Seven smart ways to save money

Financial success does not happen overnight. It is not about a big break or a hefty inheritance, rather, it is built brick by brick, shilling by shilling.

Whether you are saving for your children's school fees, planning to build a home, or dreaming of launching a side business, one thing is certain: consistency is key, regardless of your income bracket.
Let us explore some practical ways to stay consistent with your financial habits, featuring real Ugandans who are doing just that.

1. Set clear financial goals
It all starts with a vision because without one, your savings will ‘perish’.
That is what Sarah Birungi, a bank teller, took by the horns to fulfil her dream of buying a plot of land in Mukono within five years.
“Apart from writing my dream down, I began saving Shs300,000 monthly to fulfil it. I did this because I learned that saving with a goal helps me not use the money for anything that may come along the way, thus instilling discipline in me,” she says.

The clearer your goal, the easier it is to stay focused. Whether it is buying a boda for business, paying off your SACCO loan, or building an emergency fund, write it down. Break it into smaller milestones and give it a timeline.

2. Create and stick to a budget
Many Ugandans are not into the habit of budgeting, thinking it is too foreign and complicates living. However, John Ntulume, a boda-boda rider, has learned better- that a budget is your financial map. Without one, you are walking blind.
“In 2022, I earned Shs25,000 per day but spent it recklessly, more so as I was staying in one of my brother’s rentals. It was not until a friend invited me to a financial literacy workshop that my eyes were opened. Today, I track all my expenses and have started saving Shs5,000 per day,” he says.

With that change, Ntulume has ably paid school fees for his children this term. Budgeting should not be complicated, but to ease your life, you can get an app to automate the process and ease following up.

3. Automate your savings
Out of sight, out of temptation and Fiona Lunkuse, a junior human resource officer, knows that too well. Looking back at her money habits, she realised that she had barely saved as most of her earnings went to settle issues in her parents’ home, coupled with other needs.
“Black tax is real and it was not helped by the numerous personal needs I had. To ease saving, I opted to set up a standing order for Shs150,000 from my salary account immediately the salary hits the account to a savings account,” she says. 

After one year, she had saved over Shs2m without trying too hard.
Standing orders are services a bank offers its clients at a minimal fee but they come in handy to ease and ensure consistent saving.

4. Invest wisely
Uganda has endless opportunities if you are consistent, patient and informed.
Daniel Mugarura a teacher, started a poultry project with just 10 birds in his backyard. He reinvested the profits every season, resisted the urge to ‘eat the money’, and five years later, he runs a small poultry farm supplying eggs to his neighbours. 
“This business is supplementing my earnings and has improved my family’s livelihood. The secret was consistent reinvestment and a long-term view. I also advise the youth not to look for get-rich-quick avenues as these never amount to much yet will leave you in tears,” he says.

Whether you are into farming, retail, or unit trusts, remember: investing is not gambling. It is steady, intentional, and rewarding over time.

5. Monitor your progress
What gets measured gets improved and that is Lydia Namutosi’s story. The small shop owner in Kyebando reviews her sales, expenses, and savings every Sunday evening. It helps her adjust before it is too late.
“I realised my airtime spending had shot up, hence switching to a weekly bundle plan. That saved me about Shs30,000 a month. On another occasion, I chose to try selling fresh fruit juice, with the hope that I would make a better sale. 

However, on assessing the sales, I saw an increment in expenses, which continued for two weeks. That prompted me to stop the juice business as the cost of fruits was higher than the income,” she says.
Check your progress monthly. Are you still on track? Did your spending spike last month? Are you saving more or less? Small reviews lead to big wins.

6. Stay committed to your financial plan
Life will throw you curveballs such as a loss of employment, the loss of a breadwinner among others. You can only stand if you are consistent with your savings.

Peter Gidudu, a father of three, was retrenched in 2022 and that was a dark day because a lot was destined to change. 
However, his only ray of hope was the savings he had made for the last three years.
“These shielded us for the next six months but also enabled me to start a mobile money business. I am thankful to a dear friend who encouraged me to save at a time when all was well because it was far from my thoughts,” he says.
Financial success is about being persistent.

7. Group savings
Personal savings are a bit slow and Joseph Kirigwajo, a vendor, says joining an investment club is the best thing that happened to him.
“If you want to go far, go alone. But if you want to outlast time, do it as a group. That is what my friends and I adopted to open an investment savings account, saving Shs150,000 per month. Today, we have purchased land in Bujjuko, which we intend to resell at a profit,” he says.

When done with trustworthy parties, group savings are a great way to make leaps in growth and development. Nonetheless, a clear vision on how to invest these savings will make the biggest difference.

In Uganda, where the economic terrain can be rough and uncertain, saving consistently is your biggest weapon.  Remember, small, steady steps lead to big, lasting change.