Embracing Digital Savings Platforms to Manage Your Spending

PERSONAL FINANCE

Omolabake Fasogbon

Given the present economic realities and high cost of living, there is now high propensity to spend and the unwillingness to save. Recent World Bank’s Global Findex Database showed that savings have dropped to a 10-year low in Nigeria.

According to expert, many Nigerians have continued to live below poverty line not necessarily because they have low incomes or poor salaries, but perhaps, lack savings and investment culture. Some have argued that poor savings is rubbing off negatively on the country’s investments profile.

The reality however remains that these days, many have not had enough to spend, let alone put some money aside, while some are natural spendthrift.

The importance of savings, amid little or excess, and especially this period cannot be argued. The secret is discipline, by keying into the words of American businessman, Warren Buffet who says “Do not save what is left after spending, but spend what is left after savings.”

With the rise of fintechs, providing more access to digital landscape and information, savings come more simple, safe and rewarding too. This is further aided by current banking reforms.

Rather than confining that money to piggybank at home which comes with the risk of theft and temptation to squander on frivolities, among others, why not subscribe to a fintech app, a withdrawal restriction plan for that matter?

This makes more sense in that individuals or businesses are able to save and get rewarded, access credit facilities, control and track their spending with just a tap on their phone.

SMEs can also ensure good financial planning for short and long-term returns to generate earnings to keep their businesses running.

One of such fintech platforms that can be considered, especially this period is BaigeWallet, which boasts of unique offerings that takes the reality of Nigeria’s environment into cognisance.

The company recently took a step further to incentivise savings with a promo initiative tagged ’12 Days of Christmas campaign’.

The aim is to instill savings attitude in Nigerians, even as Chief Executive Officer of the company, Fisayo Bejide acknowledged declining savings culture in the country.

With the initiative, individuals and small businesses stand a chance to win up to N150, 000 in any of the company’s saving plans, including: “No Access, Just Save and Save for a Need,” and still earn as high as nine to 15 per cent interest rate by saving a minimum of N2,000 consistently.

Bejide, said savings plans are created for risk-tolerant investors to earn capital gains and interest on the collective performance of their investment portfolio within a minimum of six months.

“Furthermore, individuals can track their spending on the app daily by opening it to see their savings, interest accrued, and growth frequency.

“Interests accumulate daily and are paid at the end of a plan, and accumulation is dependent on the amount dedicated to the various plans for earnings,” he added.

He disclosed further that that the incentive on savings, coupled with its timing, was deliberate and strategic to enable Nigerians plan their finances properly in the coming year.

“By encouraging users to save over 12 times consistently this season, it is expected that they will be accustomed to savings and get more serious about it in the new year.

“Besides, 12 lucky savers stand a chance to win in the over N1 million cash reward devoted to the promo. Winners either get rewarded with N150, 000, N100, 000 and N50, 000. This is to enable them to have a great Christmas and save for next year, “he clarified.

“The platform has an easy interface enhancing a good user experience to navigate and make good savings and investment decisions for them to reach their financial goals,” he added.

He emphasised savings in the coming year given macroeconomics demands as well as foreign exchange challenges and inflation.

“Individuals and families must plan effectively to live up to their means,” he maintained.

A close analysis of the company’s savings plans show they come so flexible. For instance, the ‘Save a Need,’ option which starts with N5,000 was designed for specific needs and emergency while savers are only allowed to withdraw four times in a year. The ‘No Access Plan’ denies a saver from withdrawing until maturity period.

Subscribers gain more based on their saving frequency and could take advantage of the platform to get more chances to improve wealth. It was created for risk-tolerant investors to earn capital gains and interest on the collective performance of their investment portfolio within a minimum of 6 months.