It is possible to adopt a saving culture

It is that time of the month where you have run out of money at the ATM and cannot wait for the end of the month to get your monthly paycheck. You probably have spent all of your money and most probably borrowed some more just because you are assured of a steady source of money as a salaried worker.

This makes it hard for you to save for a rainy day. Yet you wonder why someone who is not assured of a salary manages to save money during the month.
Well, it is no big mystery. Saving for people in the job field takes a lot of discipline. Think of tomorrow. Say, for instance, a business woman in downtown Kikubo with a small cosmetic shop.

Some days are good; some are bad. She has bills to pay, lunch to buy, transport, plus so many little things to do, but she sets her mind on saving at least Shs10,000 per day.

It may seem little compared to you who earns Shs5,000,000 net. But at the end of the month, she has saved Shs300,000 and banked it in a fixed deposit account.

No bureaucracy
Perhaps she does not believe in banks and the bureaucracy that comes along. She will invest those monthly savings into a women’s group where she knows her money is “growing.”

But, compared to the uptown female corporate banker who cannot resist that Gucci bag on her way home, this can also work.

Saving takes discipline and sacrifice. If you have children, the more reason to save. However, with or without children, think of that vacation, or the next month’s hustle-free of the landlord, loan sharks and those regrettable embarrassing moments where your small loan of Shs100,000 is declined. Picture this, and you will save.

Most of us with corporate jobs make the mistake of living for now. When you learn to save, there will be less need for an advance at work. Here are a few money-related resolutions that most of us can’t afford to break on how to increase your chances for success.

If you follow through on just one or two of these, you’ll unavoidably improve your bottom line in the next months.

Slash the incidentals. Cancel any club memberships you don’t use and magazine subscriptions you don’t read. And if necessary, resolve to stop spending hard-earned money on binge shopping sprees.

Pay yourself first. This is a good time for an honest self-analysis: what have your saving habits been like in the past?

If it seems like all the money you make falls straight through your fingers and gets gobbled up by bills and other expenses, think hard about a reasonable amount you could start to view as yet another monthly bill. Start squirreling that money away for yourself, quickly.

Decide where to put that ‘payment.’ If you plan to sock money away for several years until you reach a specific savings goal, your “pay-yourself-first” money could become automatic contributions to a mutual fund or a fixed deposit account with great interest rates.

Say goodbye to late fees. If you keep finding yourself getting hit with extra finance charges because your loan date is over due before you’ve received your paycheck, call the bank and ask to have your due date changed. It might take a few months for this change to kick in, but it is well worth the wait.

Take your last puff. You could save more than Shs2,000,000 a year if you go from being a pack-a-day smoker to a non-smoker as well as limiting how much you spend on drinks at the bar. You’ll also qualify for significantly cheaper life-insurance rates after you quit.

Max out your retirement savings. Contribute as much as you can to your retirement project. That way you will retire early and maximise your savings in the long run.

Analyze your workday expenses. Instead of eating in restaurants every single day, bring your lunch to work from home as often as you can. Take your clothes to the dry cleaners early to avoid paying extra for same-day service. Save on fuel expenses and use public transportation.

We can all learn from each other. These easy tips work for everyone regardless of whether you are working in an air-conditioned office or selling food in Owino.