Ugandans urged on saving

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Ugandans urged on saving
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Financial experts are advising both individuals and businesses to take advantage of the current fragile economic situation to adopt a culture of saving, which is crucial for sustaining the growth of their social wellbeing.

The global economic instability, marked by high inflation due to the Russia-Ukraine conflict, supply chain disruptions, and extreme weather conditions, has significantly increased the cost of living.

Despite these challenges, experts say there are opportunities to be leveraged, such as making savings to prepare for future uncertainties and earning higher yields from investments accumulated from savings.

According to Samuel Matekha, DTB’s Head of Marketing and Communications, many Ugandans have remained poor because they lack basic saving and investment skills, in order to optimally utilize the resources available to them.

Matekha said it is therefore crucial for financial institutions to conduct of financial literacy drives in work places, to ensure that every employee learns to manage their earnings effectively.

“Don’t be ashamed to live within your means. In fact, the best thing you can do is to live within your means and save something for the rainy day. As financial institutions, we are obligated to teach you how to manage your money, so that you can save and get yourself out of poverty with your savings,” he said, during a financial literacy workshop for employees of Graphic Systems Ltd, in Luzira, Kampala.

He pointed out that pride often prevents employees from engaging in side work, leading to financial instability as they fail to save from their salaries.

He advised employees to set financial goals and develop plans to spend wisely, urging them to save at least 20% of their income.

Immaculate Onyota, the Human Resource Manager for Graphic Systems, expressed gratitude to DTB for providing the financial literacy training.

She said many employees are inexperienced with saving and investments, the reason for which they often spend their salaries, leaving nothing for the rainy day.

She insisted that it is important for every employee in Uganda to receive financial literacy training, in order to lift themselves out of poverty, and improve the national savings culture.

“As a company, we have gained from this training, and we look forward to future trainings that can help our employees to improve their social wellbeing,” she said.

It is, however, worth noting that Ugandans save less than 10% of their income, which makes it challenging to invest in projects that could generate more revenue in the future.

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