpose, look out on the transaction charges, maintenance charges and transfer charges. They are cards without a bank account; they are not linked to your bank account. You get to load the exact amount you want to use for a particular period of time. They are shopping, retreat and travel friendly, meaning you can use them anywhere you go stress free with minimal charges on any transactions. Some may have loyalty benefits that tag along with them say a 15% discount off your dinner at Serena Hotel or shopping online, it makes a great difference than if you had used hard cash. These cards are safe and can be renewed in case lost or expired. My recommendation so far the best in the market is the UBA Visa prepaid card. You can get it instantly.

• Invest for your future

You need to take heed when investing especially if it’s your first time. I know you are now saying how can I start, what if it fails, what if they are conmen, what if they are eyeing my hard earned cash? All these and more what ifs will come into your mind, but you won’t know if it will work out unless you take the risk.

I suggest you diversify your investing techniques, putting all your eggs in one basket you know what happens! Spread your investments across many stocks; maintain a diversified portfolio even if you have less to invest. There are many areas that need investment without you lifting a finger while your money works for you. Buying stocks, lending your money in clubs, agriculture etc. the key to successful investing is diversification. So go on and invest. Take the risk.

Once you have mastered these hacks your life will become much easier in terms of your financial health. Try them out and let me know. lukomaasociates@gmail.com

Subscribe, tag a friend who needs this, share and let’s save the world as we adapt to the technology trends.  

WAYS TO SPEND LESS THIS CHRISTMAS AND AVOID A FINANCIAL HANGOVER IN THE NEW YEAR

Planning your finances this Christmas will help you enjoy not only the festive season’s celebrations, but the New Year too

Everyone loves Christmas but nobody wants to end their festive season with a painful financial hangover.

It is starting to look like Christmas and all we can think of is how it’s going to be, what you will wear for the church service, your children, what they will wear. What’s for the menu? (The most essential part during the festive season, in my view of course. If you are like me, I will require to complete my menu with a juicy chicken thigh😋😋😋) Now, if you are planning to travel to the village for Christmas that’s another budget all together. What gifts you will give for Christmas? Who will receive the gifts? 

Many questions are coming into your mind and you are overwhelmed. And when you look at the savings you have put aside for the festive season, it's basically not enough. You will probably be looking at getting a soft loan from a friend or at the office or a loan shark. It’s just not enough and it can never be enough. 

Don’t wait to brace yourselves for the subsequent financial shock, when your debtors knock on your door in the first week of the New Year. Remember you are starting a new year and you don’t want to start it on the wrong foot with unrecorded debts.

Overindulging in food and drink is so often matched by overdoing our spending, with the result that the first part of the New Year turns into a damage repair exercise for our budgets.

I will fill you in on what I will do on my part; hopefully you can pick a thing or two to help you turn your Christmas into a financial success rather than financial excess.

• Plan Ahead.

As the saying goes “a failure to plan is a plan to fail,” and when it comes to the holidays, truer words were never spoken. Taking just a few minutes early in the season to set a budget, plan your menus, and determine your priorities can be the difference between memories to last a lifetime and a holiday you’d simply like to forget. Planning ahead is especially important when it comes to a lot of things.

First, draw up a budget for your Christmas spending; not just for presents, but the additional spending on food, drink and socializing.

Coordinate this Christmas element of your budget within the rest of the household budget; so that you can manage the overall effect Christmas spending has on your finances over a number of months. Spend what you have planned for and stick to that. 

• Use the loyalty cards

Those who ignore these loyalty cards during your shopping you could start thinking of this one more time. From my experience these loyalty cards are a great savior during this season. You may not notice it but every time you make your shopping say at Nakumatt, Shoppers or any other supermarkets or stores with a loyalty cards, you give your card to the teller and she swipes it before entering the items you have bought, the total amount you pay comes back to you in points and these points can be redeemed to pay for your glossaries the next time you have less cash on you. 

You can decide not to redeem your points for the whole year and use them to help finance your Christmas spending. So don’t take these loyalty cards for granted go on and get one they are for free though some stores decide on which spender to award them with the loyalty cards. 

• Start shopping early enough

Start shopping early enough to avoid the high season prices. We know the horror of last minute Christmas shopping. Starting early gives you more options and more time to decide what to get. You may even have the luxury of shopping around!

Beat the crowd and start early this will also prevent you from throwing money to the problem when you don’t get what you want hence spending much unexpectedly. 

• Sell, sell, sell

It's simple commerce, really. If everyone's buying, it's a good time to sell. Is your house full of things you don't need (like unwanted Christmas presents and unused exercise equipment from last year)?

Try to sell them online or opt for a car boot sale if you've a lot of stuff to offload. You've nothing to lose but you could earn some extra festive cash. 

• Maximize the value of a Shilling. 

Planning a village vacation isn't the only time the strength of a Shilling deserves consideration. Case in point, for less than the price of many pair of shoes or expensive clothes, you can feed unprivileged Tanzanian children a healthy breakfast by donating as low as TZS 5,000 to a project we started in 2016 to help unprivileged children in orphanages 4 times a year. You can contribute to the cause by simply sending your contribution to this account.

Account name: Josephine Lukoma

Account number: 5336925552

Bank name: Exim Bank Tanzania

Swift code: EXTNTZTZ for bank transfers

Yes it’s a personal account but I guarantee you these contributions and more from my personal savings every three months reach the intended recipients.

Now let’s help those who need the most help. Don’t forget to state the purpose of the deposit as “contribution to the unprivileged” so it can be easily traced.

Not only does it feel good, but you couldn't possibly quantify the investment return charitable giving produces. What you do this Christmas for someone who is truly suffering could save or substantially enhance the most precious gift many of us too often take for granted.

Hoping I have helped a soul out on their Christmas finances. Nevertheless Christmas never ends if you don’t use these tips for this Christmas try next year’s. This is the best gift I can give you this Christmas.

All I want for Christmas is for you my reader to subscribe today and don’t forget to like and share with your friends and family as it’s the time to share. You may save a soul from the financial hangover this New Year.

Happy holidays!