You have been working for a couple of years or so, but you do not know how your monthly salary ‘evaporates’ in a few weeks, leaving you susceptible in times of emergencies.

Experts advise that one needs to put in place mechanisms to help them safeguard their earnings through secure savings or schemes that provide good yields. This, they say will also help grow your income, especially during periods when you don’t have a lot of expenses.

Right savings vehicle

Jackie Mutoni, a customer care consultant at Bank of Kigali, says having a savings account or joining a savings scheme at your workplace is essential in protecting your salary, as well as helping you save and invest. 

"It is the most reliable way of insurance because you need not have to depend on anyone else for money in case of an emergency,” Mutoni says.

She advises corporates to take advantage of investment vehicles, like the recently launched Iterambere Fund by the Rwanda National Investment Trust and high yield fixed deposit accounts provided by banks, among others. The stock market, like other vehicles provided by the financial sector, enables one to make money in the long-term without putting in a lot apart from monitoring trends on the bourse.

"Therefore, you can have huge investment returns, while insuring yourself against any emergency using such investment vehicles,’ Mutoni says.

Weigh options

It is also important that you also look at the monthly salary as a source of capital. It is essential to choose right savings or investment plans to ensure maximum benefit, including growing your wealth and investment portfolio.

Keep records

It’s also instrumental to write down all your expenditure and incomes to be able to gauge your financial situation at any point in time. These records will help in future planning and guide your spending,” Mutoni says.

Avoid impulse spending

Besides, being keen on your income and expenses helps manage your money wisely, and avoid impulse spending, says Aline Kamikazi, the business advisor at Business Development Fund. Kamikazi advises salaried workers to always look out for areas that cause hemorrhage to their income, urging people to spend within their means so they are able to save.

"You need to create a spending plan that does not affect your lifestyle or investment programme,” she says. Whatever the choice you make, always remember that it is important to educate yourself on financial matters to be able to make informed decisions as far as money is concerned. This also protects you from unscrupulous people that would want to gain needlessly from your sweat.

To stay focused on your goals, think about what would happen if you were unable to earn an income due to injury or illness.