“Don’t only look at NSSF as your only Savings, Create Other buffers & Invest to have more cash flows”
Recently NSSF Uganda announced it’s annual interest rate of 11.23% for financial year 2016/2017. This rate is lower than the 12.3% paid out for FY2015/2016.
The bad economy sighted as one of the reasons for the drop on the fixed income earning portfolio,however it has been declared that the interest rate is still higher than the 10 year inflation rate of 8.68%.
I believe members who save with NSSF must have been very happy to receive message alerts on their phones about the interest that they were paid. I happened to tell my wife to do one thing. I asked her to divide that interest by 12 months and that she would know how much she would have earned per month. We did the division and came to the breakdown of how much she earned per month. Of course those who started working early and started saving early have surely benefited that tells you that they have been helped in many ways.
------------------- Interest is money made, more can be made though ------------------------------
The one good thing is that at least the money is gaining interest however small it is, you can even save directly as an individual just dial *254* on MTN and register and send money through mobile money, however when you sit down to articulate these issues, you get to realize that you can do much more with the money in the account by investing in other ventures but the only problem is that my wife has to wait until retirement age. At a personal level, where I do work am not getting any NSSF, what would someone like me do? I need to wake up at an individual level, I need to do the uncomfortable things of sacrificing and putting money aside, not only for me and my wife but also for the children, I need to think about investments, create passive income, production etc.
Economy isn’t steady, increased debt, high inflation
The only problem I have seen so far with our economy, is that it isn’t as steady as we think, we have been promised middle income status by 2020 but the signs are deem. You would expect interest to keep rising every year, why should it drop? what can be done to avoid the drop? What comes to my mind is that we need to create other savings streams to allow us make money work and grow. As much as your company/Institution/Organization/Church is saving for you, you also need to have your own savings, have your own investments so that when retirement comes, it finds you grounded doing something already instead of waiting to do things later in life - live with purpose, it will help you put your time to use.
Plan for your savings now, not when you're retired
It is so sad to hear of the fact that people’s savings have been depleted within a year or two of acquiring it, normally after retirement that is when people are thinking of what to do with the money and many times people’s plans and business aren’t well researched, you find they want to do each and everything and they end up becoming broke with no other way to go. Start thinking early while working, start venturing into different things, get out of your comfort zone, try and fail now but fail forward, create other streams, you could live longer than you expect, do the difficult and uncomfortable things now and life will be easier instead of doing the comfortable or easy things now otherwise life will be difficult.
We need to remember that Uganda’s debt continues to increase, I saw in one of the papers recently that the government has 2.7 trillion in domestic arrears, such figures are worrying, not so long, it was declared that every Ugandan would pay 1 million in regards to the national debt.
We need to move from a consumer mindset to investment mindset, our expenditures at a personal level need to be checked if we are to start changing at a personal level. I believe what we do as individuals contributes so much to the economies around us, a nation whose debt is so high points to the fact that there is no production, which means also no jobs, which means increased borrowing and many others. It has been written, “The wise store up choice food and olive oil, but fools gulp theirs down”
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