If you are one of those who argue, lamely (forgive this word), that they do not have enough income to require having a bank account, I do hope you change your mind after reading this. That's because, seriously speaking, you would be unwittingly doing a lot of damage to your financial well-being by thinking you can't save or don't need a bank to do so. Not saving is simply an unfriendly act of eating up one's future wealth and choosing to sustain a life of penury. Saving by burying it under the pillow is, at best, outdated. Okay, date doesn't really have much to do with it; it's more a case of unhelpful self-damage. If you choose to inflict such injury on yourself, who then will come to your rescue? Let me show you why you must try as quickly as possible, not only to open an account with a bank, but to stretch yourself to begin to build some savings.
Understand Some Fundamentals
Let's look at a few things that need to be understood about what managing one's finances entails. In the first place, it is a personal responsibility and it's important that you let that sink. Quite often, we are quick to blame others for our not-too-pleasant situation: we easily blame the government, our father or parents, our brother(s), the employer and every other personal possible. Looking inwards is a problem, you know. Well, just realise that personal excuses and blaming everybody else but yourself, even if done all year, will not move you forward, any bit. You need to take the bull by the horns. In this case, that simply means initiating the actions that will see you grow financially from strength to strength.
Secondly, if you are still expecting any magic to it, you probably won't ever get there. There is no special magic than to begin to do the basic things that have been proven to work. Like a regular personal saving habit that ensures that you close each month stronger than you started. Like squeezing out something to put aside, in spite of all the hardship you tend to see around you. Like seeking ways to generate some income if you don't have any, or more income, if you think you don't earn enough. Like determining how best to keep what you save so that it stays protected and yields the best value for you.
Thirdly, if you assume that you will save 'just like that', you may be much disappointed. It doesn't come that easy. Deliberate effort is required, most times. That includes engaging the tools and methods that have been known to work. Like having a bank account where you gradually accumulate your savings, watching your money grow.
Finally, you need to appreciate that even little bits do add up. That's why some people run a daily contribution that sometimes may just be a tiny amount. That person is still on course because getting into the habit is a first major step. Naturally, the person is likely to increase the value with time, at least out of the enthusiasm that the growth of his savings gingers. This challenges you to realise that a low income is no excuse for failing to save and in fact invest. If you take consistent action, irrespective of your income level, you will achieve some positive results, progressively.
Why a Bank Savings Account Will Help
Especially for a low-income person, there are usually no large sums to save. Even small sums need to be literally squeezed out, because many needs content for what is available. A bank savings account is ideal for that, because it let's you drop in whatever amount you have, any day. A savings account in a bank also helps take your savings away from you, better protected from your eyes and fingers which can easily collude against you when you keep money within easy rich.
A savings account earns interest, which is compounded, thus fast-tracking the growth of your reserve fund. Keeping money by any other means that denies you the benefit of this growth amounts to shooting yourself in the foot.
A bank savings account, especially now that Nigerian banks are much better capitalised, is a much safer option, any day, than keeping it at home (risk of theft or other loss, apart from the loss of income). It will also protect you better than other informal savings schemes that are unregulated, where you are at the mercy of people who could easily swindle you. Banks are more responsible organisations with generally high corporate governance standards. Besides, your savings with a bank are insured compulsorily by the bank up to a figure of N100,000. That's a big cushion for most average savers who may not hold much more.
Using a bank helps you learn more about money and get more financially literate. This will always be useful because lack of financial knowledge is a major problem with the bulk of the populace. Bankers will give tips that may be very helpful in improving your financial standing. Part of that knowledge will relate to other prodcust the bank has, which you may find useful. Beyond the basic savings account, for instance, some banks have others savings products, flavoured to serve different interests. The more you learn of and use the relevant ones, the more you are likely to get better with your finances.
Given the benefits, you will be surprised that only a relatively small fraction of the population maintains a bank relationship of one form or another. Which shows that a lot of the people out there are still in need of guidance. Hoping that you are not one of them - at least not after reading this - you should get solidly going, building a fortune the steady, even if slow, way. Log whatever you have into a savings account and when it gets sizeable, you begin to take other opportunities either in bank time deposits or stocks, government securities and other investments that will prop you up. Helping to show the light is one responsibility you shouldn't neglect, too. A lot of people need to be shown how to give meaning to their lives and if you've got yours going, do something to show the way to somebody else. That way, it gets better for all of us, each passing day.
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