Let’s face it: trying to save money as a young person in Nigeria is actually like trying to outsmart a grandmaster in a game of chess. As the cost of living increases, the need to maintain appearances, the attractive shiny objects, cool hangout spots, the weekend beckons, and developing a steady saving discipline may well feel like a chore. But don’t you worry, you don’t need a cape to become a savings superhero. With the right strategies, one can start saving like a pro even in the worst of times.
Why Saving Matters More Than Ever
So before going straight to the advises of the tale, let me explain with candor why it is ever so more important now to build up the savings. There is fluctuation in the economy and the prices of basic commodities in the midst of rising daily.
From the food we eat to the transportation that gets us around or even the data that fuels our social media scrolls – everything is getting more expensive at a rate that would have you pointing fingers at ‘inflation’.
As youths in Nigeria, it is not only wise but very necessary to have savings at all times. It gives you a safety net for emergencies, helps you plan for future goals; whether it is to start a business, advance your education or take that long desired vacation, on top of that, it provides that long-needed security in an otherwise unpredictable financial climate.
Mind Your Mindset
The first step to saving successfully is all about your Attitude. If you believe that saving is tedious or out of the question, it’s high time to shift gears. Begin to consider saving as something that is made to protect your future freedom. If you could save a naira today, you can have a step forward in achieving all you need in the future. Therefore, irrespective of whether the money is to cater for an emergency or for a special occasion, swerve and keep your eyes on the end goal.
Set Realistic Goals
it’s not always possible to save huge amounts at a time; not, at least, if you are only beginning on the journey. That is why it is necessary to define correct, reasonable targets for savings and payment in general. Start small and gradually increase the number with time.
For instance, when creating financial goals, look at saving at least 10 percent of the money that you earn per month. It may not seem like much at first but over time, it’ll add up big time.
it is advisable to set goals which are specific. That way instead of saving for an amorphous ‘someday’ one is able to save for an actuality such as a laptop, a new side hustle business or a vacation with friends. This is because when saving one needs to have a picture of what he or she wants to achieve at a later date the process becomes more fulfilling than when one is aimlessly saving.
The Power of Budgeting
That may not seem very interesting, but – guess what – budgeting is revolutionary. Writing a budget enables one to identify areas where he or she spends money and those areas one needs to be more cautious. First of all, try to estimate your spending for a month and then divide the expenses into groups (for example, food, cab, motion pictures, and so on). This will in return help you to know where or on what you spend most of your money hence where you should cut your expenses.
After being able to contain your spending, set a certain percentage of your monthly earnings for saving. You can look at it as your ‘pay yourself first’ scheme. The focus is to apportion your savings as an expense that you cannot avoid, just as you cannot avoid paying rent or data charges.
Automate Your Savings
This is a sad but true maxim when it comes to saving: out of sight, out of mind. One of the best plans can be to make regular monthly transfers from your paycheck directly into your savings account. This way, you would not even consider it and your saving increases almost effortlessly.
In case you are concerned with how easily you can get to your money, open a fixed deposit account or a high interest savings account which is not so easy to tap into.
Hustle Smart, Spend Smarter
In the present society, one source of income is usually insufficient to cater for all ones’ needs. That is where the side hustle comes into play. Whether one is working from home through freelance services or selling items online or even using a hobby to earn an income, an additional source of income goes a long way towards saving money.
But here is the catch – lifestyle creep; don’t be among the people who spend more as their income increases. It is important not to be carried away by the pay rise to the extent of emulating the extravagant lifestyle of the rich. However, reinvest a considerable percentage of the money made through the side hustle right back to your savings. Your future self will thank you.
Peer Pressure? More Like Savings Pressure
Everyone understands the impact of peer pressure in decision making, especially considering the financial aspect. But instead of giving in to the temptation to spend, why not turn it around? New year, new savings challenge with your friends!
Choose an ordinary target that must be achieved within a certain time – for instance, saving ₦100, 000 in six months and ensure that all the participants of the group remain productive in achieving the shared goal. Saving should not be a lonely process, and therefore making it a group project makes it easier and enjoyable.
The Bottom Line
Being able to save as a youth in Nigeria might not be that easy, but it is something that ought to be done. You must therefore learn to change your mindset and avoid making unrealistic goals, live within your means, contribute automatically, work hard and seek the assistance of friends to help you build financial freedom for the future.
So, start today, and watch as your savings grow—one naira at a time.
