Meet Jose, he’s a young ambitious guy living it up in the big city. But Jemo has a plan for his life, he wants to retire well, he wants to own a Bentley by the time he turns 60.
Saving up for your dream car is easier said than done though. When you’re living from one day to the next, it’s hard to imagine where you could possibly save money.
There probably are ways in which you can cut down on your expenditure and get saving.
This guide will tell you how you can do it; your dream car will be within reach in no time! Jemo decides to sit and figure how to make his dream a reality.
Set your Target
Before Jemo sets a plan on how to start saving money, he reviews his finances. Jemo figures out how much he earns and how much he can save each month.
What does Jemo want to achieve? A solid retirement plan and a Bentley, once he’s figured that out now he can set a goal.
Jemo calculates how much it is (Sh2,000,000) and with that goal set in his mind, now it will be much easier to strive for it. This will help him know how close or far away he is to his set target, which is much easier to aim for.
Start a Pension Savings Plan
It’s pretty hard for Jemo to save money every week or month. The money is right there in front of him, looking at him, taunting him, the temptation to spend it is very strong.
So Jemo sets a plan for himself, a solution to this temptation by opening a pension savings plan.
Putting all his money towards a pension makes it much easier for him to save and to tell how close he is to reaching his eventual target.
Plan Your Spending
Drawing up and sticking to a spending plan is a great way of making sure Jemo doesn’t renege on his savings goals. Being strict with himself in terms of limiting frivolous spending, Jemo sets out a budget and makes sure a portion of it goes towards his dream car; a Bentley.
Jemo constantly reminds himself not to cheat himself on the limits he has set. Jemo reminds himself that if he spends more than the amount allocated, the only person he is shortchanging is himself.
As he progresses in his career he gets very sage advice from one of his workmates, if ever you change jobs or professions and get a payout from your pension, do not spend the money on frivolous things pay it forward to a new pension plan and keep the saving going.
Review Your Expenditure
Jemo spends a lot of money each month unintentionally. That errant lunch plan, drinks with the boys, an impromptu road trip, internet packages, television bouquets, postpaid phone bills, data tops ups.
Without even realising it, these individual things add up to huge amounts of money, and he doesn’t understand how. He reviews his expenditure and wonders whether he should be spending less.
A solution to his predicament is downgrading a lot of services or by simply eating at home instead of eating out and putting that money to good use, like saving towards a pension.
Visualise your Goal
While following all these tips, Jemo feels like he needs some motivation. By putting up a picture at his desk of the eventual life he envisions for himself, this helps him keep his eye on the prize.
He even put a picture of his future Bentley somewhere in the house, and is constantly reminded of what he is working towards.
Enjoy it
So finally Jemo has his money saved, and is about to buy his dream car. Jemo takes a moment to savour the feeling; he worked hard, he deserves this… and he’s not even 60.
