7 tips to save money, even in hard times

Estimated reading time: 4 minutes

Money is really hard to come by. This is not the best of times in Nigeria, and by extension, the world over, following a global economic recession.

However, as the saying goes, “tough times do not last, but tough people do.” And if you can just put your mind to it, you can actually save good money, even in the hard times.

Why you should save money

There is virtue in cultivating a saving habit. A good reason for saving money is to prevent having regrets in the future. Remember the saying about saving for the rainy days?

The great thing about saving is that when we take up the option of saving money, we have the extra feeling of comfort and accomplishment that comes with the process and results of saving money.

The result of saving money is the increased freedom to live well in the future and the one sure road to a comfortable retirement is through savings, and regular savings is the key to building wealth.

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Irrespective of the virtues in saving, you can start small, and before you know it, you could be in for a big surprise.

Whether you use the local method of saving your money in what is fondly called a piggybank or in a contribution group often called ‘ajo’, saving your money is a good way to secure your future.

Saving money requires some financial discipline. It is like running a weight loss or weight control regime.

1. Be disciplined

They both take discipline and depend on your attitude. The key to success in saving money is to see it as a game of self-control where you make prudent choices, even when you are faced with multitudes of daily temptations to derail the process.

2. Focus your thoughts on the benefits

In both saving and weight control, those who succeed concentrate their thoughts on the benefits, not the tough choices that need to be made.

Just like Weight Watchers take pleasure in being in shape, looking their best, being in good health, and receiving compliments about their looks, savers should take pleasure in the fact that the process would lead to a financially secure future.

3. Skip or stop impulsive buying

One of the main secrets to saving is guarding against buying based on impulses. Impulse buying is the purchase of things without planning.

When you go shopping, make a list even before leaving your house. Do not make the list without taking inventory of what you have and what you don’t have.

Avoid buying anything on impulse just because it would look good on your shelf. Making a list prior to going shopping helps you stay focused on what you do with your money.

When you go shopping, practice the concept of “double positives” which is a situation where you do not buy anything unless you say yes to it.

4. Frequently analyze your expenses

Go over your expenses every month or two and find out if each expenditure provided you with equal value for money.

Ask yourself if all the expenditures were equally worthwhile. Find out those expenses that you could have successfully and happily substituted with less expensive alternatives.

Also, weigh those that you could have had as much fun and happiness without; then cut them out and save the money instead.

5. Stop the habit of showing off

The average Nigerian is egotistic, and we like to show off even if it impacts our savings account.

This is even more now when you go to the Internet or social media with a picture of yourself in one expensive item or another.

You do not always have to be like the rest and try to impress just you will be counted as a happening hippie. Cut off those luxuries and save the money instead.

6. Keep a record of all your expenses

By keeping a record of all your expenses, you might find out that you do not need some of the items you are buying. Weed out those items you do not need and save the money instead.

7. Think in terms of opportunity cost

To cultivate a savings habit, think about every Naira you spend in terms of the amount it could grow into by the time you retire.

Remember these words by one of the founding Fathers of America, Benjamin Franklin:

“A penny saved is a penny earned.”