31 October: World Savings Day
This Sunday is World Savings Day, a day to raise awareness about the importance of saving and its virtues when it comes to managing our personal finances.
Savings are the portion of our income that we don’t spend that we want to keep in reserve for future plans or as a buffer for a rainy day. To plan our savings successfully it is important to establish short, medium and long-term goals.
Planning well will help us keep track of our spending and maximise our savings. To do so, we should draw up a budget that clearly reflects our goals to get the most out of our available money. Some desirable steps to take are:
- Setting goals that are consistent with our income and outgoings.
- Including savings as a fixed expense in the budget. Establishing a monthly amount based on our possibilities is recommended.
- Sticking to our goals to resist the temptation to spend that money on non‑essential items.
- Reviewing the budget whenever our income and outgoings change.
Planning our savings can help lower our debts, plan for retirement and, as we said earlier, build up a rainy day fund.
In short, by saving we can improve our quality of life and cater to our needs without taking loans or credit. Having savings lets us choose more ambitious plans and plan and improve our finances. It is also positive for our financial health and for society as a whole.