Friends Want You to Spend More? Beat FOMO and Stay on Budget with SACCOs in Kenya
April 8, 2018 | BY MOMBO
Your financial situation changed, and you have to be thriftier now. But what if your friends don’t plan to cut back on pleasures and invite you to join? How to keep up with friends if you are on a budget and don’t suffer from a fear of missing out (also known as ‘FOMO’)? Without an automated saving plan, it will be hard to resist the temptation to overspend and stay within your budget limits. We will tell you how SACCOs in Kenya can help you to keep up with both your friends and savings goals. And, what is more, without feeling upset that you miss something important in life.
Mary’s story… before she knew about SACCOS in Kenya Mary Nket, 24, just graduated from college and landed her first job in the translation agency. She dreams of spending her vacation in Europe polishing her language skills. With her modest salary, she realizes that she should cut back on certain expensive frills to set aside a portion of her every paycheck for her dream.
Everything would be great, but here is a concern. Amy and Joy, her close childhood friends she was studying in the college with are well-off. They love shopping and fine dining in expensive restaurants and going out. Mary feels torn between her desire to be with friends and her worries. She sees that such lifestyle makes a huge dent in her savings and drives her further and further from her dream. Frequent impulse overspending makes it impossible to be consistent in saving up.
Mary wonders if it is possible to have fun and save up at the same time without a depressive feeling like she is missing: either a dream or friends. How can people like Mary retain a balance between friends and financial stability? Here are our
Tips how to tame FOMO and stick to your savings goals Detect FOMO in you. Do you tend to transcend your budget limits? Have no healthy saving practices? Can’t say no to friends? Beware, you are in the FOMO zone. The ‘fear of missing out’ is nourished by social media and their cult of a successful life. It is a quite real thing that gets real people into enormous debts that are unreal to get out of. If you don’t tame FOMO, it is capable of bringing havoc and even devastation to your financial life.
Talk to your friends honestly about your financial situation. Saying no is important. However, explaining what this ‘no’ means for you will help your friends respect your position, find a compromise and eventually save the friendship. Real friends will understand. After all, none of them is going to repay your debts. So stick to what you know is important to you.
Track your budget and prioritize savings. Trace where your money usually goes and define your priorities. After you get a paycheck, pay your bills, set some money aside for your emergency fund or a savings account. Then define and set aside the portion for your regular needs. What is left is your ‘fun budget’.
Yes, the ‘fun budget’ is important. Let it be small, but it’s crucial to have extra money for pleasures. Absolutely legal pleasures you won’t feel guilty about.
Open a savings account at one of the registered SACCOs in Kenya. Why are savings and credit cooperative societies better than banks? If you open an account at a regular brick-and-mortar bank, you get a low yield rate and a big set of fees that suck up from your saving efforts. Registered SACCOs in Kenya set no maintenance fees and offer unparalleled interest rate as high as 6%.
How to save up for your dream with SACCOs in Kenya? Mary was wondering if there was an opportunity to deposit small portions of money and grow them at a high-interest rate and keep it automated. Her colleague told her about savings and credit cooperative societies. She enrolled with MOMBO App a year ago. Since then, she has already saved up almost KES 40,000 (3,000 monthly plus 6% yield annually) without even noticing it and without any harm to her social life. She keeps saving and considers getting a 5-fold low-interest loan to fulfil her amazing dream.