Good Morning 😃
How are you doing?
After taking a closer look at my expenses for the month of April, I was shocked to discover that a significant portion of my earnings went towards some expenses that were beyond my control. For instance, 30% of my income went towards house rent, while “mummy, buy me this, buy me that, shoes and clothes for my children at the trade fair” accounted for a further 20% of my earnings. I also incurred additional costs such as Uber rides, shawarma, and tigernut drinks, which may have been the result of indulging in some of those “weird cravings” that often arise at the beginning of the month. Despite my efforts to gather knowledge on social media, I am still unable to determine what exactly is causing this financial strain.
This question was recently posed to me, and I know that many others may be experiencing similar difficulties with budgeting and saving in Nigeria.
As you know that at MoneyAfrica, our aim is to assist you in making informed financial decisions, including the crucial aspect of saving. We understand that saving money can be challenging, and it can be even more difficult to find ways to save money in Nigeria. With the constant barrage of expenses, there always seems to be something that demands your attention and your money. However, our mission is to provide you with the necessary tools and resources to make saving money a more manageable and achievable goal.
- Buy your goods in bulk
One useful money-saving tip is to buy your items in bulk. Buying in bulk can save you money in the long run because you won’t have to purchase that item again for a while. This approach is especially beneficial for items that you use regularly since it helps you avoid extra spending each time you run out of them. For instance, if you regularly consume beverage, buying all you will need for the month at N15,000 may be a wise decision, as the cost may increase to N18000 the following week.
- Live within your means
Living within your means is essential to saving money. It requires discipline to align your spending habits with your earnings. For instance, if ordering a ride is not within your financial means, consider taking public transportation instead. If you are planning a date and cannot afford an expensive restaurant, find a more affordable alternative. It’s important to avoid overspending just to impress others or to succumb to peer pressure that can drain your finances. Ultimately, prioritising your needs over wants and sticking to a budget that reflects your income can help you save money and avoid financial stress.
- Wear your bargaining pants
When it comes to shopping, it’s always a good idea to wear your bargaining pants. Bargaining or negotiating can help you get the best price for the item you want to buy, whether you’re shopping at a market or with online vendors. By negotiating with the seller, you might be able to secure a lower price or additional discounts. So, the next time you go shopping, try this method of slashing whatever price you’re told in half, except you know the price yourself. Hear what they say after that and proceed with further negotiations from that point. Bargaining can help you cut down on expenses and save more.
- Be budget-conscious
It is important to be disciplined when it comes to managing your finances. With so many expenses calling for your attention such as food, transportation, electricity bills, fuel, data, hangouts, friends, family, and even random people asking for money, creating a budget and adhering to it can greatly benefit you. It may be necessary to remind yourself that regardless of how compelling someone’s story may be, you must stick to your budget and refrain from making any unnecessary transfers.
- Automate your savings
Having a designated high-yield savings account is an excellent method for saving money efficiently. By setting up an automatic saving system, you can save money as soon as you receive your salary. Additionally, having a specific savings goal can make it easier to save money. So, have you established a clear goal for your savings? You can start with Ladda.
Ladda is a savings platform that offers you up to 10% interest per annum. Here is the link to download the Ladda app for Android users; https://play.google.com/store/apps/details?id=com.ladda.ladda
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MoneyAfrica premium plan
Are you a mid to high-income earner? Do you find communities a bit too busy? You should sign up for our premium plan.
You can learn more about that here.
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We often get questions regarding how to plan your finances to align with your relocation plans, especially for students seeking to further their studies. As always, we have heard you, and we have put together an e-book to help you navigate this. Follow this link, to get your FREE copy of the e-book: The Japa Encyclopedia.
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