In Summary

Financial priorities change with time and age but a good savings plan lasts a lifetime. But it takes serious planning for one to save properly and for the right cause.

In your mid 20s you might save for a car, in your 30s you might save for children’s education or construction of a house and by 40s and 50s you are more focused on your retirement. To achieve any of these goals you need a solid savings plan. One that keeps you on track for your short, medium and long term goals and one which will see you through any economic hustles that may happen along the way.
Here are a few tips that can guide us on how to save with a plan.

Define goals
So why do you want to save money? People who are the most successful at something have a strong ‘why’ behind what they are doing. Is it for your children’s tuition, construction of a house, startup capital for your business or you want to live a comfortable life after retirement? Write this down then put it in a visible place to remind yourself daily.

Know your stand
Looking at where you are despite the downfalls is key to where you are going. Look at all your bank statements, debts and savings you have. Pay special attention to things which you spend money on that don’t align with your values and if there is an item that is not worth spending on cut it and direct that amount of money to your savings.

Create a plan
Sometimes to set a solid savings plan you need to work backwards by looking at your past spending habits such as shopping and parties. If any of these is given up can be an additional source of income. Otherwise if you start saving without changing some traits in the past you are being unrealistic and this will discourage your saving plan.
Create a plan
Sometimes to set a solid savings plan you need to work backwards by looking at your past spending habits such as shopping and parties. If any of these is given up can be an additional source of income. Otherwise if you start saving without changing some traits in the past you are being unrealistic and this will discourage your saving plan.

Decide where to save
Identify places to save and the available savings products which suite your plan. You can open different accounts for different purposes, such as emergency savings, vacation, and retirement and so on. However, you need to know the good and bad of every place and product you choose.
Learn from mistakes
It doesn’t matter how many times you fall but raising up is more important and being mindful of the lessons learnt. Be quick to bounce back on your feet. For example, losing a job or business opportunity should not hold you back just like many successful people who have had fall backs. These have lifted them to greater heights such as “colonel Harland Sanders”. My point here is: Focus and commit to doing better what you are good at which will help you get back on track.
Budget for fun
Oh yes, fun doesn’t have to be expensive. For example, if you have hit a savings goal reward yourself with something fun that fits within you budget. This will motivate you to continue saving and achieving more goals. Therefore endeavour to enjoy the journey.

Ms Annet Katusiime is a certified trainer in financial literacy at Be Money Wiser Co. Ltd.