Do you want to learn how to save money in Nigeria? Most Nigerians aren’t that good when it comes to saving money. Most people are looking for ways to save a little extra money and reduce their expenses when ready to give up their bad financial habits.
Small savings can accumulate, especially if you do it consistently for a long time, and doing several things simultaneously can mean that you can save significantly every month. Sometimes all it takes is the first step in the right direction for everything to go in your favor.
Sometimes the most challenging thing about saving money is just getting started.
How To Save Money In Nigeria Every Month
These simple tips on how to save money in Nigeria will help you develop a realistic and straightforward savings plan to achieve big or small goals.
1. Create a budget.
At the heart of any savings plan is a carefully prepared budget. Budgeting helps you prioritize spending and find a balance between spending and saving money throughout the year.
By checking credit card statements, bills, bank statements, and receipts, you can calculate all your regular expenses, such as rent or mortgage, transportation, insurance, and electricity.
2. Make savings plans.
Now that you have made a budget create a savings category in it. Try to save at least 10-15 percent of your income. Consider that the money you invest in savings is a regular expenditure, similar to spending on products, to strengthen.
If your expenses are so high that you can’t save that much, it might be time to cut them down. To do this, identify non-essential expenses that you can spend less on, such as entertainment and restaurants, and find ways to save on your fixed monthly expenses.
3. Write down your expenses.
A great step to saving money is finding out how much you spend and keeping track of all your business and personal expenses.
Keeping a good record of your expenses over time will help you review your spending habits and reduce unnecessary costs that can drain your finances.
4. Make the savings automatic.
Another easy way to save money is to automate your savings. Tech startups like Piggybank, now Piggyvest and Corywise are taking the lead in helping Nigerians (especially millennials) save money easier and more innovative.
The concept of automatic savings using any of these apps is simple; it automatically removes the set amount from your account on a schedule and puts it into a savings account that you cannot withdraw before the appointed time expires.
5. Open an account with a fixed deposit.
By limiting easy access to your money, fixed-deposit bank accounts can provide you with a higher interest rate than the primary savings or transaction account you might be used to.
Fixed deposit accounts allow the bank’s customers to keep their money in the bank and earn several percent per year over the initial amount. Even if placing a term deposit is slightly different in different banks, opening an account with a fixed deposit is still very easy.
6. Choose something that you can save money on.
One of the best ways to save money is to set a goal that you will be happy to achieve with your savings. Start thinking about what you could save for, perhaps a new car, new house, a vacation with your family, or even for retirement.
Then figure out how much money you will need and how long it may take you to save the necessary amount, and commit to making gradual efforts to achieve them.
7. Be an excellent negotiator.
No other skill in the world will save you so much money and will not be as valuable for you in later life as the ability to negotiate.
Learning the art of negotiation can save you thousands of naira every month in the long run. You can use negotiation and deal-making books as a way to start your negotiation training.
8. Buy things in bulk.
If you have any products that you often use, then see if you can buy them in bulk and get a discount from a local supplier.
Often, you’ll find that you’ll get a much better price per unit, and you’ll rarely have to worry about running out of that item again, making this a pretty easy way to save money on your basic needs every month potentially.
9. Master the 30-day rule.
Avoiding instant gratification is one of the most important rules of personal finance, and waiting 30 days to make a purchase decision is a great way to implement this rule.
Quite often, after a month, you will find that the desire to buy has also passed, and you will save yourself some money by simply waiting. If you are still in doubt about the purchase, then some waiting time can give you a better idea of whether it is worth the money.
Final thoughts on how to save money in Nigeria
If you ever find yourself spending more than you earn, ask yourself what you could cut or cut back on to save some money.
Not all of these tips on how to save money in Nigeria apply to everyone. Just look through the list and find the ones that apply to you, and use them in your life.
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