We should first admit that one of the hardest things to do in Nigeria is to save money. There are many factors that have made it extremely difficult to successively save sufficient money in this part of the world.
We can talk about the ever-increasing inflation, which compels citizens to keep paying more for goods and services. Thus, at the end of the day, many Nigerians discover that their income is not even enough to take care of their basic things.
Nevertheless, it is really possible to become an expert in saving money even in a tough place like Nigeria, and the hardest thing about all these is just getting started.
Let’s get started.
Start Recording Your Expenses
The very first thing that can be admonished is that you figure out how much you spend. It’s not appropriate to not keep track of all of one’s expenses. It’s okay if you haven’t been doing that before now – as you can start right away.
Of course, a similar issue many Nigerians are suffering from is lack of appropriate education as touching how to handle money.
Nevertheless, this is a crucial step to be in control of your expenses. Armed with the data, you can then organize your stuff by categories, such as fuel, transportation and food, and total each amount. The point is to even know where your money is going monthly.
Settling this will determine a lot as regards the effectiveness of your savings. You can always opt for a free-spending tracker to help you get started, as a digital app can help automate some of this work to make things much easier.
Start Budgeting For Savings
One benefit of realizing what is spent each month is that one can successfully start organizing one’s recorded expenses into a workable budget. Please note that it is wisdom when your budget highlights how your expenses measure up to your income.
By so doing, it gets realistic to organize and put into proper order your spending and limit overspending.
Have a savings category, and try to save 10 to 15 per cent of your income. Hard? Then try to check the next point.
Cut Your Spending
Many of us find it difficult to save as much as we should because our expenses are simply at the high side. It’s possible you are also in this situation now.
Well, the way out is to simply cut back. This is not as tough as it appears – you should simply identify those nonessentials that you can spend less on. You can likely do fine without these things. You don’t have to live a lifestyle that seeks to please people. Just be yourself and live right.
Set Savings Goals
One of the best ways to get anything done is to have a proper goal in place – and being successful with saving money is not different.
So, set a goal to save money. What do you want to save for? To get a new car? To buy a smart TV? Then ensure you know how much money will be needed as well as how long it will likely take to save it.
Also, it is helpful to set a small, realistic short-term goal for something you would have to save money for before getting the full cash at hand.
By accomplishing smaller goals, one can get a psychological boost that makes it more encouraging to save, and it can easily become a culture and a habit that will always prove useful.
Decide On Your Priorities
You can’t afford to be myopic – a trap several others usually fall into as far as this discourse is concerned. After one’s expenses and income, one’s goals are so likely to have the largest impact on how the individual allocates his or her savings.
The point is, don’t forget long-term goals, and learn how to prioritize your savings goals. If you are aware you will be getting married in the near future, wisdom demands that you start putting money somewhere for it now.
Earn More Money With Your Savings
You can be encouraged to save more money if you know how to put your savings to work to ensure your money fetches more money for you.
There are different ways to go about this without bothering about the fear of losing your entire money. You can a quick check on the list of fixed-income investment securities available in Nigeria.
Make Saving Automatic
Our banks have embraced technology, and it is very easy to get many things done automatically. You can have a dedicated account for savings, where a part of your income is instantly sent as soon as money entered your other bank account.
By putting in place such an arrangement, it gets easier to save reduces the temptation to spend the money instead. Banks now have Mobile & Online Banking, and you can utilize them to achieve your aim.
Always remember that it takes a high level of financial discipline to save money in Nigeria and to keep up with the saving tips highlighted above.
Always encourage yourself with the immense benefits attached to saving money. Keep watching your savings grow, and don’t stop reviewing your budget too.
- By Towfiqu Barbhuiya on Unsplash