Daily Financial Tips

Happy New Year 2026!
A new year brings a fresh opportunity to manage money better and make wiser financial decisions. This page will continue sharing daily practical financial tips to help you save consistently, spend wisely, and grow financially.

Remember, small disciplined actions done daily lead to lasting financial progress. Let’s make this a year of clarity, consistency, and financial growth.

Wishing you a focused and prosperous year ahead.

Too many people spend their earned money to buy things they don't want to impress people they don't like - Will Rodgers

"I'm looking for individuals willing to join me in forming an online Chama. Please comment below we have one..."

I have often came across such posts while going through my Facebook account. Only that I couldn't dispense my intelligence by then.

Dear brothers and sisters,
Don't be lured into such ponzi schemes in the name of accumulating funds for future utilization. Be aware of con men who are using social media platforms to meet their selfish interests. Don't fall into such traps that might lead you into loosing your hard earned money.

This post is not necessarily meant to demean online Chamas but to send precautions all over the world on dangers of entering into business with people you haven't won their trust. As you all know, any transaction involving exchange of money requires trust before it is initiated.

If for instance you had a chama that worked for you well, continue with it. Sometimes saving to achieve a given project might be so difficult moreso if one has a number of responsibilities to attend to. And for those who haven't gave Chamas and merry go round a trial, please ensure you do a due analysis before contemplating to enter into any deal. I have witnessed scenarios where someone receives money and vanishes before the chama reaches its culmination. When it comes to money, don't trust anyone for there is no brotherhood/sisterhood and betrayal is real.

Where do you save your hard earned money?

With the rapidly rising inflation rate which stands at 8.3% by now, where to save your hard earned money is a concern. Most people prefer saving money in homebanks and commercial banks where it earns zero interest rate as opposed to saving in a sacco, money market funds and various investment schemes.

For one to be on the safer side, it is advisable to save where the compounded interest rate is higher than the prevailing inflation rate.

Recent research has also showed that wealthy Kenyans are saving in dollars as opposed to Kenya shilling due to its depreciative value. Kenya shilling has been depreciating against the dollar since the onset of the COVID-19 pandemic.

In a nutshell, save where you earn something on top of your savings.

Why do you hold money?

According to Keynes, people hold money for three motives.These are:

1. Transaction motive
The transactions motive for demanding money arises from the fact that most transactions involve an exchange of money.

2. Precautionary motive
People often demand money as a precaution against an uncertain future. Unexpected expenses, such as medical or car repair bills, often require immediate payment. The need to have money available in such situations is referred to as the precautionary motive for demanding money.

3. Speculative motive
The speculative motive for demanding money arises in situations where holding money is perceived to be less risky than the alternative of lending the money or investing it in some other asset.

However, not all people subscribe to this concept. The amount held for each motive might vary depending on the level of income, interest rates, and inflation as well as uncertainty about the future. It's always advisable to set aside some money on each motive so that you can be leveraged when the need arises.

It doesn't matter how much you keep but ensure you have something in each of the three baskets. This will enable you to understand why you hold a particular sum of money and why you shouldn't utilize it anyhow.

Many a times I have met several people complaining on how difficult it is to initiate a saving process. For one to commence saving, financial discipline and sacrifice is required and this can only be achieved once you set a saving goal.

When setting a saving goal, ask yourself the following questions:
Why should I start saving?
How long am I going to save?
How much should I save?
Where should I save?

The above questions should serve as a guide while on your saving path.