Ugandans Struggle with Saving: Experts Reveal How to Fix It

Saving money is a common challenge for many, with most people spending their income first and trying to save whatever is left, which often amounts to nothing.

Financial literacy educator Pumla Nabachwa explains that the key to successful saving isn’t sheer discipline, but rather designing a system that makes saving automatic. “Save first, spend after. Don’t save after you have spent,” she advises, a principle that flips the conventional approach.

According to Nabachwa, the problem is rarely low income itself, but rather expectations that outpace earnings. Setting financial goals based on what others earn or display on social media can lead to a damaging gap between income and aspirations. The advice is to “Don’t set goals in other people’s money. Look at what you have and build from there.”

A practical approach involves creating a budget, perhaps following a 50/30/20 rule for needs, wants, and savings/investment. However, a more effective strategy is automation. By setting up automatic deductions from income the moment it’s received, individuals effectively “pay themselves first.”

Aeko Ongodia, founder of Xeno Technologies, observed this behavioral pattern. His firm found that users intending to save consistently faltered due to forgetfulness or life’s interruptions. The solution, he discovered, was to move from “push payments”—where users send money manually—to “pull systems” where they grant permission once, and the system automatically moves funds for saving or investment.

This shift from optional saving to automatic saving, where it simply happens, is what truly helps individuals overcome the hurdles of traditional saving methods. The focus is on creating a structure where saving is effortless, rather than relying on an overburdened willpower.

This article was adapted from information provided by the Daily Monitor.