August 16th, 2019

HOW I SAVED 100 THOUSAND IN 3 MONTHS

Being a young person we are always advised to save money from everyone and I mean EVERYONE. It’s been very stressful to look good, eat well, pay bills and still have savings especially if you’re an entrepreneur and a student like me and if you’re also like me, leaving your money in the bank doesn’t help either because its easily accessible . I have tried many methods for savings some have worked and others not so much. Ever since I started committing to my savings, it’s given me this confidence and peace of mind that I have emergency funds stashed somewhere and can never be stranded. So here are some of my favorite tips for saving money:

TRADITIONAL METHOD
This is a widely known method, it is quite outdated but I find it is still very much in use and it works for me. Having a box or as we Nigerians call it “kolo” has helped me in so many ways. I once had a box I have been saving money in for over 7 months and once I broke it I had saved a little over 80 thousand and that was so exciting for me. So now I always keep a traditional saving box. It helps me have a mini saving goal which comes in handy if I’m saving up for a phone or a shopping trip. There are now many fancy saving boxes available that even entices you to save. My go-to company to purchase saving boxes from is mykolong you can visit them on Instagram for a wide variety of saving boxes and it’s also good for kids to cultivate the act of savings at a young age.

AUTOMATIC SAVINGS
This is another effective tip for saving. I use a savings application that automatically deducts money from my account at a date that I set. I started using this method when I realized that I had a habit of spending money as I see it i.e. as long as I have money in my account I keep spending. So as they say “out of sight, out of mind” I program this application to take out a certain amount I’m comfortable with out of my account. My go-to savings application is piggyvest and I am so in love with this app. It has something for everyone and even gives interest on savings without taking out ATM maintenance charges (wink). If you’re a working man you can join the cooperative at your work place or start one. That way before your salary is sent a particular amount would have been deducted for your savings.  This is also a type of automatic savings.
 
WRITE A LIST BEFORE YOU GO SHOPPING AND STICK TO IT.
One of the easiest ways to save money is to only shop when you have a list, because when you’re without one, you typically end up making impulse buys and unplanned purchases all things that cost money. Creating a list before you go shopping is especially important. Not only can it help you buy items that fit with your meal plan, but it can also help you avoid buying food you might waste and other unnecessary things. This had helped me a lot, I also put potential prices of what I want to buy and make a budget, that way i won’t spend unnecessarily.  Always create a list and, more importantly, stick to it.

DRINK MORE WATER.
I’m sure this sounds very funny but not only does drinking lots of water have great health benefits; it has financial benefits, too. Drink a big glass of water before each meal in order to stay fuller longer and ultimately eat less. Not only will you save on the food bill, but you will also feel better after you become properly hydrated. Even better, drinking more water whether in a refillable bottle or at restaurants means spending less money on beverages like soda, juice, and alcohol. You’ll be shocked how much can be saved by following this tip.

AIM FOR SHORT TERM SAVING GOALS. 
I find it is easier to keep up with short term saving goals than long term. i.e. instead of aiming to save 200 thousand in 6 months try aiming for weekly goals or even monthly. It is easier to commit to this short term goals than long tern especially if you have a spending problem.

AVOID STRESS SPENDING.
It’s easy to justify spending money just to wind down from a stressful day at work or school. However, it’s rarely a good idea. Instead of buying things you don’t need to make yourself feel better, it might be wise to find other ways to de-stress instead. Exercise is always a good option and even a good old-fashioned nap. Read, watch movies, or talk to friends if you’re stressed out. Spending money won’t reduce your stress in the long run

INVEST
It’s not just enough to save money, you should also make investments. There are a variety of reliable investments that you can key into. Either at the bank, using applications such as piggyvest, a business and even landed properties. This increases your income and more income means more savings.

Writer
Hannah Ohore.