It’s a new year and It’s officially time to make those resolutions to save more and spend less.
We know you make these resolutions at the start of every year and they last only a week but, this time will be different. Why? Cause you’re about to get 5 foolproof ways you can save and keep saving all year long.
Start saving now (at least a little bit)
Yes, I know, you probably have 1001 things you need to buy this new year but, try and save some money first. In fact, as a general rule you should try to save a percentage of your income or paycheck immediately you receive it. This helps to avoid ‘accidentally’ spending the money that should be in your savings account.
If you start saving just N20,000 every month, that’s N240,000 of savings at the end of the year. Think of all the things you can do with that kind of money!
Follow the 50, 30, 20 Rule
For the most part, saving money is all about budgeting and planning. We recommend a basic breakdown: 50 percent for your essential needs (housing, food, etc.), 30 percent for your wants (going to the cinema, going out to eat, etc.) and then 20 percent for future planning (debt payments, savings, etc.).
Live within your means
I know you want that Mercedes Benz but, if it’s a Toyota Corolla you can afford, for now, stick with it. To save efficiently, you need to live within your means. The time when you can afford your dream car is coming. Just be realistic about your current situation and financial goals and you’ll get there. Also, try to cut down on unnecessary costs like going out to eat or taking cabs if necessary
Track your expenses
Tracking your expenses is the easiest way for you to know where your money goes and ensure that your money is used wisely. Tracking your expenditure also allows you to deeply analyze how you spend and will help you develop a proper strategy to save. You can use a jotter or expense tracking apps like Reach or Spendee
Move someplace cheaper to start saving money
While this may seem like an odd piece of advice for those trying to save money, there are a ton of cities in Nigeria where you could be making a lot but spending little on rent. Being able to reduce your living cost even by 10% is a bonus to your savings account. Click here to get started on finding your new apartment
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