Knowing methods to save more money in Nigeria is crucial to many people’s lifestyles in the country. Especially when it comes to things like fuel and food, it is not always cheap or even always available. This creates a dilemma for many Nigerians as they try to buy what they need with the little cash they have. It is difficult for many to manage their daily expenses and still save some money for the future. However, there are ways that will help you save some of your hard-earned income. One of these ways is applying for an advance loan from a financial institution in Nigeria.
There are many financial institutions in Nigeria such as commercial banks and even private ones. If you want to know how to save more money in Nigeria, you should first go ahead and contact a bank in your area in order to inquire about their advance loans and how much would it cost you monthly. This may give you a clearer idea of whether you will be able to pay for the services that you would be requiring from the financial institution.
Once you have made up your mind on which financial institution to approach, you should immediately look for a lending company that can provide you with an advance loan. This will give you the necessary funds to cater to your daily needs as well as emergency situations in case there arises a situation where you will not be able to make a payment for your car repair or your house repair.
Most of the time, advance loans are offered to those who have a good credit history and stable jobs. This means that you should not have a bad credit history to qualify for one. As long as you have a stable job and a good credit record, then there should be no problem with your applying for an advance loan to save more money in Nigeria.
Level of Poverty in Nigeria
Not a secret that Nigeria’s 30,000 Naira minimum salary is less than $100 per month, despite the fact that the country has a high poverty rate. According to Nairametrics, many Nigerians do not have any emergency reserves. Savings Deposit rates have decreased from 4 percent to 1.6 percent in a few years, according to the Federal Reserve making it difficult to save more money in Nigeria.
Nigeria has a poverty rate of 40.1 percent, which is the highest in the world. The poverty line in Nigeria is reached by 4 out of every 10 persons (those earning less than $1 (500 Naira) per day), resulting in around 85 million people and the situation has gotten worse. When broken down by state, Sokoto, and Taraba have the greatest rate of poor people in the country, with almost 90 percent or 9 out of 10 people living in poverty in those two states.
I could go on and on and on, but I won’t. This data aims to shed light on already existing principles and demonstrate how to apply them in everyday life in order to save money while keeping prices as low as possible. This is something I believe you will find useful. The following are some of the suggestions on how to save more money in Nigeria.
How To Save More Money In Nigeria
1. Reduce spending on non-essential items
Making changes to your relationship with money and refraining from overspending can be really beneficial in helping you save more money in Nigeria. It truly does pay to be frugal, and doing so does not imply that you are depriving yourself of something important. Consider it as if you are making a payment to your future self.
You are not looking to spend tomorrow’s money today since you know that you will not be able to work indefinitely. A major reason why people retire is that they cannot continue doing the same thing till they are 50. It is, therefore, preferable to take advantage of this opportunity now rather than wait until you are unable to work any longer.
2. Budgeting and expense tracking are the second steps.
Budgeting and expense tracking can uncover significant gaps and leaks in a person’s financial situation and help save more money in Nigeria. Many people find it challenging to keep track of their monthly earnings. Keeping track of your expenses at the end of each month, right after you receive your account statement, may be quite beneficial in identifying items that you are spending money on that you don’t need to be and that you can reduce your expenses and thereby save more money in Nigeria.
3. Put money into a high-interest savings account
One approach to ensure that your financial situation remains stable is to set aside a considerable amount of your salary. The majority of high savers set aside as much as 50 percent of their income, with some settling for as little as 30 percent. Saving, on the other hand, may truly help people get out of a rut and get them set up for emergencies or, even better, for retirement in the long run.
4. Make an investment in the stock market or securities
Investing in the stock market or purchasing shares of publicly traded corporations is a more sophisticated method to save more money in Nigeria while simultaneously building one’s wealth. Although it can be extremely risky, value investing has been shown to produce profitable outcomes over the long term. This is a fantastic strategy to protect against inflation while simultaneously generating consistent passive income streams. These passive income streams can be used to save more money in Nigeria.
5. Make rent and transportation more affordable.
One of the advantages and disadvantages of living in Nigeria is that you must pay your rent annually rather than monthly, which has both pros and downsides. It’s beneficial since you no longer have to be concerned about receiving a monthly payment for where you live; instead, you only have to be concerned about things like power and prices for other services. You don’t have to be concerned about being kicked out of your home.
However, because it has gotten so pricey, this is also a very negative aspect of the situation. For the purpose of renting an apartment, you must pay millions of Naira all at once. This raises the difficulty of living on one’s own to an extreme level.
In any case, living with a roommate or housemate is a great method to save more money in Nigeria in the long run. If you’re living alone, you should consider renting a smaller home; if you require more space, you should consider sharing a home with someone you can rely on.
Then there’s the matter of transportation. If at all possible, carpool with your pals on your way to work or school and split the cost of Uber rides to save more money in Nigeria. Everyone is unconcerned about your mode of transportation if you are under the age of majority. What really matters is how far you can get from where you are to where you want to go.
6. Making an investment in yourself
It is not directly related to conserving money, but rather to investing money in things that would increase your knowledge base and your ability to create actual wealth, which is unrivaled in the world of business.
What are your best money-saving, money-growing, and money-investing tips for Nigerians?