My first salary as a Youth Corper in Lagos was N20,000 in 2010. And by the end of my NYSC year, I had saved N50,000 while feeding, clothing and transporting myself with no other income. The only basic expense I didn’t cover was accommodation because I lived in a place already paid for. Now N50,000 over 12 months might not seem like a lot but remember this was 21% of my total annual salary at the time. Most financial gurus and experts counsel that you save at least 15% -20% of your income.
So how did I do it? Loads and loads of discipline for starters! Here are some tips that also helped as well:
Explore savings options
There are multiple ways to save your hard-earned money. Many of us are content to save in any old savings account. And banks offer the same savings rates across board, but they also offer other and better ways to save. From fixed deposits to high yield savings accounts, there are more lucrative options to a usual savings account. You could also save for your children’s school fees or medical care using these accounts and earn higher interest in the process.
Pack your own lunch/Brew your own coffee
One way to increase your savings is to cut down on expenses. As a youth corper serving in Victoria Island, I would cook 2 or 3 bulk meals during the weekends and plan my work lunches around that. It went a long way. The office cafeteria catered lunches that ranged from N300 to N1000. By bringing my own lunch, I saved at least N1,500 every week. Today I earn a whole more but do the same thing. There are of course a couple of exceptions – when I am meeting friends or colleagues for lunch for instance but for the most part, I bring my own food to work.
Comparison shopping
Thank goodness for online shopping and reviews. While I do a lot of my grocery shopping in physical stores today, I have learned from online reviews which grocery stores have cheaper prices on certain goods. Every week, I check out online ads to know what’s on sale and plan my shopping around this. As a corper, I quickly learned that mainland markets offered you more bang for your buck than shopping on the Island or Lekki, so I made monthly trips to stock up on foodstuff.
Reduce entertainment expenses
Do you really need cable TV when you are never home? How about another night at the club spending money you don’t have on over-priced drinks? Or that Amazon Prime subscription when you shop on Amazon twice a year? Oh, how about that gym membership when you hardly have time to sleep? These are things we can live without but don’t really want to and at the end of the day, they add up. For instance, an annual DSTV premium subscription bill amounts to N166K per year. Okay I am probably barking up the wrong tree with Big Brother Nigeria in session, but you get my drift. Are you spending money on entertainment that can be turned into substantial savings or investments?
Have a savings goal
A goal can be a major driver towards saving. It is however important to set actionable goals so as not to get discouraged. Hoping to save a million naira in one year on a N50,000 monthly salary will be next to impossible so create small goals that you can actually accomplish. As a corper, my goal was to ensure I had enough to survive on for 3 months after NYSC. By my calculations, I would need about N15,000 monthly to cover my expenses without the daily expense of transport to work and I saved towards that.
Buy Refurbished/Gently used vs New
From phones to laptops to clothes to cars, buying used items can save you tons.
There are many stores that are happy to sell you refurbished electronics. Ensure that the electronics are certified refurbished though. I always buy used electronics except an item on sale and the price is comparable to the used version and this has saved me tons.
What personal ideas have helped you implement an efficient saving culture? Feel free to share in the comment.