A SAVINGS PLAN CAN AID IN FINANCIAL ADVANCEMENT

 I remember during the Trainer of Trainers training conducted by Bank of Uganda we were encouraged to develop a savings plan. This was a key development because without a plan we may live in financial darkness. In my years of providing financial literacy across the country especially youths I have observed that the intangible practices that may be undermined play a big role in the big picture.

I have been asked a question, "how can one save yet their needs exceed their income?. It is a tough question but the best practice remains that even in the hardest of circumstances we should prioritize saving .This is because we do not know what the future holds. As humans we forget so fast. Who remembers during the lock down of Covid-19 when people were not working. Life was extremely tough. It was an opportunity to reflect about the importance of savings during good times.

A savings plan enables a person to determine why they are saving. It could be for school fees, buying a plot, a car and any other asset. Without a clear goal it is easy to misuse the funds saved. A savings plan enables a person to determine the cost of the goal and the time period for saving for the goal. This encourages and motivates a person to develop the discipline of consistent saving .It is also important to save in a formal institution regulated by Bank of Uganda.

Children and students who only earn pocket money have challenged us that they can also save. This means every adult is also encouraged to develop a savings plan so as to advance financially.

Phillip Kiryowa

Finance and Leadership Coach

0752615916

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