Are You Really Broke? A Financial Audit

I just have one question for you. Are you guys really broke?

So many of you do not know if you are really broke. We often assume we are broke because we can't cater to certain needs we fail to plan for or wants we don't really need. Being broke means you do not have any money, but let's question this assumption after auditing one's lifestyle over a month, two, or three. What have you done in the past 3 months to change your financial state? Many of us are in the same position we were in last year. Nothing has changed throughout the year, and we're still singing the same song: "I am broke!"

Have you ever sat down to see how much you need to sustain your lifestyle? Consider these basic expenses one needs to cover every single month:

1. Rent
2. Food
3. Water
4. Electricity
5. Transport

If you are already able to pay these but still have no growth, you might want to audit these numbers. Look at your rent, is it something you can truly afford, or do you force yourself to afford it using 3/4 of your salary? Consider looking for a 2 or a 1-bed house if you are staying in a 3-bed house. Evaluate your situation and make the hardest decision possible.

For example, let's say you are a family of 3 in a 3-bed house costing you $350 per month. You could look for a 2-bed house for $200-$250 and save the difference to make a change in your life in 2025.

When it comes to food, how much do you spend monthly, and how often do you do your groceries? If you live in a standalone house where water is available at least twice a week, consider having a garden for your greens. When you do your grocery shopping, buy in bulk to cut down on monthly expenses and benefit from bulk bargains. I live in an estate and am considering starting a garden, but I also buy greens from the market where farmers sell in bulk and cheaper than in shops.

Regarding water, we all know it's an issue in Zimbabwe. Having a borehole would be very helpful. Know your water expense and audit how you use water to save and perhaps save for a borehole, especially if you own your place.

Electricity is also a challenge in Zimbabwe. Audit and monitor your electricity usage to cut down on expenses. Save for solar energy to eventually not pay for electricity completely.

Transport is another crucial expense to audit. Cutting down on unnecessary trips can help save a lot of money. Whether it's combi money or fuel money, every bit counts.

After cutting down on all these expenses, put the money you've saved into your savings.

Now, Let's Look Into Your Income

1. Salary
2. Side hustle

With your salary, how much has it grown since you joined that firm? Look at your co-workers with more years at the firm. What is their relationship with money like? Does it seem like the firm pays them enough to depend on without additional income? If not, you might need to upskill, look for a better-paying job, or discuss a raise with your boss.

Many people do side hustles just to keep their money moving, but the money doesn't grow because we don't treat it like a business. Audit your side hustle to see if it's making you money.

Attach goals to your savings so that you know how useful they can be in cutting down expenses and growing your spending power over the long term.

Many people in Zimbabwe are talented and knowledgeable enough to share their knowledge on platforms where they can earn and create another income stream. Consider platforms like:

1. YouTube
2. Starting a blog
3. Starting a podcast
4. Creating a course

If you are really broke, then something about you needs to change by this time next year. How you view life, how you do life, and how you see life. Inspirations are everywhere.

When you watch or read content online, what key takeaways are you getting? How are you implementing the lessons from videos about getting out of your current situation? We have to be honest with each other if we want to live better lives tomorrow than we do today. What changes are you going to make? Are you really broke?

With love, Rutendo Fortunate

Below is an expense and income tracker you can use to audit your finances.