Most people think that to start saving, one must first be raking in a huge income. Nothing could be further from the truth.
Money will never be enough. The trick to start saving is to begin right where you are income-wise, and build self-discipline on the way to better prospects in the future.
However, to build and maintain a solid personal savings culture, financial management skills are essential. For instance, doing away with unnecessary spending or creating a list of monthly expenses featuring only items you cannot do without until such a time when you can have a healthy surplus.
Prioritize your needs over your wants and save most of what is left after paying for utilities, transport, airtime, insurance and basic entertainment. You don’t have to upgrade your car if it still gets you from point A to B, and there should be no pressure to rock the latest fashion labels every daily.
So, here’s how you build a personal savings culture to get you from your current financial position to one of freedom and self-actualization:
1. Rein Your Money In
It is a fundamental but oh-so-true adage that you have to control your money, or the lack of it will eternally control your life. Building a personal savings culture helps you control your money; that’s why it’s the step habit to master.
The economic situation in the world has been difficult in ways unprecedented. This calls for each person to rein in their expenditure and save as much as they can.
2. Adjust Your Spending Habits
Where does your money go? You might have asked yourself this question more than once and no answers that really made sense came up. It boils down to identifying those expenses that unnecessarily take away most of your money.
Track your daily expenditure to identify expenses that make it difficult for you to exercise efficient personal savings. They could arise from, say, constant visits to eateries or partying that could easily be solved by home cooking and packing lunch.
3. Be Assertive with Your Decisions
Ruthlessly evaluate how effective your new spending habits are. Assess your budget after two or three months and see if you have reduced the amount of money you ‘waste’.
Be assertive about your new lifestyle and approach. This may mean making some tough decisions that may not be easy to accept, especially when you have a family or friends you love hanging out with.
We can guarantee you that it will be worth it, and it will all make sense someday.
4. Set a Saving Goal
When you get to this point, you can be confident of being close to officially being cultured. Setting a realistic saving goal will keep you disciplined, with eyes firmly on the prize.
Establish the total amount you would like to save and when you would like to get there; then break your goals down into smaller chunks so that you can feel more empowered and confident of attaining your goals. Planning to save KES. 200,000 for next years’ school fees, for example, can be discouraging. But if you set out to save KES. 20,000 every month, you will be motivated to keep going until you reach your goal.
5. Pick a Savings Platform
Decide where you want to save your money by scouting for various personal saving options. Choose an option that helps you with discipline as well as a healthy return. Remember the objective is to grow your money as much as it is to save it.
You could choose Kava, Kenya’s number 1 digital Savings platform that earns you daily interest on savings from KES. 1,000. With no paperwork involved, all you have to do is download the app, set up your account and start saving towards your goal.
With Kava, you get round-the-clock access to your savings and have the power to deposit, track, manage and withdraw at your convenience. If you thought it could not get any better than that, we have news for you: You can qualify for a loan off your savings – with very friendly repayment terms.
Benefits of Building a Personal Savings Culture
Your priority and motivation for saving should be an investment. In addition to the interest you earn on your money when you save with a platform like Kava, you could also save for an investment venture.
During difficult times such as the current pandemic, those who started savings when things were good are now in a much better place than those who didn’t. This should motivate you to start saving now as you never know when another economic emergency will arise.
Helps During Retirement
If you maintain the habit of building personal savings earlier in life, you are well on your way to securing your life in retirement, when you might no longer have a steady flow of income.
Be intentional with your savings and pass the culture on to your family and all you care about. Be assertive, unwavering in your ambition and uncompromising with your goal.
The best time to start saving was last year. The next best time is now.