I tried many different strategies to save money from the internet but non worked. I discovered that being in Zambia is a special circumstance that needs a specialized strategy to manage finances. Due to economic struggle that Zambia is currently going through you may agree with me that saving money isn’t easy. Cost of living has gone too far that an average citizen cannot afford a descent lifestyle and at the same time spare some money for savings. In as much as we want to spend for our daily needs we shouldn't underrate the importance of saving money. Saving money means sparing a certain amount for some purpose. We tend to have unwanted things in life such as emergencies that needs money and savings can help us deal with such. However if you want to make saving money a reality in Zambia you should make sure to put aside a certain amount specifically for emergencies before you start saving for your goals. Otherwise each time you have a problem you may end up using the savings for sorting out emergence which is not idea for savers. In this post i will explain in details how to save money despite having limited financial resources in a Zambian setting.
Importance of saving money
Saves life. We should not act ignorant on how many has saved people’s lives. Hospital bills and the like needs money. Funding your personal or family development needs money. So many needs these days require you to deep your pocket . How is life for people who are poor? Very difficult .
Brings Development . Many savings acts as capital for establishing a business it will provide personal or family development. Also people save money for different purposes such as building a house, buying car or saving for university fees. In human life we should embrace development for positive change within our life or families. Saving money is one of such action that lay a foundation for development.
Prevents anxiety. Fear and unnecessary worries steps in when we have no money because what if an emergency comes? Having no money saved for a specific purpose can end up making you borrow in which it can accumulate interest making you pay more than what you got.
Brings happiness. While no amount of money can make you happy we still as humans needs it for accessing things we need. Money brings peace of mind which is the building block of happiness. It really doesn't require one to be rich to be happy, just have enough for your essentials in life.
5 best tips to save money in Zambia for 2024.
Many times not until we realize the value of doing something we may not do it at all. Like wise saving money needs a good reason and strategy for its success. Here are great strategies successful money savers use:
1.Set a SMART saving goal.
Your saving goal must be Specific, measurable, Attainable, Realistic and time bond. For example i want to save ZMW 90,000 for 5 years to buy a car. You need to know how much per month you need to save. By end of a year you need to measure your progress. You may need to open a savings account with a good bank that gives a good savings interest.
Start with analyzing your income and the things you need in life. By things i mean the priority things that are achievable in line with your income and overall life goals. Select one big reason to save money for. You can do this by listing 5 things you need that requires money and choose one. The rest may also be important but you can tackle them later. Seriously saving becomes a reality if it is assigned to a specific goal. Imagine starting a journey with no destination, you wont get there since you don not know which direction to take or which mode of transport is suitable. Use the available opportunities to to come up with your saving goal. Is saving ZMW 5000 monthly realistic for you? You know better. Be as much real as you can to yourself. You can choose to save a certain amount monthly or quarterly
2. Reserve security funds
This is usually called emergency funds. Money put aside to prevent you from touching your savings is termed security money. Never use your savings for anything else unless only in very important circumstances and you have no other options. All you want to see is your savings account balance going up.
3. Construct a realistic budget
Before using your income make sure to write a budget. In the budget include an amount for savings. Did you know the limit to spending money is the amount you have available? If you carry ZMW 10,000 and go for shopping, you are most likely to spend more than half of it. To control how much you spend you need to use a budget. A budge is a clear plan that shows how much will be spend on what and how much will be saved. It helps allocate money to different items for good financial management. Without a budget many people spend uncontrollably and end up getting into loans
Use the 50-30-20 rule of budgeting. According to the 50-30-20 guideline, you should allocate 50% of your income to necessities, 30% to wants, and 20% to savings.
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4. Adopt a realistic lifestyle.
Understand that the majority is not always right. You can choose your own reasonable lifestyle that suits your income as long as you have a goal set for the future. Determination reduces so many unnecessary expenses. Imagine the goal you set is achieved and have more reason to save and be hay for it. Most of the lifestyle we see these days are borrowed from TV shows in which the actors themselves fake it to earn a living. But then come you and I innocently want to find such fake life? The consequences maybe so painful than a zipper’s pinch on re manhood.
Honestly we have different sources of income some have much higher income than others. If you go and copy their lifestyle may just end make your financial situation miserable. That’s when realistic lifestyle comes in to help and it is yourself to sit and make sure you are not spending more than what you earn. Live simple as much as you can it reduces the need to spend unnecessarily.
5. Monarchize your life.
Have you seen how kings rule their kingdoms? No bullshit, they don’t give a f**k and no unnecessary democracy. Understand that you are the king and your life is a kingdom in which its success depends entirely on how you make and execute decisions. Defend your money and make sure to spend it only on important matters. Don’t let the society decide what you should be doing with your money. You have evidently seen many social setups some of them are totally useless to spend money on. If not careful all your savings can diminish overnight. Rule your life like a monarchy don’t let other peoples democracy be exercised on your money, you will perish.
3 Common reasons people fail to save money
There are several reasons why people fail to save money and depends on how individual situations. However there is commonality in failures observed on so many people such as:1. Insufficient income. Saving is everyone's dream but the drawback to many of us is low income levels.
2. High spending behavior. The truth is that saving money is not easy and if you spend carelessly, no matter how much money you make you may end up saving zero kwacha. Understand that saving money is like eating a nice meal. You would want to continue eating until you realize its consequences such as diarrhea or becoming overweight. Some people have impulsive spending habits that makes them broke as if they had no money. Failing to withstand peer pressure and lifestyle inflation is one of the commonest causes of failure to make a saving in 21st century.
3. Lack of financial planning. No budget and no prioritization on spending increases the chances of squandering all your money.
There are always unexpected expenses so if no planning was done for them you may end up using all your savings. Some people lack financial literacy that makes them ignore the importance of saving money.
After saving what next?
Because earning is always better than saving alone individuals should consider investing in certain business. However many times investment isn’t easy for everybody, it needs proper consultations in things like which business to enter and also consider market availability . Joining the business world without proper consultation may end up losing your savings all together leaving you with nothing. I am not a business expert but in Zambia we have a few people who do that . From previous experiences and observations on people running a business needs concentration and expanded awareness about the market dynamics. Look at how some big businesses lost market due to rigidity? We can point out how Nokia went down from the top of mobile manufacturing industry.
Summary.
My post isn’t about being stingy but you should be able to utilize the strategies and make your life a reality and well improved financially. Make saving money a habit because you will live a good quality of life with minimal financial stress. Have a clear and reasonable budget that include amount to be saved before spending on anything.
Read also: How to get instant cheap loans in Zambia
