Money saving tips: Spending less and saving more

April 13, 2012 - Financial Management - 12 comments

It’s quite bad that personal finance and money management have been incorporated as a compulsory subject into our school curriculum. One of the most important aspects of an individual’s life is not the amount of money you make but rather the amount of money you are able to save.

The importance of having savings cannot be over emphasized. Savings can come in handy when you want to start a business, in times of emergency and for retirement. Though we are aware that in a country like Nigeria where the standard of living is very low and jobs are not readily available, it is very difficult to save. It is still possible if you follow strict guides.

There are certain key traits you will find in people who are able to save sufficiently from their meager income and that is what we are going to focus on today.

Be Disciplined: Be disciplined when it comes to money and spending. Whether it is money that you worked for or money that was given to you as a gift, try to be disciplined on your spending. Get only stuff you know you really need. Buying things for the fun of it is a major way to waste hard earned money. Before buying anything ask yourself if you need it. There will always be a newer model of car, phone or shoe out there. So think deeply before parting with your money.

Make Plan: Always ensure that you have a spending plan, this is very important especially before your salary comes. Plan how much exactly you are going to spend because if you do not do that, it is very easy to divert funds and buy things based on emotion. So plan what you need to buy before the funds arrive.

Know Where Your Money Goes: As stated in a previous article, it is very important to know exactly where your money is going. When you take records of your spending, you will be in a better stand to know where to cut down on.

Earn More: Think of creative ways to increase your earnings whether you are in business or working. There is always something to do to increase what you currently earn. Think creatively and invest in viable ventures.