Updated on December 12, 2023
Nigeria is a country of diverse cultures, traditions, and lifestyles. With a population of over 200 million people, it is one of the largest countries in Africa. However, the country faces many economic challenges, making it difficult for people to save money.
You can save money in Nigeria by making a budget, tracking your expenses, cutting back on unnecessary expenses, reducing your utility bills, automating your savings, using cash-back apps and so much more.
If you’re looking to save money in Nigeria, you’re not alone. Many people struggle with managing their finances, but with the right strategies and habits, you can build your savings and achieve your financial goals.
How to Save Money in Nigeria as a Student or Beginner
Here are some tips and tricks on how to save money in Nigeria:
- Make a Budget
- Track Your Expenses
- Cut Back on Unnecessary Expenses
- Reduce Utility Bills
- Automate Your Savings
- Use Cashback Apps
- Invest in Fixed Deposits
- Avoid Impulse Buying
Make a Budget
Creating a budget is the first step in saving money. A budget is a plan for how you will spend your money each month. It helps you to track your expenses and identify areas where you can cut back.
To create a budget, start by listing all your monthly income and expenses. Then, categorize your expenses into necessary and discretionary spending. Necessary expenses include things like rent, food, and transportation, while discretionary spending includes things like entertainment and dining out.
Once you have a clear picture of your income and expenses, you can identify areas where you can cut back and save more money.
Track Your Expenses
To save money, you need to know where your money is going. Tracking your expenses is a great way to stay on top of your spending and identify areas where you can cut back.
Alternatively, you can use a simple spreadsheet or notebook to track your expenses manually. The key is to be consistent and diligent in tracking your spending.
Cut Back on Unnecessary Expenses
Cutting back on unnecessary expenses is one of the easiest ways to save money in Nigeria. This includes things like dining out, shopping for clothes and accessories, and subscription services.
To cut back on these expenses, start by reviewing your budget and identifying areas where you can make changes. For example, you could cook at home instead of dining out, shop for clothes at thrift stores, and cancel subscriptions you no longer need.
You can also save money in Nigeria by being a smart shopper by comparing prices and looking for deals before making a purchase. You can also try buying in bulk, using coupons, and taking advantage of sales and discounts.
Reduce Utility Bills
Electricity, water, and other utility bills can add up quickly and eat into your savings. To reduce your utility bills, you can try to conserve energy and water by turning off lights and unplugging appliances when not in use, fixing leaks, using energy-efficient appliances, and setting your air conditioner to a higher temperature.
Automate Your Savings
Automating your savings is a great way to save money without even thinking about it. You can set up automatic transfers from your checking account to your savings account each month.
This ensures that you are consistently saving money, even if you forget to do it manually. Plus, it’s a great way to make saving a habit.
Checkout: Best Money Saving Apps in Nigeria
Use Cashback Apps
Cashback apps are a great way to earn money while you spend. These apps give you cash back on your purchases at certain stores and restaurants.
Invest in Fixed Deposits
Fixed deposits are a low-risk investment option that can help you save money and earn interest. With fixed deposits, you can earn higher interest rates than savings accounts, and you can choose the length of time you want to invest your money.
Avoid Impulse Buying
Impulse buying can quickly drain your savings. Before making a purchase, take time to evaluate whether you need the item or if it is just a want. If it is just a want, consider delaying the purchase or finding a cheaper alternative.
How much Money should I Save Each Month?
This depends on your income, expenses, and financial goals. A general rule of thumb is to save at least 20% of your income each month.
What should I do if I Can’t Make ends Meet?
If you’re struggling to make ends meet, you may need to take a hard look at your expenses and make some difficult choices. This could include cutting back on discretionary spending, finding ways to earn extra income, or seeking financial assistance.
What is the Best Savings Account in Nigeria?
The best savings account in Nigeria depends on your financial goals and needs. Some popular options include savings apps like Piggyvest, Cowrywise, and Carbon.
What are some other Investment Options in Nigeria?
How can I Avoid Overspending?
To avoid overspending, you can create a budget, avoid impulse buying, and shop smart by comparing prices and looking for deals. You can also try using cash instead of credit cards to limit your spending.
How Long does it take to see the Benefits of Saving Money?
The benefits of saving money can be seen in the short and long term. In the short term, you can feel more secure knowing that you have an emergency fund to fall back on. In the long term, saving money can help you achieve your financial goals, such as buying a house, starting a business, or retiring comfortably.