SAVINGS

The portion of disposable income not spent on consumption of consumer goods but accumulated or invested directly in capital equipment. Before you start saving, you must know why you need to save, how much to save and when will the money be needed.

How to save money

Formal: This involves keeping your money in a formalized way, for example banks which are registered

Informal: This involves keeping your money, using ways which are not formalized. Examples are, digging a hole in the house, putting in a tin, giving a neighbor to keep it for you, investing in animal farming (Buy chickens, Goats, Cattle) and even village banks

Why people save money

• Saving means, you can take calculated risks
• Saving provides financial security
• Saving can give you freedom

Things that makes saving difficult

• Too much debts
• Not generating enough income
• Not tracking your spending
• Not prioritizing saving
• Lifestyle inflation