By Staff Reporter
WINDHOEK – “Saving is important for many reasons, fortunately, saving does not have to be difficult. Like any good habit it may seem challenging to start, but once you get going, it becomes second nature. Saving comes down to the fact that you need to be disciplined and get into the habit of saving as soon as you can,” said Oscar Capelao, Chief Financial Officer of FNB Namibia.
Capelao shares ‘three golden savings rules’ that will help Namibians succeed in their savings journey.
Rule 1: Don’t snub the small amounts
According to FNB research, a key difference between savers and non-savers is that savers believe in the value of saving small amounts. “Whilst you might think that to get into the habit of saving will require a dramatic lifestyle change, you will be amazed at how small change can help free up extra money for you to save towards your goals,” said Capelao.
For example, deciding to not buy something at work or in town every day could free up about N$15 every working day. That doesn’t seem like much, until you realise that it adds up to N$300 a month. “Small adjustments to your spending will free up the money that you need to save, despite increasing pressure on your disposable income,” he says.
Rule 2: Hands off
“When it comes to saving, time is your ally. The more time you have the better because you benefit from compound interest or, in simple terms, earning interest on interest,” said Capelao. Compound interest boosts the saving efforts of regular savers, even those who only put away small amounts, as it adds more value to savings over time.
Rule 3: Pay yourself first
Very often saving is something that people do with money that is left over after all expenses have been paid and it’s almost time for the next salary, but rarely do we have money left to save at this time.
“One of the secrets to saving is to ‘Pay Yourself First’ by saving something immediately – as soon as you get your salary,” said Capelao.
“If you stick to these three rules throughout your savings journey, they will prove to be worth their weight to you in gold,” said Capelao.