Mekupi Kambatuku
Last week, we covered the importance of saving for farmers and agripreneurs. Before we continue with how we as farmers can save, I would like to reiterate that budgeting must take precedence in farm financial management.
This ensures that we identify the funds needed for expenses and how much we have available as income before we can determine how much we can save. Strategic farming requires meticulous planning, monitoring, and controlling all our farming activities for sustainable, profitable farming.
Today’s focus is, however, on the alternatives of savings; so how do we save? Most people tend to save after they have spent most of the money, however, the principle of saving encourages us to save first before spending anything.
Develop a budget to determine all your needs and expenses. Spend less in order to save more; by looking at wants versus needs and cutting down on luxuries.
Delayed gratification is one of the best principles to practice. Therefore, determine whether you can delay that purchase and rather save that money, and perhaps after some time you would realise that you actually never needed that item in the first place.
Save to avoid unnecessary debt, such as overdrafts and credit cards payments, as you have saved enough to carry you through the rainy days.
Always ensure that you have an emergency fund for unforeseen circumstances because as we all know, Murphy’s Law will visit you from time to time. In such times, your savings will go a long way in saving you. Ensure that you top up the emergency fund after usage, to get it to the same predetermined level.
In order for you to save well, you need to budget well, and you also need to make room for things such as weddings and birthdays because these are things we know in advance.
Save your money in a place where you can’t easily access it. This helps with the discipline of not using your savings unnecessarily.
The most important thing is to determine how much you want to save through proper budgeting and to find out how much it will cost. Everything begins with starting, so start now with whatever little you have.
The sooner the better.
The most recommended way to save is through commercial banks and other financial institutions because they pay you interest on your savings. For more details on this, please check out which institutions offer savings and make comparisons on the terms and conditions.
Strategic farming will be discussed in detail at an interactive seminar this Saturday, 15 October 2022. Come and engage with other farmers and industry experts.
-www.simpliadvisory.com