World savings day is here—and it is the perfect time for you to start practicing saving your hard earned money.
World Savings Day was established on October 31, 1924, during the first International Savings Bank Congress (World Society of Savings Banks) in Milan, Italy. The Italian Professor Filippo Ravizza declared this day the “International Saving Day” on the last day of the congress. In the resolutions of the Thrift Congress it was decided that ‘World Thrift Day’ should be a day devoted to the promotion of savings all over the World.
World Savings Day is being promoted and organized by central banks of developing countries where many of the people are unbanked or underbanked to boost financial inclusion. MfBs/MFIs are positioned in enhancing savings culture among developing countries in collaboration with NGOs and Central Banks.
At FINCA we encourage the culture of savings among our clients and the communities where we serve. We provide professional financial advice on savings culture at no cost to these clients, also through our initiatives and actions.
Some reasons why people- both individuals and organizations, need to save:
• It is not in our power to predict the future.
• As a safety net in case of emergencies such as medical expenses, loss of job, emergency trips. Emergencies can also occur for businesses such as if there are new government levies, machine sudden breakdown etc
• For retirement.. In most cases the support from others might not be enough to cater for the household expense.
• Parents and guardians are experiencing increase in education fees with savings set aside, they won’t feel the pinch of such high cost of education.
• Saving money makes one become financially secured, builds self-confidence and self-esteem, increases lifespan through access to quality medical care.
Most people find it difficult to sustain their savings plan. We have highlighted some simple ways to save money and sustain your savings plan.
• Keep track of your expenses no matter how small. Every penny counts hence must be accounted for. Review your expenses and identify the ones that can be eliminated or reduced.
• Armed with how much you spend within a defined period, make a budget with your net income-not gross income. This will help you to plan your spending. With budget you can review your expenses or spending habit so that you can meet up with your set savings target. For salary earners you can setup a standing order to move certain amount immediately your salary drops.
• After setting up your budget you need to agree on what percentage of your income should be saved.
• One way to save, is to set goals or target. Working towards achieving the set target or goal will encourage you to save. As you outline the goals or target it is ideal to prioritize these goals. Usually into long term or short term goals.
• Invest in Fixed Deposits or Target account of banks or government issued Bonds or invest in stocks.
• Save any windfall income.
• When purchase major items or executing projects that involve high cost, shop around and compare cost before making that decision.
• You can focus on cheaper off brand items and save money for some items.
• Finally, be disciplined. Discipline is the bedrock for sustaining a savings plan.
Countless studies of the economic benefits of savings shows that they can positively transform people’s lives. According to the World Bank – and as we at FINCA Nigeria have witnessed firsthand for decades – access to savings can empower women, make people more productive, raise incomes and increase expenditures on preventive health.
FINCA Nigeria is committed to its mission. We are focused on “Building Tomorrow Together”.
Interested in learning more? You can visit any of our branches or Email: Dennis.email@example.com or call 07017771072