2020 was my worst year when I had my salary reduced by almost 50 percent. My main expense was monthly rent and when my salary was reduced, I needed to get rid of it by building a house. As such, I looked at my expenses and decided to eliminate some expenses that are not critical and have enough savings to build my house. This is how I plan to reduce my expenses and direct the savings to building my house.
Carrying Food to My Workplace
I work in an office and mostly I take my lunch from hotels. I spend a lot eating from hotels and I have decided to start carrying food to my workplace. It is a great way to bring down my expenses since I leave already prepared food at home. Sometimes, when I get back home in the evening, I find that the food I left behind went bad. I am forced to throw it away. Therefore, I end up incurring a loss. By carrying food to my workplace, I will be saving Ksh 2,000 every month. Besides, the food I prepare at home is healthier than the one I eat in hotels that contain lots of calories.
I see many ladies carry food to our office, unlike most of us men who prefer to eat in hotels. Sometimes, when I eat in a hotel, I find friends and most times, I am forced to pay their bill. It is an added expense that I usually have not budgeted for. I will channel the money I would have otherwise used on lunch to my savings account and use it to build a house.
Grow Vegetables in My Home
You will agree that most families in urban areas buy most of the vegetables like tomatoes, onions, fruits, and kales. I will stop spending on these expenses by growing vegetables. I don't have much space in my rental, but I plan to plant the vegetables in sacks.
Instead of pouring the water I use in my kitchen, I will use it to water the vegetables. Saving a few coins on vegetables will help me save for my house project. I buy kales thrice a week and I spend Ksh 30 for a single purchase. Every week I spend Ksh 120 on vegetables only. In a month, the cost is Ksh 460 and Ksh 5,520 in a year. Saving this money will help me channel the money to my building project.
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Take a Bicycle or Walk to Work
I spend a significant percentage of my income on transport. I live 3 km away from my workplace. I spend Ksh 20 one way to my workplace. In a day, I spend Ksh 40 and in a week, the cost is Ksh 280. The cost every month adds up to Ksh 1,120 and in a year, it is Ksh 13,440.
I also want to stay fit by walking or cycling to work. I need to start getting up a few minutes earlier than I'm used to, to prepare for work and start walking or cycling. I will need to sacrifice to see my building project take shape after a year.
Move to a Cheaper House
Rent is my major expense and it takes a significant percentage of my income. Instead of renting throughout my lifetime, I want to move to a cheaper house to save and build mine. I only need to sacrifice and live without a few amenities for sometime. It will be a great way to save for my house.
I live in a house where I pay a monthly rent of Ksh 30,000. I look forward to moving to a cheaper home with a monthly rent of Ksh 20,000. By so doing, I will be saving Ksh 10,000 every month. In one year, I will have saved Ksh 120,000. This is enough to build my house's foundation. In two years, I will have saved more than a quarter a million. Besides, I will stop paying rent once I move to my house hence giving me some financial freedom.
Get Rid of Unnecessary Expenses
The other thing that I want to work on is getting rid of some unnecessary expenses. Among them include frequent vacations and traveling. In a year, I spend close to Ksh 5,000 on unnecessary travels and Ksh 15,000 on holidays. In a year, the expenses add up to Ksh 20,000. Saving Ksh 20,000 will help me buy around 30 bags of cement, which is enough to plaster my house. In two years, I will have saved Ksh 40,000.
Finding some expenses that didn't matter a lot has helped me find ways to fund the construction my house without borrowing. By the end of every year, I will be saving Ksh 50,960 from my initiative. This is enough money to buy roofing sheets. In two years, I will have saved Ksh 100,000 enough for fixtures and fittings.