Don’t look for more money, when you can’t manage the one you have” –Joshua Mba
Let me tell you a simple truth. Saving Money is VERY DIFFICULT. Let me show you a simple analysis now. Just follow me carefully.
Let’s assume you’re a TAXI/ Bike man and your daily earnings is NGN 3,000 after every daily expenditure (Fuel etc) and you work for 24 days in a month. Your monthly earning will be NGN 72,000.
For Christ sake that amount is much more than what some STATE civil servant gets in a month. In fact is equivalent to what a SOME Junior staff in a Federal institution gets.
Now a Federal worker by default (Senior Staff) doesn’t earn less than NGN 100,000 per month AT LEAST. Some earn NGN 250,000+. Some earn much more. But before the end of the month, they are already borrowing.
Though the money is there, the ability to manage your earning becomes a problem. In fact, finance management is what most workers in establishments pay to learn, because of this same problem!
Let me show you another light, follow me carefully…
I was speaking in a Business Seminar and I asked a woman: can you save 15% of you monthly salary for one year?… She said: It won’t be possible!
Her salary is NGN 170,000 per month.
I then asked her, What if your salary was NGN120,000 won’t you still survive?
…She went dumb.
The truth is! It is DIFFICULT to save MONEY!… I know you have tried to save, but once SOMETHING comes up, you will just withdraw, recharge or subscribe from your savings account.
In fact, once upon a time, I kept some money in my savings. It was in a dedicated bank account. One day, it rained down and I withdrew almost 50% of that money, which I regretted later. It was easy to use the money because I knew that money was there and of course accessible.
So here is what I did to solve the issue of saving money.
RECORD YOUR EXPENSES
I keep a detailed record of all my expenditures. So if I buy NGN10 pure water, I will record it. if someone dashes me NGN100 I will record instantly. At least within an interval of 2 days, I always check my level of expenditure on my income.
But, doing this could be tasking. So I use a mobile App to record my income and expenses on the go. The App then gives me a detailed overview of different charts. making a comparison of my expenditure rate and Income rate.
This disciplines me so much, that if my expenses graph increases, I moderate it until income skyrockets, by avoiding expenses.
I use an Andriod Mobile App called My Finance. Is a free App. The link to download it from Google Play Store is at the end of this post.
Link to APP: http://bit.ly/2Wt9wyj
2. AUTOMATED SAVING SERVICE
I use an automated Saving system. It daily deducts a particular amount from my bank. So you can fix any amount like NGN500 or more.
A young student in 2 years saved 300,000+ using this service as a student (currently in 200 Level ). Yet she is not a working class. Imagine how much she will save in 5 years.
It deducts it daily and holds it for you. This service provides you with an option to make a withdrawal only 4 times a year with 10% interest on it and other small interest attached to the service (You can as well set the date you want).
If it sounds difficult to start with NGN100 daily then step up and you will be amazed at your savings in one year.
The service is Piggybank (You must have heard about it). So follow these steps to set up an account.
a. Register with this link: https://goo.gl/JPQYZG
b. Add your bank account
c. Link your Bank Card.
d. Set your daily savings amount.
Try it for Just a month and you will be amazed at your earnings.
3. Draw a daily budget
Budget drawing disciplines your expenditure. Instead of working on a yearly budget or monthly budget, reduce your budget drawing to a daily schedule.
So, apply a detailed and specified budget. Include all and try as much as possible to reduce miscellaneous, if possible avoid it completely. Be specific in all your expenses and always avoid expenses that could be avoided.