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Building a savings culture – financial tips with Kingdom Bank
In the current economic times, encouraging one to save may seem contradictory, considering how the cost of living has skyrocketed. However, the reality is that if you can, do your best to set money aside for the future, be it for investment or to sort out an urgent financial need.
From one’s personal experiences or that of others, you are likely to realize that building savings requires discipline and some level of sacrifice to ensure that you achieve your financial goals. If this is the year you are looking to enhance your financial prudence, here are a few tips on how to build a savings culture:
Understand your money habits.
To save, you need to know your money spending trends – recurrent expenses, random and unplanned expenses, etc. Once you have this figured out, you can apportion your income to ensure that you sort out expenses you must incur, like rent, food, transport, and airtime.
Whatever remains, you may determine a percentage you want to invest into your savings based on how far you can stretch your income. It is important to note that no money is too little. The multiplier effect is crucial in what you can do with your savings.
Enhance your financial discipline.
If you don’t commit to saving, there is a likelihood that you may only save when you think you have an abundance. So if you do not have the discipline to save, join a chama where there is a structure on how to save and where there are consequences for not saving on time. Alternatively, set up a standing order with your bank to ensure that you religiously save a specified amount that will be automatically deducted from your bank account.
Keep savings and transactional accounts separate.
Do not mix your money because this will encourage you to touch your savings. The best way to save is to open a separate savings account. If you speak to your bank relationship manager, they will guide you on your options. For instance, at Kingdom Bank, you can open a savings account for yourself, your business, your chama, or even your child. There are no monthly account maintenance charges; you can only withdraw once every three months. Additionally, your savings will earn interest at a competitive rate!
Let your money work for you – earn interest.
If you have savings or are building up the same, it is best that you put this in an account that earns you interest. For instance, if you save Kes 50,000 and you get an annual interest rate of 5%, this means that at the end of the year, you will have an extra Kes 2,500 as a return on what you have saved. At Kingdom Bank, you can open a Fixed Deposit Account and earn up to a 10% interest rate on your savings on any amount from Kes 50,000.
Try following the tips above and see what works for you. Remember, June marks the halfway mark into the year, and if you are reading this, we challenge you to start a #SongaMbele na Kingdom Bank savings challenge. It doesn’t matter how much you have; just start saving!
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