SAVINGS : A CRITICAL ELEMENT OF FINANCIAL FREEDOM

 A certain student failed to sit national exams after seven years of toiling because the parents failed to raise 50,000/= for registration. Many dreams have stalled due to lack of funds. According to the Uganda Retirement Benefits Authority report of 2016, over 90% of Ugandans are without any formal old age social security or retirement benefit arrangements. This increases vulnerability yet life expectancy is increasing. These statistics reflect the importance of saving amidst financial challenges and a tough economy. 

It is true that saving is tough especially in an environment where a number of youths lack access to dignified employment opportunities. However it is a discipline that cab be cultivated and is a critical base for growing an economy. The reason why our economy is so vulnerable is because of a weak savings culture that is prevalent in the society. The youths struggle to save and prioritize spending over saving. We can not talk of investment when the saving culture is still weak. All wealthy people have emphasized that savings discipline is very critical and it is not based on level of income.

WAYS TO PROMOTE SAVINGS

1.Save as you earn

2.Have a clear savings plan

3. Develop a budget

4.Differentiate between needs and wants

5.Attend financial literacy training

6. Associate with financially disciplined people

7.Start small 

8.Avoid moving with large sums of money

10. Have a financial mentor 

11.Open an account in a regulated financial institution

Saving is not a simple task. The needs of life are many. Despite this it is critical to save as a pathway to financial freedom.

Phillip Kiryowa

Personal Finance Coach 

0752615916

Founder of Advanced Empowerment Link( For financial Freedom Advice )

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