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Afrika in Focus: Money Matters - Why Africans SHOULD cultivate a savings culture.
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Financial literacy remains one of the most critical yet overlooked challenges facing African communities worldwide. As discussed in a recent podcast , the global cost of living crisis has only magnified pre-existing financial vulnerabilities across the diaspora, making the development of a savings culture not just beneficial but essential for survival. When looking at startling statistics from the UK, where 1 in 4 adults have no savings whatsoever and more than half the population has less than £5,000 in the bank, we begin to understand the scale of financial precariousness that many people—including those in African communities—are living with daily.
Consider the example highlighted in our podcast: a professional woman in London earning a respectable £48,000 annually (approximately £2,900 after tax) who allocates £500 monthly for a brand-new Mercedes-Benz on finance. This decision exemplifies the financial illiteracy that plagues many in our communities—prioritizing depreciating assets over building financial security. As soon as you drive a new car off the lot, it loses value, transforming an already expensive purchase into an even poorer investment. Unless you're using that vehicle to generate income through ride-sharing services or deliveries, you're maintaining a liability rather than building an asset.
This pattern of prioritizing immediate consumption over long-term security creates a vulnerable lifestyle where people live "hand to mouth".
Without emergency savings, any disruption—job loss, medical emergency, or family crisis—can trigger financial catastrophe. The solution, while not glamorous, is straightforward: develop a disciplined savings habit. No matter your income level, location, or occupation, putting aside at least 10-20% of your monthly earnings into a savings account creates a foundation for financial security. For someone earning £2,000 monthly after tax in the UK, this means setting aside £200-£400. In Ghana, even with a modest income of 3,000 cedis monthly, saving 200 cedis consistently builds a crucial financial buffer over time.
Beyond just having an emergency fund, these savings can serve multiple strategic purposes. They can provide collateral for loans, seed capital for entrepreneurial ventures, or investment funds for wealth-building opportunities like property or business ownership. Higher-yield options such as bonds, Cash ISAs in the UK, or stocks and shares can help your money work harder, generating passive income through interest or dividends. The discipline required to consistently save also develops crucial financial management skills that benefit all aspects of your financial life.
Support the show
Donate/Support the show: https://www.buzzsprout.com/1793098/support
We offer a consultation session for those who wish to relocate to Ghana , do business in Ghana , buy land, buying a property or even starting business in Ghana. We offer professional support tailored on your needs and wants.
We provide valuable information that can assist you in your relocation like the Ghana card how/where to register your business.
We can also signpost you to other agencies that can help in your relocation as well as business and investment opportunities.
We charge a rate of US$30 for an hour's consultation or US$20 for a 30 minute consultation briefing.
To book your consultation please email [email protected]
Subscribe on Youtube - just look for the Ghana/Afrika in Focus podcast on Youtube and click the notification bell so that every time I upload a new podcast it automatically comes to your feed.
Tell your family and friends.
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By KwameSend us a text
Financial literacy remains one of the most critical yet overlooked challenges facing African communities worldwide. As discussed in a recent podcast , the global cost of living crisis has only magnified pre-existing financial vulnerabilities across the diaspora, making the development of a savings culture not just beneficial but essential for survival. When looking at startling statistics from the UK, where 1 in 4 adults have no savings whatsoever and more than half the population has less than £5,000 in the bank, we begin to understand the scale of financial precariousness that many people—including those in African communities—are living with daily.
Consider the example highlighted in our podcast: a professional woman in London earning a respectable £48,000 annually (approximately £2,900 after tax) who allocates £500 monthly for a brand-new Mercedes-Benz on finance. This decision exemplifies the financial illiteracy that plagues many in our communities—prioritizing depreciating assets over building financial security. As soon as you drive a new car off the lot, it loses value, transforming an already expensive purchase into an even poorer investment. Unless you're using that vehicle to generate income through ride-sharing services or deliveries, you're maintaining a liability rather than building an asset.
This pattern of prioritizing immediate consumption over long-term security creates a vulnerable lifestyle where people live "hand to mouth".
Without emergency savings, any disruption—job loss, medical emergency, or family crisis—can trigger financial catastrophe. The solution, while not glamorous, is straightforward: develop a disciplined savings habit. No matter your income level, location, or occupation, putting aside at least 10-20% of your monthly earnings into a savings account creates a foundation for financial security. For someone earning £2,000 monthly after tax in the UK, this means setting aside £200-£400. In Ghana, even with a modest income of 3,000 cedis monthly, saving 200 cedis consistently builds a crucial financial buffer over time.
Beyond just having an emergency fund, these savings can serve multiple strategic purposes. They can provide collateral for loans, seed capital for entrepreneurial ventures, or investment funds for wealth-building opportunities like property or business ownership. Higher-yield options such as bonds, Cash ISAs in the UK, or stocks and shares can help your money work harder, generating passive income through interest or dividends. The discipline required to consistently save also develops crucial financial management skills that benefit all aspects of your financial life.
Support the show
Donate/Support the show: https://www.buzzsprout.com/1793098/support
We offer a consultation session for those who wish to relocate to Ghana , do business in Ghana , buy land, buying a property or even starting business in Ghana. We offer professional support tailored on your needs and wants.
We provide valuable information that can assist you in your relocation like the Ghana card how/where to register your business.
We can also signpost you to other agencies that can help in your relocation as well as business and investment opportunities.
We charge a rate of US$30 for an hour's consultation or US$20 for a 30 minute consultation briefing.
To book your consultation please email [email protected]
Subscribe on Youtube - just look for the Ghana/Afrika in Focus podcast on Youtube and click the notification bell so that every time I upload a new podcast it automatically comes to your feed.
Tell your family and friends.