Why It Pays To Save Money

Saving money or economising is like a foreign culture for most of us. We naturally tend to consume and spend spend spend most of the time. 


Why is it that we find it difficulty or impossible to save? after-all "how can we save when we have bills that need to be paid".

Let's first look at "HOW we should save" before we tackle "WHY we should save".

It can be somewhat difficult to save money at the beginning but with time and practice it soon becomes a habit. A good habit. 

The ideal principle to apply when saving is to always try to save 10% of our wages - with a future plan to have at least 6 months equivalent of our income in a savings account as a base. 


When trying to save, it's advisable to have a separate account from your normal current account. The savings account should be one that has pays YOU interest (however small), have no charges, and also no withdrawals.

Why Save?

Leave Those Coins In The Piggy Bank.

There are several reasons why it make's sense to save.

• ·  Saving to improve our lifestyle

We save so that we can have the ability to purchase products that we normally cannot afford to buy. 

If for example, you wanted to upgrade your TV. To get motivated for example- I associate that with a healthy lunch, which most of the times is usually cheaper or have a light packed lunch just to save money.

Another example would be to saving to attend a lifetime event. This would be the world cup for example. A dream come true for most. Not only would you be able to afford go on holiday, but you when have savings, then the more chance, you usually have of affording it.

Holiday !

• ·         Saving As A Means Of Freedom

Having money stashed away, will give's you the chance to make life changing decisions without the worry of how will you survive depending on how much you have saved.  If you have some money stashed away you can survive and pay your bills?. Some good savers are known to take unpaid leave, just to have a break from work and are still be able to survive and pay their bills comfortably. 

• Savings As A Means To Harness Opportunity

Money saved will give you the option to take advantage of opportunities we would never be able to have under normal circumstances. Example, those lovely pair of shoes you saw in the shop on your lunch break.


Or sometimes, friends come up with an investment ideas or saving money opportunities that need quick cash injections. Savings by all means is a cheaper source of funds as compared to loans. ( Always keep your eyes open for easy cash opportunities sometimes they turn out to be really good opportunities - example bulk buying opportunities in the office may save you money, and also be mindful as sometimes it turns out to be a con ).

• Saving For An Emergency Fund

In case of an emergencies saved money ALWAYS comes in handy. It could save your life.

Prepare For Your 18 Year Old's Call This Year.....

• Save For Retirement

Most of us, would like the opportunity to retire early. How do we ensure that we are not working into our old ages? Saving is a good option. Its recommended to invest in a pension fund. 


As we approach old age we also approach self actualization or basically we have done what we always wanted to do in life in whatever capacities.

• A Break From The Rat Race

Its 's such a good feeling to have that peace of mind that the bills will always get paid even when pushed to the extremes. Or even be able to afford to go on a cruise holiday!.

Damaris Musinguzi is the Author of 5 things your children should learn about money. She also runs an online business utensils-r-us  which is one of the first in Kenya.

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