Life is all about decisions. To save for something, whether it is for a new car, holiday, a wedding or to simply put away funds for later use, is always a perfect decision.
With World Savings Day being celebrated on 31 October, Bank Windhoek shares with readers a savings strategy that is sure to be a success.
Planning is key when it comes to saving. After planning comes taking action to execute the plan, discipline and having a vision of the end goal. When all of these factors are in place, it is easier to start.
First and foremost, self-assessment and honesty is crucial during the planning process. Questions such as why, when and what to save for should be answered. After that, a savings goal needs to be set.
“The goal should be measurable, achievable, realistic and timely. For example, cooking at home instead of buying takeaways. It is always best to start small and built up gradually. The goal should require self-discipline and a little sacrifice when it comes to spending. Write the goal down and make sure to revaluate it frequently,” said Jacquiline Pack, executive officer for marketing and corporate communication services at Bank Windhoek.
“Now that the end goal has been established, it needs to be put into motion. First, a budget, which is a financial plan on how much to save and what to spend on, needs to be drawn up. Secondly, evidence is needed to either support or reject the budget.”
“The best tool that provides this evidence, is a financial statement of a transactional account. It is an effectively tool to monitor money going in and out of the account. If there is more than one, it is recommended to use the most active one since this indicates the importance of the account,” Pack continued.
After studying the financial statement, the information will indicate spending habits. Once this is known, a realistic budget can be drawn up.
The next action to be taken, is to identify the best account to save the money in. Putting aside a portion of income earned, can be challenging. It is therefore essential to select the most suitable account depending on the target goal.
Bank Windhoek customers have an option to transfer a fixed amount of money from a current to a savings account every month. The bank offers a variety of savings and investment products. Below are a few of them briefly;
- Fixed and Notice Deposit – an excellent choice if you do not wish to tie up your investment for too long. You may choose your notice period to be 7, 14, 21, 32, 60 or 88 days.
- SureSave – a contractual money market savings or investment product aimed at customers (individuals or businesses) who want to save effortless.
- GroupSave – a specialised savings product for saving with a group of people (friends, sport teams, social clubs, families, etc), towards a common goal, on a monthly basis.
- SeniorSave – is ideally suited for senior citizens to take advantage of the low costs associated with the product.
Bank Windhoek believes that a savings culture is developed with an increased understanding of financial matters and knowledge of banking products and services. As a result, the bank was first to launch a low-cost bank account in Namibia, called EasySave. The transactional account is aimed at making banking accessible to low income earners and the previously unbanked population.
“The decision to save for that car, holiday or wedding, needs to be respected and obeyed entirely. Monthly expenses needs to be monitored and progress should be checked regularly. The planning and execution of the plan should not be altered but can be bettered, for instance, increasing the savings amount. The decision to save is always an important and rewarding one,” Pack concluded.