In Nigeria, a lot of people face difficulty when it comes to saving. Saving is essential, as it has several benefits. However, it requires discipline and consistency. Things are bound to come up that require spending. However, your discipline in saving will help you to be more prudent with your finances.
To have savings, you must cut back on your spendings. Bad financial habits lead to a lack of savings and bankruptcy. No matter how little or big your income is, you must always save a portion of it. Here are simple ways you can save in Nigeria.
Have a Budget
Before you can be successful at saving, you must have a good budget for your expenditure. Budgeting helps you to balance your expenses and savings. It also helps you to never get broke. You can check your regular monthly expenses, cut back on the things you can do without, and draft a budget where you can meet your basic needs and still have something to save. It’s one thing to create a budget and another to stick to it. Try to discipline yourself to stick to your financial budget. Don’t purchase items outside your budget except it is inevitable. Eliminate all impulsive spendings.
Plan to Save
In your budget, create a section for savings. It could be as low as 10% of your income, but always have a specific amount set aside for your savings. Removing your savings before spending will help you in becoming consistent and disciplined in saving. Look at savings as a regular monthly expense, just like your groceries. If your expenses get too high that it becomes difficult to save, it means you need to cut back on your expenses and re-budget your finances. You can also have a hard-to-access savings account and send the set savings budget to the account immediately you receive your income.
Track your Expenses
You can’t be successful at saving if you spend carelessly or impulsively. In maintaining a budget for your finances and savings comfortably, you need to track your expenses. Find out how much you spend on all your expenses (both business and personal expenses). You can keep all the receipts of your expenses in a month, or write them in a book. It will make it easy to cut back on your spendings when necessary and always know how money leaves your pocket. It will also help you in eliminating bad spending habits. For instance, if you spend 500 naira on unnecessary expenses every day, when you track your expenses you’ll discover you are spending 15,000 naira every month on something you don’t need. You will be able to find all the rats putting little holes in your pockets and stop them before they crash your financial life.
Set Savings Goals
A way to become consistent in your savings is to have something you want to accomplish through your savings. Set a savings goal. It could be for a new car, house, family vacation, or retirement. Have a realistic short term and long term goal for your savings. Your goals will become a prime motivation for your savings. Remember to cut down your spendings and save more if you want to reach your goal within a specific period.
Having savings is crucial if you want to attain financial stability in Nigeria. You can start saving with a low amount, then subsequently increase it. Saving is essential. You can save till it gets to an amount where you can put your money into profitable investments like being a lender on Sycamore.ng and get great returns. Sycamore is a peer to peer lending platform that offers its investors great returns. Visit www.sycamore.ng to get started today.