By Damilola Faustino
The month is drawing to an end again and many of us have already spent our paycheck before even receiving it. So how can we save, you ask? Well, what is needed is an understanding of strategies that make it easier for you to save more on what you earn. Here are some of the ways you can save after payday:
- Place savings before spending
One of the wrong ways to go about saving from your monthly earning is to save what is left after your spendings. No! That won’t work. If you truly desire to see the account balance of your savings account go up on a monthly basis, you have to save first and then spend what is left. If you insist on spending and then saving what is left, the chances of having anything left are quite slim.
2. Draw out clear goals
Ask yourself realistic questions. What are you saving for? Is it achievable? It is also important to put actual timelines on these targets you have set. These would serve as a source of motivation. This is how to achieve clarity when it comes to saving after payday.
3. Keep track of your expenses
Whatever happens, you have to keep track of your expenses. An easy way to do that is to devise a rating system. For instance, if you earn 100k monthly and plan to save 60% of your salary monthly, draw up a rating system. Say, at the end of the month, you end up saving only 10% of your income, be honest enough to score yourself an F9.
4. Find something to do on the side
Not a lot of people would say no to an opportunity to make extra money. Multiple streams of income help you plan better as this translates into income and as you might have guessed, more money to save.
5. Create a budget and monitor it
If you are planning to save a percentage of your earnings, then you should have a budget, and bear in mind that your budget should include everything you spend money on monthly; even money spent on airtime for your mobile device and money you set aside for charity. You have to document your budget.
6. Where have you been shopping?
Do you find yourself indulging in impulsive shopping and dwelling less on how to save money after payday? Well, now is the time to put a stop to it. Where you shop is just as vital as what you are buying.
7. Exercise caution when using your ATM card
Your debit card or ATM card could prove to be a lifesaver in more than a few situations. However, without caution and discipline, it can contribute to you staying poor. Why? Simple! You keep spending the money you have saved. Carrying an ATM card has a strong potential to leave you with far less than you planned to save at the end of the month.
8. Avoid immediate gratification
Delayed gratification refers to when you resist a smaller but more immediate reward in order to receive a larger or more enduring reward later. For instance, if someone offers to sell you a new pair of shoes or a really nice wristwatch, wait for a clear 48 hours before you make a decision on whether to buy or not. This gives you sufficient time to decide if this is something you need or something you want.
9. Eat more homemade meals
Eating homemade meals helps you save more money. Dining out is one of the biggest pitfalls to saving for people. You can start by buying affordable foodstuff at home. If you have a refrigerator, possibilities get even more exciting for your dining habits.
10. Consider buying used items
You would be amazed at how much you are able to save when you buy used items instead of new ones. There are several places to get these in Nigeria.
It may seem hard, but just put yourself to test on these ten tips for one month and see how well off you are by the end of that month. You’ll appreciate it more that way.
Read also: How To Bounce Back From A Financial Setback
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