Saving is the act of not consuming all of your current income. Whatever you do not consume from your disposable income is by basically saving.However most youths today,find it very difficult to save.volla i present to you very easy steps you could take so that you can save effectively:
7 Simple Ways To Save Money.
Sometimes the hardest thing about saving money is just getting started. This step-by-step guide for how to save money can help you develop a simple and realistic strategy, so you can save for all your short- and long-term savings goals.
1.Record your expenses.
The first step to start saving money is to figure out how much you spend. Keep track of all your expenses—that means every snack you purchase,household item and cash tip.
Tip: Look for a free mobile app that can help you track your spendings and these are readily avalable on your various app stores.
2. Budget for savings.
Once you have an idea of what you spend in a month, you can begin to organize your recorded expenses into a workable budget. Your budget should outline how your expenses measure up to your income—so you can plan your spending and limit overspending. Be sure to factor in expenses that occur regularly but not every month.
Tip: Include a savings category—aim to save 10 to 15 percent of your income.
3. Find ways you can cut your spending.
If your expenses are so high that you can’t save as much as you’d like, it might be time to cut back. Identify nonessentials that you can spend less on, such as eating in canteens. Look for ways to save on your fixed monthly expenses.
4. Set savings goals.
One of the best ways to save money is to set a goal. Start by thinking of what you might want to save for. Then figure out how much money you’ll need and how long it might take you to save it.
Here are some examples of short- and long-term goals:
Short-term (1–3 years)
Emergency fund (3–9 months
of living expenses, just in case)
Vacation)
Long-term (4+ years)
Down payment on a home or a
remodeling project
Your education
Tip: Set a small, achievable short-term goal for something fun and big enough that you aren’t likely to have the cash on hand to pay for it, such as a new smartphone or holiday gifts. Reaching smaller goals—and enjoying the fun reward you’ve saved for—can give you a psychological boost that makes the payoff of saving more immediate and reinforces the habit.
5. Decide on your priorities.
After your expenses and income, your goals are likely to have the biggest impact on how you allocate your savings. Be sure to remember long-term goals.
Tip: Learn how to prioritize your savings goals so you have a clear idea of where to start saving. For example, if you know you’re going to need to replace your phone in the near future, you could start putting money away for one now.
6. Pick the right tools.
Savings account: some banks offer you the option to save your money either on weekly or monthly basis.others even provide you with an option for automatic savings and to lock away your funds.
Tip: you could use the some of the credible savings accounts eg Piggyvest by Providus bank or the Alat by Wema bank
7. Watch your savings grow.
Review your budget and check your progress every month. Not only will this help you stick to your personal savings plan, but it also helps you identify and fix problems quickly. Understanding how to save money may even inspire you to find more ways to save and hit your goals faster.
CONCLUSION: Imbibing a strong savings culture for yourself, is one of the ways to improve your financial worth thereby creating a level of financial independce!!!
So what do you consider the best way for you to save?
Please let me know by the comments you'll provide below
Thanks.
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