Nigeria is the populous country in West Africa, Abuja is the capital of Nigeria. The official currency of Nigeria is Naira. The economic realities of Nigeria make it difficult for the average man to save. Most people don’t have enough money to eat or pay their bills, let alone save. According to the National Bureau of Statistics, more than 82 million Nigerians live on less than $1 a day. Most Nigerians live hand-to-mouth; as a result of this, they don’t inculcate the habit of saving.
Saving money as a Nigeria is hard, but it is no impossible. You can do it if you become intentional about it. The benefits of saving money should motivate you to save. You can learn about these benefits here.
Discussed below are some practical steps you can take to save money in Nigeria. These steps are grouped under six categories: fundamental, food and drinks, home and living, transport, health, and entertainment.
The tips below are fundamental tips that you can practice to help you save money.
Have the savings mindset:
Saving is a mindset; if you don’t prepare your mind to save, you’ll never save. To start saving, you need to first develop the right mindset towards it. See the positives in savings and commit to it.
Create a budget: Creating a budget will help you prioritize your expenditure. It will help you avoid random/unplanned expenses and will also help you to save. If you can, get a budget planner. Plan on how you’ll reduce your expenses and try not to exceed your budget.
Commit to a savings plan: It will be easier for you to save if you commit to a savings plan. As you make your budget, make sure you create a savings category within it. Have a fixed percentage that you’ll save every month. It should be nothing less than 10% of your income.
Automate your savings: Automating your savings is one of the most efficient ways of saving money. It involves you giving your bank instruction to automatically deduct a certain amount from your salary account into your savings account once you receive your salary, pension, or earnings.
Platforms such as Cowrywise and Piggyvest are also great for saving money. You can create an account on these platforms and set them up to automatically deduct a certain amount from your account every month.
You can read about the best platforms to save money in Nigeria here.
The tips below will help you cut down on your food and drinks expenses.
Buy your food items in bulk: Buying your food items in bulk will help you cut down food expenses and consequently, allow you to save money. Only stock up on non-perishable food items. If you stock up perishable items, they will eventually spoil and this will cause you to spend more.
Reduce the frequency at which you order food or eat out: Cooking your meals at home is another effective tip that will help you save money. When you order food or eat out frequently, you spend more. Adding up the expenses, you’ll discover you have little to save.
Don’t cook more than you can eat: When you cook more than what you can eat, you may end up wasting food. You may not know it, but the little bits of food you waste add up into an amount that could have been saved.
Take food along with you to work: Going with food to work is another tip that will help you cut down on expenses and consequently, save money. Always prepare food from home and take it along with you when going to work.
Practice the tips below if you want to cut down on your home and living expenses.
Do your laundry yourself: It feels comforting having someone to do your dirty laundry for you, but it is not savings-friendly. Instead of giving out your laundry to someone to do for you, do it yourself. You will be able to save a few bucks by doing your laundry yourself.
Avoid impulse buying: When you see something you like, give yourself a few days before buying it, especially if it’s shoes or clothes. Impulse buying will not allow you to save; it normally leads to a depleted saving or checking account. Follow the simple rule of waiting before making a purchase.
Do your chores yourself: It’s nice to outsource your chores, but it’s better to do them yourself (for the sake of your pocket). No one loves to do chores; we all prefer that someone else will do it for us. But for you to cut down on your expenses and have something to save, you must learn to do your chores yourself.
To cut down on your transportation expenses, follow the tips below.
Don’t commute during rush hour: There is always an increase in transport fare during rush hour. To avoid this, you need to leave your home a little earlier or wait till a time you know there will be no rush before commuting. The added cost in transport fare during rush hours is an expense that can be avoided and saved.
Use public transportation: For someone who wants to cut down on expenses and have more to save, private cab services like Bolt and Uber are not the best transport option. Instead of these private cab services, commute with public transport. Moving with public transportation is one of the economic ways to save money.
Carpooling: If you insist on moving with private cab services like Bolt, make sure you take it with one or two of your friends. This way, the bill will be split; this will help you cut down on expenses, and at the same time, you’ll still be able to enjoy a comfortable ride to your destination.
Health tips you can practice to help you save money are given below.
Cut down on drinking alcohol and smoking: When you spend on alcohol and cigarettes daily, you may see the money spent as insignificant, but when you add them up, you’ll notice how big it is. Cigarettes and alcohol can also cause health problems for you, causing you to spend money on medical bills.
Get health insurance: With health insurance, you’ll get fewer medical bills. Even though you will be paying a certain amount every month, opting for health insurance is a good option that will save you money ultimately. Whether it’s headache, malaria, or something even more serious, your health insurance will cover it.
Follow the tips below if you want to cut down on your entertainment expenses.
Cut down on data expenses: Except you are promoting a business on social media, you need to reduce the amount of time and data you spend on it. Cut down on your data expenses by spending less time on social media, streaming platforms, and other data-consuming apps. If you accumulate the money you spend on data, you’ll discover it amounts to something big and that you could have saved.
Use a cheaper call plan: Communicating with friends and families shouldn’t be canceled entirely for you to save. Opt for a cheaper call plan that will allow you to talk more and spend less. Platforms like WhatsApp can also be used to call instead of regular calls.
Go to the cinema less: When you are on a budget, limit going to the cinema. If you want to see a movie, you can do so at home. Going to the cinema adds to your expenses; it leaves you with little to save.
Other Tips You Can Adopt to Save Money
When you save today, you are preparing yourself for a reward in the future. Saving will help you to peacefully face any money-related problem that you may face in the future. It gives you comfort knowing well that you have something you can run to in case of emergency.
Develop the habit of saving money; it is one of the best financial habits to adopt. Although it is not easy to save money in a country like Nigeria, following the tips above will make it easy for you.
