“Spend what you have left after saving and not saving what you have left after spending,” is a good statement to kickstart this discussion about how to free up cash.
There are several ways in which you can free up some cash and become wealthy or stupidly rich as some people would term it.
At times you may wonder why you earn a lot of cash but cannot account to where your money goes to, in real sense, you have some habits that cannot keep you afloat in the monetary ocean.
Well, here are some ideas that can aid you in rowing your financial boat:
It is not all about just budgeting, it is about sticking to it. When you budget, you sign a contract with your pockets. It means that you will only spend in relation to what your budget commands. Breaching the terms of the contract would mean you are doomed to fail.
A proper budget will help you in the following ways;
Sell unnecessary items
What is that item that you find hard to get rid of? This question should be ringing in your mind whenever you need up some quick cash. That old electronic gadget that you ceased using a decade ago, or maybe you have five tables in your house, you really need space in that house, right?
Sell such items and get some cash. You will be like doing batter trade cause, you might use that cash to buy another item that you really need. You will also be able to save space and cash, concurrently.
Avoid carrying liquid Cash around
Those who have experienced the negative sides of carrying plenty of cash around can spread the gospel effectively. You might end up buying some things that you bump into on your way, while you really didn’t need them.
Imagine coming across nice clothing but you have plastic money, the nearest Automated Teller Machine is about miles away or has the longest cue. You would probably just give up on buying it. But the vice versa will happen if you have cash with you.
Just carry around cash that you really have to use.
Use a saving system that is flexible and in line with your budget. For example, you can open a locked savings account that bars you from accessing money all the time. This helps you to have a time-frame and only access the money at the set time. A good example is the M-Shwari lock and savings account.
But if you are someone who is prone to emergencies or who anticipates one, go for a system that allows you to access it the required time. Saving is a simple way of insurance, you anticipate happenings but when they don’t, you have your cash with you.
Personal financial audit
According to Amana Capital, on 7 steps to wealth, along the highway to making wealth, you will come to a checkpoint Known as Personal Financial Audit. You have to pass through this checkpoint. You need to audit yourself before making any other financial decision. Discipline and being open to yourself and those around you is paramount in auditing yourself.
It has the following benefits:
Well if you want to place a sure bet on making wealth by freeing up cash, the above ideas are up for grabs.
To better free up cash, you need an expert and there is no better expert that we can recommend than Amana Capital. They have one of the simplest and amazing tools that can help you manage your finances.
Have you heard about the 7 Steps to Wealth? It is a free online course for all Kenyans that has been developed by Amana Capital, who are themselves one of the leading wealth management firms in Kenya and are responsible for managing the money of some regions most successful investors.