No amount of money is not enough to save

Thandeka Moyo-Ndlovu, Analysis

LIFE is short, I know, but this has been the most abused phrase by those who deliberately choose to lead careless lives without financial literacy.

Times are tough and most of us live from hand to mouth and this should give us more reason to save money for those tough days which are inevitable.

Funny enough, we are all quick to conclude that saving is for those who make more or those who can afford luxury but the truth is even those who earn $1 a day can save. We all can cut down on some unnecessary costs and be able to achieve our short and long term goals.

One way to save is through a piggy bank or a money tin which one can get from any street corner in Bulawayo or around the country.

Walking past street corners within the Bulawayo city centre, I couldn’t help but notice the sudden interest in the selling of money tins or piggy banks by vendors who ordinarily sell cosmetics and vegetables.

I then remembered that we were all in a January mood, a month where much time is spent on wish lists and resolutions.

Even my contacts were busy daring each other to get tins, envelopes, jars, or even safes locally made by our Apostolic friends so that come December 2023, we do not have a repeat of the financial chaos that people deliberately put themselves in by not saving.

I am no guru in financial literacy or saving but all I know is that this year every one of us should at least try and save some money. The thought of it sounds impossible and I know some have had a million false starts which is why I asked my friend and financial advisor Ms Timnah Msimanga to help all of us because saving still makes sense even in these harsh economic times and the earlier, we start, the more we are likely to benefit from the healthy habit.

“I’ve always marvelled at how most people think that earning a certain amount which is higher than what they currently earn will better them financially. Even along the corporate ladder the ones at the bottom are yearning to be elevated to the next level for better financial rewards. The sad part is when they get there, they feel the money is inadequate, and strive for the next position,” she says.

“Interestingly, the ‘crumbs’ you are earning are taking a whole family and extended family to school, buying assets, and having savings as well. There’s this vicious cycle of desperation which causes the cost of one’s new lifestyle to rise to align and be equal to or even more than their current income.

“The result is that no matter how high their income rises, suddenly they don’t eat certain foods, can’t wear certain clothes, don’t want to stay in certain areas or be seen with certain people at a financial cost to them!”

She said it’s saddening to see people failing to live below or within their means.

To her, failure to save is a disservice to oneself and no excuse can justify why anyone struggles to set aside even a penny from their little earnings.

“It’s so sad when people belittle their current income, yet they have been in positions of completely no income and survived.

Which brings me to the conclusion that financial literacy should be taught to people before they make money, so that they are ready for the money when it starts to come.”

Ms Msimanga said saving comes with a lot of life changing advantages.

“There is nothing as good as saving especially when you’re in a financial crisis and nothing seems to be making sense financially. Saving reduces burdens, knowing that you have $1 somewhere gives you peace of mind. It helps you to be disciplined in a way as you rarely overspend. One can teach themself to save even R1, believe you me, it goes a long way,” she says.

 

“Saving will also enable you to buy those things that you normally think are out of reach such as household property or big things like cars and residential stands.”

To her, saving helps one have a deeper and fulfilling relationship with God.

“I also think saving also helps us to trust God with our needs since we have little to cater for our daily needs. When one decides that they are going to save, they find themselves going for quality than quantity as one will have ample time to list their needs and carefully select what they are buying without using impulse,” she adds.

“Many times we buy cheaper and unnecessary goods because of impulse but once we save towards something, we become sober and are likely to only buy the best. Saving also helps us achieve bigger things that we would not ordinarily do. Think of holidays; we often think those who travel are rich but I have since learnt that a number of them save money for holidays.”

Ms Msimanga says those who start find themselves in a position to save for clothes, property and at the end they eventually can afford bigger things that other people earning the same can never afford.

“Those who haven’t started should not worry, find someone who can be an accountability partner and start today. Those who can’t commit as individuals should consider doing rounds or asking someone whom they trust to keep the money on their behalf.”

In addition to my friend’s sentiments, I have realised that I also have that entitlement gang who spend the rest of their lives waiting for other humans to buy them birthday presents without them putting any effort to celebrate their gift of life.

I mean, if one cannot buy themselves a birthday present why should partners, or friends do so?

Saving will also help all of us reward ourselves. You can save for your birthday present – you have 365 days to do so!

Ever wondered why many of us genuinely plan to save but dismally fail at it even before the first month of the year is over?

Financial expert Mr Brett Chulu said people have failed to adopt a delayed gratification model which is the reason why they fail to control their spending habits.

He said people should be merry, but also set aside some funds for fees and other important things before spending on fun.

“Happiness is fine but we should have limits, especially on how we spend. I encourage members of the public to be careful on how they spend their money as they should at least set aside money for school fees,” said Mr Chulu.

“The issue of clothes also comes into play; we should learn to buy new clothes well in time so that we get the best deals. We all know that the best time to buy winter clothes is not during winter but after winter as demand will be low, hence better prices. I also encourage parents and guardians to buy school uniforms and stationery now when demand is low so that come January, no one claims things are tough. We can all apply basic financial literacy to get better results.” – @thamamoe.