SAVINGS IS A DISCIPLINE

 A youth asked how he could improve his savings culture in a recent financial literacy training. The truth of the matter is that developing a savings culture is not a simple step. It requires patience, discipline and dedication. With a high cost of living there is a justification why we should push for financial literacy training. Making ends meet on a limited budget is never an easy process. Regardless of the circumstances we need to develop the culture of saving. It calls for sacrifices and a desire for a better future. In the developed countries children are taught to save from a young age . That is why they do not struggle a lot when they grow up. In our African setting some of the statements such as " eat your money like a fisher man" do not encourage the discipline of saving. Also parental behavior largely influences whether the children will save. 

Students at university face a lot of peer pressure and some overspend to impress friends. Others do not have a budget to guide their spending habits. Others have a notion that they will save once they start working. These are all habits that are detrimental to saving. We are not advocating for saving large sums of money but rather it is about prioritizing the discipline of saving. It is the consistency that counts. The other habit that prevents youths from saving is that they do not differentiate needs from wants. They prefer to spend on what gives them instant satisfaction without first evaluating their buying options. In his book Secrets of A Millionaire Mind, Harv Eker encourages the readers to have a long term perspective towards money and this can enable  them to prioritize saving . It is also good to have a savings plan that can guide the spending and savings behavior. One needs to have a savings goal that will encourage him or her to save money so as to achieve their goal.

HOW TO DEVELOP SAVINGS DISCIPLINE 

1.Have a long term perspective for the financial future\

2.Live with in your means

3.Avoid peer pressure 

4. Save as you earn

5.Automate savings

6.Develop a budget

7.Track expenses

8.Get an experienced financial advisor

9.Learn from mistakes

10.Research before you invest

11.Create an emergency fund


Savings discipline is very key in our journey to financial advancement. Is savings culture easy to develop? The answer is no . But there are proven strategies that have helped others to succeed. It seems mindset change is one of the key behaviors that we need to embrace as we seek to change our financial fortunes.


Phillip Kiryowa

Personal Finance Coach

Advanced Empowerment Link

+256752615916

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