Most of the farmers started farming because they wanted to make money. Few farmers are doing it for hobby. Most of this farmers makes money everyday. The challenge many farmers are facing is proper way of saving the money that they make.
Here at farmer.co.ke, we care about farmers out there, and therefore i decided to share with my fellow farmers the best way to save the profit they make. I am also going to discuss the importance of saving your profit as a farmer.
So if you have been doing farming and you seems not to be doing good and that you have not been saving your profit, then you are in the right place. I hope this post will help you.
Importance of savings money for farmers.
There are a lot of reasons and importance of saving your profit from the farm in a bank account. Some farmers believes that putting money in a bank account to sleep does not make sense. Instead, they prefer to use all the money they have in the farm for more profit.
Making more profit is okay because that is the target of every farmer out there. But then, is is always advisable save part of your profit and re-invest some. If no need to re-invest, then save all your profit because savings will one day save you.
Below are some of the importance of saving part of your profit.
There are some life realities that are very difficult to escape. There are some things in life that can just happened from nowhere and you were not expecting.
Take for example that you were in the farm doing your daily duties and for one reason or another you or your workers got a serious injury. At such a point you only have one option to go to the hospital. This is an emergency case that needs money.
Again if you are livestock farmer then your animals falls sick, to avoid losing them, you need to buy them medication. This also needs money to pay for medicine and may be your veterinary doctor.
2. Stress reduction.
Who would want to have stress in life? Did you know the major cause of stress is when you need money to do something but you do not have.
I will use an example of a poultry farmer. Just imagine you are a poultry farmer keeping broiler chickens.
Now your chickens needs feeds and you do not have money at that moment because you used all what you had to buy this broiler chicks. And remember how broiler chickens are very delicate, without feeds they chances of dying is very high.
This will not give you a peace of mind because whatever the cause you must think where to get money to avoid losing your birds. Can you imagine the stress involved when you don’t have savings?
As a farmer there is that day when you are old enough and you need to relax. At this time you will be less active and therefore your expenditure will be more than income. During this time, you will enjoy life if you have some savings in your bank account because your income alone will not sustain you.
So at this time when you are still active in your farm and your are making profit, please consider saving some money for your future use.
Currently the cost of education is very high. Every parent would love to see their kids in the best school. There are also young farmers out there who wants to further their education in future for more knowledge.
If you are a young parent and you are a farmer, consider opening a savings account for your kids school fees. This will help you pay school fees without disturbing your kids in class.
I have personally meet a lot of kids who dropped out of school because there parents who were once farmers failed to pay school fees because they never thought of saving.
This also apply to young farmers out there who might want to go back to school. Saving part of your farm profit will help you a lot in your education.
5. Finance security.
Being a farmer, it is good to be secure financially. Everything in life have challenges but we always need to think of a way to overcome.
Why do you need to be secure financially? Imagine being a crops farmer, then one day a heavy and all your developing crops are swept away. Or you are a poultry farmer and you woke up one day and found that for one reason or the other you found that all your birds are death.
At a point like this, the amount you saved earlier will help you to start again your farm project. This is one of the reasons why savings is important.
Savings also will help you invest for example buying properties. Imagine a situation like you have been thinking of buying more land to expand your farm projects. Then one day the place you have been admiring is being sold. If you do not have ready money, you will just miss that specific property.
How you can potentially save some money as a farmer.
- Save some of your profits and re-invest some in the farm. If possible save half and re-invest half.
- Avoid unnecessary expenses in the farm like employing excess employees.
- If possible avoid expenses brands, buy cheaper as long as they are good and save money.
- When you buy farm products, save loose change that remained.
Best way farmers can save money.
The best way to save your money is using a bank account. Choose your favorite bank then go and consult them depending on the amount of money that you can potentially save.
If possible open two banks accounts. Fixed deposit account and savings account. Depending on your savings and type bank account, some banks will give you the best rate for fixed deposit account.
Fixed deposit account is good for saving money for future use and savings account is good for emergencies.
My advice to all farmers out there is to avoid saving money at home. Saving money at home is very dangerous. Your money can be stolen or you can loose in a case like your house burned down for some reasons.
It is very difficult to loose your money in the bank account because bank is responsible in securing them.
Last advice on savings.
As a farmer, to be consistent in your farm projects, consider saving some money to protect you from all the cases discussed above.
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