Most people in Nigeria find it difficult to save money especially people that are big spenders. If you are among them, and you think it’s time you cultivate a better financial habit, here in this article, you will find some great guidelines that will help you achieve your goal.
Consistent daily saving leads to a pleasant surprise of accumulated funds in the long run. You’ll soon discover that all it takes is taking the first step in the right direction.
Here is what you need to do to start saving money;
1. Create a budget.
A well-thought-out budget is at the core of any savings strategy. By creating a budget, you may organize your spending and strike a balance between spending and saving over a whole year.
Review credit card statements, bills, bank statements, and receipts to calculate regular expenses like rent, transportation, insurance, and utilities.
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2. Make plans to save Money.
After creating a budget, add a savings category to it. Attempt to save aside 10 to 15 percent of your salary as savings. To strengthen your savings, think of the money you put aside as a routine expense akin to buying groceries.
It could be time to make cuts if your expenses are so high that you are unable to save much money. Find ways to cut back on non-essentials like entertainment and eating out, as well as your fixed monthly spending, to achieve this.
3. Record your expenses.
Knowing how much you spend and keeping a record of all your outgoings, both personal and business, are wonderful ways to cut costs.
You can analyze your spending patterns and reduce unneeded spending that might be depleting your funds by keeping a good record of your expenses over time.
4. Make savings automatic.
Automating your savings is another easy strategy to reduce your spending. Leading the charge to make saving money easier and smarter for Nigerians, particularly millennials, are tech businesses like Piggybank and Cowrywise.
Automatic savings apps deduct predetermined amounts on a set schedule, depositing them into a restricted savings account.
5. Open a fixed deposit account.
Fixed deposit bank accounts may provide you with a greater interest rate than your typical transactional or basic savings account because they restrict simple access to your money.
Customers of banks can keep their money in the bank and earn a few percent on top of the principal each year with fixed deposit accounts. Opening a fixed deposit account is still quite simple, even though the fixed deposit placing process varies slightly from bank to bank.
6. Choose something to save for.
Setting a goal you’ll want to achieve with your savings is one of the finest methods to save money. Consider what you would want to save for first. For example, you might want to save for a new car, a new house, a family vacation, or even retirement.
Decide how much money you’ll need and how long it might take you to save it, and then resolve to make slow, steady efforts to reach your goals.
7. Be a great negotiator.
The ability to negotiate will enable you to save the most money and be the most beneficial to you in the long run.
Long-term savings of thousands of naira each month can be achieved by mastering the art of negotiation. To begin your education in negotiation, you can use books on deal-making and negotiations.
8. Buy things in bulk.
This one is simple; if you have any things that you use frequently, ask if you can buy them in bulk from a nearby source and save money.
Save money on essential needs with a simple technique: better per-unit pricing and no more shortages.
9. Master the 30-Day rule.
Delaying purchases for 30 days is an effective practice in resisting instant gratification, a key financial principle.
Within a month, the urge to buy diminishes, resulting in savings from postponed purchases. Waiting a time can help you decide if a purchase is worth the money if you’re on the fence about it already.
Check out this: 10 Budget Apps that can help you manage your spending in 2023
Benefits Of Having a Savings
In case you are still skeptical about the idea of cultivating a saving habit, Let’s show you some benefits of having savings;
- Building a Safety Net: Life is unpredictable, and unexpected expenses can arise at any moment. By engaging in daily savings, you establish a financial safety net to cushion yourself during emergencies. Whether it’s a medical bill, a sudden car repair, or a job loss, having savings can alleviate stress and provide a sense of security. Instead of relying on credit or borrowing money, you’ll have the means to tackle these challenges without derailing your financial stability.
- Achieving Financial Goals: Daily savings allows you to work towards your short-term and long-term financial goals. Daily savings consistency fuels progress towards goals like buying a car, vacation, or home down payment. By breaking down your goals into smaller, more manageable savings targets, you’re more likely to stay motivated and focused on achieving them.
- Developing Disciplined Financial Habits: Saving money daily is an excellent way to cultivate disciplined financial habits. It encourages you to prioritize saving and make it a part of your routine. By consistently setting aside a portion of your income, you develop a mindset of financial responsibility and avoid falling into the trap of impulsive spending. Over time, this discipline extends to other areas of your financial life, such as budgeting, investing, and debt management.
- Capitalizing on Compound Interest: One of the most powerful aspects of daily savings is the potential for compound interest. When you deposit your savings into an interest-bearing account, your money has the opportunity to grow exponentially over time. The earlier you start saving, the more time your money has to compound, leading to significant growth in your savings. Compound interest is like a snowball rolling down a hill – it starts small but gains momentum as it goes, eventually becoming a substantial sum.
- Reducing Financial Stress: Financial stress affects well-being, relationships, and mental health, highlighting the interconnection of various aspects of life. Daily savings can help alleviate this stress by providing a sense of control and stability over your finances. Having a safety net and future plan alleviates anxiety, enabling focus on essential aspects of life.
Conclusion
In conclusion here are some additional tips to help you enhance your healthy saving habit:
- Track your progress. It’s important to track your progress so you can see how you’re doing. This will help you stay motivated and on track.
- Reward yourself. When you reach a savings goal, reward yourself. This will help you stay motivated and make saving more fun.
- Don’t be afraid to ask for help. Seek assistance from a financial advisor or a trusted person skilled in managing finances to boost savings.
With a little effort, you can develop a healthy saving habit that will benefit you for years to come.
