Learn how to save money

Many people are clueless about saving effectively. Spending money might be exciting but saving is more important.  As an adult with responsibilities, it is a must. There are many ways to save money long term and short term. It will take dedication and consistency but once you hack it, you will be forever grateful.

Everyone has to save for various reasons. It could be for more present and consistent expenses such as rent, children’s school fees, gadgets and so on. You can also save for emergencies, retirement and special projects. This article will teach you how to save from scratch. You can get a pen and paper to jot things down.

The first thing to learn is the art and science of budgeting. You might have heard the phrase ‘failure to plan is a plan to fail’. Without planning strategically, you might never learn to save. To budget, draw a table with three sections. In each section, write what you ‘need to have’, ‘want to have’ and ‘like to have’ respectively. This will help you visualise your saving plan. Solve your needs first, when you do this overtime, you will have money to solve your wants and so on.

Now divide your income into three: 50%, 30% and 20%. 50% percent should go to your needs such as rent, transportation and other essentials. 30% can go to entertainment and 20% should be saved. If you need to save critically you can save 30% of your income. You can also write down the events you are saving for. For example: ‘emergency funds’, ‘30th birthday’ or ‘detty December’.  An additional way to save is to keep money in a piggybank aka ‘kolo’. In this containers, you can keep change that you do not need and little cash gifts. You can also decide to deposit a certain amount of money daily. This way, saving does not feel overwhelming. 

To follow your plans, you need to live a minimalist lifestyle. This may mean having a roommate to split cost of rent, buying thrift, using less costly gadgets and so on. Sachet water is far less expensive than bottled water. Though all these may look inconsequential, managing cost like this in every area can help you minimise expenditure. 

Many spend unnecessarily on outings. Instead of going to the movies every now and then, you can subscribe on Netflix or Hulu. You can also do group subscriptions and split the cost with your friends.  . Learn how to say no to friends when they try to persuade you to spend. Do not buy ‘aso ebi’ you don’t need. Rather than compete with your peer’s fashion or lifestyle, compete with your old saving habits. 

Lastly, look for ways to earn more. Better jobs, investing, side gigs are all ways to do this.

Remember, save money and money will save you.

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