Kwaba Blog

5 obvious ways to save money better than you did

Whether you want to be a millionaire or simply want to stop spending your paycheck before you get it, there are some surprisingly easy ways to tuck away some extra cash. It’s not about trying to do three different jobs in a week just to make ends meet. Instead, taking control of your spending and saving even just a pocket-full of Awolowos can help lift some of those monthly concerns.

Here are some 5 things you can do to increase your chances of successfully saving money. Not only for your short-term goals but long-term ones as well, like saving up for your rent:

1. Make a budget and stick to it

Budgeting is the simplest way to start saving more. A budget is your spending plan that tells your money where to go. Take a paper and write your incoming and outgoing funds. Write all your expenses, savings and liabilities, and balance them against your income so that there is no difference between the two. If your expenses exceed income, you need to reduce expenses and consolidate debts.

2. Reduce or eliminate discretionary and impulse spending

No one wants to pay more for exactly the same thing. Yet so many of us do with our gas and electric bills, car insurance and mobile. Your budget should outline how your expenses measure up to your income so you can plan your spending and limit overspending. If your expenses are so high that you can’t save as much as you’d like, you should try and cut back.

Eliminate the unnecessary expenses and try to find cheaper alternatives to the primary expenses such as:

  • DSTV packages, Netflix or Amazon prime and other subscriptions
  • Mobile and WIFI operator
  • Electricity usage
  • Transportation

You can also eliminate unproductive charges and fees such as the ATM withdrawal fee on your debit card. They just take your money.

3. Use cash for daily transactions

This is another way to improve your savings, which seems to be very obvious once you come to know about it. Credit cards and digital payments might seem all fine and dandy but they are bug enablers of overspending. Also you still need to be smart about ATM trips. Try withdrawing a set amount each week and sticking to it. If you find yourself needing to use ATMs more frequently, plan each ATM visit carefully to avoid fees. When it’s time to take out cash, make sure you have time to get to your bank unless it doesn’t charge ATM fees. To stay organised, you can divide cash into envelopes with categories like Food, utilities, and Fun. Think of it as your real-life savings app. When an envelope empties out, it’s time to stop spending in that section (or swap funds from another one). Paying with cash will also feel more “real” than using a plastic card, so you’ll have a more acute sense of spending money.

4. Get a side hustle

There is only so much you can do with a low income. A side hustle is simply another activity that you do on top of your main join that earns a bit of income. It should ideally fit comfortably into your daily life.If you can’t cut costs anymore than you already have, then you need to get a side gig. Aside from your full time job, you can get a job on the side to make extra cash. There are lots of jobs you can work, from the comfort of your home, such as freelance writing, graphic design etc. Leverage your skills.

5. Get the right money saving app

There is no scarcity as to where to save. There are plenty of saving apps to choose from but there are only a few apps that are more intent and determined to help you reach a particular target. One of such apps is Kwaba. The Kwaba app allows you to create target savings towards your rent and make sure you stay committed to reaching your goal by providing you with instant loans when life happens without you having to touch your actual savings. Kwaba also provides a convenient rent plan for renters which allows them to split their rent payment into monthly instalments.It allows you to Rent Now and Pay Later. As if that’s not enough, another interesting part is the fact that your monthly “rent savings” will accumulate interest on its own.

Even when the inflow is shortcoming, you should stay committed to a disciplined approach. There is an automated savings plan for you, towards your rent on Kwaba

You can also read;

5 financial habits of successful people

What kind of spender are you?

Raji Oluwaseun

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