MONEY MATTERS
Frugal living Article by: MIRIAM M. CHEGE
T
here is an old English proverb that says: Take care of the pennies and the pounds will take care of themselves. This means, if you take care of little things, with time, they can add up to become big things. Here are ten frugal living ideas to help you in financial management.
1. Look for ways of increasing your income – see how the things you love doing can contribute extra income beyond your full time employment without jeopardizing your formal job – utilize the extra hours in your day to earn some extra income. 2. Cut on the luxuries – How much do you spend on premium cable subscriptions, expensive shopping malls and social meetings? Check where else the same products and services can be offered at half the price. A salon or gym near your house can make a lot of difference in your budget. 3. Track your expenditure – How much did you spend on food items last month? What about the utility bills? And your lunch while at work? If you have no actual figures for these items, make a budget to help you plan your monetary spending if you want to achieve financial freedom. 4. Cut impulse buying – this sounds cliché but opportunities of spending are always beckoning. If you decide to idle out in a supermarket over lunch, you end up buying unnecessary things. Be disciplined in your spending. 5. DYI – Meaning Do It Yourself - this one I got from www.frugaldad. com. Recently, I began washing my car to the dismay of my neighbours. Paying your own bills and picking up a cheque yourself saves you errand fees. 6. Buy in bulk – Bulk purchases save you a lot in the long term. Shop wholesale rather than buying one item at a time. 7. Carry a packed snack to the office – This is a healthy way of eating and avoiding over priced hotel/restaurant food. You can pack a fruit and salad and please, don’t eat at your desk! 8. Live below your means – Keeping up with the Joneses can drain your energy and your resources as well. Buy only what you need and what you can afford. 9. Get into good debt – KSh 100,000 to buy a new couch or a hometheatre is certainly not good debt. The more you have this kind of debt the more you get into the rat race and the more you need to borrow for more utility things. 10. Convert your family –cannot achieve financial wellness if you are surrounded by wasteful people. Miriam M. Chege is the Chief Manager, KIM Membership and Media Services Division. She is a Motivational Speaker and a Communications and Media professional. Email: mchege@kim.ac.ke
10 tips on investing in real estate Article by: DAN OJIJO
A
re you thinking of going into real estate business? Dan Ojijo, Executive Chairman and Managing Director, Mentor Holdings has the following 10 tips.
• Weigh your options – Have a proper plan that will guide you through your business. Draw sustainable options that that will guide you to your desired goal. • Learn as much as you can – research. Attend real estate exhibitions and read what is out there in the market. • Start small - You don’t have to go for opulent houses as this may strain you financially if you don’t have enough capital and requiring you to borrow. • Be creative – Seek to do something that is different from what everyone else is doing. • Have basic house maintenance skills and maintain the house in good condition if you want to continue giving you more money. • Partner – seek partnerships with legally registered real estate agents and learn from them. • Always use a lawyer - Never get into deals without a lawyer – he/she will help you understand the legal aspects that the law requires you to observe. Involve your lawyer in all financial transactions and agreements. • Background check – Check out the property you want to buy, use a valuer of a registered company. • Total costs – Know all the costs involved; i.e. the cost of land, building materials and where to source them from, cost of labour, etc. • Be prepared to handle challenges in real estate i.e. getting the land, water and the sewerage system while undertaking construction.
MANAGEMENT
APRIL 2011
61