7 From the desk of one our contributors, we are sharing 7 Practical Tips On How To Save More Money.
I wrote something on Twitter some time ago, “I have N5,000 in my purse, I step into a supermarket, got a few things and the money is all gone.” The reaction to that tweet shows how much money- related matters are important and how it affects everyone.
Money talks will never cease. This is due to the fact that everyone wants more or they need to cultivate the habit of saving more. This article will dwell more on the latter. The truth is there is no secret in saving money, it requires no magic. You just need to understand some strategies and be ready to put them to work. It doesn’t matter how much you receive as an income, we all need to cultivate the act of saving.
For the non-salary earners, these tips will also be useful in cutting down costs and saving more money. As young individuals, we tend to get carried away with material things, but really, most of the things we spend money on are not important. How then can you imbibe the act of saving more money and be delivered from the words, “I am broke”? Stay with me.
7 PRACTICAL TIPS ON HOW TO SAVE MORE MONEY.
- Create a budget.
This may sound cliché and you might roll your eyes, but this is the first step in reducing costs. You have this amount of money, how do you intend to spend it? What are the things you would need to buy? Your budget should fit into your income. For example, you earn N50,000, you can’t have the same budget with a N100,000 earner. There are some expenses we can’t dodge from, they include foodstuff, transportation and bills. They will definitely make the top of the budget, you could also include expenses that occur regularly but not every month, such as buying a few make-up products, clothes and shoes. The most important is to have a list to work with, this will limit overspending.
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- Decide on a particular percentage to save.
This is very helpful in being accountable in this “money-saving” business. You could decide to save 10% of your income every time. It is important to be realistic about this, planning to save 50% is quite unrealistic and could lead to you forfeiting saving at all. Personally, a 10% savings is suitable and it helps to stay consistent.
3.Save before spending.
There is this habit of saving what is left after spending, which shouldn’t be. You should save and then spend what is left, this allows for accountability. For instance, you have 10,000 and you decide to spend and save the rest, there is every possibility that you would spend it all and then console yourself with the fact you had a lot of expenses. Therefore, you should consciously save a particular percentage before even making that list of expenses. Better still, add “savings” to the list of expenses and don’t touch!
- Cut extra expenses.
If you are like me, then while picking your needs at a supermarket and you realize you still have some extra cash, you will pick two bars of chocolates and throw in the shopping basket. Many of us are like that and it seems like we can’t help it. WE CAN. You have a plan, which is cutting costs in order to save more money. When you have this in mind, you won’t pick those bars of chocolates, trust me. Basically, what you need is DISCIPLINE. You crave for shawarma or pizza, please take fruits, it is healthier. That distance is one you could just stroll and get there in 10 minutes, except you are in a hurry or the weather isn’t friendly, put your legs to work. Thinking about this well, you’d discover these simple tasks and sacrifices make you healthier.
- Set a goal.
Setting a goal might seem unrealistic but it is one effective of saving more. You could set a goal to buy a car, a plot of land or go on a vacation at the end of the year, having this kind of goal and sticking to it will make you frugal in your spending. Although, this depends on your income and how much sacrifices you are willing to make, it is advisable to set realistic and achievable goals, so as to be able to reward yourself accordingly.
- Have a separate account for savings and avoid a debit card.
So, you have decided on a particular percentage to save, you should have a savings account and put this amount in there regularly. Another thing to do? Don’t apply for a debit card. It is very tempting and takes a great level of determination not to use it. With the inflow of Point of Sale (POS) machines in every retail store now, you could decide to spend a “little” out of your savings and before you realise it, you have spent more than you expected.
- Explore, Explore and Explore.
I will explain this in two different ways. It is understandable that we have a favourite store we shop at and the prices of the products are what we think should be the appropriate prices. But really, there are so many stores you would get those products at a cheaper price and you’d wonder what you have been up to all these while. You could ask for friends how much they buy some products and compare the prices.
The second aspect is in thrifting. There are used items that are being resold, not because they are bad, but for the benefit of the people that can’t afford the brand new. Trust me, when you look around well, you would find those electronics, furniture and so on, at a cheap price. Not all cheap products are of bad quality and not all expensive products are of good quality.
These are my few tips for saving money as a beginner in the “money-saving” business and I hope you have learned a few things. Have you ever thought of how much you will have in a year if you save N1000 per day? More than N350k!!
I am Atinuke Wale-Awe, a Post-graduate student at the University of Ibadan. I love writing and sharing ideas with other people. Quite reserved but troublesome when I get comfortable with you. I play the Saxophone and hope to have a thriving fashion design business someday.