Greetings and welcome to the second edition of Wallet Wellness in 2024 - your midweek source of practical financial tips to elevate your money management skills!

Today, we are looking at the key factors that can influence your ability to make money in 2024 so that you can get started on them early in the year. 

We hope you had a chance to review the last edition, where we explored the 5 Money Habits to Bring Into the New Year. As always, be sure to check out the Concept Corner below for a deep dive into the money concept of the week.

Let’s dive in!

MONEY254 TIP OF THE WEEK

Factors that Affect Your Income Potential

This week, the Kenya Shilling crossed the Ksh160 mark against the dollar and is expected to continue falling. The cost of living is likely to keep rising, meaning you need to generally earn more to maintain your current standard of living and even more to invest and achieve your cherished goals.  

As we dive into the new year, it's crucial to understand the four pivotal factors that will impact your ability to make money in 2024. Time to set the stage for a prosperous year ahead!

Factor #1: Your Skillset 💼

Your skills are your currency. And just like the free-falling Kenya Shilling, they could lose or gain value depending on the circumstances. The evolving job landscape demands adaptability and continuous learning. Ensure your skillset aligns with market needs, boosting employability and income potential.

• Identify emerging trends in your industry.

• Invest in relevant courses or certifications.

• Constantly evaluate yourself against these three determinants of earning potential:

  • How others value what you do

  • How well you do what you do

  • How difficult it is to replace you

Factor #2: Your Network 🤝

Your network is your net worth. Even when you are the most skilled at something, if you do not have enough people who can vouch for you, your income-earning potential will be severely limited. Cultivate meaningful professional relationships to unlock opportunities and gain insights that can elevate your career and income.

• Attend industry events or virtual meetups.

• Actively engage on professional social platforms.

• Offer assistance to others within your network.

• Stay informed about skill demands. Read More.

Factor #3: Your Mindset 🧠

Your mindset shapes your financial reality. They say, the battle is in the mind -  you can’t change anything if you can’t change your thinking! This year, work towards developing a positive and growth-oriented mindset to overcome challenges and seize opportunities, creating a foundation for financial success.

• Embrace challenges as opportunities for growth.

• Practice gratitude to foster a positive outlook.

• Surround yourself with inspirational content and mentors. Read More.

• Learn about the scarcity mindset and abundance mindset.

Factor #4: Your Health 🧘

Your health is wealth. Nothing new here - it is a tried and true fact. Nonetheless, a majority of us are oblivious to the fact that taking health for granted can severely impact our ability to live a rich life. Physical and mental well-being directly impact your productivity and, subsequently, your earning potential.

• Get adequate health insurance coverage

• Prioritise regular exercise and a healthy diet.

• Schedule breaks to maintain mental clarity.

• Seek professional help for mental health when needed.

CONCEPT CORNER

Buy Now, Pay Later

As you start 2024, it is likely that there are things you need now that you may not have all the money required to purchase them. One of the popular options available to you in this scenario is the Buy Now, Pay Later (BNPL) short-term financing. Should you go this route? We take a deep dive into BNPL, in this article.

MONEY PSYCHOLOGY

Financial Stress and Coping Strategies

Times have been tough lately, especially financially. We’ve all at some time found ourselves really stressing about our personal finances. In fact, many studies show that money is a leading cause of stress, worldwide. When we are faced with financial stress, we often resort to coping mechanisms; some healthy and others not so much. In this article, we explore these strategies in detail and how you may be digging yourself deeper into a financial crisis.

MONEY254 #MONEYTOK

5 Types of Friends We All Needed in 2023

We are greatly influenced by the people we spend our time with. In fact, some have gone as far as claiming that one is the average of the five people they spend the most time with. Beyond family and workmates, it is our friends with whom we spend a significant chunk of our time with - and they could significantly affect our finances. As we reflect on last year to learn for the current, check out a summary of some of the friends we all needed in 2023 in our #MoneyTok below. You can also read in detail here.

@money254hq

How did your friends influence you this year? Did they help you achieve your financial goals, or were they the reason you fell short of yo... See more

That's it for the second Wallet Wellness edition of 2024! We hope these financial tips have added some energy to your mid-week hustle. Stay tuned for more practical insights in our next edition of "Wallet Wellness" next week and watch out for Money Weekly on your inbox this Friday.

Also, don’t forget to download the Money254 App on the Google Play Store, and remember that we can help you compare over 300 loans, savings accounts, current accounts, and more if you’re thinking about your next product.

Cheers to your wallet's well-being!

Eric and the Money254 editorial team.