The Power Of Saving Money: How Moni Can Help You Achieve Financial Growth.

Written by: Toyosi Adebusuyi

Let’s discuss a goal that’s on all our bucket lists — prosperity. We’re always looking for ways to increase our income, improve the value of our money, and reduce the amount of time we spend working for it. While saving money is an important step towards financial independence, it’s also essential to be prepared for challenges such as inflation, Ponzi schemes, naysayers, and questionable financial habits.

To achieve financial growth, it’s important to treat your money like a love interest that you want to keep in your life forever. This means not only knowing how to make money but also how to manage, nurture, and grow it. In this article, we’ll explore what it means to save money, the incredible things your savings can do for you, how to develop a savings habit and take advantage of Moni to reward your financial discipline and achieve financial growth.

What is savings and why should I care?

Investopedia defines savings as the amount of money left over after a person who earns money deducts their spending from their disposable income. Not disputing the fact that this is true, saving money is not just reserved for people who actively earn money. Some people started saving money when they were much younger without a job, just an allowance from parents and aunts. And there must be times when you just received unplanned bonuses at work, make extra profit in your business, or receive from friends and family and you just decide, “Oh, I should keep this”.

If you’ve never saved money and can’t relate to the above, that’s fine. It’s a habit you can build and you might even be wondering why you should care, especially since you probably work a stable job, make little money, or depend on benefactors for financial support. If you care about the following things, then you should care about saving money:

• Increasing your income
• Travelling on vacation
• Retiring rich
• Starting a business
• Buying your dream house/car
• Achieving financial independence
• Funding a life-changing course
• A luxury wedding
• Getting anything materialistic.

You have a financial need, don’t you? Probably needs even. We’ve curated seven more reasons why we think it’s important for you to save money.

How people saved money in the Past

Saving money has been a popular prosperity hack for years. It’s not a new concept. In the past, our ancestors saved money to start businesses, pay for debt, fund school fees, and pay for properties and to date, even we still save money for these reasons. The only difference, however, lies in how the methods of saving money have evolved over the years. using different methods.

Some of the ways our grandparents saved money in the past include:

• AJO: Ajo is a thrift-saving scheme that is established between a group of people with similar financial goals. A group of trusted people would come together, pool resources and contribute money either daily, weekly, or monthly and after a specified period, the total proceeds will be divided among people in the group either based on rotation or chance.
• Cans and envelopes: Imagine casually walking your dog and discovering gold coins worth millions of dollars. This was the story of a lucky young couple in 2013. They found eight metal cans worth a whopping $10 million buried on their property in Northern California. Cans and envelopes were used to keep money in the past because they were unassuming. If you were looking for hidden money, the last place you’ll probably think of is a can or even an envelope.
• Kolo (Wooden/Moulded piggy box): Saving money using a kolo, a small box made of clay or wood with a hole in the middle to add money, was a highly favoured method in the past. The primary objective was restricting access to your money, and breaking the kolo was the only way to withdraw funds. To this day, many people still save using a kolo, eagerly anticipating the end of the year-end to break it and find out the total amount they’ve accumulated. See how much money this family saved in a kolo.
• Growing food: Back in the day, there weren’t many supermarkets, and they were mostly for rich folks. But regular people who had farms could save money by growing their own crops for daily meals. And since there were no modern fertilizers to rely on, their produce was pure, organic goodness. Talk about a win-win situation!
• Under the bed: One of the common and easiest ways to save money in the olden days was by keeping money under the bed, either beneath the mattresses or inside boxes tucked under the bed. It was easily accessible and efficient.
• Gold: Gold has always been a valuable asset for preserving wealth because, like land, it tends to increase in value over time. In the past, people who wanted to spend their money on jewellery often chose to buy gold instead, knowing that it would retain its value and could be sold in the future if needed. This allowed them to safeguard their money and even earn a profit from it. Additionally, gold has also been used by many to preserve generational wealth.

As of today, all of these methods are still being used by a couple of people to save money. The traditional kolo for example is still used today even by younger generations to keep small amounts of money, and we still have families and people who grow their food either on farms or in small gardens. But times have changed, and so has the way people keep money.

While some of these methods presented some advantages, most of them aren’t safe. Aside from the fact that you’re losing your money’s value every day to inflation, the chances of you losing your money to theft or even rodents and insects are also high. In January last year, Nigeria’s inflation rate was at 15.6%, now it’s 22.04%. Imagine if you had saved N100,000 for a period of 12 months using archaic methods like a “kolo” or “container”, the value of your money would have drastically reduced by at least close to 7%.

But guess what? If you had locked that money in a high-yielding savings account like Moni, you would have gained an additional N21,000 on your money and regardless of a hike in inflation, you’d be safe.

Saving money is a great way to exercise financial discipline and hit your financial goals but the “how of it” is just as important as the “thought of it”. We’ll discuss more about this later on in the article but before that, let’s take a quick look at how you can develop a savings habit, especially as a beginner just starting their savings journey.

Read: A Beginner’s Guide To Saving Money

Developing a savings habit

According to the report conducted by the Central Bank of Nigeria’s financial inclusion secretariat and Enhancing Financial Innovation & Access (EFInA), half of the Nigerian population feel they do not have enough money to save. Sahara reporters also adds that only 2% of Nigerians have more than N500,000 in fixed deposits. The minimum wage remains at N30,000 monthly in Nigeria and even very recently, KPMG released a report predicting an increase in the unemployment rate from 37.7% in 2022 to 40.6% by the end of the year, 2023. Let’s not even get started on the inflation rate, unexpected expenses, bills and rising cost of living in the country.

Saving money can be a daunting task for many — in fact, let’s not lie. It’s tough. It’s not easy to earn so little money, pay so much money to live and exist, and still reserve some for rainy days. Some people will say, “Please, my future will take care of itself”. But will it?

We live in very uncertain times. A few months ago, there was a scarcity of cash that left everybody reeling in pain. You could literally buy a bottle of Coke today for N150 and tomorrow, it’s N200. As small as the change may seem, think about how many times you have to buy this Coke for the new price. JAPA is not on pause. Almost everybody is planning how to leave the country behind closed doors. And even those that don’t have a choice but to stay and continue to hustle, they either hate their jobs or are planning for ways to start new ventures so they can scale up their finances. Unless you’re the offspring of a family sitting on generational wealth, making more money and living a more flourishing life is definitely top of your priority list. Your first step to achieving this is by saving money.

Don’t look at it as something that’s only reserved for people who live comfortable lives or those who have a huge chunk of money to keep away. You can start small, it’s not only for people in the big leagues. Take a cue from Michael, a security man who earns N50,000 working two shifts in Lagos, Nigeria, but still manages to save between N5,000–7,000 every month. Do you know how he makes sure to stay consistent and disciplined?

He made sure to make easy access to money harder for himself by not collecting an ATM card so he’s not tempted to spend money unnecessarily. He’s also the sole breadwinner and his family in Ondo depend on him so he cannot be caught slacking.

If he can do it, so can you!

Here are some simple tips to get you started in building and developing a healthy saving habit:

Pace yourself

Have you ever experienced financial anxiety? It’s when you obsess over your money situation, even if you have enough. Maybe you’re afraid of losing it all or trying too hard to save every penny, depriving yourself of basic needs. Some of the major factors contributing to high levels of financial anxiety and stress include a lack of assets and insufficient income, high debt, money management challenges and low financial literacy. It is also reported that women, young adults, people with financially dependent children, and those who are low-income, unmarried and unemployed are most financially anxious so you are not alone.

But here’s the thing: you are not in competition with anybody. Your struggles and goals are unique to you and you alone. Do not make a habit of paying attention to the people who look like they’re doing better than you. The grass isn’t always greener on the other side and you may only be forming assumptions based on the things they show you.

To reach and surpass your financial goals, it is very important to prioritize yourself. Your money mindset must be resolved to shun external distractions and your eyes must be set on the prize.

Create a budget

If you feel like your money is slipping through your fingers each month, don’t panic. Creating a budget can help you avoid overspending on things you don’t really need, making sure you allocate enough money to your essentials, wants, and savings. The 50–30–20 budgeting rule is an excellent guide to follow, where you spend 50% of your income on your needs, 30% on your wants, and save the remaining 20%. It’s an easy and effective way to stay on top of your finances and ensure that you’re not overspending.

Save In Bits

A study reveals that of the total number of people who set new year goals in December, only 19% of them are able to achieve those goals, and that’s after two years. A major contribution to this is that a lot of times, we set unrealistic goals for ourselves. This isn’t much of a surprise especially since we’ve been taught to AIM HIGH and DREAM BIG as your goals aren’t big enough if they don’t scare you right?

We highly commend you for having so much faith in yourself — faith that gives you the confidence to set big goals, but we’ll also like to humbly implore you to set realistic goals that are SMART. The first place to start is by examining where you are.

• Do you earn daily, weekly or monthly income?
• Do you have a job?
• Are you dependent on your parents?
• Do you need to learn a skill to make more money?
• How much do you earn?
• What expenses do you tend to each month?

If you earn little money, for example, or struggle with consistency, you should try saving little amounts of money daily or weekly. Before you know it, you’ll slowly graduate into making that a habit and switching to a monthly frequency.

The expenses you incur each month also affect your ability to save a lot of money at once. Let’s say you earn N150K and know somebody who earns the same. You then see them living large, buying and tapping into new fashion trends but you can’t do the same thing. Don’t for once think because of these, they’re doing better than you. They may have lesser expenses than you or even have rich siblings who help them out, while you on the other hand have rent, black tax and other expenses to take care of.

As you continue to reach for financial success, you must fall in love with your journey. Start small and slowly build the life you want — a life where you not only make more money but experience ease.

You can easily do it all on the Moni App.

Automate Your Savings

Do you ever find it hard to stick to your saving goals? Or maybe you forget to save altogether? We’ve all been there. But what if we told you that automating your savings could make it so much easier? With Moni, all you have to do is create a savings plan and pick a date that works for you, and we’ll handle the rest. Whether it’s a portion of your income or a specific amount, you can trust us to keep you on track towards your financial goals. Say goodbye to the struggle of saving and hello to a more secure financial future with Moni.

To automate your savings on the Moni App:

• Download the Moni App
• Sign up and verify your BVN
• Create a safebox or reserve saving plan. Check out the differences between both here.
• Choose your daily, weekly or monthly debit day.

You can do all these in less than 5 minutes!

Pay attention to the little things

Saving money doesn’t end with putting away a chunk of your income, there’s more. It’s also about paying attention to the little things.

If you have ever found yourself leaving appliances and gadgets on for no reason or wasting gas and burning food while cooking, it’s time to make some adjustments. See how Ayo, a journalist managed to spend only N10,000 on electricity for an entire year in Lagos!

Also, make sure to not fall for the misconception that buying in smaller quantities is more cost-effective. Bulk buying not only saves you money but also ensures your well-being. So, next time you go shopping, think big!

And lastly, TRACK. You cannot improve the things you don’t track or measure. In Thomas Monson’s words, “When performance is measured, performance improves. When performance is measured and reported, the rate of improvement accelerates.”

You must be very intentional about sticking to your budget and financial goals. A great way to do this?

• Set daily or weekly goals. For example, your goal for the week may be to not buy food from restaurants.
• Find your spending triggers and tackle them.
• When making online payments, especially transfers, include accurate descriptions of what you’re paying for.
• Review your bank statement often.

Find a money buddy

Want to go far with your finances? Don’t journey alone. Having a supportive friend who’s also focused on their financial goals can make all the difference. When you commit to someone that you will do something, it stretches your probability to 65%. Moreover, when you create a specific accountability appointment with a person you are committed to, the odds are in your favour: 95%.

There are so many benefits to having an accountability partner. With a finance buddy, you can:

• Encourage and motivate each other to reach your financial goals faster.
• Together, you can bounce ideas off each other, share your struggles and triumphs, and help each other stay on track.
• Having an accountability partner will challenge you to new things. They can help you break bad financial habits.

When choosing a partner, it’s also very important to pick somebody who has your best interest at heart, not a close friend who always likes to tell you sweet things. Choose somebody you’re sure will push you to smash your goals. You can find additional tips for picking the best accountability partner in this Forbes article.

At Moni, we live by the tagline “creating access to shared prosperity” because we believe that everyone deserves to enjoy the good life. Economic uncertainty can strike at any time, but with our help, you can weather any storm. We value your commitment to your financial well-being and are proud to offer you a range of benefits to enhance your financial prosperity.

Grow your savings like never before with Moni

Investing can be a great way to grow your hard-earned money, but it’s important to choose the right platform that offers you the highest returns. While banks may seem like a safe option, their interest rates are often disappointingly low (a tiny 4.2% interest rate), making it feel like your money is slipping away.

On our platform, we understand the importance of your financial goals and strive to offer you the best possible savings options. Our two incredible savings plans, SAFEBOX and RESERVE, provide you with high-interest rates of up to 19% and 21% per annum, respectively.

For instance, if you save N500,000 for a year, you could earn up to N95,000 or N105,000, depending on the plan you choose. You work hard for your money, and we want to help you make the most of it.

With our platform, you can trust that your savings are in good hands and that you will receive the best possible returns. Let us help you achieve your financial goals and secure your financial future. Choose the right plan for you, and enjoy the peace of mind that comes with investing in a reliable and trustworthy platform.

Withdraw your interest monthly

Why wait for your savings to mature before you can enjoy the rewards? With Moni, you don’t have to. We understand that saving your money is hard work, and you should be able to reap the benefits as soon as possible.

That’s why we offer you the option to withdraw your interest on a monthly basis. This means that, as soon as you start saving, you can start earning interest, and you don’t have to wait until the end of your savings plan to enjoy the benefits.

Whether you need the extra cash to pay for small bills like electricity and data or want to treat yourself to something special, the monthly interest option gives you the flexibility to use your earnings however you like. It’s a great way to make your money work for you and enjoy the benefits sooner rather than later.

And don’t worry, if you prefer to let your savings mature before withdrawing your earnings, that’s always an option. We want you to feel in control of your savings and choose the option that works best for you.

Financial Security

It’s disheartening to work hard and save money, only to fall victim to a scam. Unfortunately, this has happened to many people who were simply trying to make the most of their money. That’s why, before investing in a savings app, it’s important to take a few precautions.

Read Things To Look For In A Savings App.

We understand how important it is to keep your money and personal information safe. That’s why we’ve implemented several measures to ensure the security of your account and data.

All transactions on our platform are secured with two-factor authentication (2FA), which adds an extra layer of protection to your account. We also operate under an MFB license, which means we’re a legitimate financial institution that adheres to strict regulatory standards.

In addition, we store all your information in a database that is securely transmitted over HTTPS. This means that any data you enter into our platform is encrypted and protected from hackers who may try to tamper with it.

At Moni, we take the security of your account and data seriously, so you can have peace of mind knowing that your money is safe with us. Don’t let the fear of scams deter you from investing in your financial future. Choose a platform that prioritizes your security and protects your hard-earned money.

Real-life practical tips

We believe that managing your money shouldn’t be a daunting task, and you shouldn’t be bound by rigid, unattainable guidelines. Instead, we’ve found that using storytelling as a powerful tool to teach you about personal finance in a relatable way can make all the difference. We believe that by sharing the experiences of others who have faced similar financial challenges, you’ll be better equipped to make informed decisions about your own finances.

Our stories are designed to be engaging and thought-provoking, so you can learn about personal finance in a way that’s both fun and informative. Follow us on Instagram, Twitter, and LinkedIn to stay up-to-date on our latest stories and have access to a wealth of financial knowledge.

There is a remarkable power in the act of saving money — a power that has endured through the ages, as it remains a means of not only fulfilling people’s desires but also amassing great wealth. Though some may argue that savings alone cannot lead to riches, this is simply untrue. Saving is the bedrock of building financial prosperity — without it, how could one take advantage of the high-interest rates available? How could one invest in courses to expand their skills, or provide for their basic needs?

Our hope is that this article has inspired you to embrace the art of saving, enabling you to fully realize your financial potential. So why not start today? Begin your journey towards financial freedom by saving with the Moni App, and watch as your dreams start to unfold before your very eyes.