Get Rid of poor money habits in 2022

 They say old habits die hard, but when it comes to money, it's crucial to get rid of those practices that set you back financially.

Whenever you are making a financial decision or lifestyle choice, ask yourself how it is going to advance your financial goals.

Undertake self-evaluation and determine those poor money habits that you need to get rid of. 

Some of the most common are outlined below.

1. Lack of a plan is the genesis of all the issues that go wrong in our lives. If you lack focus, you can easily lead a life minus a plan, hoping for miracles or one deal to sort your finances.

As a fresh start in the New Year, consider adopting a new habit of planning. For example, January is the school season and lots of people are scrambling to put together not only fees but school requirements. This pressure can be avoided with prior planning and saving for childcare and education.

The need to plan applies to all the expenses and investments you plan to undertake throughout the year. More so, you have 11 months to plan for the next festive season. To avoid the January blues that you may be currently experiencing, start planning and saving for festive season expenses today. That way, when it comes to the end of the year activities, you have resources at your disposal to decide whether to invest or finance that holiday you have been looking forward to.

2. For parents, one such habit to drop is not engaging in honest money conversation with your household, especially your children. Depending on the age group, provide information on money in line with their level of comprehension. You can choose to have a structured way of unveiling the conversation about money.

For example, you often get demands to purchase stuff for your children. However, instead of telling them that you do not have money and then moments later, you reach out for your wallet and make a transaction, provide an explanation.

To avoid this confusion, it is important that you explain to them that you do not have money to take care of their current need because you are currently spending according to a budget. This means that they have to forego this current item until you can afford it. This is the time when you can introduce to the children the concept of saving for an item that will be purchased later.

3. Another habit that sets us back financially is not tracking our money. You cannot get a handle on your finances if you have no idea where your money goes. This has not worked the previous year, so this time round; make it a point to keep a record of all your transactions. This will allow you to track what’s excess and be in a position to rectify any anomalies.

4. You also need to urgently get rid of not having savings. It is impossible to grow assets and achieve financial independence if you lack a savings habit. Most of us convince ourselves that we will save when we earn more. This is a falsehood that needs to be cut short if you aspire to grow your income. Instead, you have to use what you have today, even if it means starting with sh10,000 that you set aside consistently until it accumulates. Once you get the hang of it, you can set steeper savings targets with concrete goals, including one of investing what has been accumulated.

Alternatively, if you want to accumulate savings at a faster rate, you have to look for like-minded individuals and collectively save. However, this group/individuals must be formalised with rules and procedures to minimise misunderstandings and at the same time, the savings must be kept in a regulated financial institution.

5. The notion that every financial issue will be sorted by borrowing from someone or an institution is one that you need to shed this time round. Typically, people do not bother saving because they believe that someone will always be their emergency fund. It is important that you start taking responsibility for your bad money choices and not expect that someone else will sort out your financial mess. This should start with being deliberate about how you make financial decisions. If you lack information, be humble and seek independent personal finance advisory services.

Financial education is a lifelong endeavour with something new to learn at every point in your life cycle. At the same time, if you have borrowed from someone that you believe has more resources than you, it is good practice to pay them back as opposed to playing hide and seek and not picking or returning their calls. If you need more grace period, it is courteous to request it.

Remember, if you do not treat money well and be responsible for your action, it will remain a 'visitor'

All in all, as you make grand plans with your life, driven by the New Year’s euphoria to make a fresh start, its advisable to be deliberate about how you manage your personal finances. Get rid of any poor money habits that get in the way of achieving your financial goals.

How your business can take off

As the year begins, it marks an important milestone for business owners and entrepreneurs. Here is a list of things to do for your business to hit the ground runnung this year.

REVIEW YOUR YEAR

Review your plans: Look at your planned numbers (revenue, profit margins, trends, and lessons learned). Avoid having to re-learn the lessons by tracking evidence of what worked, what didn’t and why.

Carry out a 360 assessment of your business, including the performance of your employees, finances and clientele. Critically analyse the position of the business vis-à-vis what was planned.

REVIEW YOUR BOOKKEEPING

Take an honest look at how much your business realised within the year versus how much you spent. Pay attention to whether all necessary books

were posted and the accuracy levels. Ensure traceability of the worthiness of your business this month. The last thing you want to do is to start a new year without knowing what your finances look like!

REFOCUS

Make a list of everything that you spend time doing. This should include work-related tasks, activities, goals, etc.

Identify anything that you no longer enjoy doing or that might be distracting you from working towards your bigger goals.

There’s a difference between working towards something worthwhile and simply wanting to complete something. Figure out the activities, which are most important and rewarding.

This will enable you to focus on the important things in your business.

REVIEW RESOURCES

This includes human resources, tools and equipment, as well as finances. Match your observations with actions as you refocus to begin the year. Fit talents to activities, eliminate or punish those who caused losses

and reward those who put the business at the helm of success.

Identify training/mentorship needs. Review whether the available tools and equipment will help you achieve your intended goals, or if you need

to purchase new ones, or make necessary repairs. Consider if financial performance allows expansion and act as required.

GET INFORMED

Are there any new laws that are taking effect, how best have you prepared for them, is there anything new that you think may impact your business? Be compliant to avoid penalties.

Understudy the environment and look out for anything that may disrupt your prospect strategy.

REVIEW YOUR GOALS

Think about what you want your business to achieve.

Be SMART, set goals rather than making resolutions, especially in business, there is a difference between a goal and a resolution. Resolutions are things you keep, goals are things you attain.

Build your strategy with your team and mentors: Once you have goals for your business, get your team on board. Schedule a planning and strategy meeting with your employees to create the plans you need to reach those goals.

Research carried out by Margaret Nakakande a business development professional in Kampala, Uganda

How to overcome trade barriers this Year

 By Daniel Karibwije

The beginning of the year brings new opportunities. A fresh year is hear and with the fanfare and Christmas spending dimming away, we need to get back to productive tasks and activities.

The December -January consumer spending is now in decline mode and 'back-to-reality' has set in.

Small and medium-sized enterprises (SMEs) need to plan and forecast for this year.

Two key challenges that SMEs in Uganda and the rest of the world battle with are: How to meet technical requirements in international markets and overcome technical barriers to trade, the most frequent obstacles to it.

SMEs need to research on the requirements of the product they have specialised in. Is it beef exports? Exports of dairy products or fish?

Products have different requirements and standards depending on the market you are targeting. Do not assume that the requirements to export cocoa in the EU are similar to the US. Do not fear or tire of asking questions and seeking answers, rather than losing money in fines or damages.

INFORMATION IS KING

According to the International Trade Centre (ITC), SMEs need to seek information, conform to requirements and demonstrate compliance in a cost-effective manner.

They have to research more about the product standards by visiting the Uganda National Bureau of Standards website as a starting point. Thereafter, a physical visit with a sample is recommended. The centre that checks for coffee quality is the Uganda Coffee Development Authority quality office at the Uganda Manufacturer’s Association (UMA) in Lugogo, Kampala.

Join a joint WhatsApp group on coffee or fish or whichever product you are focused on this year. There is always new knowledge out there that will land on the prepared mind.

Those who seek knowledge will find it.

TECHNICAL REQUIREMENTS

In developing countries, such as Uganda, technical requirements might change and not reach SMEs in time compared to big players on the market.

Registering membership with trade support institutions both private and public sector is key. The packaging standards for a product can change and companies will need to adjust production systems and costs to match new market requirements.

Whereas in Uganda we are comfortable with plastic packaging, some markets will insist on glass packaging for certain food products. Without a plan, this will definitely increase the cost of production for a company exporting to this market.

With countries adopting eco-friendly supply chains and increased consumer consciousness, plastics are being slowly phased out for certain food packaging. Biodegradable and earth-friendly packaging is marketable.

CAPACITY BUILDING, ADVISORY

Be on the lookout for training opportunities in your area of interest. There are a number of trainings available in the market today and skilling is top on the agenda for institutions, such as the Private Sector Foundation Uganda (PSFU), with funding available on a co-sharing basis.

Private companies should take advantage of such opportunities that also allow them to source trainers abroad and fund their trip to conduct a training in Uganda to a group of producers and manufacturers.

PARTNERSHIPS AND NETWORKS

Join and register membership with a variety of trade support institutions, such as PSFU, UMA and business support organisations. Let those emails keep coming in from a variety of sources. Knowledge is power, do not be left behind this year. By signing up for membership, you keep receiving industry-related information to your inbox, some of which might be life-saving for your company.

Partnerships and networks open market opportunities when you least expect, building the company-profile and credibility.

I wish you a happy 2022 full of export success and open doors of opportunity.

The Writer is an export trade specialist

Uganda Support to Municipal Infrastructure Development (USMID-AF)

USMID Roads Projects

Period: November 2019 – October 2021

Partners: World Bank, Government of Uganda

Project Type: Infrastructure Develpoment

After the successful implementation of the first phase of the Uganda Support to Municipal Infrastructure Development (USMID) Program, Government, has received additional financing to the tune of US$ 360 million from the World Bank/IDA to implement the second phase of the Program (USMID Additional Financing-USMID-AF) for 5 years starting in fiscal year 2018/19.

USMID-AF will maintain the development objective of “Enhancing Institutional Capacity of Selected Local Governments” BUT the geographical coverage of the Program will extend to Eight additional municipal local governments of Kitgum, Kamuli, Mubende, Kasese, Busia, Ntungamo, Apac and Lugazi and also introduce support to 8 districts of Adjumani, Moyo, Yumbe, Arua, Isingiro, Kiryandongo, Kamwenge and Lamwo, that have faced a high influx of refugees to strengthen these LGs’ abilities to cope with the recent and future refugee influx in Uganda and to deliver critical infrastructure to host communities/local governments. The program will deepen impact and results in terms of institutional strengthening, planning and financial management, infrastructure provision and local economic development. USMID-AF draws a lot of lessons from the implementation of the first phase of USMID.

The Ministry and the Program Support Team has prepared an Operational Manual for USMID-AF in order to guide the participating Municipal and District Local Governments in the implementation of the Program.

Improvements to the operational manual have been drawn from lessons learned from implementing the first phase of USMID and the manual includes the performance assessment tool that will be used for verifying program performance at the Ministry of Lands, Housing and Urban Development, Municipal and District Local Governments level by the Independent Verification Agent (IVA) among others.

The program will be executed and coordinated by the MLHUD which is responsible for urban development. The institutional strengthening at the municipal Local Governments level will target technical, fiduciary (financial and procurement), Local Economic Development and environmental and social sustainability with a focus on the following seven thematic areas:

i. Improved linkage between Municipal Physical Development Plan, Five-year Development Plan and Budgeting;

ii. Increased municipal own source revenue (OSR);

iii. Improved procurement performance;

iv. Improved municipal Accounting and core financial management

v. Improved Execution/Implementation of infrastructure sub-projects for improved urban service delivery;

vi. Improved accountability and transparency (monitoring and communication); and

vii. Enhanced environmental and social sustainability (Environmental, social and resettlement due diligence).