10 Tips For Being A Better Saver

Sometimes the difference between a rich person and a broke one is the way they save. Picture this: Person A earns N100, 000 every month, and saves N20, 000 monthly.

Person B earns N200, 000 every month but spends every single dime. At the end of the year, who will come out richer? At this point, what matters is not how much Person B earns because Person A, due to his ability to save, is now worth more. No amount is too small to save, because the beauty of saving is that, when done well, every single naira will gradually grow.

The key here is that you should never underestimate the importance of saving. Some people are natural savers and are great with money, while others need a little bit of help. Below are ten tips to keep in mind to be a better saver.

 

1. Spend after your save: This has been reiterated countless times by financial experts.  You do not spend money first before you save. Every time you receive money, you should set aside the amount you want to save first, before spending the rest.

 

2. Avoid impulse buying: Most of us have the habit of just buying things we see on the roadside, passing a store, online shops, etc, even when we did not plan for them. These might seem like small costs to you at the time, but the funny thing is, money adds up. And one day you will look back and wonder what you spend so and so amount on.

 

3. Have a budget: And by this we mean an actual written budget. Do not just calculate how much you have to spend/save monthly in your head. You need to actually write this down. It is easy to change your mind about spending once you do not have a written ironclad budget staring at you. Besides, once something is not documented, it usually seem ‘abstract’ or unreal and easy to adjust.

 

4. Make a list before shopping: Do not go to the market or mall before knowing what you want to buy.  Make a list of what you need and make sure you stick to it. When it comes to money, you actually need to plan. If you fail to plan, then you plan to fail… and lose money.

 

5. Spend only what you can afford: In trying to keep up with the Jonses, a lot of us will spend money we do not have on things we do not need just to impress others. Why by a designer bag when you do not even know the name of the designer, only so you can show off among your friends?  That is the fastest way to be broke. Comparing yourself to others and putting yourself into debt just to impress others is a huge mistake. Be proud of who you are and spend according to what you earn. Your life will be better for it.

 

6. Buy these used: There are some things you should buy used (second-hand) to save money.  These are things that do not easily diminish in usefulness over time. Some designer clothings, cars, books, children’s toys and wedding attire (you know you will wear once) are good examples.

 

7. Buy these new: While you save money buying used things, you can also lose money buying the wrong things second-hand. The cost of maintaining some used gadgets end up usually above the amount you would have spent if you just be patient and get them straight from the manufacturer. You should try as much as possible to by these used – laptops (you have no idea how badly used it must have been), Plasma TV (The cost for fixing and replacing the parts is almost as much as the price of the TV itself), mattresses or undergarment (because, eew!), children’s carseat/baby cribs/helmets (because if they are not in good condition, they could lead to accident, which will cost you a whole lot of money, or loss of lives.

 

8. Keep track of your spendings daily: At the end of each day, make sure you look back and think about your spending. This way, you know of you have made a wrong spending decision and you can aim to do better the next day.

 

9. Try DIYs: Youtube is a beautiful thing. There are thousands of videos that teach you how to fix things around the house, do your own makeup, solve computer software problems, etc. These are things you would have paid a lot to have an expert do for you. This way, you save your money for other things. Note: Do not try things that are a health risk at home, like performing surgery on yourself, for instance. 

 

10. NEVER touch your savings: So, now that you know how to spend and save, and hopefully, your savings are growing, remember that you should NEVER touch it unless it is an absolute emergency. Imagine your savings is in a place guarded by fire, flying knives and vicious dogs. Unless what you need it for is something you would go through those kind of guards for, then you should leave it. Do not comfort yourself by saying you will only take a little, or you will pay it back, these are lies you tell yourself. Better leave your savings and work on managing what you have, until your next paycheck.