Spend less like the Chitipa guy

Some years ago, I met a man in Chitipa who wanted advice on how to save from his meager salary.

My advice was simple:  “Spend less than you earn!” 

But his reaction was instant and loud: “Akulu mukupokera zinandi. Pala ningamuphalirani izo nkhupokera mbwenu mulirenge. Zikumala nindapokere, sono zakusunga nizitorenge nkhu? (You have a fat salary. You’d cry if I revealed mine. There is no way I can cut spending.)”

But spending less is not anything drastic—nor should it be.

For a start, go through every monthly required bill and ask yourself if you really need that service or item at all. Do you really need the expensive imported herbal tea or local brands would do?

Do you really use two mobile phones much at all or just one hand-set would do and reduce phone credit?

Do you really have to drink premium beer every day when an ordinary brand would provide equal satisfaction and quitting would be better?

Do you really need to subscribe to a full digital satellite TV package when you only watch news that you can get on local stations?

Simply vet each bill and eliminate any optional services.

Second, diligently track your spending. Keep a notebook in your pocket and write down every expense you make. Sounds theoretical but I did apply it with amazing success. You just have to do it for a couple of months and it will help you think twice about unnecessary expenses.

When you jolt down a month-worth of expenses, carefully look at them and ask yourself whether each of them actually contributed to the value and joy of your life.

This simple process will show you where your spending is going to waste.

Third, watch what you do every day or most days. Are there routines that cost money such as passing by pubs on your way home? Those are the most wasteful activities to adjust.

Trimming just one bottle from your daily hobby saves you a substantial sum in a year.

If you stop at a saloon each day, why not buy your own hair blower and do it at home?

If you eat out daily, perhaps you can start packing a container or a brown bag from home some days a week. Reconsider every regular expense you have.

Fourth, get a better bank. Many Malawians cling to banks that do not treat them well.

A tiny interest rate on savings accounts. No interest at all in their checking accounts. Tonnes of fees for ATM use. Draconian overdraft charges. Monthly usage fees of all kinds. All these tariffs are a waste of money.

Switch your accounts to a bank that respects you. Use the bank that gives you high value for your money. I wish I could suggest some for you, but banks need to pay me to market them as part of increasing my personal finances.

The best is to compare these things across banks and talking to knowledgeable financial advisers. Get a bank that provides you great customer service, better interest on your checking account, a solid interest rate on your savings account and minimal fees on transactions.

By the way, my Chitipa friend did not seem to like the advice then. But just a few months later, he sounded so excited: ‘Akulu mulikunovwira chomene. Mwizengeso pawuli ku Chitipa nizakamulongosolerani vyose?’ (My brother, thanks for the tips. When are you back in Chitipa? I need to tell you my whole story.’)

Have a blessed weekend as you apply the free advice.