Savings Are Lifesavers

When I was just starting out in employment, I was earning a good income but spent it lavishly on little pleasures – buying the latest phone, going out, and shopping. I was in the business of selling life insurance, I had even taken out a policy for an easier sell and gain buy-in from my clients. My boss at the time, encouraged me to join the company SACCO and put some money aside for the future. I didn’t really give such things much thought or attention, I had money in my pocket and was living the good life – I was living the dream. To be young and clueless again!

Anyway, a few years later, my world crashed around me. I won’t go into details, but suffice it to say, I needed money to get me back on my feet. A Ghanaian proverb aptly describes the situation I found myself in, “You become wise when you begin to run out of money.” In the end, the savings I had with the company SACCO literally saved the day. That’s what savings are actually supposed to do – they help cushion your fall and build your dreams.

Because I see a lot of people – young and old enough to know better – still operating under some serious misconceptions about saving, I’ve decided to help bust some common savings myths. Brace yourselves, I picked the zestiest ones:

  1. Myth 1: You need to be rich to save. False. Anyone can start saving by changing their money habits and reducing expenses. Saving is less about what you earn, and more about what you keep. Your habits don’t change with income; they are simply magnified. How you spend UGX 100,000 is amplified when you have UGX 100,000,000.

    Saving requires humility and the willingness to live below your means as you build your future. You don’t need to have the latest phone, the fanciest car, or whatever swag is hot and trending at the moment. Unless they’re income generating assets that you own outright, the resale of value of most of things can never be on par with what you originally paid for them.

  2. Myth 2: I’m still young, I’ll start saving when I get more money. Oh, sweet summer child, time is actually your greatest asset. Start early, start small, build your savings, and let the power of compounding, good money habits, and consistency work in your favour.

    If you start saving UGX 100,000 today and do so consistently for 12 months, you will have UGX 1,200,000. If you continue to do this for the next 5 years, you will have UGX 6,000,000. Now factor in compound interest, even at 11% per annum – you will have UGX 8,000,000. It is easier to kickstart your savings with UGX 100,000 than to set aside a huge lump sum of UGX 6,000,000.

  3. Myth 3: I will start after I finish paying off my debts. Mukwano (my friend), without savings, any emergency – be it, an unexpected visit to the doctor, or a car accident can push you further into debt. While you should always prioritise your savings, just add debt repayment plan and schedule to your budget. Consistently chip away at your debts until they’re cleared, but endeavour to keep putting money into your savings – it could very well save your life when unexpected situations arise.

  4. Myth 4: Saving for retirement is risky. Truth. Saving isn’t a sustainable strategy for building a retirement fund, because in the long-term, money loses value due to inflation. You’d be better off putting your money to work, through investments – diversifying your portfolio, and growing your retirement fund with the returns.

Your future isn’t built on one big decision – it’s built on small, consistent ones.


What money myths are keeping you from saving? Share your thoughts here in the comments, or DM me – @KagoTMD on TikTok, Instagram and LinkedIn. I really want to know.

If you're interested in watching full video essays of this and other topics I've discussed here, visit and subscribe to my YouTube channel.

Let’s build your future together.

Image courtesy of FreePik

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