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“I thought savings was just meant for rich folks who had excess. Another misconception about savings I had was that, you can only save money. Then a trusted fellow once said one could either save up or save down. Save up for a project or take a loan for a project and save down to pay up.”
Every time you borrow money, you’re robbing your future self”.- Nathan W.Morris
A quote made by the renowned Nathan W. Morris has been considered arguably correct and established as a known hypothetical belief over the years. As much as this quote cannot be justified in every situation and found correct in every context, it has imbibed and awakened the saving culture in many. Today , October 31, is the World Savings Day. The theme of this year’s World Savings Day is “Understanding the importance of saving”. This is one thing this article will talk a lot about.
Savings, the act of setting aside a portion of income for future use, plays a pivotal role in shaping modern society. It acts as a catalyst for economic growth, personal financial security, and societal stability. It is beyond doubt is one of the healthiest financial attributes a human can imbibe and overtime it has saved a lot of people from unforeseen situations and emergency happenings.
Yes, your savings can save you. You don’t have to save just for that fancy dress or shoes, bags or watch, apartment or car. You can save for you, your family, your unborn kids, your children’s college fees, and more.
Savings deposited in banks and financial institutions are channeled into loans for businesses and individuals, stimulating investment and entrepreneurship.
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Can one save amidst the nation’s worsening economic state?
To be truthful, I once discarded the idea of savings in this country’s economic state but the commemoration of World Savings Day have motivated to share this with you. I thought about few practical tips on how to save profitably with the economic state of the country.
Spoiler Alert! I am no financial expert. I’m only sharing tips from my experience and other people’s experiences.
The value of money in Nigeria is reducing and people are scared to save especially in Naira because N10,000 doesn’t have same value tomorrow. Prices of things are skyrocketing, you can’t really create a saving target for a job because before you’re done saving up, the price is at least three times greater.
How can one save to make sure the act counts? It is very much advisable to save for one to save down in this period. Save down in the sense that you take a loan for a project that is dependent on inflation. When you take out a loan to implement the project, you just have to pay back the lender with interest or no interest as the case maybe. The only way this is a benefit is if you take a low interest loan or a free interest loan.
Another trick is saving in foreign currencies. God bless our nation but Naira is falling against other currencies. If you save in foreign currencies, as Naira falls the conversion rate improves. That is, if you save $10 and the equivalent in Naira at the time you saved was N10,000, that is, $1 equals to N1000. By the time, $1 equals to N1500, you have more which will be enough for you to use because at that point the price of things will also have skyrocketed.
Regardless of the situation, it is important to cultivate the culture of savings. Consult financial experts on how to save regardless of the economic condition.
How to save better
Knowing that you have savings can alleviate financial stress and improve overall well-being, reducing one’s level of stress and anxiety. One ultimate goal of this year’s World Savings Day is making sure everyone understands the importance of savings. Below are a few tips on how to save better if you already save and how to start saving if you don’t.
Review and Adjust Your Budget
It is very important to revisit your budget regularly to identify areas where you can cut back.Look for small changes that can add up, like reducing your monthly streaming subscriptions, transportation, food etc
Increase Your Savings Rate:
Ensuring to challenge yourself to save a higher percentage of your income each month will be of great gain as even a small increase can make a big difference over time.
Avoid Impulse Purchases
It is essential to implement a “waiting period” before making non-essential purchases. Ensure to ask yourself if you really need the item or if it’s just a want. Remember that needs are greater than wants.
Track Your Spending
Use budgeting apps or spreadsheets to monitor your expenses. This helps to Identify spending leaks and find ways to plug them. The goal is to be as minimal as possible.
Explore High-Yield Savings Accounts
Research high-yield savings accounts to earn more interest on your savings. You could also consider using a savings app to track your progress and set savings goals.
Use saving friendly apps to save
Ensure you use savings friendly app that will prevent you from breaking your savings before the maturity date.
By implementing these tips, you can take your savings to the next level and achieve your financial goals faster.
