Needs Vs Wants

Need– A need is something that is necessary for a human being to live a healthy life. Example food.

Want – want is something that you would like to have. (Wants are entertaining example going to a movie).

Balancing between needs and wants:

Decide what is important to you before thinking of luxuries. For example, my parents ensure that I have food and shelter and that my school fee is paid before we spend money on expensive clothes.

Set a financial goal.

Set financial goals/targets to manage your money well. Think of what you want in a certain period and set goals towards achieving that.

For example, if you want to buy a phone, start saving for it now. If you are working for something important to you, and you have a plan, you likely will succeed.

Where to Get Money

After setting your financial goals, plan where you will get the money from. If you can’t get enough money from your pocket money, raise additional money through home-based projects (e.g., vegetable growing, baking, swimming, sewing, etc.).

You can also cut your expenses and save: Look for ways to spend less so that you can save some money to help you reach your financial goals.

Prepare a budget that is within your income.

Prepare a budget that is within your limit: Once you have decided on your priorities, find out how much you need to pay for them.

Note: When making your budget, keep in mind that prices usually change over time. E.g., bus fare may hike during back-to-school season.

Track your expenses:

It is important to keep track of all your expenses, e.g., keeping a book where you record all your daily expenses.

This helps you monitor how you spend your money and can provide guidance on which expenses you can reduce or do without.

If you have an M-PESA go account, request your statement to see how much money is coming in and going out.

 Avoid borrowing to pay off debt.

It’s easy to get into debt but hard to get out: If you borrow money, plan carefully how you will use your loan and how you will pay it back – and stick to your plans.

Save and keep your money in a safe place.

Money can be very tempting and unsafe if it is easily accessible. Try to carry only the money you need for the day and a small amount for emergencies e.g., moving with an M-PESA Go account, for those attained 18 years can use M-PESA.