Kwaba Blog
Top tips for saving money Kwaba

How to manage income and save money in Nigeria

Rentcrowdy

It’s a big misunderstanding to think if you make a ton of money each month then you are on the safe side. While earning a lot of money helps, what will help you, even more, to live better is to have some positive saving habits.

When you work on something that only has the capacity to make you N50,000, it does not matter how much harder you work – the most you will make is N50,000. It’s not how much you make each month that matters — it’s how you save money along with the flexibility and time outside work that you have.

Here, we have decided to share a few tips into saving money with you 🤗

  1. Define a Saving Goal:

Unlike popular belief, the biggest challenge with saving is not where to save. It is about starting to save, and then continuing to save through thick and thin, until your target is reached. Having a clear goal will make the process of saving much easier because you have a measurable point to aim for. Slowly you can increase your savings rate to reach the goals faster. This can happen with small changes every day and with the goal in mind.

Reaching saving goals can enable you to live better in multiple ways, such as:

  • Be more stress-free – Since you have built an emergency fund.
  • Feel better – Feel good about buying expensive house items, car or even a home, hassle-free and debt-free.
  • Keep your money – Being debt-free means that you will not give a portion of your money to the bank in the form of interest and other fees.
  • More freedom – The ability to reach more financial freedom by saving money aside and invest.

A typical saving goal would be to save for your house rent. Kwaba offers a convenient rent saving scheme that allows you to create a savings target toward your rent and help you achieve your goals. Download the Kwaba app here

After you have made the first saving goal, the next tip is to break down your income to make it happen.

  1. Break down your Income:

Economics is a knack of managing unlimited demand with limited supply. The mismanagement of money makes many overpaid people seem underpaid. This is why budgeting matters for your financial health, for you to see how you really spend your money and how you allocate your income across different activities. The process of keeping a record of your income and your expenses will create a better discipline when it comes to managing your money.

Instead of compulsive buying of expensive items or items you don’t need, you will consider purchasing a specific item in terms of whether you really need the item or not. As for me, I make use of the 50/30/20 budget rule. Under this 50/30/20 method, I assign 50 percent of my income for my needs and other essentials, 30 percent is be used to cover my desires such as entertainment and night outs, whereas the remaining 20 percent is for savings. This ensures that I prepare financially for the future.

Of course, you can play around with the proportions as long as you have a satisfactory percentage for the three categories.

  1. Do some research and get smart:

After eliminating the unnecessary expenses 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

Often you can even compare prices online and choose the cheapest. Why pay more if the service or product is the same. Make sure that you compare occasionally as this would help in saving money.

  1. Reduce or Eliminate Fees:

Eliminate unproductive charges and fees such as the ATM withdrawal fee on your debit card. They just take your money. You will be amazed to know how much money people spend on fees for ATM withdrawals. Accordingly, you should either plan your cash money better, use your card in your shopping instead of cash or switch to a bank with lower fees.

  1. Be Patient and Ready:

Shop around for the best price by comparing prices from different stores. If there are no good sales, then wait. Be patient and buy most of your items when they are on sale.

Financing is not the finish line for success. It means you are ready to start the marathon with the backing of fiscal endurance. Failure is still an option if you do not spend wisely, allocate correctly and continue to budget effectively. When money realizes that it is in good hands, it wants to stay and multiply in those hands. Saving is great!

In the long run, I’d even advise you to invest. Today is the fodder of tomorrow’s dreams, so we’d be wise to invest in today so that we don’t show up with empty hands tomorrow.

You never know what kind of setup the market will present to you, your objective should be to find opportunity where risk reward ratio is best.

You can now invest into the rental market on rentcrowdy.com and earn 12% – 26% ROI in just 6 – 12 months. Start building your financial freedom today!

Raji Oluwaseun

Add comment