Savings 101.
Written by Olubanke Favour
It’s 2022 and inflation charts keep rising. Salaries and monthly incomes are still the same so at the end of the day, little or nothing is saved. However, even though you may not have control over the nation’s economy, you do have control over the actions that you take. Here are tips that could help you save a little more while being the baby girl that you are.
Stash your piggy bank before spending.
I’m sure we are all guilty of settling our expenditures immediately after we receive that credit alert. Unfortunately, by the time we are done with those bills, nothing substantial is left. This can be stopped if we save at least 10% of our income — depending on how it comes, as it has proven to do a lot over time. It could be kept in a wooden or metal box ( also known as kolo), a savings account that doesn’t have a debit card, or anywhere it won’t be easily accessible. It is important to note that this category of money is not to be touched for a while. These savings come in handy at the least time we expect them to.
Put aside wants from needs.
Create a boundary between them. Buying things that you know aren’t useful because you have the money simply shows your inability to handle money. Draft a list of monthly needs. Stop impulse buying. Practice the concept of opportunity cost. If we want our 2022 to be better financially, setting aside our wants from our needs is a great start as it will help you prioritize your expenditure and find a balance between spending and saving money across a period.
Misconceptions About Money You Shouldn’t Start The Year With
Written by Abisola Adeniji
sisterlyhq.com
Practice minimalism.
I’m talking about actual minimalism, not the I-have-a-lot-of-money-but-I-don’t-want-to-show-off-too-much kind of minimalism. For example, you can cut down on expenses that you know you don’t need. Buying things on impulse could also be a hindrance to practicing minimalism. Ask yourself if you really need those expensive brands of bags? These Telfar bags are entering your eyes, I understand. But can you just close them until you are certain that buying them won’t do anything to your account? The truth is while you may feel good while you are spending the money, you may wish you had the money later.
Budgeting
The act of setting up a budget will take charge of your financial sphere. The first step is to get an outline of your everyday expenditures, rents — including when they’re due, and your spending habits. By sticking to a budget, you can save thousands of naira annually and avoid overspending. Financial apps such as .Mint budgeting app, Pocketguard, PiggyVest, CowryWise, Kuda, are great budgeting tools you can work with to improve your budgeting skills
Bulk buying.
This is an age-long tip in the saving culture. The thing is, if you have any items that you use frequently, then check if you can purchase them in bulk and get a discount from a local wholesaler. Oftentimes you’ll find that you’ll get a much better per-unit price, and you’ll rarely have to worry about running out of that item again for a while. Examples of these things include food items, toiletries, skincare products, etc.
Joint subscription accounts.
Saving money doesn’t mean starving yourself of premium entertainment. Another way you can save and still enjoy the content you love is to bring friends together and choose discounted plans for subscriptions on Spotify and Netflix, then split the costs between yourselves. This is cheaper than each person having their subscription account. This way, money is saved!
Favour is a 400-level student of the faculty of law in the University of Lagos. She is a writer who finds joy in sharing stories through fiction and non-fiction. She loves food, fashion and poetry.
Edited by Zulu Nneka Anyaogu
Zulu is a Lawyer, Programs manager, and Youth Human Rights Advocate who is passionate about women’s rights and the inclusion of young people in decision-making spaces. In her spare time, you’d catch her binging on movies, reading crime and mystery novels, and eating. Connect with Zulu on Instagram, Twitter, and LinkedIn.
Published by Akinsipe Temitope
Temitope is a young storyteller who thinks all stories are worth telling. She loves to inspire people to do what they love and follow their passions, tell their stories, and live in the present moment. Connect with Temitope on Instagram, and Twitter.
