It is that time of the year, the one we dread all year yet always forget to plan for. You have had a lovely holiday season, spoiling your loved ones with presents, celebrating every night, and let’s be honest, spending a lottt of money 👀

And now, the bills are hitting you. Your landlord is knocking on your door asking why you haven’t paid your rent yet. Your child’s school is asking if you intend to continue in 2022. Insurance, groceries, fuel…the expenses are endless and the end is nowhere in sight.

What if we told you that you can still salvage this month? Here’s how:

1. Take a deep, and we mean deeeep, look at your expenses

There are expenses that we can’t get out of, unfortunately. Be it rent, stima, WiFi, these need to be paid off first. Once these are out of your way, think about the other things you spend money on and if you really need them.

Can you opt for a cheaper brand instead? Or look for an alternative that would serve the same purpose but costs less? This is the quickest way to limit your expenditures. Make that coffee at home instead of buying it from Java. Organize a games night at your place instead of spending thousands at a pub. Cutting out these “unnecessary” expenses will free up your budget for the important things.

2. Budget, budget, budget

We know this tip is part of all financial planning lists, but that just proves how important it is! Make a plan of where you want to spend your money and stick to this plan. This is even more crucial in a month like January when you are already starting on a low. 

Be very clear on your objectives for the month, any recurring expenses, and realistically how much money you have left to spend. This will allow you to make sure you are spending on the right things and not have to borrow money or dip into your savings this early on in the year.  

Make a list of your shopping items: what do you need to survive this month. And don’t falter when you see that Ferrero Rocher or those Bose headphones. This will prevent you from making unnecessary expenses this month.

3. Watch out for those discounts

We know that discounts are a bit harder to find in January after all the Christmas sales, but it’s not impossible! Do some research and look for stores around you that have weekly or monthly sales. Naivas, for example, offers discounts on selected items on a weekly basis. Sign up for their updates to make the most of them.

Buying larger quantities of items is another way to save those extra shillings this month. Estimate how much you will need of item X this month, and buy enough to last you the month. This will also save you an extra trip to the grocery shop (and save on transport costs!)

4. Make a (reasonable) savings and investments plan

It is very easy to set a new years’ resolution to “save more” but this is not enough. You need to make an actionable plan on how you will do this. Look at your finances and determine an optimal amount that you can save every month. And put this money aside as soon as that salary or payment comes through!

If you are looking for a savings plan, join our 2022 Savings Challenge! We have created a simple plan that allows you to save Ksh. 12,000 in just three months, while earning a compounded interest of up to 10% per annum. Need more? We will top up the savings of three warriors with an additional Ksh. 6K, 4K and 2K respectively!

Log into your Koa app and make your first deposit to the 2022 Savings challenge goal today!