There are two types of people in this world; those who prefer instant pleasure and those who prefer delayed gratification.
The ones who prefer Instant pleasure leave for the moment, you will probably find the YOLO battalion here. Once they make up their mind about doing something now, nothing will come between them and that decision. For those who prefer delayed gratification, they sacrifice something today so as to concentrate on another thing that will lead to something greater tomorrow. And that’s what informed today’s discussion on #ChaseDebate.
Why do some people prefer to live for the moment rather than save for the future?
What about entrepreneurs? Why do some prefer to spend their returns instantly rather than reinvest it for growth?
We are not saying that instant pleasure is bad. Hey, you should #LiveALittle every now and then. Sacrificing some things now for the future however, can help you reap dividends. Instead of being quick to spend that last cent, think about saving it.
How can you develop a saving culture? Here are a few pointers.
We all have desires of what we want to achieve, whether it’s going for a holiday, buying a car, building a home, starting a business, going back to school. The list of our goals can be endless. As you save, it’s important to know what you’re saving towards because then it motivates you and helps you know how much you need to save and how long it will take for you to reach your goal.
Plans enable you to focus your thoughts and ideas into a series of steps to achieve your goals. It’s through plans that you’re able to bring your dreams into a reality, to be able see what you need to be where you want to be. Through plans, you’re able to see the bigger picture, so that it make sense why you will sacrifice short term pleasures for long term goals.
Be informed all the time on upcoming opportunities and threats in the future so that you can maximise on the opportunities and mitigate the risks or avoid the threats. These opportunities create avenues to invest in. Sometimes the investments might not bear fruits immediately, but don’t give up.
It’s important to know what your financial needs are and what you require in order to live comfortably. From your recurring expenses, your daily expenditure, your savings and your investments. This will enable you to be able to live within your means and not to be hard pressed.
Consistency is a great factor when it comes to managing your money, because that’s how you build a habit, a good habit. It’s important that when you make a commitment to save/invest, you live up to it, because it eventually enables you achieve your goals. One sure way to be consistent is to place a standing order to your savings account.
If you are looking to save for the short term or the long term, here are some options for you;
With the Origin Savings Plan, you’ll be able to put some money aside regularly and see it grow, as you gain interest (12.1% p.a), and have access to loans (up to 90% of your savings). You have the option to pick from a one, two or three year tenure savings plan.
With a minimum balance of KES 2,000, you’re able to earn interests on your savings. The interest is calculated based on daily end of day balance and credited upon maturity of the tenure picked. The savings plan also provides a great platform in which to track your savings milestones.
It enhances a savings habit as the money you deposit needs to be in the account for a period of time without you making any withdraw. Fixed deposit account earns you a higher interest rate than depositing your money in a savings account.
With this account you are assured of returns for your investment. The account helps to act as a fall back for your business in the event of a cash flow squeeze or can be used to meet your future cash requirements.
Interest is payable upon maturity; annually or monthly depending on the term you chose or you could use the money to buy assets if you want. You get to choose how long you want to invest your money in a fixed deposit account ranging from 30 days to ten years.
A Unit Trust is a professionally managed investment scheme which pools together funds for investors with similar investment objectives. The fund is then put in a diversified portfolio comprising of different asset classes: stocks, bonds, treasury bills, commercial papers, deposits. For instance, Gencap Hela Fund by Genghis Capital.
Gencap Hela Fund is a low risk fund which invests in diversified near cash, interest bearing instruments in the Kenyan market with varying maturity profiles. The Fund serves as a safe parking for cash and provides flexibility equivalent to a call deposit.
Thank you for engaging with us, we appreciate each view expressed today. Have an exciting Furahiday.
In case you missed the online conversation on Chase Debate, you can check it out here.