The need to save more

Bank Gaborone, Business Development Manager Oteng Mogorosi

Saving can start at any age or stage, at however much income one earns, and it is not limited to wealthy people only. Bank Gaborone offers savings accounts such as Easysave and SureSave which cater for people from all walks of life; with an opening balance of P100 and no maintenance fees, saving couldn’t be easier. The Wiz Kid account at which is a savings and transaction account hybrid, is tailored for children and offers a debit card, free withdrawals and competitive rates. The products are a solution tailored for the different challenges and financial status of the customers.

Savings do not only benefit the individual but are also necessary for the growth and development of an economy. According to Bank of Botswana Economic and Financial Statistics publication (2023), household debt which stands at over fifty two billion Pula ????????(P52,443,734,620), ?is higher than household deposits which stand at just over twenty billion Pula (P 20,053,435,059.47). Financial prudence, temperance and self-control are keys to financial freedom. If all those are exercised, a steady increase in saving will make a remarkable contribution to the economy as this will spur investments into businesses also creating employment.

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However, I acknowledge that saving money does not come as naturally to all of us. There are those people who genuinely understand the benefits of putting money aside, forfeiting some of life’s luxuries and some who genuinely believe in saving, but their finances are really stretched or just don’t know how to start. For those who are having financial difficulties, it is important to seek professional financial counselling or speak to a friend or family member who has their finances in order. The simple tripod model below can help anyone start their saving journey.

Have a reason- Having a goal serves as motivation to keep at one’s goal. This could be a short-term goal like saving to buy a pair of school shoes to long term goals like wedding paying for tuition or wedding. As much as the net income determines how much one can save, at the end of it all, it must not be about the money but about the bigger picture.

Competitive rates- in Albert Einstein’s words, “compound interest is the eighth wonder of the world. He who understands it, earns it, he who doesn’t, pays it”. It goes without mention that we entrust financial institutions with our monies so we get benefits of interests. Therefore, a thorough research and understanding of the market is necessary when choosing where to save one’s money. This can be obtained from the monthly and quarterly deposit rates published by banks on their social media pages and websites, as well as print media.

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Financial discipline- Lack of financial discipline starts when you give a P10.00 note to your child and don’t advise them on how to use it. Fast forward to adulthood, there should be tiers of expenses in order of importance and urgency. It is important to be able to say ‘NO, I cannot afford it’ or ‘NO, not now.’ Financial discipline plays a great role in the ability to save. If one leans more on the spender side of the graph, that inevitably slopes revenue to save.

Precautionary saving should be a lifestyle practiced by everyone. It does not have to be determined by the level of income. Savings should be a fall-back plan or a cushion on a rainy day. Bank Gaborone can help you start, it is never too late, they also offer the best rates.

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