Savings are that portion of income not spent on current expenditures. The purpose of savings is to enable one to take care of expected and unexpected purchases and payments that cannot be handled by current income. So buying a car or a house can be one of those things that one saves for. One also needs to save for a rainy day like a job loss or a serious cut on income for whatever reason. Ideally they say one should have enough money saved up to survive for up to six months on without failing to pay any of their current monthly commitments. The big question now is, “Is this practical in the current Zimbabwe economy?”

For the past two decades the culture of savings has slowly but surely been eroded from our lifestyle and culture. Gone are the days where people were excited to open a savings account, the little green books we used to see growing up where our parents deposited money for just about everything. The verve they characterized savings in that era is all but gone. For the young entrepreneur who is starting out without a job or any income, saving is very tough and almost an alien concept. 

It seems really insurmountable for us to start where we are, with no income, no savings or inheritance. We become victims of the hand to mouth syndrome, where everything we get is spent as soon as it gets to us. We never stop to think about setting money aside to start a business.

It is very sad the last generation to really enjoy savings in Zimbabwe lost most if not all of their savings to inflation.  The main problem with such a scenario is we end up having untapped and unrealized potential from our entrepreneurs who are waiting to receive that windfall from God knows where before they can start implementing that million-dollar idea.

Saving money seems all nice and good but personally I am not really a fan maybe it’s a millennial thing, the idea is just not fashionable anymore. We like to make money and spend it at will. As such I am more of an investment fanatic. Why save money that can all be lost, but an investment in property, a business or product appreciates value with time. Having savings is not as scary for me as long as I have a product or service worth X amount of dollars.

The Zimbabwe economy has taught me not to trust saving as a means of wealth creation but just a first step in process of becoming financially independent. Saving money to invest can be a good way to kick start your business.  After that, one can continue saving but making more investments is more logical, those who are more careful tend to split their earnings between investment and saving as they go.

Throughout history there has been talk of savings and investments and one of the most interesting accounts of both we see it in the bible, the parable of the talents. There are of course various interpretations to this parable and interestingly enough all of them bring us to the same conclusion.            

The parable is a classic example of why it is important to invest to the extent that God Himself commands it of us. From the story, those who invested were rewarded and those who didn’t were punished and this still remains true today. Growth in whatever form or shape is a function of investment be it money, time, education or work, investments pay depending on where they have been and other varying factors. At times some investments do not pay at all and they can result in the loss of money, life’s work even loss of lives. That’s what we call risk.

Everyone who invests is taking on some amount of risk, some investments have more risk than others and the riskier the investment the more it pays and vice versa.

Interesting enough everyone has the potential to invest, young & old alike. All that’s needed is the will power and drive to follow through any chosen path. Start small, start where you are.

Saving is the first step to getting wealthy, it won’t make you wealthy but it provides the means to do so. The most important by-product of saving is investment which is the ultimate wealth creation weapon ever made. 

Article by: Perpetua Chikololere

Comments

really inspiring tutsi26 September 2017
Great article, question is that, what are some of the things that could be a safe option for young Zimbabweans to can save towards or invest in? Negus 27 September 2017
Written in simple language yet so articulate, this article gives a case for millennials to start pondering about their financials. I liked the ability of the writer to relate with what is on the ground and to also refer to the Word of God. The writer also alludes to her experiences making the article a genuine piece of art. Thank you Madam Writer, out of your hand flows nuggets of wisdom! Freeman18 October 2017
Really true Simon Tinashe Makuzha 23 October 2017
I like the whole idea,real talk! Junior Gwisai Siziba25 October 2017
I'm moved to start saving! luckily, I had joined iSave before they closed new for new accounts. thanks! Robert Malunda4 November 2017
you are spitting pure facts here, inability to save and invest is holding back a lot of young great minds in this country. my main problem is being 19 @uz with no income and no source of funding but a mind full of great ideas. Charumbira Paul8 November 2017
Am enlightened Tatenda Gwenhamo10 November 2017
These are the kind of articles 'us' as young people are supposed to read. Great article. I find it very useful. Happymore Chibvura27 November 2017
wow, I like it Peace8 December 2017
For sure when a man thinketh sow is he,very powerful tool to success l appreciate it Tichaona k machisa6 February 2018

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