If you find yourself staring at your bank account, puzzled by your lack of savings yet again this month, this article is for you.
You’ve been meaning to save more money; it’s been on your mind for a while. But now — right now — feels like the time to get serious. It’s time to save a substantial amount before you really need it.
Having a steady income is a great start to financial freedom, but saving money is a crucial habit for many reasons: avoiding debt, earning interest, preparing for retirement, easing the burden of long-term bills like rent, cultivating financial discipline, and, of course, preventing financial disaster in the face of unexpected events. When it comes to saving money, small changes can add up quickly.
Here are some of the best simple, easy, and fun ways to start saving money immediately.
Shop at Discount and Bulk Stores
Groceries and other essentials can eat up a significant portion of your budget, but there are clever ways to save. Shop at discount stores, bulk stores, or local food markets with lower prices. Buying in bulk for an extended period (like monthly or every three months) can help you save both time and money.
Meal Prep
Meal prepping not only saves you time during the week but also helps you avoid the temptation of eating out or ordering in—both of which can drain your bank account faster than you might think. Plus, prepping your own meals allows you to eat healthier, more wholesome foods and stick to your nutritional goals.
Buy Generic Brands
Generic brands are often much cheaper than name brands. For example, a pack of generic pasta may cost NGN700, while a pack of name-brand pasta might run you NGN1100. That’s NGN400 saved on one item. Consistently choosing generic brands can lead to significant savings over time.
Stick to a List
Before you head to the store, prepare a shopping list and do your best to stick to it. A little preparation can go a long way in helping you stay within budget. Check your shelves and make a list to avoid impulse buys. You can also plan your meals around what’s in season to enjoy great meals while saving money.
Automate Savings
Set up automatic transfers from your checking account to your savings account each month. This way, your savings will grow over time with no extra effort on your part. Automated savings are particularly useful when targeting specific goals, such as building an emergency fund, planning a vacation, or saving for a down payment. A smart way to automate your savings is to save with Moni. After signing up and setting up automated savings, small amounts will be transferred from your checking account to a separate savings account, saving you the trouble of manual transfers. Plus, with Moni you can earn mouthwatering interest rates on your savings!
Count and save your small bills
Another effective method is manually saving your spare change. Set aside small bills each night, and once you have a substantial amount, deposit it into your savings account. Using cash instead of debit cards can also help you monitor your spending, as it’s often harder to part with physical money. While this approach might not yield overnight results, it’s a reliable way to gradually build up your savings.
Minimize Restaurant Spending
Cutting back on restaurant meals is one of the easiest ways to save money. Eating out is typically more expensive than cooking at home. If you still want to enjoy dining out, try to do it less frequently and choose restaurants within your budget.
Restrict Online Shopping
Make online shopping more challenging to curb unnecessary spending. Instead of saving your billing information, input your shipping address and credit card details each time you make a purchase. This added step can help reduce impulse buys. Additionally, consider removing shopping apps from your phone temporarily.
Delay Purchases with the 30-Day Rule
Avoid overspending by giving yourself a cooling-off period between wanting and buying an item. When shopping online, leave items in your cart and walk away for a few days. Sometimes, retailers might even send a discount code to entice you back. If a 30-day wait seems too long, try a 48 or 72-hour delay.
Cancel Unnecessary Subscriptions
You might be paying for subscriptions you no longer use or need. Review your card or bank statements to identify recurring expenses you can eliminate. Avoid signing up for free trials that require payment information, or set reminders to cancel before the free period ends.
Set a Savings Goal
Set specific and realistic savings goals, like “save x amount in an individual retirement account this year”. Use a savings goal calculator to determine how much you need to save each month or year to reach your goal.
Track Spending
Monitor your monthly cash flow—your income minus your expenditures. Tracking your spending can help you stay on top of your finances and make progress toward your savings goals. Use a budget app to track your expenses. You can also make it a habit to note your daily expenses at the end of each day.
Create a 50/30/20 Budget
Manage your money more effectively by following a budget. The 50/30/20 budget divides your after-tax income into three categories: 50% for necessities, 30% for wants, and 20% for savings. Adjust these percentages if necessary to fit your financial situation.
Earn more
Look for ways to expand your income. For example, you can consider a side hustle in addition to your full-time job to bring in more money.
Keep savings in a high-yield savings account
As you work toward your financial goals, ensure your funds are in a high-yield online savings account to maximize your money. Some of the best online accounts, like the one you can open with Moni, offer higher interest rates compared to traditional banks.
Save with Moni
Moni allows you to decide what saving looks like to you while enjoying mothwatering interest rates. Create a savings plan, stic to your target by automating your savings and earn massive interest rates.
