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How to Adopt a Saving Culture

How to Adopt a Saving Culture

On 22 October 2018
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Nobody said that adopting a saving culture would be easy, but in the end it will be worth it.

Spending money that you have worked for is such a great feeling; however it is even better when you save up a few coins that you can use to either invest with or when you are met with a rainy day. That said it is not easy to cultivate discipline to save up. Here we discuss ways in which you can adopt a saving culture.

  1.      Pay Yourself First

Naturally the first instinct you get anytime you make some money is usually to spend. Savings are a form of paying yourself first before taking care of any other commitments. It is prudent to be intentional about the amount of money you want to save, such that you have a standard amount that is set aside every month as savings. Once you’ve set your savings aside, you can then go ahead and budget or spend what is left over.

  1.      Start small

If it is a habit you are looking to acquire it is advisable to start small, this will reduce the pinch you will feel when setting aside the money. As the days go by you should constantly increase the amount saved for example after every three months you can increase the amount by five hundred shillings. Remember a journey of a thousand miles begins with one step.

  1.      Have a plan

If you don’t have a plan, you are planning to fail. Having a plan is important as it always keeps you focused on the end goal. It is easier to save when you know what you want to do with the money. Another reason you need to have a plan is to inform the amount of money you need to save and the timelines required. For example if you are planning to upgrade your car in six months and you will need 500,000, it will mean that each month you should save up to approximately 100,000kshs.

  1.      Join a SACCO

Sacco’s are an important avenue for saving; most have a minimum amount of money that every member is required to contribute per month. When you need to get a loan it is easier for you when you are a member of a Sacco as they will give you three times your savings at an affordable interest rate. This will inspire you to save more money so as to be eligible for higher loan amounts.

  1.      Join Investment Groups

One of the goals of saving is to increase your wealth capacity. However saving alone will not enable you to meet that goal. It is important to join an investment group that will grow your money; there are various groups like those that deal in real estate, agriculture etc. Another way would be to stock trade, although with this it is more of a fifty percent chance.

The discipline you will get from the savings can be beneficial for every other aspect of your life. To add on to that saving is delayed gratification as it will really help  make your retirement a smooth and comfortable journey. Remember that your desk at your workplace is not permanent, plan for your retirement.

 

Published In: How To's
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