Saving Money

Colin Natwijuka | 10th June 2020

Saving Money

Saving Money

Colin Natwijuka | 10th June 2020


Saving refers to any income not used for immediate consumption.

Saving money simply means income not spent.

Methods of saving money

Putting money aside in the form of cash. Money deposited on a savings bank account and in the form of a pension account.

Money-saving in the form of an investment fund.

The difference between Saving and Savings.

Saving refers to the act of not consuming one’s assets, whereas savings refers to either multiple opportunities to reduce costs, or one’s assets in the form of cash.

Saving refers to an activity occurring over time, a flow variable, whereas savings refers to something that exists at any one time, a stock variable.

when you follow other people’s advice, saving might not work for the way it worked for other folks. People behave differently, so their way of saving differs.

Most people love the word saving. However, few have done it successfully, with different reasons for those that have not done will give you.

One of the prerequisites for saving is that you must be debt-free in order to save. You can’t start saving when you have pending loans to service.

You must be living a manageable life-style that balances your expenditures and incomes. Once your expenditures go beyond your incomes you will hardly save any single cent.

In order to manage your saving culture, there must be principles to be followed. For example, budgeting for what you haven’t earned in a mistake for people who find it difficult to save normally makes.

To save comfortably, you have to budget for what you have earned and know the remaining balance that will be left unspent.

why saving?

Questions may arise, why should I be saving instead of consuming all that I have earned.

Saving is done when someone has got a goal of achieving in the future using his/her savings. You might be interested in visiting another country in the near future. Another might be interested in buying a house or land.

This can be done as it was planned since you have lots of savings that have been accumulated for a certain period of time.

There are categories of people that cannot save.

The sick: It’s difficult for someone who is sick or hospitalized to save as he/she would not be earning anything at the moment. That is why it is advisable to do savings when you are still working and earning.

The purpose of saving is a determinant of keeping money after spending some, as you are aiming to purchase something or planning for future uncertainties.

If there isn’t proper security for your saving there may be some hindrances to save. You look at the situation where there is war in your environment.

In times of Lockdown like this, saving might be so difficult since there are minimum comes that encourage daily, weekly, or monthly savings. Another issue is that you cannot be sure when the lockdown is going to be lifted, therefore, as saving includes time frame, it might not be possible at the moment.

You might have consumed all your savings and left with nothing to spare for the future. Circumstances have twisted some individuals to the extent that nothing is left for consumption other than encroaching on the old savings

If there is an unstable income, that is where you are not sure incomes for the following day or months, it might be difficult to save.

Where the incomes are completely equivalent to the expenditure, this may cause a bit of difficulty to save.

Where you have sick members of the family that constantly keep going and coming from the hospital.

If you don’t have a good discipline of saving, this will challenge you to start doing that even if you have lots of money that you earn on a daily basis.

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