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Save That Money!

Life is a series of topsy-turvies! One day we are up and the next day we are down. We all struggle with life challenges and it is such an amazing feeling to have a friend who lifts you up. Purple presents ‘The Self Help Series’ that aims to give you tips on how to grow and be better to achieve your true potentials!

On this week’s episode of the Self Help Series, we will be discussing various tips on how to manage your hard earned cash and save your money!

Money makes the world go round and although it might not be able to buy happiness, it can definitely buy us a chanel bag and a Range Rover Sports Car! And of course more important things too - like a good education, and food to put on the table. In that sense, money can definitely contribute to happiness!

Developing a Savings Culture.

 Managing money is very important and saves us the stress of living above our means and pretending to be who we are not! Since most of us don’t have enough money to pay for everything we need and want, we must be able to make choices about what we will buy and what we will not buy. We need to try to save for things we will need in the future and figure out ways to stretch our money to cover the necessary expenses we face.

Savings are essential for good money management. People save by putting money aside when it comes in and spending less when it goes out. To save, you need to spend less than you earn. Savings can be kept in banks, credit unions, or piggy banks. Developing the discipline to save is one of the most important things that can be done to manage money.

 There are two major rules that guides us when developing a savings culture:

  1. Spend less than you earn!
  2. Save something every week or every month!

Ways to Save your cool cash!

Your journey to effective money management starts by avoiding unnecessary expenditure and then finding a safe place to store whatever money is left over. Making the choice to save rather than to consume is the core foundation of money management.

There are various ways to save your cool cash and they are as follows:

Non-Cash Savings:

This includes investing your money into assets such as jewellery, consumer durables, or livestock that can quickly and easily be converted to cash and generally retain their value. Land is also an asset in which you can invest and hold your savings.

Informal savings:

This includes saving cash at home, which keeps your cash very accessible to you. However, you need strong discipline to both avoid spending these savings yourself and deny the pleas of other family members.

Semi-Formal savings:

This includes deposit collectors (esusu), group savings Mechanisms (ajo) and rotating credit and savings associations (ROSCAs). Familiar and simple, the group mechanism encourages discipline, scrutiny and support among members. The advantage of ROSCAs is that each member receives a lump sum of money at one time, with no loan or interest payments.

Formal savings:

These involve financial institutions, including banks, credit unions, cooperatives, post offices or microfinance institutions, and offer another widely used option for saving cash. Savings in these financial institutions are generally safe and earn interest.

A popular quote by Will Rogers says

“Too many people spend money they earned, to buy things they don’t want,to impress people that they don’t like.”

Do not be that kind of person! Save your way to greatness!



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Comments

1 year ago:
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1 year ago:
No is better to spend the less and recover the respect then save it, no one' no tomorrow?
1 year ago:
Nice write up. Saving is very important.

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