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Malik Shaffy shares with us his practical saving tips

According to the Rwanda Youth Financial Inclusion Report, approximately 50% of youth save with formal financial service providers. 55% of people save through informal mechanisms such as VSLA, tontine, or Ikimina.

Let’s face it, while a sizable proportion of young people do save, it is most likely not done consistently and for non-developmental reasons, according to the same report.

Malik Shaffy, the country director of the African Management Institute Rwanda (AMI), did sit down with us to share his practical savings tips.

Even though there are numerous factors to consider when examining why young people fail to save, Malik believes that these things can assist them.

Living within our means

You must be able to budget your spending as a young person based on your earnings. You can’t use what you don’t have, and you can’t spend everything you’ve earned.

Malik believes that living within your means is the best way to save and use what little money you have.

“Let us not be inspired by people who overspend because they are millionaires and you are not,” he said.

He believes that people should spend their money based on what they earn and what they can afford.

He did say that a person should be able to make themselves happy, but that this should be done within their means and within their budget.

“You don’t need extraordinary things to be happy; you just need to set your own happiness standard,” he said.

Let’s take our time to learn

There are many things that people do not understand about saving and other topics. Malik believes that a person should strive to become more financially literate in order to know the best ways to do things.

“Let us take our time learning from different saving institutions, such as banks, fintechs, and other institutions that offer different ways to save,” he explained.

This can assist a person in realizing the best ways to save and benefit from it.

“Learning is critical to understanding what is available,” he said.

Let’s have a long term objective

According to Malik Shaffy, the best way to save is to set long-term objectives or goals. This helps people understand why they are saving.

“You cannot save if you do not have a long term goal, even if the long term goal is to have a pair of shoes,” he explained.

Having a goal helps one stay consistent because they are saving for something they truly desire or require.

“You can’t wake up in the morning and buy a nice pair of shoes just because they’re nice,” he said.

Saving for retirement, saving for land, saving for a car, saving for emergencies, and other goals are all possible.

He believes that when you plan ahead of time, you save more effectively and consistently.

“Prepare a strategy for each quota.”

Malik Shaffy the country director of the African Management Institute Rwanda (AMI)

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