We all wish for that peace that comes with proper organization. When things go as planned, we are less anxious and that peace allows us to not only enjoy the moment but also look forward to the future confidently. One of the key steps towards achieving financial wellness is organizing our finances. When we attain a good level of financial organization, are able to manage our present needs and desires, and secure our aspirations for the future. It’s about enjoying the present while also planning for the future.
Here are a few tips on how to organize your finances for today, tomorrow, and the future to help you get started.
TODAY:
To organize for today, start by understanding your current financial status. How much is coming into my account(s)? Which is what we call income. How much, where, why, to whom and in what frequency am I paying out money? Which is what we call expenses. Creating a budget that accurately reflects your current financial status, helps you to track your spending, manage debt repayments and set money aside for tomorrow and the future. Which is best account for holding money meant for today?
Accounts: Utilize your bank current account at the bank to manage your transactions, allowing you to track and control your expenses. If you have access to mobile money as well, you can use mobile money to pay for your expenses.
Recommendation: Choose the payment option that has low transaction fees. You do not want to be paying expenses and incurring even more expenses while in the process.
TOMORROW:
Many of us wonder why care about tomorrow yet it is not guaranteed? Since we cannot predict our being here as well as the financial emergencies that tomorrow may bring, it’s essential to start saving today. Saving for tomorrow is not just for emergencies but also for significant purchases like a car or planned expenses like holidays. Which accounts are suitable to save for tomorrow?
Accounts: Consider managing your funds for tomorrow using money market funds and/or high-interest savings accounts. These accounts keep your money away from easy access, earn interest, and can be liquidated when needed.
FUTURE:
When setting money aside for the future, your consideration is more on how the money can grow. Explore investment options available in your financial and capital markets, set investment goals, understand your risk profile and begin building your investment portfolio to grow your wealth for the future. Your future financial organization also includes envisioning your retirement and legacy and selecting the accounts that facilitate this.
Accounts: open relevant investment accounts: CBK Dhow CSD for investing in Kenyan Fixed income Govt securities, a brokerage account with a licensed broker for investing in stocks, a money market account with a regulated fund manager and REITs account for investing in and REITs.
Now then …
When you take proactive steps to organize your finances today, you pave the way for a more confident and secure financial future. It’s crucial to remember that it’s never too late to start, and small, consistent efforts at organizing your finances can yield significant results over time. Start now and enjoy the benefits in both the present and the future.
