According to economists, 2018 is bound to be another challenging year in Namibia, therefore it remains prudent to continue saving and to spend on necessities only, FNB Communications Manager Elzita Beukes said.
Beukes said that given the current economic circumstances, managing and maintaining realistic long and short-term savings goals is important.
"Start your savings journey by looking at innovative solutions that will help you kick-start your savings plan. Not only will you earn interest over time, you will also earn compound interest, which is basically interest on the interest earned in the past, as well as on the original capital. The formula is simple: the longer and the more you save, the better your chances of becoming financially independent and immune to financial challenges and unexpected expenses," said Beukes.
Setting aside the theory of saving, Beukes stressed that individuals should be clear about their savings and investment goals to keep up with the current economic climate which comes with rising cost and inflation.
"Everyone has a different set of needs and should tailor their savings based on their unique individual goals. For example, saving for emergencies where you'll need your money to be available immediately is different to longer term goals like a future overseas trip, where you can fix the savings term while earning a higher rate," she explained.
She added that a simple budgeting tool can help determine whether you are on track with savings or not.
"We often find that people dip into their savings for luxuries or those short-term treats that offer instant gratification. Whereas investing in long-term goals like a more comfortable retirement, education for kids and grandchildren or a deposit to buy a house can make a big difference to our standard of living versus those short-term spending pleasures that are short lived."
According to her, FNB offers various savings accounts to meet a range of customer needs. The bank's comprehensive mix of savings solutions includes: the new FNB Savings Account, FNB Money Maximiser, Fixed Deposits, as well as Notice accounts such as a 7-Day Notice and 32-Day Flexi Notice accounts.
"It's never too early or too late to start saving. Curbing the way we spend money on non-essential things versus intentional and disciplined savings should be an important driver for us and future generations," Beukes concluded.