These days personal finance is becoming more important and everyone needs to save more money. Without saving you will likely continue to get broke no matter how much you earn.
From savings you can make investments to grow your money when the opportunity arises.
So for some of us it is difficult to save. Especially when you are not earning enough.
So how do you ensure you save more money than you currently do?
- Have a Budget and Stick to It: It’s not just enough to have a spending budget. The most important thing is to stick to it. Draw out a realistic (don’t be too stingy) budget outlining what you will spend each month for food/feeding, utilities (electricity, water, waste disposal, estate dues etc), friends/family (it’s important to have a budget on the maximum you will spend helping out family and friends), transportation, rent (yes, you have to set aside something for rent every month so it is easier to pay especially if you are in Nigeria where rent is mostly due annually) etc
- Have a Maximum Spend for Miscellaneous Expenses: Your Miscellaneous budget covers all the impulse buys, spending you may do every month. It helps to have a budget so when you reach the limit you know you cannot buy anything or treat yourself to some impulse buying for the rest of that month.
- Pay Yourself First: Whatever you decided in your budget to save (whether 10,15 or 20% of your salary/income) make sure you pay it first when you receive your income. Put it away in a fixed savings account (you can use any of the savings apps around) and forget about it. You will then be forced to allocate the remaining amount to the different aspects of your budget (food, transport etc)
This simple yet effective strategy will get you saving far more than you used to. Sometimes the simplest advice is the most effective. No need for elaborate planning. Just follow this advice and thank us later.
