What your money can do

Save with a plan to avoid financial pressures and unnecessary debts that come along in our pursuit for financial freedom. FILE PHOTO

What you need to know:

Save with a plan to avoid financial pressures and unnecessary debts that come along in our pursuit for financial freedom, Annet Katusiime writes.

While training a group of women entrepreneurs with great business ideas recently, it emerged that they had trouble in managing their finances.

Monica (not her real name) said: “I get money but I don’t see what it [my money] does.”
It was not surprising that Monica, like many other participants, felt the same. Indeed, most of us have been in such a scenario and we don’t know what to do.

However, it’s the small things we take lightly that matter, for example, having a shopping list, writing down the daily expenses and having a spending plan for your money.

Changing our attitude towards money is equally important to achieving our financial goals. Despite your needs and wants, there are three wonderful things you can do with your money.

You can spend money for day to day needs such as food, healthcare, housing, transportation, debt payment and optional expenses such as buying new shoes, entrainment to mention a few. Having a spending plan is the secret of seeing where your money is going. Make sure you do not spend more than budgeted and if you spend more for one item, spend less for something else. Shopping is loved and enjoyed by many. But affording your needs and living within your means is the best way to spend your money.

You can save money for unexpected emergencies, opportunities, debt repayment or to meet short and medium financial goals. It is not enough to have financial plans without a defined source of income to fund your goals. Savings many times can be a great starting point to cater for unforeseen circumstances and planned ventures.

Save with a plan to avoid financial pressures and unnecessary debts that come along in our pursuit for financial freedom. Consider different ways of saving, for example, you can do it individually or in a group. But weigh the pros and cons for every decision you make and ensure your savings are easily accessible and safe by considering the financial service providers available in the market which are regulated and governed by Bank of Uganda.

You can invest money in business ventures to earn more money. Choose the right investment most importantly, a business venture you’re passionate about and understand. Make a feasibility study so that in case of any challenges, you have the right solutions and attitude to move forward. For example most people consider investments as side income for their daily expenses to forego the pressure that comes with depleting their salaries.

However, I have realised the energy one puts in small businesses can be more less the same to starting their dream venture as long as you choose to invest because they all involve time, money and expertise. Don’t fear to start and don’t fear to fail.

But not all investments are safe. So, know how much risk you are willing to take. It is important to research and get as much information as you can for your specified investment. This can be got from other peoples’ experiences in the same venture, or Uganda Investment Authority and Capital Market Authority so that you make well informed decisions at every stage of your investment. Monitor your investment closely to make sure they are not losing value over time and consider the general economic developments for that purpose.

Ms Annet Katusiime is a financial literacy trainer and consultant at Be Money Wiser co. Ltd