What should we do When our earning is not enough for saving ?

[Sotherefore]

This is one of the major challenges people are likely to face in their areas of business especially in most African countries which there is no stability in the economy or financial sector of the country. A lot of people are working but their earning is not sufficient enough for them to have a reasonable saving.

Well there are so many reasons why this is happening , two of the major reason are as follows

* Lack of employment: This is one of the major reason why a lot of people are not able to have a good savings , A country in which there is high rate of unemployment people are likely to choose the available means of survival. The available means sometimes may only be suitable to provide the daily needs but may not be enough for saving.

*Another reason why this is likely to take place is over population: When there is overpopulation in a country there is likely to be a huge competition in the economic sector of the country . Overpopulation can also leads to high rate of unemployment as people will be more than the available employment. This will lead to cheap labour and so many people in this condition could hardly saves their little earnings.

Now the main reason why I brought this topics was for us to briefly discuss some of the things we have to do that could help people in this condition to have at least a good saving.

On my understanding I believe people in this situation should rather considered to have more than one source of income. Online business is available in all countries of the world and people in this situation should look forward to work online if the economic situation of their country is not favorable.

What do you suggest to help people have a good savings in a this condition. Please discuss below.

 

[funmi]

This indeed is a serious problem we are currently battling in this country and it seems like there is no end in sight at the moment as it appears that those that should be response for all the challenges that has overwhelmed the country at this point in time is not doing anything reasonable to alleviate the problem has all turn their back on the people who elected them into office. It is very disturbing looking at the rate at which unemployment has risen and inflation destroying the economy on a daily basis. Sometimes they blame things on the previous administration and they claim that the crude oil prices of the previous administration did more better than this time. Amazingly I saw on the papers where they said that the price of Brent crude is now$135 per barrel this is an all time high. This was what we had as at 2008, when we were experiencing the oil boom then. But now things has really changed and we are returning back to those days and things are rather getting more worse off. Anyway there is truly no way to have any saves when the income is not enough to survive. But one can just try to have another source of passive income.

 

[Abigael]

I totally agree with you that most people face the problem of not having enough to save since they only earn a small amount of income. Yet saving is a very important culture for people to embrace.

Given that the problem here is lack of enough income, I think that the solution should be working hard to increase your income. Which takes so much hard work and patience but it can be done for sure.

You can start with looking for an employment. Which can be hard given the high unemployment rates in most nations. But you you can thrive through competition by ensuring that you have really great skills and you are aggressive enough to get these jobs.

Then you can improve your earnings by having several streams of income. Think of being employed and at the same time running a side business and having an investment somewhere. Having so many streams of income can enable you to earn enough for both your expenses and savings.

The good thing is that these days, we have the option of working online. You can learn a skill and sell it online through freelancing. Or you can learn investment skills like forex and crypto trading then invest there.

 

[TOZZIBLINKZ]

I do not want to believe that you are indirectly saying that the act of saving are only meant for people who have huge amount of income . it is understandable that not everyone is blessed with a prestigious job with huge amount of attractive salary but one thing you must understand is that the habit of saving is very crucial for human existence and survival . And so with that you are a high income earner or a low income earner you must save . Even people working in huge companies and are receiving huge amount of attractive salaries have the potential to go broke and poverty-stricken in the future . You might be wondering why do I say this?

Well , this is absolutely true because no one is guaranteed to stay in his or her job forever that is why it is advisable to use the time you have while working on your job , to save a huge considerable part of amount of your income , which could help me to solve unforeseen and uncalled circumstances in the future . Let us always remind yourself why it is important to save which is to meet and handle unforeseen and uncalled circumstances that possibly could happen in the future . And having the importance of saving in mind , we will be motivated to save no matter how small our income or earnings are .

 

[Mika]

If you want to save but if your earnings are not enough for saving, you need to cut your expenses first. If you do not know where to make the cut, you need to first make a list of your expenses. You can then cut the expenses that you find least necessary. By doing this you will have some spare money with the same income source. You can then start saving the money in a bank account. IN order to save money, you also need to deposit your money in interesting bearing accounts like fixed deposit accounts or invest in something like mutual funds.

 

[Kendy]

This is one of the barriers towards effective saving. To save is an action plan which is not everyone that can adopt. I have been in situations where my earnings is not enough to save and to be realistic, it makes it very difficult to save. Even those who are working and earning something substantial, they still find it hard to save.


When I was working with a private citadel of learning where the welfare of teachers are not prioritized, I ran into serious debts, which I borrowed for transportation, feeding and other miscellaneous. When the money was finally paid, I would have to clear my debts so I can be free from pressure. It was coupled with frequent deductions and I still had to follow the same process to loan money over again. I decided to quit because if I followed these processes, I would end up living in penury all the days of my life. When it gets so hard that our earnings is not enough to save, the best thing to do is to take up other side hustles to enable us save because the importance of saving money cannot be undermined. Combining jobs and diversifying our skills is the way out.