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Morris Mpala, MoB Capital Ltd
TO talk about savings when the economy isn’t performing sounds more ironic than ever but you still need to save.

To talk about savings when one is very youthful sounds a bit far-fetched but guess what, these two scenarios are the best times to save.

Imagine to talk about savings when one is youthful in a non performing economy is like expecting mangoes from a guava tree, that’s miraculous.

It’s a mind thing we are on about here so miracles still need to happen or you will not be the modern day Lazarus when economical demise visits.

What is to save?
Simply put this is to accumulate money for future use. We set aside these monies thinking about tomorrow as tomorrow will always come and do not think otherwise. You just have to spend less than your earnings and set aside the excess money for a future need. That is how it works.

Why save?
Saving has been proven to be the gateway to great financial well being. It stabilises your financial freedom and increases your self actualisation. It acts as the financial shock absorber on a slippery bumpy road .It is a lifestyle that is being encouraged the world over and the fact that it is the way to manage your finances therefore it is the only way to prosperity. And who doesn’t want to be prosperous if I may ask?

Increased savings resolve most economic ills you can think of. You name it, with a culture of saving you solve them all in an instant even your cash/liquidity challenges.

When to save?
Save regularly at all times never skip a period. In good/bad times don’t tire saving until you achieve your objectives.

How to save?
On all incomes you set aside some portion of that. Keep it away from your day to day expenditures. Lock it away as it were and never have access to it unless it’s for its intended purpose. Saving can be general or for a specific cause or both.

Savings is a function of time
You let time work for you. Given you can’t save one big chunk at one goal to safeguard your rainy days or retirement days you therefore need religious savings to achieve your goals. The more you save the more financially liberated you will become.

The sinful thing we have done is we have started saving too late when there isn’t much to save and even the compounding principle can’t work due to limited time. Unfortunately you can’t fast track savings as they won’t grow as they need time to do so. Long term view on savings makes one avoid Ponzi/Pyramid schemes or get rich quick mantra due to impatience.

Financial Freedom is based on a principle of savings
Youth is associated with irresponsibility. The best times to save are when you are young because that is when you have multiple incomes and have excess incomes due to fewer responsibilities. You can’t be financially secure without savings as that is tantamount to living on borrowed time.

Retirement is savings. Vacation is savings. College education is savings. Advanced funds come from pooled savings but not necessarily your own.

There has never been anything more financially liberating as like having your own savings. Savings have so much power that everything is obedient to savings and you can all wish to do with enough savings.

Catch them young
It’s advised to start young or to coach them while young the savings culture. Once this becomes your DNA then you are good to go and blessed are such people as they will be assured of better days.

You can’t live on debt alone.
Debt is cancerous even if it’s good debt. Even good debt has to be serviced from savings.

You are nothing without savings
Imagine trying to go to battle without weapons and shields you will get decimated extensively. By the same token you can’t live without savings it’s a disaster waiting to happen as it always ends badly. Emergencies happen and they need savings. Emergencies must not be excuses to get into debt because saving culture is nonexistent.

Invest your savings
Once someone has saved then invest wisely as discussed earlier in our other columns. Get the best out of your savings. If you save and keep your investments at below levels of inflation then you are not saving at all despite your spirited and noble efforts. Avoid too good to be true investment vehicles . One golden rule on investing is never ever to lose your money. Did you know saving money is indeed making money? As you save, your net worth increases.

Savings run the economy
Savings create reserves and these are the source of economic development. Stable savings are a source of funding to developmental inclinations.

There is a direct correlation between savings and country prosperity. You are as economically powerful as your savings.

Does the Chinese phenomena ring a bell?

We talk of long tenor funding for productive sector. We complain of consumption borrowing ratios. We mourn of the general lack of funds to lend to companies. We are indirectly talking about savings but who is supposed to save? It’s a total sums game.

Hopeless cases:
STOP IT!
If you spend more than what you are earning. STOP IT.
If you are always in debt. STOP IT.
If you’re always spending monies you don’t have. STOP IT.
If you always borrow to spend on consumption. STOP IT.
Please STOP IT now or you will financially die at this rate.

Debt is a disease that affects your savings and you can be cured of indebtedness by sheer commitment and dedication to a culture of saving and preserving value of your savings.

Start saving now regardless of the economic situation and regardless of your earnings and age.We have discussed before on methods of saving and how you treat your savings. On all incomes just do a bit of savings. It’s in our best interest to grow the savings ratios. These are simple concepts that need dedication and sacrifice. He who saves is King (Queen).

The Chinese have a proverb that goes ‘There are two times when you can plant a tree. The first one was 20 years back and the second one is now.’

All the best in your saving culture and good luck because at times you really need it.

IF YOU LIVE IN BYO PLEASE CONSERVE WATER     
IF YOU LIVE IN ZIMBABWE PLEASE USE ELECTRICITY SPARINGLY: SOS (SWITCH OFF SWITCHES)
IF YOU LIVE ON PLANET EARTH PLEASE PRESERVE THE ENVIRONMENT

Morris Mpala is the managing director of MoB Capital Limited, a thriving micro-finance institution with footprint across the country.