Benefits of Saving Money
There are lots of Benefits of Saving Money… you earn interest on your money, you have cash available when you need it – and you can afford to buy the things you really want! And anyone can save – all you need is a savings goal and the discipline to keep you on track.
The questions most people ask when it comes to saving are: ‘How much should I save, how do I start and how do I make saving a habit?’ Think about your future plans, then ask yourself the following questions:
- Do I want to be able to withdraw money whenever I want? eg. saving in a local bank.
- Do I want to protect my savings and not make regular withdrawals? eg. in a Sacco
- Do I want a simple but disciplined savings plan that will help me to reach a specific goal?
- Do i want to save so as to borrow at a specific time? Eg save in RG Sacco and qualify for a loan three times your savings after three months.
- Do I just want to save for a rainy day?
Have a goal
It is always good to set a goal because people who set a money savings goal save faster than those who don’t! For example you can have a target to save 10,000/- in the next three months. To calculate how much you need to save to achieve the goal, divide the amount you need to save or invest by the time (e.g., number of months or days) you have left to save. If, for example, you want to save 10,000 in the next three months, you’ll need to save shs. 115 daily, or 850 weekly or 3,400 monthly.
Save Consistently to get Benefits of Saving Money
For you to qualify for a loan, we require you to have saved regularly and consistently for three months or more. You qualify for a loan three times your savings at 1% interest rate per month. For example if you save 10,000/-, you get a loan of upto 30,000/-
Saving money also gives you peace of mind. When you’ve saved money, you feel like you have a better grip on things and that feeling of control brings you a sense of peace and stability.
If you want to save, whenever you receive money, don’t start spending hoping that you’ll save what remains. Normally what remains is zero because as long as money to spend is available, the numerous things you can spend it on are also available. And things to spend on even incite their ‘relatives’ so that you spend even more that you had planned. When money to spend is not available, we naturally find a way of doing without it. That’s why its necessary for you to save at least daily or weekly. Once you send the money to RG Sacco, you assume you no longer have it. Before you spend any money, put your savings aside then spend what is left after saving.
Once you start saving regularly, you’ll realize its an enjoyable and rewarding habit.