Ways of Improving Your Financial Health

  

 

Millions of Kenyans are struggling financially due to the growing standards of living as we all know it. The economy is only as bad as it gets. however, the wise Kenyans have decided to find ways of earning a living and living a fairly comfortable life. There many ways of earning an income but unfortunately millions of Kenyans are struggling due to the lack of these precious gems. This year lets change this and here’s some tips how to. 

START WITH A PLAN

As the adage goes failing to plan is planning to fail. This is where resolutions come in, before the start of this year you should have a financial plan. What is your budget this year? What are the bad spending habits you would like to stop that emptied your pocket dry last year? What are your goals? How has your performance at your workplace been? Is there something you need to change, maybe your attitude or simply turning to work late? If you’re aiming for a promotion this is exactly what you ought to look out for. Write all thing down but the story doesn’t end there make a plan on how you ought to achieve your goals.

FIND AN ACCOUNTABILITY PARTNER

Find a down to earth friend who will hold you accountable for neglecting your goals. Be honest and tell them of your financial plan, of course this must be someone trustworthy and close for example, a spouse. Let them monitor you, tell them of your progress and failures so that you might come up with the next course of action.

HAVE A SIDE HUSTLE

It’s a no brainer that no matter what profession you are in you must have a backup, no one knows of tomorrow but a wise person would have a backup plan. With the increase in technology, online services are everywhere and this is a blessing. You can come up with an online job their countless ones just choose what works with your interest and time. Most online jobs do not require special skills just a bit of your time. Unlike the traditional hustle system that requires your physical Prescence, online jobs can be done while you’re strolling around your office chair waiting for a client this saves you time and energy, allowing you to focus on family. However, if you’re not so conversant with how online jobs work you can still opt for the traditional hustle. The catch is having a backup.

START NOW

The problem with most of us is not that we don’t have an idea but the fact that we, think of an idea then tell ourselves it won’t work. We should be willing to take risks and do all we can until we succeed. Procrastination won’t get us anywhere but taking action surely will. Imagine if that idea is the one that would make you a multi-millionaire but you simply brush it off? why not try and see where this adventure will take you. Is it a restaurant that you’ve been dreaming of opening? do it there is no such thing as the right time, if you can invest on your idea. Please do.

 TAKE ADVANTAGE OF YOUR HOBBIES

Most if not all of us have a hobby, and if you have none try one until you find the one that works for you. Hobbies are very important. In our busy lives they are an outlet for the soul and mind. Respectable activities which we enjoy and do freely without a supervisor breathing down our necks, but are you aware that this seemingly insignificant activity can be a source of income? Most of us don’t like monetizing our hobbies since its an activity we enjoy without pay but the key is moderation it won’t be a full-time job but just another source of earning. Again, I emphasize on online platforms you might not get people in your local place to buy your stuff but you would be surprised by the amount of people willing to buy them online. There is a site known as patreon.com. Here young artist and authors can find monetary gain for their work together with many others. 

SAVING

Most of us are familiar with this term but, not what to do about it. Saving is simply cutting on expenses’ good way to save is through m-pesa this is how, simply log into your m-pesa sim-toolkit >Safaricom>m-pesa>loans and saving>mshwari>lock saving account>open account. You’re only required to put a minimum of two bob then the next day twice the amount of the previous, . Saving on smartphone is much better since we tend to really spend our money in our M-pesa account. Also choosing cheaper thigs in order to save is actually wise but this doesn’t mean that we become overly protective of our money we can still occasionally treat ourselves, but still save. Saving is not so much as not spending money but, it is more of not spending money unwisely. Adopt a saving habit and thank me later you’ll be blew to buy things you never thought of, open businesses you never dreamed of. Saving is a powerful tool we chose to have it.

BE CAREFUL OF SALES

I am sure what am writing about is nothing new, we all get excited once a product we had our eye on price’ has dropped to significant amounts. We buy it then feel we still have a lot of money and buy a couple of other things, we tend to be so in the moment that we don’t consider our budget until we sum up the cost and realize we have messed. Once there is a sale firstly make sure the product in question was initially more expensive it might be cheaper in other stores too, consider by how much the product has actually dropped and then make a plan to buy the product along with others whilst still considering your budget. Another thing to look out for are online buying apps if you’re a person who is still struggling to keep your impulse buying in check, I wouldn’t recommend installing this apps. If you really need something online visit the site with the intended product and purchase it.

We all want to be financially stable so that we do not burden anyone. This can only be achieved if we are willing to discipline ourselves and finally reap what we sow.

Group Customization/ Cellular Layout in Firms

 

 Group technology/cellular layout is a combination of the process and product layouts. Group technology (GT) is a system for classifying and organizing parts and processes into logical groups for efficient manufacturing.

 It uses cellular layout, which is a type of manufacturing process where machines are grouped by function, and related processes are consolidated in the same area.

 This results in increased efficiency and flexibility, as machines can be moved and combined in different ways depending on the production process.

Group Technology (GT) as a production system uses a computer database to determine which machines and employees should be grouped together to maximize efficiency.

Group technology can be used to develop a hybrid between pure process layout and pure flow line (product) layout.

This technique is very useful for companies that produce variety of parts in small batches to enable them to take advantage and economics of flow line layout.

The application of group technology involves two basic steps; first step is to determine component families or groups. The second step in applying group technology is to arrange the plants equipment used to process a particular family of components.

This represents small plants within the plants. The group technology reduces production-planning time for jobs. It reduces the set-up time.

The cell layout works by allowing a group of machines and employees to perform a single operation, or a series of related operations, on a single part or product.

This helps to reduce setup times, streamline production, and increase production speed. Each of the pure/basic layout types has its own merits and demerits.

In practice, layouts are a mix of the basic types combined for maximum benefit of the given situation at hand. The most common form of combination layout is Group technology/ Cellular layout

     Group technology/ cellular layout has several advantages including

1. Reduced Production Costs

Group technology allows for the efficient use of resources, such as machines and personnel. This reduces production costs, as fewer machines and fewer personnel are needed.

2. Faster Production Times

 By grouping similar parts together, it is possible to reduce production times, as machines do not need to be switched over between different tasks.

3. Increased Product Quality

 By grouping similar parts together, it is possible to reduce the chance of errors occurring during production, as machines do not need to be adjusted to different tasks. This leads to a higher quality product.

4. Simplified Maintenance

 Grouping parts together makes it easier to maintain machines, as fewer adjustments need to be made.

5. Improved Employee Morale

 Employees tend to prefer working on similar tasks and in an organized fashion. Group technology helps to create a more organized work environment, which can improve employee morale.

           Group technology/ cellular layout has the following disadvantages

1. High initial investment

Group technology/cellular layout involves significant capital investment in machines, tools, and related infrastructure.

2. High operational cost

This type of manufacturing layout requires a large workforce to operate and maintain the machines and tools. This increases the operational cost.

3. Lack of flexibility

 The setup of this type of manufacturing layout is based on specific and limited production processes. It may not be suitable for the production of customized products with different specifications.

4. Lack of scalability

 This type of layout is not suitable for producing large quantities of products. If demand increases, it is difficult to scale up the production process.

5. Low efficiency

The machines and tools used in this type of manufacturing layout are designed for specific processes. They may not be suitable for different operations. This reduces the efficiency of the production process.

 

Mass Customization and How it Works

 

Mass customization is a manufacturing strategy that allows companies to produce individualized products or services in mass quantities at a lower cost and shorter lead-time. The strategy makes it possible to design a product that reflects the actual choice of an individual customer through a flexible process. It uses technology and other resources to tailor products and services to meet individual customer needs

 Mass customization is achieved using advanced manufacturing techniques such as computer-aided design (CAD), computer-aided manufacturing (CAM), rapid prototyping, and 3D printing. These techniques allow for the production of custom-made products in small batches or even one-off products. Mass customization also utilizes customer data to create a personalized experience for each customer. This data may include past purchases, preferences, and even biometric data.

The mass customization process begins with customer input. Companies gather data from customers through surveys, online forms, and other methods. This data is used to develop a customized product or service that meets the customer's specific needs. Companies may also use artificial intelligence (AI) to analyze customer data and create recommendations for personalized products or services.

Once customer data has been collected, the product design process begins. Companies use CAD/CAM and other technologies to create a digital representation of the product or service. This design can then be tested and modified to ensure it meets the customer's needs. Once the design is finalized, it is sent to a factory or other production facility for fabrication.

Production facilities use advanced manufacturing techniques such as 3D printing, CNC machining, and injection molding to create the customized product. These techniques allow for the production of highly customized products in small batches or even single units. The finished product is then shipped directly to the customer.

By using technology to automate the production and distribution process, companies can create products and services that are tailored to the individual needs of their customers while still being able to produce them in mass quantities. This allows companies to create products and services that are both cost-effective and high quality, allowing them to maximize their profits and better satisfy their customers.

    Mass customization has the following merits

1.        1. Increased Customer Satisfaction: 

 Mass customization gives customers the ability to customize products to fit their individual needs and preferences. This creates a more personalized experience, which can lead to increased customer satisfaction.

2. Lower Costs:

 Mass customization allows companies to produce products with fewer resources, reducing manufacturing costs and helping to keep prices competitive.

3. Increased Efficiency:

Mass customization can help companies increase their efficiency and reduce waste. By producing smaller batches of more customized products, companies can better meet customer demands and reduce the amount of excess inventory they have on hand.

4. Improved product quality:

 By allowing customers to customize products, businesses can ensure that the products they produce will meet the exact specifications of their customers, which can improve product quality

5. Increased Profitability:

 Mass customization can help companies increase their profitability by reducing waste and increasing customer satisfaction. Customers are more likely to purchase from a company that can create a product tailored to their needs and preferences.

6. Reduced waste:

Mass customization reduces the amount of waste produced by companies. This is because companies are not producing items that may not be sold. This helps to reduce their environmental impact.

             Disadvantages of mass customization include

1.      1. High cost:

 Mass customization requires specialized machinery, labor and materials to customize each product, which can make it costly.

2.     2.  Increased complexity:

 Mass customization requires the development of complex processes to accommodate the individualized production of each product.

3.       3. Longer lead times:

 Mass customization typically requires longer lead times for production because it requires careful consideration of customer’s individual preferences and needs.

4.    4.   Difficult to scale:

 Mass customization is difficult to scale up or down quickly and can be difficult to respond to changes in demand.

5. Quality control issues:

 Mass customization can lead to quality control issues due to the complexity of the production process.

 

Financial Literacy for Children

 

We work hard to ensure our kids gets the best in land and what they need to succeed in life. We need to give them the tools they need to thrive financially .Engaging them in our daily money saving and spending activities acts as a great learning lessons.

 For example sending them to buy bread and a packet of milk, gives them a sense of responsibility and a notion that you have to pay money to buy goods and services. Getting the right change and knowing the actual cost of the product improves their mathematics and accounting skills.

Good financial habits are cultivated by using kids friendly methods for example piggy banks to save, deposit spare change, cash gifts from family members and friends.

Familiarize your kids with the bank procedures. Let them deposit their savings physically.

Help them understand if they save money for some time, they will be able to buy their desired items. This encourages them to save and helps them learn about goal setting. Since we do not want them to grow up spoilt and we know that they will be happier if they work for the stuffs they need.

 Instead, they are more fortunate through this teaching on life lessons and will pass it on to the next generations.

The following are tips to put in place in enhancing kids’ financial literacy.

Identification of different notes and currencies

This is the first step in financial literacy. Teach on different notes and denominations, coins and different currencies. Let them know how that Euro, dollar and shilling look like and their value.

Expose to them the concept of investing

 Encourage them to seek knowledge and mentorship from the successful people in the field of interest. If you do not find a means of multiplying money, you will wake up one day to realize that the money you thought you had, has finished. Investment is key.

Importance of money

 Money is a medium of exchange and without it, we cannot trade. It gives you security, options and freedom. We earn, save, invest and spend because of its availability.

Teach them the difference between assets and liabilities.

Assets are items that one owns ,they help in generating revenue. They can either be fixed or current.

On the other hand liabilities are obligations that needs to be paid in the future. They can either current or non current liabilities.

Teach them on spending habits

Encourage your kids to plan how to spend their savings. Spending on what is necessary and of importance. Spend more on your needs than in wants. Prioritizing things matters

Money management

This is the best gift that the kids can get from us parents. Plan your monthly budget together, stick to that plan and review it monthly. Put everyone on board and this will ease the goal achieving process.

 

Different ways of earning money

There is always s money out there you only need to get a way of bringing it closer to you. Most people come from a point of scarcity making this not to settle well in their mind. Even if you are an employee, there is always other streams of income.

Invest in real estates and stock markets. The internet has opened up many opportunities for example Tiktok and Instagram if you build up a following, look fly and on trend, the you can get brand deals and partnerships.

Developing productive habits from the early age

 Teach them to do a private budget, manage credit wisely.

Deal with the sense of entitlement

No matter how wealthy your parents are, let your kids learn to earn their own success. Be financial independent and Stop clinging to that inheritance.

 Delayed gratification

  It takes time to build an empire and patience pays eventually. All hard work will be worth it.

To solve other people problem always pays back

Every multi billionaire in the world provided the so much needed solution to a certain problem. Always strive to be a solution giver and not a complainer.

Being financially knowledgeable places you high above giving you opportunities to flex your muscles and make it in life.

 Do not be poor and look rich, be rich and look poor because you invest in secret.-Robert Kiyosaki saying looking good but going nowhere has proven to be true to some visionless individuals.

 Always remember clean earned wealth makes one proud of his hard work and efforts giving satisfaction and fulfilment.

Let us bring up a financial literate generation making the world a better place to be.

Bookkeeping Basics For Small Business Owners

 

If you are a small business owner and you want to do your own bookkeeping but do not know how, this video is for you.

Consider this your bookkeeping 101 crash course here at bench we have done the books for thousands of small businesses. 

Bookkeeping may not be the most exciting thing ever but we've got it down to the science in this video we'll teach you what

Bookkeeping is and why bookkeeping really matters and the seven steps to doing your own bookkeeping. 

Bookkeeping is defined as the process of tracking all of your company's financial transactions so you can see exactly where your business is spending money where your revenue is coming from and which tax deductions.

Why does bookkeeping matter for your small business?

  1. Bookkeeping matters because it helps you catch more tax deductions. 

When you record and categorize every transaction in your business, you will be able to see which expenses are tax deductible so that nothing falls through the cracks without year-round bookkeeping. You will forget about one-off deductions like lunch with a client eight months ago that you could have deducted even with the best of intentions. Deductions will always all through the cracks at tax time unless You have bookkeeping in place.

  2. Bookkeeping matters because it can help you get a business loan. 

 If you're applying for a small business loan banks are going to need to see financial statements and I don't just mean the

Type that you can download from your online banking you are going to need to have something that shows your expenses and revenue otherwise known as an income statement.

This is something you are going to be able to get through bookkeeping. 

3. Bookkeeping matters because it can help you catch financial mistakes. 

When you are bookkeeping, you are keeping a close eye on the transactions in your business, which means you will be able to catch things like Bank errors, invoicing mistakes like paying somebody twice and sneaky subscription fees for services that you forgot to cancel.

  4. Bookkeeping matters because it gives you.

 .A clear picture of where your money is going when you have bookkeeping in place you'll be able to keep track of your expenses so you can budget better  You'll also be able to understand your cash flow so you can see what's an expense versus a payment to a loan or a credit card .

You'll also be able to track how your businesses grow and improving over time and what months are busy and slow this will help you plan for the future don't worry about taking notes everything we're about to say is in our guide bookkeeping basics for entrepreneurs.

 Steps to doing your own bookkeeping. 

 1. Separating your business and personal expenses.

 You'll want to make sure that your business and personal transactions are not intertwined so it's clear to the IRS what your business is earning spending and then what your bottom line net profit is.This is especially important for corporations to have separate bank accounts for business and personal finances see. Corporations open themselves up to legal problems when their finances are not separate from personal transactions.

 2. Choose between single entry and double entry. 

Accounting double entry is a system of accounting that tracks where your money comes from and where it's going to .Essentially you record every transaction twice taking assets from somewhere called a credit and putting it somewhere else called a debit your debits and credits should always equal each other. 

how you know that your books are balanced for example say you buy a new laptop for your business and it costs $1000 you'd subtract $1000 in cash from your credit account and add $1,000 in assets to your debit account. You may have lost $1,000 in cash but you gained $1000 in the form of a new asset double entry accounting is kind of like double-checking your homework and helps you create financial statements, which you will need to make smart financial decisions.

 So what is a single entry method?

It is essentially just recording your transactions once as they happen .It is less robust but if your business is a simple sole proprietorship with no inventory and no employees, you can probably use the single entry method. If your business is any more complex than that, your accountant will probably recommend the double entry method. 

 3. Choosing between the cash versus accrual method of accounting. 

 On a cash basis, you only recognize revenue when you receive it. For example when you deposit the check into your account on an accrual basis, you recognize revenue when it is earned. For example, once you complete a project and write the invoice if you are a small business or just getting started. You can probably use the cash method it is easy to switch from cash to accrual if you need to.

 If your business is more complex, for example if your business gets more than five million per year in revenue or if you manage large assets or investments you will probably need to use the accrual method. Either way you should talk to your accountant to figure out which method will be best for your business.

 4. Choose a bookkeeping system.

Your options are to do it manually using something like Excel or just paper or use an accounting

Software. If you do it in Excel you can use something like our free income statement template for a simple bookkeeping setup all you have to do is enter each transaction as it happens. If you are bookkeeping means are straightforward, this is the easiest cheapest way to go.

 If you choose to use accounting software there are a few options for small businesses such as QuickBooks Zero or wait you'll pay a monthly fee for the software which you can use to produce simple financial reports keep in mind though you may need to have an accountants help to learn how to properly use the software. 

5. Categorize your transactions. 

Categories are essentially classifications for your transactions to understand what you are spending on. These types of categories can help you understand what your tax deductions are. Not all transactions are equally tax deductible so you will want to know what you are spending on office supplies versus what you are spending on meals

 For example if you buy a box and pens for the office, you will categorize it as office supplies at the end of the year. You will be able to see the total amount you spent on office supplies and you will be able to deduct that cost on your taxes.

  6. Organize and store your documents. 

 You need to keep records for your bookkeeping but there is a bit more to it than just storing all Of your receipts in a shoebox. There are two important rules for your record keeping.

Rule one if the expense is over $75 you should keep a record to prove the expense.

Rule two you should keep every receipt and financial record for three years as for actually keeping the records. We recommend storing them Digitally. The IRS is totally fine with that and it is an easy away for you will not need the receipts to actually file your taxes but you will need them if you are audited. Some tools you can use to keep your records digitally include receipt banks Evernote and shoebox. 

7.  Make it a habit.

Bookkeeping is not the most exciting thing but if you do it consistently, you will have smart financial insight into your business every month of the year, you will save yourself a lot of time, and headaches come tax season. At minimum we recommend entering in all your transactions at least once a month. Block out a recurring time in your calendar and do it somewhere. 

Fun like a coffee shop or do something relaxing like putting on Netflix while you do the work the more automatic Your bookkeeping habit the easier your tax season will be nobody likes a stressful bookkeeping binge now should you do your own bookkeeping or hire someone else to do it for you doing your own books is free that's the biggest draw but it can be complicated, time-consuming and can take you away from running your business.

If you decide to hire someone to do your bookkeeping it helps save you time, gives you confidence your books are being done properly and makes tax time a whole lot easier.

 Having learnt a lot from us, happy bookkeeping.

 

 

Couple Money and Finance

Many studies have shown that money is the root cause of most of the marriage turmoil’s for example Divorces, separation and marital misunderstanding caused by either the abundance or the scarcity of money. Though love cannot be bought by money it’s a sure bet that it can actually complicate it.

Lack of clear and constructive conversations about it are the main reasons for both small and big fights. Money carries emotions, when you don’t have money one feels insecure unsettled but when you are expecting or have money in the Bank, one feels safe .When one gets money those emotions are evoked and the true characters now comes in.

When you start having more money one becomes insecure of the surrounding leading him/her to look for safety if it’s a man he tends to think the woman was submissive to him because he  gives her or even earns more money hence leading to infidelity.

Transparency is the key, spouses should know how much the other partner earns. You don’t have to know exactly each and every coin made and spent. This because one has some personal bills. For example the woman does not have to disclose how much she spent in girls meet ups .The same case applies to the man he does not have to report to you that he met the boys and did coffee, footed all the bills. Honesty and openness acts as a best policy. This comes in handy in times of financial crisis

Respect and discipline matters. Its high time men accept girls empowerment, lets them appreciate when their wives earn more in fact they can even be a fall back plan  in case one loses his income. At the back of your mind, know that you are together in this and it is not a competition. Provision can come from either side wife or husband. A wife may be good at making money but be a very poor manager. On the other side, the husband can be a wonderful manager and a great decision maker hence complimenting one another.

God is a master planner and a great match maker. For men do everything possible to empower your wives, pay for that course, help her start a new business, coach and train her on how you do that business successfully because of continuity in case the unfortunate happens. Succession planning is key to achieving a long term legacy in a family business  among other things defining when the family members may work in the business, how profits  should be distributed, who may serve on the board and other matters such as taxes, liability and estate planning.

For a family run business, this is not an easy process unless the family had developed a committed vision, mission for its future protect your company, business, and other assets put a clear strategies in place for its future.

It is important to set ground rules as a couple on budgeting, saving, spending and investing; we cannot ignore the personality differences effect on the couple managed finances. People look at money differently according to their personality and environmental background and what they have been exposed to. Somebody could be a spender the other one is a saver and cautious. Then the investors who always want to plough the money back to the business. Other are areas of convergences and balance.

Life is about balance and one should be placed in his/her area of strength to manage expectations and differences. It’s important to look at what the other person is bringing on board .The oneness means a lot in this matter and safeguards the partners interest making major decisions on your own can land the deal in great trouble. Cooperation and collaboration rather than competition will help in realization of goals and objectives. Goals should be aligned plan about money even when it is not there.

Money to spend should be spent wisely .Couples should capture their incomes and expenditures list them one by one. Allocate savings in the beginning stage of budgeting and not what remains from expenditure. Are you spending more than income at the end of the day you get either a surplus or a deficit .You should balance between needs and wants? Are you spending a lot of money on wants?

For women if you earn more than your husband maintain respect and submit to him. Sit on that throne well as a wife, mother, and sister friend and an employer.

It is never too late to make good choices. You can never make a positive progress with a negative attitude and no one can choose for you unless you let them. Don't let the past immobilize you. Learn from the bad choices and move on.

Make that right decision today, as a couple and your financial life will never be the same again. It is forward and upwards only.

See you on the next blog.