Savings days 7

It’s been a week already since I started the savings challenge, time is really flying this year. Thank you for getting on board . Today I am forced to write about emergency savings because I saw an article about it in the Republikein Newspaper. On average, the working class (including me and you) feel that they will only be able to survive for 2 weeks if they were to loose their jobs. Two weeks only.

Emegercny savings.jpg

What is an emergency savings? It is that money that you put aside to only use when there is a crisis that was not anticipated. The recommended practice is that you will need in your account at least three to six months worth of your fixed monthly expenses in order to be able to live like you would had you been getting an income. Three to six months is what on average it will take you to get a new job, assuming you have no other income streams but of course that can differ depending on your careers and skills.

What prompted this article was the issue of the dustbin with the municipality. I had to fork up N$ 1 583 on such a short notice else I am left with no water. I had to draw from my emergency savings which I was actually surprised to see how low it has become. Just N$ 4000.   If I had to take my fixed monthly expenses ( which in most cases will be rent, car insurance, water and electricity, food and toiletries and petrol ), I would probably will not even be able to get through one single month on that savings.

Please do not get me wrong, this is not the only savings I make on a monthly basis. I save  for other things such as future dream house, retirement, life cover and future education costs. The only difference is that these funds are not accessible on such short notice and most importantly they are not meant to cover my living costs.

So why the fuss? I need to rebuild my savings back to equate my at least 2 months worth of my net salary. You do your own math, that number can become pretty scary depending on how much you make. It’s not that I anticipate loosing my job but emergency really do come by such as a car tyre bust, a leakage in a drainage and the list goes on.

ow , one more thing, a lot of people misuse the use of a 32 day account. That is not the account where you put emergency savings because clearly municipality will not give you 32 days to settle your account.  That account is meant to save for planned expenses else you will incur high cost of withdrawing on short notice. So next time someone tell you you to lend them money so that they can pay for their exam fees that are due next week but their savings is on 32 days think of the followings:

  • Ask them if they have ever heard of a call account where you can save money and have access to it as and when needed without additional fee.
  • Ask them if that fee was accidentally credited to their student account as clearly the university is sensible enough to give the 6 -8 months notice of payment
  • Or maybe, they  really had the money for the exam and they used it up on a real emergency and in that case they had to dip in the 32 days account for that. In that case you have a right to ask them to provide you with a statement of their 32 day account so you assured you will get your money back.

In conclusion,  please let us get in the habbit of savings the right amount of money for the right reasons using the right accounts/ saving schemes. And do not be shy to be stingy with your money, the economy is tough on everyone.

On the savings challenge: Today is zero spending day. I deliberately choose not to spend on anything today because I do not need to ( except if you need to pay taxi). An extra dollar saved today is available tomorrow. My current savings then stays at N$ 193.

Inga kusha ngula

Dhalondoka (signing out)


3 thoughts on “#Better me @26

  1. This is so true in so many levels… Anyway, I am a living testimony on savings. Yep, the decision to be a full time student was dramatic and it costed me more than I projected. However, the savings that I made while I was still employed came to my rescue this year. Now, I even managed to let go of some December consumption in order to afford to a planned trip to Namibia and back.

    Liked by 1 person

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