HOW DO I CUT DOWN MY COST (TAKING CONTROL OF YOUR FINANCES AS A WOMAN) CONTINUED

Hello,

So sorry this did not come top of the morning, had internet connection problems (could the rain have been responsible for it? I don't know) but here goes:

This is a continuation of the previous blog post; if you have not seen it, please go here and start there.

As a rule, anything that requires purchasing which is not directly stated in your budget should be purchased days after you feel it is a good deal or a good idea to make purchase.

What this does is that it gives you time to properly reflect on the need for the item.

Create a budget

The importance of having a budget in trying to cut cost cannot be over emphasized. It is the plan for expenditure and income for a period. The suggestion is that the period should match your ‘salary’ cycle. (i.e. if you are paid weekly, a weekly budget will do and if you are paid monthly you may create a monthly budget.)

How to create your own budget

You may wish to use yesterday’s list of expenses or use this guide from the basic survival needs.

• Food
• Housing
• Clothing
• Transportation: Can include costs to maintain your vehicle
• Personal hygiene: Can include your make up and toiletries
• Health
• Include a small amount (10% - 15% of salary) as miscellaneous to take care of repairs and all things ‘turn up’. You are not allowed to spend beyond your dedicated miscellaneous. If it gets exhausted on the second day of your cycle, your ‘turn up’ ends.

The criteria to use for allowing items into your budget

Do they fall under the category above?

Can this item be put off till next period?

If I was placed on half my salary, would this item make it into my budget?

Let me rephrase the three sentences above: Is this item BASIC, URGENT or IMPORTANT?

Finding alternatives

Since our aim is to take control of our finances as women, cutting cost is on the agenda. In cutting cost, we have to review our previous handling of our finances, find out what makes us spend the way we do, make plans to guide future spending and find cheaper alternatives to the components of our cost.

In finding alternatives, we need to review each individual cost component/ item to find out if there is a cheaper way to do things. Such as

Find a neighbor or colleague to take you to/ from work or at least some distance for less than your current transport cost.

Walk short distances instead of spending money on ‘keke marwa’ or ‘bike’. If your deterrent is the sun, use an umbrella or a cap.

Pack your lunch instead of buying.

Eat breakfast.

Eat more close to nature foods (you save up on gas for cooking and save on health).

Where power is not a challenge, eat just enough and freeze the rest for later.

Use economies of scale to reduce cost.

Find out where you can get free what you need and get it there.

Explore the natural ways to skin care.

Ask for the colour of the day for events you have been invited to and match with your colour except the aso ebi is free.

Research how to do little things yourself.

Assess the actual time it takes domestic staff to do work and have them for no longer than that.

There is really a lot more alternatives, a proper review of all individual cost component will help you think them up.

Would you not rather have friends and family benefit from this? Share across your social media platforms and as usual, please leave me your comments below.

PEARL