My dad has saying he borrowed from the english phrase by William Lowndes, the British Secretary of the Treasury, 1696–1724. "Take care of the pennies and the pounds would take care of themselves" source1 My dad's version or the version he taught me was "take care of your cents and the shillings will take care of themselves"
Now, you have to understand that my dad was no financial guru, He was in fact a mathematics and physics teacher. But ever so often he would hand us our allowance especially during holiday saying "spoil yourself, remember to keep a little for the rainy day"
Telling that to a child aged 8 years or so as my memory goes back made no sense. I always knew he would provide more when I ran out of what he had given. As usual I would squander my little gift on candy and stupid baloon lottery -then it was so exciting till I realized it was a rigged game, no one and I mean no one I knew ever won the big balloon- I gave up.
So this simple motto has been engraved in my mind. After spending on the balloons, My father would often ask what we did with our money. My mouthy brother would report that I wasted all of mine in the lottery while he bought sodas and cakes. Father would, say none is better. Then looking at us keenly ask. Haven't I told you to take care of your cents? If you don't how are you ever going to manage big money? Then he would ask us to say the phrase. This went on for years until one year we came back home with change, I had bought a story book and my brother socks. Dad was very proud.
To cut the long story short. Spending, saving, financial freedom all stem from a mindset. It is not pre-configured, it can be learned. And easy at that. After falling off the wagon of good spending and saving culture for some years, I have come to learn a few things that have helped me save a few cents, rethink my spending , and now I am on that journey to an even better financial standing. In addition to budgeting here are a few things I have learned along the way.
Where an item is not provided by a monopoly enterprise. You can always get a better price.
A monopoly enterprise single handedly provides the service or product without competition. Thus their prices are rarely driven down by playing cards like " I have just seen this in the other shop" So in this case unless you create your own you are toast. Kenya Power and Lighting company comes to mind. Yesterday we were in a black out for 6 hours on end without any other option unless you have back up.
If however the items or service you are seeking is widely provided. Get out of your comfort zone, research and ensure you get the best deal. It has never hurt anyone buying a similar product cheaper downtown rather that the main streets. If it is the same thing save the rest for a rainy day. I know someone might disagree, I have however seen situations, first hand where the main street shops get supplies from those in down town. They charge you higher prices at times 400% profit just for not taking the trip. For those products make the trip.
Where you can buy directly from the distributor, do that
This will help in cutting the middle man costs. Most distributors will always have a whole sale shop at their premises. While others do not allow single pieces purchases, when shopping for electronics they allow. So you would save a little by doing this. If you have to buy more than one, you could sell the other for a profit. Long term relationships with some retailers can also allow you the same privilege, just do not forget to show gratitude when they order for you something directly even if they do not usually stock it in their shops.
A few things we spend on are internet, airtime, electronics and their accessories. Do not settle for one supplier. Compare, ask questions, read reviews, and most importantly get the best deal.
For electronics, remember to always buy where there is a warranty. Believe me you need it. It is your insurance.
Quality versus Quantity
Now this is my own observation. Years back, I used to buy very many shoes that used to kill my feet. They were not quality shoes. Usually I bought them cheaply. Later I discovered that if I bought one shoe at the price of three that I used to buy, it was comfortable, better quality no feet death and outlasted all the three by years. Ofcourse I had to change.
While these two characteristics are interchangeable in most cases, I want to believe I have gotten the grip to know when one outweighs the other. When quality will be the same all round look for quantity. But when you are not sure go for quality.
Get rid of what you do not need/ Repurpose/Donate : Ensuring you do not hoard, that you are not collecting things
I have recently come up with a rule. If I cannot get rid an item before upgrading, If I am still attached to the old gold. Then I do not need to spend on an upgrade. It is tough to get rid of things we love. But, till I learnt to do away with before upgrade I would be sitting in a mountain of things I do not need or use. Yes they might be pretty, very functional and all, but why buy something if the old can still be used.
These things that are still good. I know you love them they could be used by someone else. Choose to donate to charity, Please do not donate poor quality items. That which is gone beyond repair scrape it , its not charity when you give things you wouldn't want. If you cannot give to charity, there is also the option of selling. This would bring you back some litlle cents and you can add on it to get an upgrade
Promotions when to and when not to
There are three shops I know that always have a sale. They coin different names for these sales that lasts months on end but it is all a selling gimmick. Their items are never reduced in prices, only those out of season or faulty in a way. IN this case I say AVOID. It is easy to note these patterns so be on the look out.
Then there are those promotions in grocery stores and supermarkets. Some are promoting a new product introduction to the service, Only buy if you are ready to test. I once bought soap, showered and I couldn't stop itching.
For old products that you have used and have already established quality for them, this is a good way to save a cent, so go for it. I do this alot when I shop. I see bundled soap and food stuffs and buy them, especially items with a long shelf life. It reduces the amount of money I will use in the next shopping run.
Budgeting, planning
It is possible to do everything on budget. If you decide to use a certain amount you can stick to it.
Planning: are you planning to travel or an event? This is too easy. Do it early, consider all the options above and get the best deal.
Budget evens, budget travels are all possible.
My Most Important rule
45, 25, 30
45: necessities like upkeep
25 savings
30 all the rest.
Maybe you disagree with me in some account. Well, I am no financial adviser, But this has worked for me. I would at least like you to leave here with one advice. That if you set out to achieve or do something financially it can be done. But you have to start now. It doesn't matter what you have. The little you have will teach you how to deal with the loads you want.
So Keep taking care of the cents/pennies and the shillings/dollars/pounds will take care of themselves.
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