Having trouble on how to save money? There’s no doubt saving money is hard, especially during this economic crisis. Here’s a complete guide on how to save money in Nigeria. But before then, I guess everyone has an idea of what is saving and must have saved in one form or another.
This could be towards buying something needed or towards a future project such as building a house, paying school fees, marriage, hospital bills, repay loans or for any other reasons.
I guess the main reason you are reading this article is because you are having trouble on how to save money. If so, then worry no more, because you have arrived at the right place and at the right time to learn all the necessary steps needed on how to save money after payday.
10 Simple Ways to Save Money in Nigeria.
Some people recognize that their biggest obstacle to saving money each month is themselves. If you think that this is part of the reason why you can’t seem to save any money, here are some strategies and tips to try out to keep your money safe from yourself.
1. Create a Saving Goal/Budget
Creating a saving goal is the first thing to do if you really want to learn how to save money. Here’s how to create a saving goals for the future. However, to set a saving goals you have to create a budget.
Budgeting helps you priorities your expenditure and find a balance between spending and saving money across a whole year.
By checking your bank statement, bills, credit card statements and receipt, you can work out all your regular expenses, such as your rent or personal loan, insurance, transport and electricity.
You then deduct these expenses from your monthly income. If you are spending more than you earn, ask yourself what you could cut out.
You can also consider using the 50/20/30 rule which states that 50% of your monthly income should go to essentials( accommodation, clothing and food), 20% should go to savings(future use), and 30% should go to personal/emergency expenses( like bills, cars and entertainment) to create a budget.
2. Automate your Finance
Setting up automatic savings is the easiest and most effective tips on how to save money fast, and it puts extra cash out of sight and out of mind.
Automatic savings means you have a process in place to save at a scheduled date, whether that’s monthly, weekly or daily and the money will automatically be deducted from your savings account.
Tech start-ups like piggyvest is a great ways to save money from salary or save towards a specific goals, be it on a groceries, saving to buy a house or a car, for college, wedding etc.
Am using piggyvest to save and invest securely since January 2020. Sign up with my link and get N1,000 to start your own savings journey.
Why Choose Piggyvest?
Piggyvest helps you achieve financial freedom by enabling you to save money responsibly and invest on the go.
With piggyvest, you can stop spending excessively and put away (and grow!) funds that you do not want to touch at the same time, you earn 10% to 15.5% interest on savings.
You can choose to save little amounts of money periodically (daily, weekly or monthly) towards a specific target or luck away funds for a specified period of time.
Why Trust Piggyvest with my Money?
Piggyvest uses the highest level of internet security one can get in the electronic payment processing industry.
All financial information is encrypted and stored to PCIDSS level 1 compliant standards. Additionally, all transmission is via an encrypted 256 bits HTTPS ask connection to ensure that your money or Information is completely protected from fraud.
3. Unsubscribe to Save Money
Online shopper’s, media consumers and app lovers are increasingly sucked into the world of recurring payments.
It is very easy to forget which subscription services you’ve registered for, always monitor your bank statement of account or credit card report and you will notice that you have a lot of subscriptions.
Now ask yourself, “why can’t I stop wasting money on subscription I never used”.if you want to learn how to save money, unsubscribe from all they services you haven’t used for they past few months.
If you want to learn how to save money, try to unsubscribe from emails you are no longer interested with, in other to avoid the temptation of spending money thus, helping you save a lot of cash.
4. Consider joining a Cash Reward Program
Participating in a reward program such as Rakuten is one of the best ways on how to save money and it could be another strategy you implement to increase the amount of funds you’re saving.
For example, if you are among those that usually shop for goods and services online or in store, shopping through Rakuten which was founded in 1997 and headquartered in Tokyo, allows you to earn up to 10% cash back on every purchases you make.
You also earn $25 for any people you invited via your affiliate link who joins & spends $25 or more on shopping, they’ll also get $10 in their account. That’s one of the great tips if you want to start saving money.
5. Avoid Impulsive Spending
Impulsive spending is bad if you want to learn how to save money. impulse buying is when a consumer experiences a sudden, often powerful and persistent urge to purchase something you weren’t planning to. The impulse to buy is hedonically complex and may stimulate emotional conflict.
Instead of buying it, put the money in your Piggyvest account and wait for 30 days. If at the end of the 30 days you think you need it, buy it. The chances are pretty low that you’ll still feel the impulse and 30 days is an excellent way for it to wear off as you put some thought into it.
Have you ever been sucked in by a sale, or overcome by the urge to buy something you tossed aside later? Impulse spending is something we’re all guilty of.
We like to think of ourselves as rational and in control, but sometimes we spend more than we’d like to.
Here is a guide on how to control impulse buying. Impulse buying are a common enemy of people who wants to learn how to save money but just can’t seem to stop the aimless purchase here and there.
6. Open a Fixed Deposit Account
A fixed deposit account is a savings/investment account offered by banks and non banking financial companies which allows you to deposit money unlike in a savings account, you earn up to 7% interest per annum based on the duration of the deposits.
The money can either be rolled over (re-invested) or liquidated (returned to customer) with the interest earned. if you want to learn how to save money in Nigeria, then it is mandatory to open a fixed deposite account.
Please note: The money deposited cannot be withdrawn before maturity, but you may withdraw them depending on banks, after paying a penalty.
Example of banks that offers fixed deposit account in Nigeria are UBA, First bank of Nigeria, Access Bank, Gtbank, Eco Bank, FCMB etc. Other non-banking institutions are Piggyvest, Cowrywise, i-invest, wealth Ng, crowdyinvest(farmcrowdy) etc.
7. Combine your Debt and Save on Interest
If you’ve got a few debts, for example a loan, credit card debt and hire purchase. Don’t you think that is best to combine them into one and pay it off with a debt consolidation and save money on Interest cost? The money you save could then be used to pay down your loan faster.
The faster your debt reduces, the lower your interest costs and the sooner you’ll have more free money to put into your piggyvest account or a savings account.
8. Avoid Smoking and Drinking
You’re probably wondering what this tip has to do with how to save money. If you think about how much money you’ve spent on alcohol and cigarettes, you might notice how it all leads up to a larger amount.
Both can also lead to expenses paid on medical bills. Stop smoking. Check out your estimated costs of smoking with this calculator.
9. Save Money On Groceries
We all know that eating out is more expensive than preparing meals at home.
But it’s easy to fall into the trap of eating out anyway, often because it’s quicker and more convenient.
It doesn’t matter where you live, groceries stores will always take up a major chunk of your income.
In fact, Nigerians spend up to 30% of their income on groceries store(supermarket) per month, according to Information.
This is a huge expense which can hinder your ways to save money in Nigeria. Fortunately, learning how to save money on groceries can be easy.
This grocery shopping guide will help you with ideas to save more, spend less and keep your grocery budget on track! By making only a few little tweaks, you’ll be amazed to see what a massive amount you can save from your food budget.
10. Never give Up
We know learning how to save money can take a lot of will power, sacrifice and focus. But once you get the hang of it, it becomes easier – and in the future, you’ll be thankful you started saving money when you did.
Take time to follow money management blogs and read lots. If you find you’ve stopped saving or don’t save as regularly as you’ve planned, take a deep breath, figure out where it’s not working for you and start again. You will get there.
When it comes on how to save money, Every little bit counts So the sooner you start saving money, the sooner you’ll reach your financial goals. However, if after reading this article, you are still finding it difficult on how to save money in Nigeria, you can reach out to us via the contact us page for an online coaching.