World Savings Day 2024: Dream Big and Save Smart

Featuring Erastus Tshatumbu, FNB Namibia Investment Head

They say if your dreams don’t scare you, then you aren’t dreaming big enough. Whether you’re dreaming about buying your first car, planning your dream wedding, or dreaming of a once-in-a-lifetime vacation, your dreams, no matter how big, can become a reality with a good and sound savings plan.

The Power of Savings

As we celebrate World Savings Day 2024, it’s essential to reflect on the transformative power of saving. Savings, when understood and applied correctly, have the power of turning dreams into reality. For many, they are a bridging tool that has helped many get from present to future.

Beyond accumulating wealth, savings are a crucial tool in the fight against poverty, a foundation for financial literacy, and a stepping stone towards achieving our personal goals and dreams. When individuals and families prioritise saving, they create a financial buffer that protects them against unforeseen challenges—be it medical emergencies, job loss, or unexpected expenses. This financial resilience not only fosters individual security but also contributes to community stability.

Over the years, countless individuals have discovered that savings can change, improve, and transform their lives. They offer a path to financial independence, allowing you to invest in education, health, and personal development. As FNB Namibia Investment Head Erastus Tshatumbu notes, “Saving is about taking care of your future self. By cultivating a savings habit, you are investing in your future and empowering yourself to take control of your financial destiny.”

Practical ways to save effectively

Let’s look at some practical strategies that make saving easier and more effective:

·      Create a Budget:

Savings and budgeting go hand in hand. A well-structured budget is the foundation of effective saving. By tracking your income and expenses, you can identify areas where you can cut back and redirect those funds toward your savings goals.

·      Make saving easier by setting up direct deposits:

Simplify your saving process by scheduling for direct deposits to go into your savings accounts on any day of your choice. This automated approach ensures you’re consistently and effortlessly saving without the temptation to spend. By treating your savings like a recurring expense, you make it a priority in your financial planning.

·      Open a dedicated savings account:

Consider establishing a dedicated savings account, such as the FNB Flexi Fixed Deposit Account. This type of account ensures you get higher interest rates and keeps your savings organised and separate from your everyday spending. It encourages disciplined saving and minimises the likelihood of dipping into your savings for non-essential purchases.

·      Establish an Emergency Fund:

Life is unpredictable, and having an emergency fund can provide peace of mind. Aim to save enough to cover three to six months’ worth of living expenses. This financial cushion will help you navigate unexpected challenges without derailing your long-term savings goals.

·      Differentiate Your Savings:

Create separate savings goals for different aspirations. For instance, allocate funds for a vacation, education, a new car, or even a future home. This approach not only helps you track your progress but also keeps you motivated. At FNB Namibia, we have various saving and investment options that can help you achieve your various goals: 

o   Call Accounts – Get immediate access to your money.

o   Notice deposits – Give the bank notice for when you would like to withdraw your money.

o   Money Maximiser Account – Earn an interest rate comparable to top funds.

o   Fixed Deposit – Access your money after a fixed period.

o   Flexi Fixed Deposit – Withdraw up to 15% of the available balance twice per term - https://bit.ly/fnbflexifixed

o   Unit Trusts – Great for longer term investing

·      Use Your Reward Programmes:

Reward programmes are a great way to supplement your income or free up cash. Make a conscious effort to maximise your reward earn and then you can use those rewards for day to day spend, freeing up cash that you can put toward saving. For example, being on level 4 of FNB Rewards programme you will maximise your income, you can then use those rewards to pay for fuel, groceries, your bank fees or toiletry spend. 

Achieving Your Dreams Through Savings

The journey to financial security and freedom begins with saving. As you implement strategies to help you achieve your dreams, remember that every small step counts. Celebrate each milestone you reach, whether it’s hitting a specific savings target or achieving a personal goal.

Your dreams—big or small— your dreams are within reach and deserve to be pursued. With a solid savings plan in place, you can turn your aspirations into achievable milestones. As you dream of future possibilities, remind yourself that dreams are free, but the effort to realise them is where the magic happens.

For World Savings Day this year, commit to making saving a priority. Embrace the power of savings and take the first steps toward a brighter, more secure future. Don’t be afraid to dream big; your aspirations are worth it. By prioritising saving today, you lay the groundwork for a more stable and fulfilling tomorrow.