LET’S EMBRACE SAVINGS CULTURE
Very few people in Kenya and many other parts of the world practice the savings culture to safeguard the unknown future. There is a great shortage of savings. I’m referring to non-retirement savings.
There is need for liquid savings to be used during emergencies. Immediate access for motor vehicle repair or medical care. It is unfortunate that most Kenyans have no such kind of account.
How can we encourage the savings culture? We should not save in schemes which require elaborate procedures for you to withdraw the funds. We should all learn about proper financial management.
If you are receiving a regular paycheck, you can open a brand new savings account with your bank. Then arrange for automatic funds transfer through a checking account to deposit money in the saving account every time you are paid. If you accumulate funds in this account, you can accumulate enough funds to cover emergencies when they occur.
Let come rain or sunshine, make sure you’ve more than Ksh. 100,000 ($1000) in the savings account to be used for emergencies. People who do not save are exposed to financial stress. Make sure the savings for emergencies is in a liquid account. Always place the savings in accessible account.
This is one of the ways through which millions of households out there can avoid painful financial experiences. You wouldn’t go out for loans or use your credit card which attracts high interest rates.
Savings have a magic way of improving financial stability of you and your family. The advantage of using a regular savings account is that you can always get your money when you need it.
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