By John Kariuki

‘Saving’ is now all the rage in Kenya. Everyday there are numerous articles and stories on the subject, and people now actively engage in the exercise.

But many people do not save money the way they should.  These people will say that they need every shilling they make to pay their overheads and to keep food on the table.

But the reality is this kind of thinking forces people into a vicious cycle of living from hand to mouth, regardless of their incomes, while waiting for the ‘financial Coast’ to clear so that they can start saving.

But personal finance experts say that one should save money every month, regardless of his or her circumstances if one wants to get financial security. Often this involves making some lifestyle changes.

For example, people who eat lunch out each day can cut back on this habit and save by carrying leftover food to work.

Assuming that a good helping of lunch costs an average of Sh300 a day, one can immediately create Sh600 in just two days, which  can go into savings each week.

And the habit of carrying food to work two days a week will see these savings rise to Sh2,400 a month. And brushing one’s shoes and doing basic grooming on the hair instead of getting these services from shoe shiners and hair salons, respectively, can save one a tidy sum every month.

Harrison Onyancha, a personal finance banker with one institution, says that one way of saving money is to carry a shopping list to the supermarket all the time.

“Preparing a shopping list ahead helps you to save money in two ways,” says Onyancha.

First, one just buys exactly what he or she really needs. And secondly, people who use lists to shop are more likely to resist the temptation of impulse buying, a phenomenon that can easily derail one form his or her financial journey.

Latest arrival

“Witness the way some crafty shopkeepers keep candies and confectioneries and the latest arrivals of new technological gizmos next to the cashiers’ counters to tempt those without a shopping plan,” says Onyancha.

Onyancha adds that another way of saving money is by cutting down on entertainment, an area that is often ignored. He cites the pay television bills that some people incur.

“How often do you watch the broadcasts on the many channels that you have subscribed to? Do these channels give you anything spectacular that is not available on the less costly media?” he adds. He advises people to consider canceling their subscription and changing to the free waves as a cost cutting measure.

Onyancha advises that one should select entertainment joints that are competitively priced when going out for leisure.

“Many people deny their financial limitations and frequently go to social places way beyond their means just to prove a point,” he says. But this comes with a great personal cost. Within a street, there could be establishments where a bottle of soda costs Sh100 and others where it retails for Sh25, and so it is a matter of choice where one will take it, he says.

Albert Ireri, an event organiser concurs with this view.

“Nowadays, even some up market establishments are offering customised services for groups of people reveling together and the trick is to bargain hard,” he says.

He advises groups of people to disregard the menu and drive a hard bargain on all foods and drinks that they use in such places.

“If you are in the habit of giving tips to waitress and waitresses, take a pause, add up the figures and see if it sustainable to be ‘gentlemanly’ or ‘ladylike’ any further in these harsh times,” says Ireri.

In keeping with our peculiar Kenyan ways, our entertainment is often unplanned and happens at the spur of the moment.

A common evening call is: “Let’s go have a drink!” But hours later, it is common to see many people replenishing their funds from ATMs that are conveniently placed near some entertainment joints after running out of buying power.

Smallest detail

But personal finance experts advise people to plan ahead and to the smallest detail every time they are going out, including how much to spend.

Mark Gachango, an after-work beer reveler, says that he has hit on the perfect formula of cutting down costs.

“I often snoop around for establishments where there is a ‘happy hour’ and drinks are selling at a discount. A concession of Sh10 on every drink amounts to an appreciable figure every month for all the drinks that I take with my friends over an evening,” he says.

And remember, home entertainment is always less costly than going out. Many people often spend a fortune on every new VCDs and DVDs but this need not be the case. Instead of buying every new movie and music release, which, may effectively be for only a single viewing, one can rent these at a small fee.

And for those who love reading for leisure, borrowing books from libraries is far much cheaper than buying every new title.