How do you save in the midst of a thousand and one financial needs? How do you stay on top of your plans to save a particular amount within a time frame? The solution is simple – decide to save, save eventually and save consistently.
Little drops of water, they say, make an ocean, so does every naira count. When it comes to saving, no amount is too small and the earlier you start to save the more money you will save in the long run.
Here is how to save effectively;
Observe the rule
One of the golden principals of financial management is the “50, 20, 30” rule, which when practised helps you save effectively. The “50, 20, 30” rule helps you allocate your resources properly and effectively; 50% of your earnings to essentials such as accommodation, transportation, feeding, and utilities; 20% for future goals – saving for your masters, etc; and 30% for miscellaneous spending.
No Keeping up with the Joneses
One of the biggest mistakes undergraduates make is to compare themselves with their contemporaries and then try to meet up with their lifestyle. Often times, this leads to exhausting all you have and running into debts especially when your earnings don’t match that of the people you are trying to keep up with.
Rather than keep up with the Joneses, who may not be as glam as the gram portrays them, work hard, save every dime you have and neglect frivolous spendings and social media show-offs.
Analyse your budget
You may think you have too much to do with money, but take a good look at the money you saved over the past month regardless. Divide every cost into two categories: “need” and “want.” Then go through your “wants.” Are you getting manicures when you could polish your nails at home and save the money? Ordering takeout pizza when there’s food in the fridge? Reduce those extra expenses to create space in your budget for regular saving to further your education.
Prioritize your future self
Each month, you pay regular bills: data subscriptions, food, transportation, etc. Add someone else to that list: your future self and master’s program. When you treat savings as mandatory, you make it that much easier to stay serious about staying on track.
Use a Piggybank
Putting money away in a box at home may be old-fashioned and mostly for children but it is an effective way of saving when done consistently. Little denominations in one thousand pieces will eventually make up a reasonable sum of money that can be used to solve minor challenge such as feeding or transportation during your Master’s program.
Make your savings automatic
Once you’ve figured out how much you want to save each month, and you’re confident you’ll pull in enough income to meet that goal, you can set up automatic transfers to your savings accounts (a separate one from your usual account).
You can also explore the GTBank Spend 2 Save service, which automatically allows you to save between 1 to 5% of all expenses made from your GTBank Account. By doing these automated deposits and savings, you can eliminate the temptation to redirect your extra money to other things.
All the best as you stay committed to saving!