‘The Commandments of Personal Budgeting’

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2nd April 2016
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17th April 2016

‘The Commandments of Personal Budgeting’

1. Thou shalt know thy financial goals and set your budget around it.

2.Thou shalt know  thy income. 
That is the total amount of money you receive from investments (passive income) or from employment and business (active income).

3. Thou shalt know thy expenditure.
Differentiate your needs from wants.Some are regular, some vary from month to month yet others may be one off expenses.Categorize them into things like food, entertainment, health, transport, school fees, mortgage or construction expenses, insurance, investments etc.

4. Thou shalt know thy time periods.
Budget for the long haul and also for short periods of time.

5. Thou shalt have a diversified emergency fund. 
This could be in the form of cash or easily liquidated investments e.g. shares to cushion your living expenses for six months in case of unforeseen circumstances. Do not put all your emergency funds in one basket but instead spread them out in different tools and institutions.

6. Thou shalt involve different stakeholders in your budget.
This could be close family members or partners that have  a stake in your income and expenditure.

7. Thou shalt be frugal with thy expenditure.

8. Thou shalt make provision for additional sources of income.

9. Thou shalt slowly make adjustments of your expenditure along the way so that  you do not set yourself up for failure by reducing the fun in your life.
For example if you have been going for  drinks with your friends after work thrice a week you can reduce to once a week instead of stopping abruptly all together and taper it down to twice  a month say eventually.

10. Thou shalt use whatever budgeting tool works for you, it could be paper based or digital.

Don’t forget to review and revise thy budget from time to time.

On a lighter note, thou shalt have  a brighter financial future. A happy Sunday and a great new week   to all the readers of this article !


‘Wacha niKwambie Uzima’
April 2016 -#Iwillbeontopofmymoney!


Kwambie Nyambane,
April 2016

The writer of this article  is a senior business advisor in a health NGO that provides financial capacity and technical advisory services to clientele in the Kenyan health sector. She is also a proud alumna of the  University of Nairobi, School of Business, MBA program in Kenya, East Africa.

Images – Google Images

Kwambie Nyambane
Kwambie Nyambane
Kwambie Nyambane is a Sales Force Effectiveness Manager in a leading bank in Kenya 'by day', a passionate inspirational blogger 'by night'; and a wellness enthusiast championing healthy lifestyle choices. The founder and lead writer of this blog is a Bsc. Food Science and Post -Harvest Technology graduate of the Jomo Kenyatta University of Agriculture and Technology, Kenya, holds an MBA in Marketing from the University of Nairobi and is currently pursuing a PhD in Business Administration from the University of Nairobi. Kwambie is a member of Bloggers Association of Kenya. She believes in taking life with a big spoon, seeing the cup always as half full, and enjoying the scenery in this journey called life. Kwambie is daughter to Lilly Moraa and James Nyambane, mother to one beloved son nicknamed "The Champ"; sister to Marci and beloved auntie to the A & Z girls. She and her family make Nairobi City, Kenya their home. This blog is dedicated to her parents Moraa and Nyambane for their awesome inspiration in her formative years, for being her pillar of strength through life, her siblings Marci and Joash, and to her son "The Champ" and her nieces who represent the generation that came after her. May the nuggets contained in this blog serve many generations, the world over to come.

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