The new year often brings a renewed sense of hope and a desire for positive change. If one of your resolutions this year is to improve your financial well-being, you're not alone. Many Ugandans are looking for ways to better manage their money and achieve their financial goals.

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2025 & beyond, let's break free from old financial habits and cultivate a healthier relationship with money. Here are some practical tips to get you started

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Identify what’s good, what’s bad and what needs improvement while carefully monitoring where your money is going. You could use a budgeting app, a spreadsheet, or a simple notebook to track all your expenses, from groceries and transportation to entertainment and dining out. From this, you will be able to find what to cut out. 

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Get to know your ‘why’. When you attach a reason as to why you are doing something, it keeps motivating you to stay on track. What are your financial goals? Are you saving for a down payment on a house, planning for your children's education, or simply building an emergency fund? Ensure your goals are Specific, Measurable, Achievable, Relevant, and Time-bound. For example, instead of "Save more money," set a goal like "Save UGX 500,000 in my savings account by December 31st."

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Make a monthly budget. Have you heard of the 50/30/20 Rule? It is a popular budgeting method that states; allocate 50% of your income to needs (rent, utilities, groceries), 30% to wants (entertainment, dining out), and 20% to savings and debt repayment. Match your spending with your income and any month you spend less than budgeted, transfer the difference to your savings account. 

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Pay your outstanding debts one by one by prioritizing high-interest debts. You may also consider exploring consolidating multiple debts into a single loan with a lower interest rate.

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Set up an emergency fund. It doesn’t have to be a huge amount of money. Even gathering Ugx. 1,000 on a daily basis can build a safety net for unexpected expenses. Aim to save at least 3-6 months of living expenses in an easily accessible emergency fund. Consider using high-yield savings accounts to maximize your returns.

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Curb impulse buying. Before making any impulse purchases, wait 24 hours to see if you still want the item. Create a shopping list before you go to the store and stick to it to avoid unnecessary temptations. Limit your exposure to advertisements and avoid browsing online stores when you're not actively looking for something.

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Plan ahead of the year. Anticipate large future expenses and start saving early to avoid last-minute financial strain.

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Boost your income. Consider venturing into a side hustle, taking up freelance opportunities, taking on a part-time job to increase your income or investing in skills to increase your earnings through training courses, workshops, or online certifications to increase your earning potential.