Chapter 11


Introduction


In Chapter 10, I wrote about how big purchases are possible through savings. Big purchases are almost always the biggest driver for savings. For most of us, our earnings are normally not enough to pay for say, a house, a car, university fees or for investing in a business in one go. We therefore need to save over a period of time to afford the “big buy”. The bigger the purchase the longer one will need to save. It is painful but necessary if one is to avoid or limit debt.


Mental health


Today I write about how savings contribute to better mental health. Mental health experts agree that financial challenges are at the heart of many societal disputes leading to many forms of conflicts some of which manifest in domestic violence, divorces, murders and many other undesirable outcomes.


Financial stress is a common household challenge affecting both the rich and poor. In most instances these conflicts lead to mental health issues for everyone in the family or community. Imagine the mental health challenges that some children have had to deal with when their parents decide to move them to a cheaper and not so affluent school because of difficulties in paying the ever-rising school fees or due to loss of employment by the bread winner? I am sure you have come across many adults and children who tell their horror stories, most of which emanate from financial failure that leaves them with no other option but to downgrade. 


Other challenges include; failure by one or both parents to account for their income, entering into financial commitments which are above their means, failure to prioritise on what to spend on, unemployment, supporting extended families, pursuit by debt collectors and lawyers, etc. There seems to be few masters of household financial management, even those that we consider financial experts have not escaped this humiliating net. All these situations may lead to serious mental health issues such as anxiety, anger and acute desperation, depression and even suicide.


Savings are one way of mitigating some or all these challenges. Once one has built enough financial resources, they tend to have peace of mind as they feel less vulnerable to issues such as medical emergencies, divorces, loss of jobs, financial losses. Savings eliminate at least one major source of conflict within families, communities and even countries.


How much one saves to achieve peace of mind is always relative. I know of many people whose dream is to just have enough to put food on their tables. Once achieved they feel so happy and fulfilled. Others, however, are caught in Maslow’s Hierarchy of Needs and compromise their health in search of something more. While there is a misconception that money solves all human problems people normally suffer mental health issues when they stress over how to raise more and more money, especially if they are competitive. However, financial soundness does provide the much-needed relief if managed well.


This is why you must talk to your banker or financial consultant today and learn how you can achieve peace of mind through savings. 


Author: Ralph Watungwa

BAZ President


ENDS