By Njoki – CSO, ABC Bank, Westlands Branch.

For many months, Sarah dreamed of starting her own business. Although she had the skills, the passion, and the determination, every time she thought about taking the next step, she found herself constantly wondering if she was financially ready.

Even though she was employed with a steady income, she never had a clear savings plan. Most of her money went toward daily expenses, while the remainder was spent without much thought.

With a determination to make her business a reality, Sarah began setting aside a portion of her salary every month, reviewed her spending habits to reduce unnecessary expenses, and created specific financial goals. Over time, she built an emergency fund and started investing part of her savings to help grow her wealth. Three years later,  through consistent smart financial decisions, she launched her small business. So how did she do it, and what can you learn from her?

1 Start with a goal – Whether it is buying a home, starting a business, funding education, or preparing for retirement, a clear goal provides direction for your financial decisions.

2 Save before you spend – Making savings a priority can help you build financial security over time. You can save through instruments like ABC Bank’s target account that lets you save for a goal over a specific period of time.

3 Think beyond today –  Investing can be an important tool for achieving long-term financial goals and growing your wealth. Having an investment plan with good returns will help grow your finances as opposed to just saving. E.g. investing in bonds and shares through ABC Capital or ABC Bank’s FDs with competitive rates can help you grow your wealth.

4 Prepare for the unexpected – Emergencies can happen at any time. Having an emergency fund helps you protect your plans when life’s surprises occur. E.g. you can take up a health insurance plan for you and your family through ABC Insurance, to help cushion you in case of a medical emergency

5 Constantly and regularly review your progress – Your financial goals will evolve. Regularly reviewing your goals will help ensure your strategy remains aligned with your needs.

By saving wisely, investing thoughtfully, and planning, you can build a stronger financial future and achieve your goals just like Sarah.