Saving money is essential for financial health. Tracking expenses and creating a detailed budget can help identify areas for saving. Avoid impulse buying by distinguishing between wants and needs. Setting clear financial goals can provide motivation and direction for saving efforts. By addressing these challenges, you can overcome money-saving problems and work towards financial security.

One major problem in this generation of ours is that most people are spenders.

If you desire to know how to save money, I’m here to help you with the following tips.

*1. Identify what you will do with the saved money.*

Even before you think about saving money, you have to identify your destination… what do you need to save money for? Why do you need to save money? How good will it be to get what you desire to save for?

These are the questions to answer because if you don`t know why you are running, you cannot run or you will be tired of running soon.

Do you want to save money to acquire some assets? Do you have to save money to build your own house? Do you need to keep money to be able to start your own business?

You have to get your why ready. If you don`t, you won`t be able to save money, instead, you will be a money spender.

*2. Build the attitude first, not the bank account.*

I know you want to save money so that you may have a certain amount of money to buy certain things, but you see, cultivating a saving habit is like other habits.

You may have to start little (most especially when you earn very little income).

Focus on building the habit first.

Most people usually think, “I am earning only Ksh.50,000 per month. I have a wife and three children. How do you want me to save money with this little income?”

The problem with such people is, when they start earning Ksh.100,000, they will still not save money and when they start earning Ksh.500,000, they will still not keep any money.

Why is this so?

They lack a saving habit.

Saving habit is like a giving habit. When you have Ksh.1,000 and you cannot give Ksh.50 to a friend in need, who told you that you will be able to give Ksh.100 when you have Ksh.10,000?

Now even if your income is small, start cultivating a saving habit.

Don`t look at the amount you are keeping now. That`s not what is important. The number one important thing to look at is the habit.

Make sure you are saving money regularly (no matter how small)

What will happen is that, very soon, you will love keeping money so much that you will be addicted to it.

When you get to this point, you don`t need anybody to inspire you to save more percentage of your income.

*3. Get the picture of what you will have to do with the saved money.*

Maybe you don`t know, let me tell you. Human being do things either to earn pleasure or to avoid pain. The only two reasons behind every of our action is either to get some pleasure or to avoid some pain.

Why do people buy cars with borrowed money even when it may be stupid to do so? Because they derive some pleasure driving a car.

Few weeks ago, a female friend of mine told me, “I always buy things and immediately hate them”. She hates those things because she never needed them in the first place… she only bought them with the hope of deriving some pleasure in having them.

Now here is my point; If you can create a greater pleasure in your heart in association with what you will use the saved money for, you will be able to avoid spending money on things you don`t really need.

Sometimes back, the woman in my life was telling me, “All the money you should have with you, you have invested it in your businesses. Now

you are not having enough money”.

She will be happy if I am having so much money I can spend now, but I am smarter than that. Most times I will invest the token I have, even when I know that will affect my daily living.

But, how do I get courage to invest instead of spending?

Because I always imagine what it will mean for me to have enough money in the future. This imagination gives me pleasure (which is greater than what spending will give me)

Whenever the picture of what you want to do with the saved money gives you more pleasure than what you can get from spending your money now, you will naturally know how to save money.

*4. Differentiate between wants and needs.*

More than 50% of things we buy are wants… we don`t actually NEED them in the first place… we only want them because we see other people using or having them.

When you watch ladies so closely, you will see them looking at other ladies as they walk on the street. Right on their mind is communication like, “That top is beautiful on that lady, I should buy one like it”, “and this skirt is smart on this lady. It makes more men to look at her. I will buy one like it”.

Though these ladies have more beautiful clothes at home, you will still see them buying more… simply because they see those fashions or styles on other ladies. That`s satisfying your want, not need.

Some men will start planning for a new T.V just the day they see a new, fashionable T.V in their friend`s sitting room. They will feel like, “John has bought that television, it makes his sitting room more beautiful. I have to buy that T.V too”.

Advertising is another enemy we have. Whenever we read or listen to an advert, we instantly desire to get the pleasure the advert promises, so we start planning on how to spend our money on those things we see on the advert.

To be a good money saver, you have to make sure you ask yourself this question before deciding on whether to purchase something or not… do I actually need this thing? Can I live without this thing? What is the worst that will happen if I don`t buy this thing? Will it really hurt?

*In Conclusion;*

Saving is firstly done by consistently putting aside money. It is not a one off affair but rather a habit that is cultivated. If you earn money every month, then you should save every month. The consistency is key.

Secondly, savings are put aside in an account that is not used for day to day expenses. Never mix the two. The account you get paid into or use to withdraw every day money is not the savings account. Treat savings like a bill. When you get paid, remove it from your everyday account and transfer it somewhere else. This way you get to see it accumulate.