By Flavia Nabukeera
Savings to some is a discipline, and to others, it is a tug of war where one compares what they earn and what they can put aside for future investment Often times, the outcome is resorting to not saving anything at all because they think they never have enough.
But how does one develop a savings habit? Is it after facing a life-challenging situation that prompts one to put money aside? It can be 5%, 10%, 20%, or even 50%, or a discipline that one has to master whenever they have extra money from their earnings, then dedicate a portion of it for savings purposes?
Some people generally struggle with saving. If the worst comes to the worst, a good suggestion is to get an accountability partner, either a close relative or friend who should be able to remind them of their commitment.
If one pledges to keep aside 10-20% or a percentage of their monthly or general earnings, and they have a poor track record of saving, they can get an accountability partner who can walk this financial journey with them to ensure that after a year or 2, they are not in the same position they were in previously.
The covid pandemic was an eye-opener for Ugandans and people world over. Some businesses were forced to close shop because their operations required them to interact physically their customers, and yet in order to observe the standard operating procedures at the time physical contact was discouraged in order to curb the further spread of the virus.
This resulted in many job losses. For those who were on a daily payroll with earnings from hand to mouth, this meant that whatever they earned on a given day, they consumed it.
This scenario is a representation of many families and saving in this case might be close to impossible, as there is nothing left for saving.
The FinScope Uganda 2023 report under the Financial Management section highlighted that most Ugandans are not managing their budgets well, indicating that seven out of every 10 Ugandans were operating a personal budget deficit (needing more money than they are earning to cover their personal budget). More Ugandans are relying on their family and friends, personal savings, and borrowing to manage their budget deficits than was the case in 2018.
Though there has been a growth of both formal and informal savings from 54 percent in 2018 to about 60% of Ugandans which represents a 6% increase as analyzed in the 2023 FinScope survey, there is still a need to not only drive financial literacy engagements to point out the importance of financial independence but there is need to preach the gospel of the significance of having a good track record on personal financing.
Uganda’s saving culture is still low, but there are avenues where this can gradually change. A case in point is the Wendi mobile wallet developed by PostBank Uganda which is enabling Ugandans to grow and prosper by offering a unique opportunity: A 10% annual interest on savings of 20,000 shillings or more. What makes this even better?
The interest is paid daily, so you can watch your money grow every single day on your dashboard. It’s savings on your terms, designed to keep you motivated and in control.
Imagine saving 500,000 Uganda Shillings and earning 10% interest annually, with daily payouts. This isn’t just about saving – it’s about seeing your finances grow in real time. The Wendi 10% annual interest is a cutting-edge solution, that allows one to track their progress daily and stay inspired to save even more. It’s a simple yet powerful way to build financial discipline and achieve personal financial goals.
Think bigger: save 10 million shillings and earn 1 million shillings in interest by the end of the year. This is exciting and a testament to your commitment to financial growth. By staying focused and resisting the urge to withdraw, you’re not just saving money, you are building a brighter future.
Savings cushion us against uncertainties and also are a source of other investments like land, expanding or venturing into a new business, construction or any other activities that an individual would wish to allocate their money to.
Other than the traditional saving options like keeping money in a box, or under the bed, to mention a few, the SACCOs and Merry Go Rounds are still options that one can consider and with the advent of technology, savings can be digitized.
A Savings and Credit Cooperative Organization (SACCO) is a financial cooperative owned and managed by its members with the sole objective of pooling savings from members and using the funds to provide loans to members at relatively low interest rates while a Merry Go Round, is a dynamic community-based savings and lending system aimed at promoting financial cooperation and stability. It involves the contribution of funds by group members on a rotational basis, enabling participants to access huge sums of money when they need it the most.
The above-mentioned saving structures are still popular and have been in existence since time immemorial but have evolved thanks to innovations and the advancement of technology.
From a group saving money under a mango tree in a savings box which might not be sustainable, to digitizing savings on mobile Wallets like Wendi. With over one million active users, Wendi has become a vital tool for SACCOs and individuals alike, providing a secure and convenient way to manage finances.
We have interacted with interesting stories of how SACOO funds at times are mismanaged due to the traditional savings where one might disappear with a savings box, or the premises where savings are gutted by fire, and many other related stories that hinder people from saving in SACCOs. But we have noticed that digitizing savings especially for groups makes the monitoring process easy and means a member can assess their money as long as they have met the group criteria for accessing the funds.
Wendi provides both a secure and robust SACCO Management System and an Informal Group Funds management feature on mobile phones using the USSD *229# or Wendi Mobile App to support digitize the administration of jointly owned money, providing complete transparency and convenience.
I would greatly advocate for saving as a 2025 resolution and it is time to change the narrative, one shilling at a time. Start saving with Wendi and watch your money work for you so that in 2026 you have a better story to tell.
The writer is the Head of Mobile Banking at PostBank Uganda.
