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Morris Mpala, MoB Capital Ltd
FINANCIAL hygiene is the art of being financially well at all times. Financial wellbeing is the financial wellness that comes with you being able to meet your financial obligations as and when they fall due. That is the flair of living a life of maximum financial tranquillity with no stress. That defines financial freedom, which is every human being’s ultimate dream. Total financial freedom is the ability to live your financial life the way you want to. This lifestyle is sustained by cultivating a savings culture in our day to day activities until it becomes our DNA.

What you need?
Stick to things that you need only. Only buy that which is needed otherwise stay away from buying things we want as these only increase clutter due to less utility on things we want than those we need in our lives in our homes. The art is to do away with fantasy of turning wants into needs at any chance that we are given to imagine.

Impulse buying/budgeting
With this you need coaching because impulse buying has destroyed a lot of plans. Many expenses are an integration of small impulse buys that have destroyed our financial wellbeing. To understand what money means, do a budget and it will be wise to stick to it. Afterwards have a look at variance between your budget and actual spending and you will understand the idea of sticking to your budgets.

Financial planning
Everything you do has to be meticulously planned. Surely life is about planning for it to make sense otherwise chaos will prevail and we will not be able to save a dime. What you don’t know may kill you when it comes to financial planning because you need to know what you are doing (or not doing) with your money.

Home cooking
Not only is it healthy but it’s a way of managing your funds. It’s being frugal yes but the warmth of home cooking as compared to overrated and at times badly prepared overpriced unhealthy non home cooking meals.

Savings account
Have a formal account that when savings are made they are kept safe away from being used for the not intended purpose.

Regularly send monies into these accounts and it’s stuck there kind of forces you to save. It’s a drive that needs to be sustained.

Guilty pleasures, do it yourself
Avoid guilty pleasures there could be small but the sum total of the little pleasures really cook up a big budget. Manage these to acceptable levels to avoid costly indulgences.

An easier route is to be able to handle issues around the home. Car servicing, gardening, repairs around the home and other chores can be done by family members and only outsource expert services only. For those gifted enough even renovations can be under DIY.

Settling all outstanding debts is the start of savings as you are now able to have excesses that you can put away for a rainy day. Strive for good debt only if you can’t manage debt free. A person who is content with what they are and what he has is a good candidate for saving. If you are content you tend to live within your means than someone with a spirit of wanting and wanting. There is pressure to be what you are not. Say no to peer pressure that strains your finances.

Sharing
Besides sharing is caring. Coming together to split costs to acquire goods and services has an effect of saving. Sharing school runs, grocery clubs, time shares etc. Sharing can even be sophisticated like networking marketing be Avon marketing, world ventures but avoid Ponzi/pyramid schemes.

Financial inclusion
Take time to learn more and be active in the financial matters. The more knowledgeable or financially intelligent (rather let me say the less financial ignorant) the more you increase your chances of saving. Information is power thus seek that which will make you realise a great savings culture. Savings are empowering and should be encouraged to cover a rainy day. These are a source of shock absorbers when the financial road gets bumpy. These savings are also a source of funds for a country’s developmental purpose.

Morris Mpala is the managing director of MoB Capital Limited, a Bulawayo-headquartered micro-finance institution with footprint across the country.