- From Blog Archive
Ways to Saving On a Low Income in Nigeria - By Tamuno Opubo Dappa
People have dreams of owning a big house, driving the latest cars, travelling, dressing in the finest clothes, and so most people will lookout for money hacks to breaking their financial state and earn more. But the truest option is to exercise self-discipline and control over the little things you have. 'Being faithful in little can mean being faithful in much'.
When there isn't much coming in, you have to be aware of what you have, what you earn and how it is being spent. These simple creative tips can maximize the little you have and still make much out of it:
1.Have A Budget
I find that in having a budget it not only makes you to maintain control over your finances, but also in helping to stay on track to achieving your overall financial goals. Having a budget will ensure that you know what you need, and how to use the available resources you have in achieving it.
On a low income, commitment is of high importance. You will need to plan for expenses in other to get the best affordable deals there are in the market.
2. Examine Your Housing Cost
'Home is where the hearth is'.
We all truly need a good place to lay our head and that of our family and on no account should you settle for less. But one needs to examine the housing cost as it is most times the inhibiting factor to saving on a low income.
If you own a home you can free up money for savings or investment. Whereas for renting a home it is generally best to keep housing at 25% or less of your monthly salary. That is, if you earn N 50,000 per month, you should have about N12, 500 or less to spare each month for housing. This is invariably N150, 000 per year and is the highest amount for housing that we should tolerate.
But there again! It is not mathematics or any science with laid down principles and procedures so set out rigidly in the course. We should understand firstly the need to live below our earnings and also the need to saving even on a tight budget. Even with the varied circumstances of individuals the point still remains to cut down on housing cost to provide room for the big goal.
3. Pay Yourself First
This has been one of the proven steps to financial freedom. Learn to save a part of your income for yourself first before other priorities! Cultivate the discipline to saving little amounts of money.
Making the decision to pay yourself first will enable you achieve the dreams you are working towards.
4. Get Rid Of Cable TV
While being transfixed into stone by the medusa of 'Telemundo' might sound exciting, getting rid of cable can afford you room to save for the future. With the globalization of the world, you can still stay top on the latest from various media.
Cutting the cable subscription is simply a step in assessing the most important things you need to have and freeing money.
5. Stay Away From Restaurants
Getting a restraining order to stay clear of restaurants might be a crazy approach but knowing that such appetizing meals cost more than 4 times that of homemade meals will drive your pockets nuts.
A regular planning on home meals can save you worthy amounts of money.
6. Take Advantage Of Free Money
What will you do if you won the lottery? You know an interesting majority will spend on their fantasies as a sort of payment for all the hardship. Free money from a donation, a lottery or whatever means should be channeled to creative sources of income. Take a look at some passive income ideas
7. Find A Side Gig
If you can't cut down expenses any further or want to simply increase your earnings then you should find a side job. Interesting jobs that can be done in a flexible time frame can be teaching a skill such as sewing, software or bead making. The list seems endless to the potentials of offering a set of knowledge in any field of endeavor you are pretty good in carrying out efficiently.
8. Sweat The Small Things
Cut cost as much as possible and free up money. DIY projects come in handy. You can save a lot of money, feel empowered and even have a lot of fun doing things yourself. You can try making local dish washing soaps and bath products.
9. Buy cheap
You can save and still get what you need by choosing affordable brands. Affordable brands in items like tooth paste, milk or other provisions food can free up money.
Also you can buy from thrift stores (okirika) at a fraction of the price and still get items in excellent conditions. Sometimes you can find items never used but cleared for shipment due to the brands clearance sales. Especially for kids clothes as they quickly out grow them almost immediately.
Having a low income doesn't make it impossible to follow financial advice and seek a way out to financial freedom; it simply means that you have to be creative with your ideas!