In times of trouble, manage your money better

15 October 2020 | Banking

Windhoek • Samuel Linyondi

The Bank of Namibia’s latest Economic Outlook expects the Namibian economy to fall into a deeper contraction during 2020, mainly due to the devastating impact of Covid-19 across all sectors. This means that as we conclude the year, we will be faced with a few challenges.

For some, it means having taken a drop in their salary, while for others, a total loss of income. Few are fortunate enough to still have a job and have their income unaffected.

What these times of uncertainty have taught us is that having savings for emergency situations is critical. As we approach World Savings Day (31 October) the question is, how do you start saving, and is this possible during these times?

The following are a few likely scenarios to reduce costs and help you to save money:

• Look at your budget: The best way of starting a savings plan is to take control of your finances by drawing up a budget. A budget takes into account your income and expenses over a specific period. It will give you clear indication of how and where you spend your money. Keeping track of your expenses for about three months, shows you where your money goes.
While doing this exercise, be honest with yourself. Budgeting takes discipline, but the rewards are worth it.

After tracking your spending for a specific period, you will see a clear pattern of where your money goes. Ask yourself where are you spending money and why? Once you have these answers, start changing your spending behaviour by cutting down on unnecessary expenses. For instance, if you eat takeaways three times a week, reduce it to once a week.

• “Pay” yourself first: There is no such thing as ‘I will save when I have the money to do so’ or ‘I will have something left to save after paying for everything.’

Instead, look at paying yourself first as a vital part of budgeting. Open a savings pocket attached to your Bank Windhoek Selekt Gold Account. Start small, with two percent of your salary for example, and as you reduce your spending on things like take-aways, start adding what you would have spent on those dinners to your monthly savings plan. Soon, you will see your savings grow as you reduce your spending on certain items.

• Needs versus wants: Assess your needs and wants. A need is necessary to survive, while a want is something that people desire to have. Some examples of wants are designer clothing, expensive entertaining and upscale dining, which are not necessities. During this period, your needs are medication, food, water, clothing, and shelter.

As you assess your needs, ask yourself how best you can meet those needs to decide where you are going to spend your money and where you should cut back. For instance, in the time of Covid-19, your health is your wealth and priority should be going to paying for food, medication and good quality supplements to keep your immune system strong.

• Communicate with your creditors: If you foresee any payment obligation challenges, contact your financial institution for possible relief. Most banks have case-by-case relief measures implemented as part of its initial response to Covid-19.

• Keep your electricity and water usage in check: To save some money on your water and electricity bills, do the following:

-When not in use, unplug electronics such as cell phone chargers, television sets, and coffee makers that use light-emitting diodes (LEDs).

-Take shorter showers; check for any water leaks throughout the home and have them fixed.

-Use Bank Windhoek electronic service channels such as the Mobile App, Internet Banking, EasyWallet, and Cellphone Banking, for the convenience of purchasing electricity, sending money, and other transactions instead of leaving home to pay for these services in person.

• Home cooking and packed lunches: Meal planning and shopping only for the items you need to prepare your meals, is a good way of saving money. Plan to shop for items only once a week and stick to a shopping list. Daily spending should be limited to fresh bread and milk only. Packed lunches could be leftovers from the evening before or sandwiches prepared at home. This is also a more nutritious approach for your family since you control the levels of things like salt, fats and sugar in your cooking.

• Buy in bulk: Keep a look out for special prices at supermarkets and in conjunction with your meal plan, buy non-perishable items in bulk. Limit your trips to the shops, to save on transport expenses.

• Involve the family/partner: If you are embarking on this road of financial independence, involve the whole family, or your partner our housemate in your journey. They will have to know your goal so that they can lend their support. This is, after all, a team effort.

Similar News


Tips to get your mortgage approved

12 hours ago | Banking

Attempting to purchase a house without a plan in place can be a challenging situation. “First-time homebuyers should prepare in advance,” says Bank Windhoek's Market...

FNB signs up for the Development Credit Guarantee Scheme

1 week ago - 14 October 2020 | Banking

First National Bank (FNB) Namibia has partnered with the Development Bank of Namibia on the risk-sharing initiative announced by the minister of finance, Iipumbu Shiimi...

FNB is ‘Best in Namibia’

1 week ago - 08 October 2020 | Banking

Global Finance voted First National Bank (FNB) is the best bank in the country at the magazine’s 27th annual awards for the World’s Best Banks.FNB...

Be aware of card-not-present fraud

1 month - 17 September 2020 | Banking

A whole new generation of users discovered the joys and convenience of online shopping during the Covid-19 lockdown. “Worldwide, online debit or credit card...

Is your Will up to date?

1 month - 13 September 2020 | Banking

“Crises have one thing in common. Crucial decisions matter,” says Paulina Elifas Bank Windhoek’s Wills administrator. She adds that one lesson Namibians continue to learn...

Debt management in tough times

1 month - 12 September 2020 | Banking

In August, the Bank of Namibia (BoN) cut its benchmark interest rate by another 25 basis points (BPS), a standard unit of measure for interest...

Assistance for Otweya still incoming

1 month - 04 September 2020 | Banking

After the devastating Twaloloka fires, help from all over the country poured in to assist the victims. Bank Windhoek also donated proceeds of N$ 30...

The benefits of homeownership

1 month - 22 August 2020 | Banking

When is the best time to purchase a home? Early in our career or when your finances stabilise? What are the benefits of being a...

Food and immune boosters for the needy

3 months ago - 22 July 2020 | Banking

Walvis Bay • [email protected] Standard Bank Walvis Bay donated 100 food hampers and immune boosters to the office of the governor to be...

FNB Namibia closes Swakop branch for now

4 months ago - 18 June 2020 | Banking

FNB Namibia announced that it is shutting its Swakopmund branch for two days as from Friday (19 June 2020). This is a precautionary measure to...

Latest News

Pro-Ed sports teams making waves...

12 hours ago | Sports

Walvis Bay • [email protected] Pro-Ed Academy’s cricket and archery team is on a winning streak, with both scooping gold and being declared tournament...

Tips to get your mortgage...

12 hours ago | Banking

Attempting to purchase a house without a plan in place can be a challenging situation. “First-time homebuyers should prepare in advance,” says Bank Windhoek's Market...

Cross-border travel restrictions eased

13 hours ago | Government

President Hage Geingob announced that Cabinet met this week to determine appropriate measures to be put in place, which will inform the next decisions in...

Sinimbo to visit Erongo region

13 hours ago | Ministries

The deputy minister of Industrialisation and Trade, Verna Sinimbo, is scheduled to visit the Erongo region from 22 to 28 October. Amongst others, she is...

Kayaking guide takes own life

1 day - 20 October 2020 | Local News

The owner and guide of the Namibia Kayak Tours in Walvis Bay committed suicide on Saturday evening.Craig Robert Gibson (52) who is a British national...

Election candidates registration concludes

1 day - 20 October 2020 | Local News

Walvis Bay • [email protected] The Electoral Commission of Namibia (ECN) has concluded the process for the submission of candidates for the 2020 Regional...

Construction starts for new Mole...

1 day - 20 October 2020 | Local News

Swakopmund · [email protected] modern, public toilet facility is now being built at the Mole in Swakopmund.Town council recently started this project worth N$3.3 million, with...

No new Covid cases in...

1 day - 20 October 2020 | Health

The minister of health and social services Dr Kalumbi Shangula announced 41 new Covid-19 cases, 102 recoveries and one Covid-19 death recorded in Windhoek. ...

Gesloer pootjie dalk belegging

2 days ago - 20 October 2020 | Local News

Walvisbaai Daar gaan waarskynlik niks kom van ’n multimiljoen-dollar beleggingsprojek wat onlangs munisipale goedkeuring ontvang het nie. Volgens ’n betroubare bron is die projek...

Load More