Money Management – Gracing Money https://gracingmoney.com Begin. Grow. Sustain Sat, 14 Feb 2026 06:29:07 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 https://gracingmoney.com/wp-content/uploads/2025/08/cropped-Gracing-Money-Icon-2-32x32.png Money Management – Gracing Money https://gracingmoney.com 32 32 The Five (5) Questions You Already Have About ETF Investments https://gracingmoney.com/the-five-5-questions-you-already-have-about-etf-investments/ https://gracingmoney.com/the-five-5-questions-you-already-have-about-etf-investments/#respond Tue, 03 Feb 2026 04:42:56 +0000 https://gracingmoney.com/?p=2475 Its a new market place, yes…but worth knowing about it

You have probably heard about ETFs but you don’t know what they are…

If you relate to the statement above, then this blog is for you 🙂

What is an ETF?

Exchange-Traded Fund (ETF) is a pooled investment that holds a combination of multiple financial assets (stocks, bonds etc.).

…but this fund is listed and traded (bought and sold) on a stock exchange as a single share.

What are the existing ETFs in Tanzania?

There are now two (2) existing ETFs;

  1. Vertex International Securities ETF (VIS-ETF) 

This fund was listed in October 2025 as Tanzania’s first ETF. The fund is a basket of diversified actively traded Tanzanian equities (stocks) on the Dar es Salaam Stock Exchange (DSE). Its IPO was oversubscribed by 136%.

  1. iTrust East African Community (EAC) Large Cap ETF

This fund follows second, commenced in January 2026. The fund is focused on large-cap equities (stocks) in the East African Community (EAC). Its IPO was oversubscribed at a 540% rate.

How do you benefit from investing in ETFs?

Just like investing in stocks, you get two (2) advantages in investing in ETFs;

  • Capital Growth when the ETF share price increases 
  • Dividends or Income Generation if paid by the individual assets involved (based on how the assets performed)

What is the relationship between NAV per unit and the ETF Market Price?

Unlike mutual funds, the Net Asset Value per unit is not the same as the share price in the market. 

They can vary significantly.

Lets describe them first, in case you are not aware of the 2 (two) terms;

Net Asset Value (NAV) per unit is the “intrinsic value” or the real value of the ETF. In Swahili it’s ‘thamani halisi ya kipande’.

You simply minus the liabilities of the fund (expenses and debts) from the assets (income generators) of the fund and then divide by the number of shares.

The NAV per unit is calculated after every market day (Monday to Friday except Public Holidays).

Market Price is the price at which you buy or sell the ETF on the Dar-es-Salaam Stock Exchange. 

This price, just like stocks, changes based on the supply and demand.

And,

If the Market Price is greater than the NAV per unit, it means you are buying the share at a premium / an overprice. 

Like buying a 500ml drinking water bottle at a price of 4,000/= at a high-end restaurant or a five-star hotel like Serena.

A higher price can also be due to a high demand.

If the Market Price is less than the NAV per unit, it means you are buying the share at a discount price / a fair price / an underprice. 

What are the disadvantages of investing in EFTs?

  • You do not have control over holdings. For instance, if the index has 5 companies and one company does not perform well, your good performers are diluted by the poor performer
  • You do not have voting rights in individual companies in the index as a stock shareholder have
  • You have only two (2) options in the Tanzanian market at the moment, a young market; it is either Vertex or iEACLC unlike the stock market and collective schemes (mutual funds)
  • You incur trading costs such as broker commissions like stocks and even currency exchanges (when a foreign currency is involved).

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Just choose a direction and start, keep getting better as you go.

Just start and keep moving :)

Monely yours,

Gracing Money

Marejeo:

1] Exchange-Traded Fund (ETF): What It Is and How to Invest, investopedia.com

2] Vertex-ETF, vertex.co.tz

3] Vertex-ETF Daily Market Reports, vertex.co.tz

4] iTrust EAC Large Cap ETF, itrust.co.tz

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]]> https://gracingmoney.com/the-five-5-questions-you-already-have-about-etf-investments/feed/ 0 UTT: What It Is and How You Get Started https://gracingmoney.com/utt-what-it-is-and-how-you-get-started/ Fri, 16 Jan 2026 15:16:13 +0000 https://gracingmoney.com/?p=2105 Curious about UTT? Learn what it is, how it works, and how to begin investing in it.

You may have heard of UTT but don’t understand what people are talking about…

Or you know that UTT has different funds but don’t know what these funds are for.

When you read to the end, 

you will be able to understand exactly what UTT is, and how different its funds are.

But starting with investments…

Investing is using the money you have saved to generate more money (profit).

One way to invest collectively with other investors then sharing the profits. This kind of investment is what we call Mutual Funds.

UTT-AMIS (Unit Trust of Tanzania – Asset Management and Investor Services),

is a government owned institution under the Ministry of Finance of joint-investment in Tanzania, established in 2003.

How UTT Works in Tanzania?

When investors’ money is collected, the funds are invested in other liquid assets such as Bonds, Stocks and Call Accounts.

The investment is made by investment professionals, and this is one of the biggest benefits of investing in mutual funds.

Bonds Investments often start at 1,000,000/= and when you invest in Stocks, you need to monitor it yourself.

But not everyone can have 1,000,000/= to invest in Bonds and not everyone has the time and expertise to keep track of stocks,…

so mutual funds come in handy in this type of situation.

The UTT Mutual Funds promise a return of at least 12% per year or at least 1% per month.

For example;

When you invest or save 100,000/= today, within a year it can grow up to 112,000/=

But it’s also good to know that,

…any type of investment comes with a risk of loss because the financial market is affected by what is happening,

in the national and global economy.

The Mutual Funds of UTT

UTT has 6 funds;

✔ Watoto Fund

✔ Liquid Fund

✔ Wekeza Maisha Fund 

✔ Jikimu Fund

✔ Bond Fund, and

✔ Umoja Fund

FundBenefitsMoney Withdraw (Re-purchase)…Start With (Shillings)
Watoto
Capital GrowthWhen the child reaches 12 years of agee10,000/=
LiquidCapital GrowthWithin 3 working days100,000/=
Wekeza MaishaCapital GrowthAfter the first 5 years8,340/= monthly contribution, or
1,000,000/=
Jikimu
Dividend/ Income GenerationWithin 10 working days5,000/=For capital growth
1,000,000/=For an annual income
2,000,000/=For a quarterly / 3-months income
Bond
Dividend/ Income GenerationAfter the first 3 to 6 months50,000/=For capital growth
5,000,000/=For a semi-annual / 6-months income
10,000,000/=For a monthly income
Umoja
Capital GrowthWithin 10 working days10,000/=

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And…

If you have a goal to reach a certain amount of money within a period of time, discover what you can invest every month,


…using this tool: UTT Monthly Investment Plan

PS:

You can use UTT Mutual Funds to accumulate savings for your goals :)

Just get started!

Money-ly Yours,

Gracing Money!

References:

1] UTT-AMIS, uttamis.co.tz

2] UTT-AMIS, Investment Assumption Calculator, Monthly Investment Plan

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]]> 5 PERSONAL FINANCE BOOKS That Will Change How You Think About YOUR Money https://gracingmoney.com/5-personal-finance-books-that-will-change-how-you-think-about-your-money/ Thu, 16 Oct 2025 16:52:42 +0000 https://gracingmoney.com/?p=2222 Want a fresh way to think about money? These 5 powerful books will change how you think about earning, saving, and growing your finances.

6 and 9 are exactly the same…

depending on which side you are standing.

The things we give importance to in life are very much dependent on what we believe,…

the way we see things, our perspectives. The same goes for our money mindsets.

There are books you read, and when a person asks you about it the next day,

…your answer may be very short, maybe like 2 sentences.

Then there is a book you read and want to repeat it. 

And without even being asked, you are ready to talk about it, or even decide to buy it as a gift for someone else.

These recommended financial books to read, will make you want to talk about them. Starting with;

1. The Richest Man in Babylon / Tajiri wa Babeli

This book was written by a businessman, George S. Clason, and was published in 1926. 

Until now it has been translated in about 32 different languages.

It is a book that uses stories from ancient times, in a city called Babylon, to show the principles of personal finance such as;

✔ saving money, 

✔ paying off debts, 

✔ preparing for opportunities, 

✔ increasing income, 

✔ investing, and 

✔ being wary of quick-money schemes.

‘gold comes in abundance to the one who saves one tenth 

of his income, and use the savings to invest for the future’

2. Rich Dad, Poor Dad

This book was written by a businessman, Robert Kiyosaki, and published in 1997. Until now, it has been translated into more than 50 languages.

Robert uses a story where he has 2 fathers; his biological father who is poor and his friend’s father who is rich.

It’s not that his father didn’t have money. His father was educated and employed, but 

…he did not have the mindset to build generational wealth.

And would not come from depending on his salary. In his book, Robert showed the importance of,

✔ building assets, 

✔ having financial knowledge, which is never taught in schools, 

✔ building a business, 

✔ making investments, 

✔ having passive income, and 

✔ having a positive money mindset.

3. The Psychology of Money

This book was written by Morgan Housley, published in 2020.

It is a book about the people’s mindsets behind wealth, desire, and happiness. It shows important things like;

✔ financial success involving more of behavior than intelligence, 

✔ the difference between being rich and staying rich, 

✔ expensive things showing consumption rather than wealth, 

✔ wealth not being a product of someone making little or no mistakes,

✔ giving yourself the opportunity to make mistakes, and 

✔ respecting the power of time in investing.

4. Maamuzi Juu ya Fedha Inayopita Mkononi Mwako Yaweza Kukufanya Uwe Tajiri au Maskini

It is a book written by a Bible teacher, Christopher Mwakasege, and it was published in 2016.

It is a book that uses biblical principles to emphasize the importance of making the right money decisions with every money you get.

And that it is the money that you earn that will make you rich or poor.

The book highlights the importance of;

✔ saving, 

✔ not spending more than you earn, 

✔ creating multiple sources of income, 

✔ investing,

✔ not underestimating what we call ‘little’ money and 

✔ avoiding financial mistakes.

5. Kustaafu

It is a book written by an investor, Emilian Busara, which describes the preparation towards retirement, especially for employees,

…and that retirement is not for the elderly alone.

When anyone starts a job, they should know from the beginning that their journey will have an end and they should prepare for it.

Other important highlights include like;

✔ the importance of staying healthy, 

✔ building sustainable income, 

✔ pension payments, 

✔ things to do after retirement,

✔ retirement with goals, and 

✔ maintaining relationships with the community.

And if you want to know how to start with amending your personal finances, you can read here.

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PS:

6 and 9 are similar, depending on your mind positioning.


Having a positive mindset about money will help you make decisions that will elevate you.

Money-ly Yours,

Gracing Money!

References:

1] The Richest Man in Babylon, George S. Clason

2] Rich Dad Poor Dad, Robert Kiyosaki

3] The Psychology of Money, Morgan Housley

4] Maamuzi Juu ya Fedha, Christopher Mwakasege

5] Kustaafu, Emilian Busara

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]]> 7 Smart Money HABITS YOU CAN USE Even With a LOW INCOME https://gracingmoney.com/7-smart-money-habits-you-can-use-even-with-a-low-income/ Tue, 14 Oct 2025 08:45:38 +0000 https://gracingmoney.com/?p=2030 Learn simple ways to budget, avoid debt, save, and track expenses even with a small income.

Lack of financial discipline is not relevant to the income you earn. 

Challenges such as not having a budget, not having savings, not being enough to spend, or even a chain of debt payments is faced by…

…high-income earners and low-income earners alike.

Do you know the reason why?

It’s because financial discipline is a matter of habits. And you are the one who builds the habits, if you desire so.

The FinScope Tanzania Report of 2023 has shown that…


66% of Tanzanians find it challenging to afford the normal costs of living.

But also, 

Savings is a priority after earning for only 4% of the surveyed people while,

expenses (excluding food and clothes) is a priority to a whooping 77%.

Now, without wasting your time, let’s start with…

Budget habits,

1. Distinguishing between ‘needs’ and ‘wants’

Wants are often more expensive than needs, and

…you will be more motivated to spend money on wants than on needs.

You already know that needs are essentials; food, transportation, accommodation, communication.

2. Track expenses even if it’s just once a week.

The kind of budgeting for every shilling you earn is ‘Zero-Based Budgeting’.

If you track your spending for at least a month, it is easy to know where your weaknesses are.

Example;

If your income is 600,000/= per month, you will know where your money goes when the month is over,

…where to reduce and where to improve. The numbers will give you the answers.

3. Savings BEFORE spending and not saving after spending.

On saving habits,

Example;

If your income is 600,000/= per month, set aside at least 10%, 60,000/= then start planning for the remaining 540,000/=.

It will become difficult for you to save enough once you start spending the money as soon as you receive it.

4. Avoid peer-spending; spending money to be seen or to please other people.

On expenses,

If your colleagues are going for an outing that you can’t afford, don’t be ashamed to admit it…

because it’s beyond your limits ‘at that moment’.

If other people’s contributions are beyond the 50,000/= you can give at that moment, 

…there is nothing wrong with giving what you can at that time.


When you spend money for people to see, you will ache and they will not see.

5. Not using more than 30% of your income for accommodation,

If accommodation costs such as rent, electricity, water, sanitation and security are high compared to your income,

…you will struggle with other expenses.

For example;

If your income is 600,000/= and you spend more than 180,000/= for housing per month, it can be difficult…

for that income to get you through the remaining month.

6. Look for opportunities to elevate your income and have financial goals.

In other words, don’t settle for where you are at the moment.

Being pitied and complaining has never saved anyone, except getting sickness from mental distress.

So many people are born in poverty but do not die poor. If thats your background, see yourself as one of them.

There is a very good quote that says,

You are born looking like your parents, You die looking like your decisions

Go for what you desire to achieve. There is no one to do that for you but you.

7. Avoid debt by reducing non-essential spending and have savings that will help you when sudden challenges arise.

Most loans are taken for personal use, not investing nor economic productivity.

We borrow to,

✔ dress well, 

✔ change interior furniture, 

✔ buy exotic cars, 

✔ travel, 

✔ cover emergency expenses, 

✔ contribute,

✔ pay school fees,

✔ give to relatives and friends who are not disciplined with their own money,

…but in all of the above, neither one earns you money.

There is nothing wrong with all the above…

but then, find a way to increase your income while doing it moderately.

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PS: 

You are born looking like your parents, You die looking like…

It’s not too late to start!

All the best.

Money-ly Yours,

Gracing Money!

References:

1] FinScope Tanzania 2023 Key Findings Launch, 10th July 2023, Bank of Tanzania Auditorium

2] FinScope Tanzania 2023

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]]> 7 Hidden Truths Behind Your DAILY EXPENSES https://gracingmoney.com/7-hidden-truths-hidden-in-your-daily-expenses__trashed-2/ Tue, 14 Oct 2025 08:16:07 +0000 https://gracingmoney.com/?p=2010 for where your treasure is, there your heart will be also – Matthew 6:21 NKJV

Your spending habits show the kind of person you are…

Are you used to meeting people’s needs and wants?

Or are you an investor? Do you value savings?

Maybe you love to have fun, attend parties, beauty, decors, electronic  gadgets…

Your daily expenses will say it all.

The FinScope Tanzania Report of 2023 has shown that…

expenses (excluding food and cloths) are people’s payments priority when they get money by 77%,
while savings payments is a priority for 4% of the surveyed people.

Your expenses show:

1. Your Priorities

Your initial expenses and your major money expenses of the money you earn shows what is actually important to you;

It could be eating well, paying off debts, buying clothes, taking care of your family, entertaining friends,…

dining out, saving for your needs, developing your business etc.

2. Your Power to Save and Invest

It is the percentage of your income that goes to your future, 

✔ Emergency Savings

✔ Retirement Fund (not pension plans like NSSF, PSSSF)

✔ Building a House

✔ Investing in Financial Assets such as Stocks and Bonds.

Your expenses will show if you save, don’t save, save a little than you should,…

or that as your income increases, which between expenses or savings actually increases.

3. If Your Income Is Low, Sufficient, or Not Managed Well

If your monthly income is used only for basic expenses and there is no extra, then your income is low compared to the actual life costs,

but it is also possible that your income is sufficient but does not give you the opportunity to fulfill all your financial goals,…

or you have a good income but you don’t manage it well.

Assess your income based on your basic spending, savings, and financial goals to know how you will need to increase your earning power,

so you can live the life you want.

4. Your Money Discipline

Do you care about savings?

Can you say ‘no’ to expenses that do not match your goals?

Can you say ‘no’ to those friends who ask you for money and never give it back?

Are you directing your money to develop your business, investments, and financial goals as you intended?


Your ability to say yes or no determines where your discipline is.

5. Which Decisions Ruin Your Budget

It could be,

✔ Emergency Expenses

✔ A Chain of Debt, or

✔ Meeting the needs and wants of family and friends

If you track your expenses for at least a month, it becomes easy to know which decisions actually ruin your budget.

6. Which Financial Mistakes Are Your Spending Habits

As we mentioned earlier,

Expenses are a product of habits. If you have goals that you never reach, it’s good to know which behavior needs changing on your part.

For example, if the following challenges are normal to you;

✔ Emergency Expenses ~ then build a habit of prioritizing savings

✔ Having a Chain of Debts ~ escape a life of living on loans

✔ Serving Family and Friends ~ meet needs in your capacity and learn to say ‘no’ when necessary

Changing habits is no easy task, especially your own spending habits. So be patient with yourself and have someone to hold you accountable.

7. Which Situations Push You to Unplanned Expenses

Careless spending may not be your habit, but circumstances that happen from time to time.

It could moments of, 

sadness (you will buy what you love to make yourself happy),

happiness (you will spend more to elevate the happiness),

anger (you will buy what you love to get some sort of relief), or maybe…

shame (you don’t want to be humiliated in front of your partner, friends or family: even if you don’t want to spend your money that way).

In times of sadness, anger, and shame, we use money to get a sense of relief for what you feel though.


it does not solve the reason for that situation to exist.

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PS: 

A building constructed for three (3) years can completely burn down within 60 minutes,

…that’s just how easy it is to run out of the money that took you a long time to earn. 

Knowing and paying attention to your spending habits is important!

…for you and for me too.

Wishing you success 🙂.

Money-ly Yours,

Gracing Money!

References:

1] FinScope Tanzania 2023

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]]> Master Your Money BEFORE 40: The Personal Finance Playbook  https://gracingmoney.com/master-your-money-before-40-the-personal-finance-playbook/ Tue, 14 Oct 2025 07:30:50 +0000 https://gracingmoney.com/?p=2001 It is the kind of education that we never received from kindergarten,

…or even found it at the family level,

and very few places of worship have given its people the opportunity to learn.

Then we finish all the levels of education, only to come back to this very thing.

Money, cash, however you want to call it…

We come back to personal finance.

Because the lifestyle you want to live is what will push you to make important money decisions,

about yourself, people who depend on you, and even your friendships.

That is, the way you will relate to the whole community.

The most important things to consider in your finances are;

✔ Knowing Yourself,

✔ Knowing Your Money,

✔ Managing Yourself, and

✔ Managing Your Money.

The book, The Richest Man in Babylon by George Clason has summarized the basics of personal finances, in what the author named as the…

The 7 Cures of a Lean Purse. 

These 7 money management principles are a perfect money guide for young adults under 40.

The first is to save at least 10 percent of your income.

In simple language, don’t spend everything you get and don’t spend more than you earn. 

If you are spending more, it means that you are already entering into the ignition of non-productive debts.

Then control your spending.

Learn to distinguish between basic needs and non-essential expenses so that you can spend less than you earn.

Thirdly, make your savings produce more money, that is…

Invest your savings to generate additional income through businesses or resources that will generate profits.

Non-productive savings will not do you any good. Keeping your money this way will tempt you to use it.

Four, protect your money from the risks of loss.

Avoid entering into risky businesses that have a big possibility of losing than winning, no matter how tempting.


Do your research before investing or getting involved in any business, and remember that…

it took you much energy and time to earn the money that can be lost in a short amount of time.

Then, own your residence.

Having your own residence will give you peace of mind and eliminate some unnecessary expenses, but…

don’t forget that the house is for you and the family and is not an income generating asset, 

unless it is a rental property.

Six, make sure you secure a future income.

Invest for your old age and the future of your family. Aim for future financial security.

And lastly, improve yourself professionally or in skill,

…in the work you do to increase your income through your employment or business.

Understanding these is a good start on how to control your finances, and you can read here,

…to understand more about budgeting, saving and expenses.

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PS: 

Don’t forget that this all starts with how you choose to use what you earn. 

Your goals will then tell you whether your income is sufficient or not, and…

it’s not too late to start!

Money-ly Yours,

Gracing Money!

References:

1] The Richest Man in Babylon, George S. Clason

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]]> The One (1) Type of Savings You Can’t Afford to Ignore, PERSONALLY AND IN BUSINESS! https://gracingmoney.com/the-one-1-type-of-savings-you-cant-afford-to-ignore-personally-and-in-business/ Tue, 14 Oct 2025 07:23:53 +0000 https://gracingmoney.com/?p=2064 Find out how to build and why an emergency fund is necessary for both personal and business use. Includes a free calculator.

You have probably ever heard this statement, ‘It’s pointless to save on a low income’.

Or maybe you probably think that there is no need to have savings for your business.

It would be really nice if challenges would give us a notification, before they happen.

But, it doesn’t happen that way.

This one saving, can also help you avoid the necessity of getting into high-interest debts,

…just because you were never prepared.

The Bank of Tanzania Report of June 2025 actually shows that personal loans are the leading form of credit in financial institutions.

In May 2025, personal loans led with 35.7% followed by business (trade) at 13.7%…

If this is what is happening, you can decide to have a savings that will make financial challenges meet you prepared,

…also for the sake of your peace of mind.

And this type of saving is an Emergency Fund. It’s the amount you have to deal with the unexpected.

With an Emergency Fund, you:

✔ Can have ample time to find another job or start a business when your income drops or cuts. 

✔ Can avoid getting into debt, especially the ones with a high interest when sudden expenses for you and your business arise.

✔ Keep your peace of mind when you encounter challenges like sickness, car maintenance etc.

✔ Keep your savings pace without interruptions

✔ Make prompt decisions for necessary emergencies such as travel, tragedies and family challenges….

…and in business, you can attend to immediate needs such as maintenance of equipment necessary for operations,

also prompt decisions when opportunities arise.

✔ Avoid disturbing your long-term investments because of demanding expenses.

✔ Are able to pay your service providers, even when your clients delay paying for your services

✔ Keep the reputation of your business in service to your customers, and 

✔ The reputation of your business to the staff in your business.

How to Know the Amount You Need of an Emergency Fund

First, you need to know your average monthly expenditure then multiply by the months you would want to protect your peace…

from 3 to 6 months.

If it’s a business, you will take the highest monthly expenditure as a reference, then multiply by 3 to 6 times.

And you can know the math of emergency savings right now by using the Emergency Fund Planner.

Click Here to Get the Planner!

If you have never had a financial goal, an emergency fund is a great way to begin.

You can also use Mutual Funds to save.

But, 

when you have collected a significant amount, the challenge you can expect is,

wanting to spend money on unnecessary expenses…

If that happens, you can protect your money by investing in liquid assets like Stocks and Bonds,

where you won’t be able to withdraw very easily.

You can read about Mutual Funds, Stocks and Bonds within the next few minutes.

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PS:

Every 1,000,000/= has a 1,000/=, 2,000/=, and 5,000/= shillings in it. Don’t underestimate the ‘small’ figures.

An emergency fund is a savings you can’t afford to ignore!

Money-ly Yours,

Gracing Money!

References:

1] Bank of Tanzania, Monthly Economic Review, June 2025.

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]]> FROM DEBT TO FREEDOM: A Simple 7-Step Plan That Actually Works  https://gracingmoney.com/from-debt-to-freedom-a-simple-7-step-plan-that-actually-works/ Tue, 19 Aug 2025 16:18:09 +0000 https://gracingmoney.com/?p=2081 Break free from debt using this simple plan. Practical tips to reduce debt and take charge of your finances.

Are you thinking of re-borrowing to reduce another debt?

Or, do you want to get out of debt but don’t know where to start…

If your answer is yes, then this open letter is for you.

And actually, many people are in this situation. It’s not only you!

The Bank of Tanzania Monthly Economic Report of June 2025 shows that personal loans are the leading form of credit in financial institutions.

In May 2025, personal loans led with 35.7% followed by business (trade) at 13.7%…

This shows us that loans are majorly taken for personal expenses, such as…

✔ health treatments, 

✔ funeral expenses, 

✔ contributions, 

✔ reducing other debts, 

✔ schooling/college,

✔ buying cars,

✔ a house constructions,

✔ travel, 

✔ leisure and others,

…and less, of economic productivity.

So step one (1) is to;

1. Accept The Debt Situation

The first step in any health treatment is to know and acknowledge the challenge at hand.

Is it a headache, difficulties walking, are there swellings?

If your debts are because of your daily expenses, and you live a life of fear and shame,…

and you don’t see that it’s a problem, then thats another problem.

In this acceptance, list…

✔ all your debts, 

✔ the payment interest on those debts (if any), and 

✔ your debtors (people or institutions)

Halafu,

2. Meet Your Debtors

…with the same civility you asked for a loan, go back to the people who owe you.

This will help to start rebuilding the trust that may have been lost.

Then you can,

✔ Ask the creditor to give you more time, 

✔ or ease the payment terms

with a promise to repay in full whatever required as your ability to earn,

…and fulfill that promise! 

If the creditor will refuse the agreement then you would have to agree how to offset the debt at that moment.

3. Find Someone to Hold You Accountable

It may be a spouse, friend, or… 

a financial advisor who advised you on how to pay off the debt.

Having the support of someone who cares about you and wants you to succeed, will keep you motivated.

There may be times you may want to give up or face challenges that will cause some sort of financial instability,

…so this will help you not fall back.

4. Have a Debt Repayment Plan

You have to decide which debts you will give priority to, if they are;

✔ small debts first (Debt Snowball Method), 

✔ high interest debts first (Debt Avalanche Method), or 

✔ you will consolidate all your debts and then take one loan with a lower interest (Debt Consolidation)

Any way that will help you pay your debts in order.

5. Plan Your Budget to Fit Your Debt Repayment Plan

Life must go on; your basic needs, that of family, and other life desires…

therefore, give priority to,

✔ necessary life expenses,

✔ the percentage of your income that goes to reduce the debts, and

✔ start saving, even if in small amounts to help you in times of need

If it is self-denial of some pleasures, it will just be a matter of time.

Then, if you think your income is not enough,

6. Elevate Your Income

Find a way to increase your income funds, in what you are doing at the moment or outside of it.

Know what people want or need, and;

✔ widen your scope in what you already do; is it consulting, working overtime (if they pay overtime, or else it’s useless),…

or add a line of relatable product/service in what you are already doing.

✔ use personal skills; like cooking, crafts, etc.

Just get creative, to reduce the time to pay that debt.

Remember that less income is probably the reason for your being in debt in the first place.

7. Start Your Debt-Free Journey

As you have now started to save, don’t stop learning on better ways to manage your money.

If it is,

✔ reducing non-essential spending,

✔ increase your income,

✔ investing

✔ helping and giving in moderation, etc.

DTI is a ratio that shows the relationship between your monthly debt payments and your income.

You can use the calculator below…

Click Here to Get the Calculator!

A DTI Ratio,

Less than 36%: 


Shows that you can afford to pay off the debts you have and you can save on the amount left after your basic spending.

36% to 50%:

Means there is a need to reduce the debts you have, because you may not be able to afford emergency expenses, that is…

any unexpected but necessary expenditure.

And, more than 50%:


May indicate that you may not have enough money for basic spending, saving and affording emergency expenses.

You can also use this calculation before you take another loan to know if…

you can afford to pay off that debt without ‘stress’.

Stay updated on our Instagram for free content, and click the button below to join the GM Free Community.

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PS: 

You can move from debt to freedom! 

And use your earned funds to build other assets.

Money-ly Yours,

Gracing Money!

References:

1] Bank of Tanzania, Monthly Economic Review, June 2025.

2] Wells Fargo, Debt-to-Income Calculator.

3] The Richest Man in Babylon, George S. Clason

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