Most people have found it extremely difficult to put something away for the rainy day. But as long as there is life, the need to save cannot be toyed with.
Thanks to the shrewd and astute people who have succeeded in mastering the art of saving, a number of secret strategies have been developed and could be employed by anyone who aims to cultivate the culture of saving. Here, three of these key secrets are expounded:
It is often said that one cannot decide where to adjust and make cuts in spending or where to find extra cash to save if they are unable to account for how their money is spent.
Put plainly, one needs to identify the problem and then find solutions to it. You need to determine which daily expenses to cut in order to save. And this is where budgeting comes in.
Paying Yourself First
This is, perhaps, more difficult than it sounds. The natural inclination at the end of the month is to pay off all bills before thinking of apportioning a percentage of what is left into one’s savings account.
But experts proffer a different and, albeit, more reasonable method, which is to pay yourself first. One needs to develop a plan where you think of saving just like paying your routine monthly bills.
This way, money meant for savings is treated with the same level of importance as that which is meant for paying your bills.
One sure way to be successful at this is to set in motion a standing instruction on your account that automatically causes for a percentage of your funds to be deposited into your savings account before you even have a chance to spend it. To make the savings count for something in the long run, keep saving in order to benefit from compound interest.
Spend Less than You Earn
Most people will struggle to abide by this rule but it is the golden rule of saving. More often than not, we let the demands from family and the wider society have the better of our earnings and thus the propensity to overspend to meet these demands become inevitable.
But once this becomes a recurring habit and a routine, one begins to descend into an unending loop of debts which spirals into a helpless debt-laden life. Thus the need to save becomes a secondary consideration. Truth is – if you cannot abide by this holy grail of savings, you cannot save!
Benefits of Saving
Several benefits abound in being committed and dedicated to a culture of saving because it guarantees a bright future. Indeed, the more money you save, the more control you have in the future.
Often times, people have complained of not being able to quit their jobs because they have nothing to go home with. But the fact is, if you have saved enough, you are more likely to skip the daily struggles at work and avoid the risk of a nervous breakdown as a culminant effect of stress.
Then there is the guarantee of peace of mind for those who have saved enough or developed a positive saving culture. The regular 3:00 am contemplations on how to pay the next bill or rent are all too real for those with little or no savings. But as you accumulate savings, your daily financial worries diminish proportionally and your peace of mind is guaranteed.
Top of all these benefits is the comfortable old age you enjoy if you cultivate a positive savings culture during your working life.
The time when you are unable to afford some of the things you previously could pay for with ease, when you are able to take care of health issues or when your family is not around or cannot provide for your daily needs, is the period when you realise the need for saving. Suffice to say, no one has to live to regret not saving during his/her productive years.
FBNBank’s Save and Win Promo
Against the foregoing, it is imperative to underline the immense support that some financial institutions in Ghana are offering to Ghanaians to take on the culture of savings.
FBNBank Ghana, a subsidiary of Nigeria’s biggest bank, First Bank of Nigeria Limited, has been at the forefront of cultivating a positive savings culture among Ghanaians with its ‘Save and Win’ promo.
Currently in its third year, this year’s promo guarantees winners several prizes including a trip to Dubai, South Africa or a weekend stay at the Royal Senchi Hotel, Ghana. Other prizes are electrical items, devices and mobile network airtime via monthly draws and the grand draw.
Not only does the mechanics of the promo afford customers of the bank an easy opportunity to take part in the promo, but it also instills in participants an invaluable ethos to save for the future.
The Bottom line
Undoubtedly, saving is one of the most difficult personal venture to undertake in everyone’s life but the benefits of developing this positive culture far outweigh the benefits one gain from the present pleasures of being a spendthrift. Save, because it is needful.
By Enoch Vanderpuye
FBNBank Ghana Ltd.
Email: [email protected]