HOW TO START SAVING MONEY
We’ve heard often times if not every time that saving money is very important. In fact, I’m sure all of us at a particular time in our lives tried saving money. Some of us might have succeeded but most failed woefully. The reason for the failure could be many things including not knowing how to ‘start’ saving money.
“Start” is the keyword, because a bad start will definitely lead to a bad outcome unless revitalized.
There are many places to save money. With the way the world is now, I don’t think anyone would still be complaining about where to save money. Gone are the days you had to give your mom, sibling, or friend money to save for you. We should be particularly grateful to the digital world for that.
Many people should have become millionaires by now if their friends hadn’t absconded with their money, their siblings blackmail them or their mothers calculate all the pampers they wore and the food they’ve been eating since they were kids, lol. Some people began making use of wooden save which wasn’t too reliable because they could easily access and break it anytime they wanted to.
Some still make use of it now, though. Others dug holes but were heartbroken after moth and forgetfulness (forgetting the particular spot) dealt with them mercilessly. Some used the system popularly known as akawo (a system where you agree to pay a particular amount daily or weekly to the firm or individual in charge) and were very susceptible to developing heart attack as the individual or firm could close down anytime. I could go on and on but that isn’t the main aim of this article. So, let’s go back to how to ‘start’ saving money.
1. Choose a system and amount you can easily work with.
Most times, we’re so optimistic that we leave the border of ‘attainable’ and jump into illusions. A Fashion designer who is sure of making $100 daily can easily drop $10 as savings and still cater for herself. She could even decide to adopt a weekly or monthly system. Whichever way, she is covered.
But a monthly salary earner wouldn’t adopt a daily or weekly system, it’ll become a burden. The same way, it’ll be foolishness for an independent 25-year-old young man who earns 50k per month, has four younger siblings, pays #300 for t-fare to and from work every day, spends 5k on food every week and deposits 3k monthly to the hospital for his mother’s upkeep to decide to start saving 20k monthly. You can decide to go hungry while saving, but neglecting your responsibilities while saving isn’t so wonderful.
If this young man is in Nigeria, he obviously won’t be able to keep up with this budget. Unless of course, he decides to neglect himself which is a big risk. Even if he magically pulls this off, he would never remain a happy man. And even if he magically remains a happy man, just a day in the hospital will magically drain all the money he bled to gather. We don’t just eat food to have strength, we eat to remain healthy. And as you know, health is wealth. So what is the very first ‘how’ to ‘start’ saving money? Choose a comfortable system and amount. Might not be very comfortable, but should be comfortable 😎.
2. Be strictly consistent.
Don’t be that guy who after promising himself never to skip a date again, skips two. That’s why you have to adopt a comfortable system 😉. Nothing kills the vibe to save like inconsistency, it makes you feel you’re playing games with your resources. It’s better to consistently drop #100 than inconsistently drop #500. It gives you that sense of ‘hmmm I can actually do this’. Yeah, baby, this is exactly how to ‘start saving money.
3. Be disciplined.
How many times have you broken that save and reconstruct it? I guess the last time you reconstructed it, you promised yourself never to touch it again until the appointed day, what later happened? 😅. Until you discipline yourself, you’re going nowhere darling. It’s only discipline that can stop you from buying your favorite snack after having lunch even when it is placed directly under your nose.
4. SAVE WITH A TRUSTED FIRM.
You didn’t see save with a trusted person, right? It’s not a mistake. You’d be more relaxed if you know your money is in a registered institution or firm. It’ll motivate you to add to your savings and continue to organically build your money.
Many persons make the mistake of giving their funds to a totally strange and unpopular firm to save for them, because of promises of interest.
Most of these firms that use interest rates as a motivation and advertising are fraudsters. It is better to save your money with a trusted firm that doesn’t promise interests. Prioritize your financial security than saving benefits. One major tip for identifying a trusted firm is to check its track record.
5. Automize your savings
After selecting a trusted saving firm, you should automate your savings account. To do this, map out the percentage of your income you intend to save every season (week, month, or bimonthly). This will enable your bank to transfer the savings to your savings account. Hence you are building your savings stressless. NB; this works majorly with salary earners and those who have a constant monthly income.
6, Minimize your monthly expenses.
This is something you have to do consciously. Sometimes, we spend a lot without knowing it. It is because we are not financially accountable. If the money with you was entrusted in your care by someone, will you spend it without an account?
Definitely not! You will highlight every detail of your income and expenditure. You’ll also make sure you’re getting the important things only. However, when it comes to yourself, you’re quite careless and irresponsible. This is a very bad lifestyle.
This is why having a monthly budget is very important, it will help you plan your spendings and proportionate it to your income. At the beginning of every week, endeavor to plan your budget for the day and when there’s a surplus, channel it to your savings.
7. Stop pitying yourself
Many persons complain they don’t save because they don’t have money to start saving. This is not true in all cases. No matter how bad it is, you can still save! You just need to stop pitying yourself and adjust your finances to start saving.
Imagine you had a deadline to buy something for your project in school or at work, won’t you go out of your way to get it?
That’s how it should be in your savings. Until you see it as important enough, you’ll keep pitying yourself and never start saving.
Practicing to start saving money could be quite challenging, but talk of which discipline is easy to build. None! Adjusting yourself to any discipline can be very difficult.
They all require a level of hard work, self-denial, and stress. However, you know that the end will definitely benefit you, so why not cut some slabs and start dropping your dimes.
Stop crying that you don’t know how to start saving and just start with these tips.