EVERY COIN IS A SEED FOR WEALTH CREATION

 A certain youth asked me during a recent financial literacy training what he could do to increase his finances. That is a dominant question in majority of our minds. We can not have a good life when our finances are not in order. It is always a struggle to accumulate money. In fact the Bank of Uganda 2023 statistics show that only about 3% to 5% of Ugandans are able to make regular savings on their accounts. Harv Eker in his book Secrets of a Millionaire Mind noted that rich and successful people think long term. The key question is why do we as a society struggle with money? Could it be the structural nature of our economy? Could it be related to the education system? Could it be our culture? I do not have an adequate answer. But what I have observed from people who have altered their finances is that it starts with changing our mindset about money management.

If a young child is beaten to death for taking 200/= then expect that when such a child grows up he will have a negative view towards money. In fact Harv Eker noted that every person has a financial blue print such that when he or she gets more money than they can spend they are bound to misuse it. In  nation where over 70% of the population is below 30 years it is critical to shape their money behaviors so early. This is because changing behavior at an adult age is a tough task. We have seen cases of university students diverting tuition to gambling. We have seen youths who have borrowed money and diverted the funds to luxuries. On the other hand the Indians are very frugal with their finances . I once saw an Indian who brought their son to the bank to learn how to bank money. At the same time there is a university student who told me that he had never stepped in a banking hall to pay their tuition since his parents always pay for them. The other challenge facing the youths is that they fear starting small and thus they relegate their big ideas to an unknown future. Most of the leading entrepreneurs did not wait to accumulate large sums of money. They started with what they have. So if the youths of today despite their noble ideas wait for large sums of money they will never scale their businesses. So we need to encourage the youth that every coin matters and they should not wait for perfect conditions to start saving. THEY SHOULD START NOW.

HOW TO SAVE MORE

1.Have a clear financial goal or vision

2.Develop a savings plan

3.Save as you earn

4..Automate your savings

5.Have an emergency fund

6. Research before you invest

7.Invest in knowledge

8.Join a financial master mind

9.Live within your means

10.Avoid self comparisons

11.Think long term

12.Appreciate your progress.


Saving is not easy. This is because we are normally faced with pressing needs. Despite this we need the savings as we prepare for a Volatile, Uncertain, Complex and Uncertain Future. If others can save I believe that with the right principles we can increase our savings one day at a time.

Phillip Kiryowa

Personal Finance Coach

+25675265916

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