5 Tips for Building a Savings Culture
The other day I stumbled on an Ajo woman at the local market. If you don’t know what Ajo is, it’s a system of savings where people deposit money daily to a woman (or man) and receive the total savings bar commission at the end of the month.
Saving takes discipline and can be daunting for many people. In any case, you require a clear plan, consistency, and discipline to maintain a savings culture. While Ajo still works, there are more awesome tools and resources available to guide you toward saving and reaching your financial goals.
Let’s look at five practical tips you can build a savings culture.
1. Get a separate savings account
The first step to building a savings culture is to get a separate bank account specifically designated for saving. This account should be different from your regular account(s) and may not need an ATM card.
Using a separate savings account makes it easier to monitor your savings and progress. The Mkobo app makes it easy for you to open a savings account without having to visit a physical bank in 3 mins. With a few clicks and the provision of relevant documents for verification, you can have a new savings account.
2. Take advantage of direct debit or automated savings
One of the most effective ways to build a savings culture is to automate your savings.
Unlike Ajo, where you need to pay the collector cash every day, you can automate your savings feature on Mkolo fixed or flexi savings, to directly debit from your bank account to your savings account.
This means that a certain amount of money will be deducted from your account at intervals and transferred to your savings account. This feature ensures that you save consistently without having to worry about doing it manually.
Read Also: Mkobobank app
3. Take advantage of returns
Another great way to build a savings culture is to take advantage of returns on investment. When you save with a cooperative, for instance, you can earn returns on your savings at the end of a specific period.
With the Mkobobank app, you can earn up to 15% per annum on your savings, which is higher than the returns offered by most traditional banks.
By earning returns on your savings, you incentivize the saving process, grow your money and achieve your financial goals faster.
4. Save on banking costs
A big hindrance to a strong savings culture is the one-too-many charges that often come with traditional banks. In fact, there are some bank accounts I had to abandon because of this issue.
With the Mkobo bank app, you can save on banking costs by avoiding unnecessary fees and charges. The app offers free transactions, which means that you can save more money and worry less about how much charges your bank shaves off your savings.
5. Track your progress
Finally, it is important to track your progress when building a savings culture. The Mkobo bank app offers a range of features that can help you track your progress. This makes it easy to know where you are on your savings journey per time.
In conclusion, building a savings culture is an important step toward achieving financial stability and security. With the right tools and guidance, anyone can build a savings culture that will help them achieve their financial goals.
Using bank apps like Mkobo app makes it easier to reach your savings goals faster. The Mkobo app on Android and IOS comes with a range of features to help you save money on mobile or online banking transactions, access your salary before payday, access loans, save and more.
By following the steps outlined in this article, you can start building a savings culture today and achieve your financial goals.