By Irene Mboya
Landing a job immediately after graduation was one of the best things that ever happened to me. I was one of the few on whom lady luck smiled. This meant that I had a constant flow of cash and saving was the last thing on my mind. Like any other first-time earner, I was carried away by the excitement that comes with making your own money and spending with no restrictions. I lived the good life. I bought myself the stuff I had always desired.
Then I got married! Three months later I was expectant. Then the worst happened. My contract ended and was not renewed. I was devastated. With a baby on the way and bills to pay, life was turning out like a mean step-mother who is always scheming mischief on her step-children. Was I ready for this? Your guess is as good as mine.
I was now disoriented. Left with only a month’s salary, I struggled to make ends meet. You must be wondering where my hubby was as I went through this; He was doing his internship at the time, so not much of an income to bank on.
Eventually the baby came and everything changed. Of course we were very excited, but the reality of our situation drowned the joy of the moment. We needed to move from our bedsitter to a bigger house, meaning more expenses, medical expenses, diapers and all that caboodle.
Ever since, I have been more of a homemaker (housewife connotes incarceration), with a few intermittent stints of employment. So I have acquired some financial management tips for stay-at-home mums. But even before my involuntary money management school, there was my mum. I remember her telling me that ‘a woman is better off with her own money’. These words make much more sense now that I have been out of work for close to four years.
While making dinner the other day, just after I had added flour to water to make corn bread (commonly called ugali), my gas went kaput. It was mid-month, in January, no less- the thirteenth month of the year. The look on hubby’s face when I told him the gas had run out was discouraging. ‘I don’t even know whom to borrow money at this time,’ I told him. ‘I don’t have anyone in mind either,’ he resignedly responded.
Just recently, a close friend lost her husband who was the sole breadwinner. This gave me chills. I realised that we are all at risk of losing our only source of livelihood. Or we could face a major emergency that requires a lot of money; much worse if the household relies on only one source of income. The unpredictability of life requires any homemaker to have at least some knowledge of financial planning, and even to be aggressive enough to bring some extra income, however little.
Inflation has been on an upward climb recently, but incomes have not changed. So we have to adjust our costs to survive.
When my husband receives his salary, he talks to me about it and we budget together. This has helped me plan accordingly for household expenses. I am the domestic finance manager, so it is my responsibility to manage the entire household budget.
I have devised a few shoe-string budget strategies to stretch the meagre income over a longer period because I can’t stand the tired cries of hungry children or unpaid bills. I joined a chama where we save 50 bob daily. This is the money I use to purchase items that I would otherwise not afford to allocate a lumpsome budget in one month.
I also resorted to cooking a double portion at dinner time so that we have some left for lunch the next day, and we don’t have to cook at lunch time. How has this helped? It means that we do not use more oil, onions, and tomatoes making lunch (those would be used for dinner). You even use less gas warming food than cooking it.
Those are good moves but I needed a sustainable plan to boost the single income. So I ventured into small business. Like many first-timers, I tried some and failed. I started with a clothes business, which was a big flop and a waste of resources. I had not done proper market research before setting sail. I was just excited about making money (now I know better). I realised that the food business is where the money is. No matter how bad the economy is, or how broke people claim to be, they will always have to eat. That gave birth to my fish business, which is now bringing some ugali to the table.
Out of necessity, I have learnt to manage the money flow, which is more than just household budgeting. I analyse our income and spending to see where we are spending more than necessary and look for ways of controlling or cutting down. I can tell you that this is not rocket science and does not need any help from an expert. You can do it on your own or take your husband’s help.
After analysing cash flow then it is time to put controls in place. For example, my monthly spend on electricity was Sh3,000. I had to do an audit of sorts to see how I could lower it. So I decided to reduce washing machine and microwave usage as a rule. I also took up ironing clothes for myself instead of letting the househelp do it. Hot showers, I realised, were not that cool after all, especially during hot days. So we gave the hot shower a break, save for the kids.
What I did next was painful for all of us. But it was the right thing. I agreed with my husband to cut down on monthly eat out and shopping expenses. Shopping is my weekly fix for boredom after staying at home the whole week. I realized I could look out for deals/discounts and save some money but still fix my shopping crave. Going to the movies is what gives me the kicks; I started watching them on weekdays when tickets are cheaper than on weekends.
These are practical steps any stay-at-home-mum can follow to steer her family off financial turmoil. So after plugging the income leakages, what do you do with the savings? Open a savings account. One such account is the ABC Bank Pure Savers account. You will not only earn interest on your money, it will encourage you to stay disciplined because it has limited monthly withdrawals to help you stick to your plans. If getting huge lumpsome amounts for spending on, for example, a holiday, is hard for you, you can save up a little by little in the ABC Bank Target Account, with your sight on your goal.
Never underestimate the power of ‘starting small’. Think of how you can make your little money grow. If you are saving say Sh5,000 every month, then think of how to grow your money in order to beat inflation. Never let your money remain idle in your ordinary savings account or elsewhere. You can invest in a fixed deposit, like the ABC Bank’s fixed account- a high-yield account with different maturity periods and guarantees you good returns.
You can also turn your skill or passion into an asset, by taking up from-home jobs. Besides keeping you manage your time more productively, this could actually bring you a fat cheque.
You can work as a freelancer if you are good at writing, graphic designing or provide consultancy services in your area of training. Or you could bake or design decorative items for sale. You can use the power of social media to market your products and make some good money out it.
I know there are many other ways homemakers can keep their household expenses in check. The idea is to actually do it, and not just for survival but as a path to prosperity.
The author is a trained medical records technician and a stay-at-home mother of two.