Byline by Darryl Pietersen, Anglophone Africa Director, WorldRemit
HARARE, Zimbabwe, January 24, 2023,-/African Media Agency (AMA)/- Migration from Zimbabwe to Pan-African countries and overseas continues to rise, with a new study finding that almost 15% of the country’s population now has a family member residing outside the country.
Over the years, thousands of Zimbabwean Overseas Workers (OZWs) have left the country to work in order to improve the welfare of their families through remittances and to achieve their personal financial goals.
While OZWs bear the important economic responsibility of supporting their family members and loved ones, they are not immune to the skyrocketing inflation and rising cost of living that has plagued many countries in the world. world in recent months.
By the end of 2022, Zimbabwe’s inflation rate peaked at 280%, one of the highest rates in the world.
The dollar also weakened, trading at ZWL 930 to the US$1 – a sharp decline after two months of relative stability at ZWL 700 to the US$1. The decline has led to a fall in living standards in Zimbabwe, where more than half (7.9 million) people have fallen into extreme poverty.
According to the Reserve Bank of Zimbabwe, the inflation rate in 2023 is expected to slow as the government continues to tighten fiscal and monetary policies. However, the International Monetary Fund (IMF) predicted a further decline in gross domestic product (GDP) of 3.5% in 2023 due to new domestic and external shocks. While inflation will likely remain high for the rest of the year, money management and budgets are increasingly important.
Here are four savings tips from leading global payments company WorldRemit.
1. Make realistic budgets
Do you have long or short term financial goals in mind? It is important to set achievable goals and amounts when creating a budget. Monthly bills, installments, and savings should all take priority, but discretionary spending can also be factored into budgets. That is, if those extras don’t go over budget.
The reason saving is so important to his budget is its long-term value.
While it’s important for OZWs to make sure they can make ends meet for themselves and their families, setting aside some of their income for the future can go a long way toward achieving their goals. dreams, whether they choose to stay abroad or return to Zimbabwe.
2.Create a kitty
One of the easiest ways to manage your money is to create a fundraiser. These are specific accounts where people can allocate their savings to budget more effectively. This means that once an OZW receives their monthly salary, they can save money and leave it alone to generate interest and wealth.
3. Pay off the debt
Related to tip number two, OZWs will want to consider regularly allocating a portion of their expenses to any debt they owe.
Although it is sometimes necessary to borrow money, it is important to pay it back as soon as possible to avoid accumulating interest and increasing the debt even more.
4. Watch exchange rates when sending money back to Zimbabwe
Sending money from abroad also costs money. To ensure that one maximizes the amount they send, users should choose a service with competitive rates and minimal transaction fees.
Physical exchange services usually have low exchange rates but higher transaction fees, so it’s worth considering online alternatives. WorldRemit, for example, offers no fees with the first three money transfers for new users.
After their first three transfers, the digital payment service continues to offer competitive exchange rates and different ways for their family to receive money in Zimbabwe.
To learn more about sending money to Zimbabwe, visit: https://www.worldremit.com/en/full-calculator?amountfrom=100.00&selectto=zw&selectfrom=gb&transfer=csh¤cyto=usd¤cyfrom=gbp
Distributed by African Media Agency (AMA) on behalf of WorldRemit.
We are a leading global payments company and, together with Sendwave, part of Zepz, a group that powers two global payment brands.
We have disrupted an industry previously dominated by legacy offline players by bringing international money transfers online, making them safer, faster and cheaper. We currently send from 50 countries to recipients in 130 countries, operate in over 5,000 money transfer corridors globally and employ over 1,200 people globally.
On the sending side, WorldRemit is 100% digital (cashless), which increases convenience and strengthens security. For those receiving cash, the company offers a wide range of options including bank deposit, cash pickup, mobile airtime recharge, and mobile money.
Backed by Accel, TCV and Leapfrog, WorldRemit is headquartered in London, UK, with regional offices around the world.
WorldRemit Press Office
The post How Zimbabwean Overseas Workers (OZW) Can Save Money Amid Inflation appeared first on African Media Agency.
Source: African Media Agency (AMA)