We are all probably familiar with the phrase ‘seven deadly sins’ by now and if not, then allow me to shed some light on the topic. The seven deadly sins refer to a grouping of religious vices that directly gives birth to other vices. They include: 1. pride 2. greed 3.lust 4.envy 5.gluttony 6.wrath and 7. sloth. But let me add one more You haven’t heard about but is the most abused of the sins: not saving! Today we take a look at the art of saving and actions we can take to stay on the safe side. More specifically, the benefits of SACCOS in Kenya.
What is saving?
According to Wikipedia, saving refers to an income you haven’t spent. However, this should not be confused with savings. Savings refers to one’s assets in the form of cash. In other words, only through saving can you be able to attain savings. Confused? Don’t worry, let me lay it all out for you.
A recent article by the star newspaper reveals that over 2000 employees have been laid off work in the last 3 months alone. But that’s not all, additional companies are looking to offload more employees in efforts to secure their profits in the months to come. The questions remain: Did the employees take precautions ahead of the recession? Did they save? Do they have considerable savings?
SACCOS in Kenya and Savings Accounts
A Savings and Credit Cooperative Organizations or simply put, SACCO, is an organization that is owned, managed and governed by its members who have a common goal of assisting each other prosper financially. This is done by saving and borrowing loans which have a considerably lower interest cost than the banks.
Compared to banks, here are just a few of the benefits of SACCOS in Kenya as described by an article on Eve Digital:
- Availability of emergency and long-term loans without hassle
- Communal and individual development in terms of wealth growth
- Ability to own shares which birth dividends at the end of a financial year
- Higher interest on your savings
- Life insured loans
- All assets belonging a SACCO member are returned to them when they want to exit. Additionally, in the unfortunate cases of a member’s demise, the assets are transferrable to the next of kin
But which are the best SACCOS in Kenya? We already covered that here.
How do I get to choose the best SACCO in Kenya? I mean obviously Mombo SACCO provides the best overall services with most benefits to be taken advantage of by our members. However, if still curious to try and find out what to look for in a SACCO, take a look at tips on how to choose the best SACCO in Kenya.
Saving instead of Spending
In summary, it’s crucial to be on the lookout and prepare in advance regarding our financial situations amid the rapid laying off of employees by Kenyan companies. More emphasis should be placed towards saving rather than spending.
We tend to be certain that we have our spending habits in check but an article by standard media reveals we are not quite as good with money as we think.
Take a moment to reflect on your future and ask yourself if you’re being quite honest with your finances. Regards.