Budgeting and money spending proving a challenge for many
Lack or shortage of financial literacy is said to be one of the biggest hindrances to Batswana when it comes to saving money for the future.
Calvin Investments Founder and Financial Expert, Calvin Phokontsi told a Banking and Wealth Expo at the Ditshupo Hall in Gaborone that saving is a challenge among all generations of Batswana.
“Our first interaction with money from an early age has always been spending it,” he said, before adding that the nation should cultivate a sense of completion if they are to go anywhere with their saving goals, which he noted was a secret weapon to budgeting followed by a specifically set out ‘Timeline’ for one’s savings and lastly removing clutter from one’s life.
The latter, he clarified, will give a sense of space in the physical room that one occupies and also in the mind. Concerning clutter, Phokontsi encouraged people to live by the saying that; ‘My outer world reflects my inner world’.
In giving the insights to a financially liberated future, the Financial Expert highlighted the six Ports in the Strategy of Budgeting as Investment, Save to Spend, Growth, Necessities, Fun and Contribution.
All the ports in the strategy are allocated a specific percentage of one’s net income. Investment, Save to Spend, Fun and Growth take ten percent while Necessities take 55 percent.
The remaining five percent goes to contribution, which solely adheres to one’s willingness to give to those in need.
For her part, BancABC’s Financial Literacy Training Coordinator, Tootsie Sigwele advised people to learn to save for all the expenses they incur in their lives.
She made mention of an occurrence she termed ‘Black Tax’, whereupon completion of studies and landing a job, young Africans then take on the responsibility of taking care of the family.
“It could be your parents, nieces and nephews and the occasional contribution towards a cousin’s wedding or party,” she noted.
Sigwele added that though unavoidable in most instances, the ‘Black Tax’ can be overcome through saving.
“Have an account to and save some money in for that moment when you need to contribute towards a family occasion,” she advised.
She also said staying disciplined towards one’s monthly budget is a sure way of ensuring that one’s saving goals are achieved.