SAVING FOR A BETTER FUTURE

by Krantz Mwantepele 

Financial planning is an essential tool for anyone to get what they want out of life. This tool helps with things such as living within your income, identifying financial priorities, meeting financial emergencies and saving and investing to reach financial goals. All this can be done if you know the value of money in relation to your plans and achievements in life.

Saving money means finding smart ways to maintain your standard of living while putting money aside at the same time. You have to know some of the common myths regarding saving money and then take action. You can save money starting today, and you can do it in any way that makes sense for you and your lifestyle.

Don't believe all the bad information and myths regarding saving money, and don’t let false information keep you from achieving your financial goals. One of the common myths about saving money is that it takes too long to save.

For example, if you punish yourself by lowering your standard of living every time you want to save money, you'll hardly feel motivated to save. Instead, get creative. Brainstorm ways to make more money on the side, preferably by setting up passive streams of income.

The African financial services industry is rapidly evolving as a result of advancing technology, which fuels innovation and growth in the sector. In most developed countries, the sector is mature, but it’s less saturated in Africa. Due to this, there are many opportunities for new market entrants to challenge the status quo of how business has traditionally been conducted.

In Africa, there have been great innovations in the area of mobile banking and e-commerce businesses, which has led to a shift in the banking institution. In sub-Saharan Africa, where less than 24 percent of the population has a bank account and over 60 percent have a mobile phone, most telecommunication companies offer easy-to-use mobile financial services that allow transactions to be made remotely and securely, avoiding the need to carry money around.

Now, customers can transfer money from their mobile phones to any other customer in the country and, in some countries, internationally. They can also pay their water, electricity and television bills and top up their airtime remotely. Depending on the country, they may also benefit from a savings and insurance solution.

For me, saving was a great challenge because of the innovation of mobile money – all my transactions were done using mobile money and I was just interested in taking care of basic needs. But savings, especially when using a bank, can be good for meeting specific goals.

I’ve learnt that, beyond savings, investing can help me achieve bigger financial goals such as a dream home or an early retirement. That's because money is invested in assets such as bonds, shares, alternatives, property and even currency, which has the potential to grow much faster than the rate of inflation or money on deposit. Just like saving, I can invest small or big amounts and on a one-off lump sum or regular basis.

This article is the first in a series of sponsored posts for the Barclays Savings Challenge. Follow the discussion on Twitter and Face book and share your own experience by using #AfricaSaves.