Last Updated on November 4, 2022
We understand that saving money in Nigeria can be really hard. There is always something to buy, that person to send money to and things that need fixing at home.
You always have good intentions towards saving but something always comes up. You need to understand that the hardest part of saving money is just getting started.
Follow the practical steps in this guide if you want to start saving money in Nigeria, so you can meet all your short-term and long-term money goals.
ON THIS PAGE
- Effective Ways for Saving Money in Nigeria
- 1. Say Goodbye to Debt
- 2. Reduce Grocery and Food Spending
- 3. Pack Lunch for Work
- 4. Save money automatically.
- 5. Cut Down on the Flexing
- 6. Lower Your Mobile Phone Bill
- 7. Try a Staycation.
- 8. Spend Extra or Unexpected Income Wisely
- 9. Don’t just save money, save for your future.
- 10. Treat yourself, but also save for yourself.
- 11. Use only the ATMs of your Bank.
- 12. Get Health Insurance
- How to Start Saving Money in Nigeria.
Effective Ways for Saving Money in Nigeria
- Say goodbye to debt.
- Cut down on grocery and food spending.
- Pack lunch when you’re going to work.
- Save money automatically.
- Cut down on drinking alcohol and junk food.
- Lower your mobile phone bill.
- Try a staycation.
- Spend extra or unexpected income wisely.
- Don’t just save money, save for your future.
- Treat yourself, but also save for yourself.
- Use only the ATMs of your bank or credit union.
- Get Health Insurance.
1. Say Goodbye to Debt
Saving money in Nigeria with debts hanging over your head can be really draining, if not near impossible. Debt can rob you of your income. If you are currently in debt. it’s about time you get rid of that debt. The debt snowball method is one of the quickest ways to pay off your debt.
This is how the snowball method works:
You pay off your debts in order of smallest to largest. When the smallest debt is paid in full, you roll the money you were paying on that debt into the next smallest balance.
This is how you have the momentum to cross off each debt till you are debt free.
Once your income is freed up, you can finally progress toward saving money for things that actually matter
2. Reduce Grocery and Food Spending
You’ll be shocked at how much you spend on groceries and food. These purchases can add up to quite a bit, making the hole in your income bigger every single month.
You can save money on groceries and food by planning out your meals each week and taking a good look at what you already have in your store before you head to the mall or supermarket. You shouldn’t buy more of what you already have.
One of the easiest ways to save money is by buying all your groceries in bulk. You should cook more. Less eating out and ordering food.
If you want to start saving money in Nigeria, Cutting down on food-related spending is a good start.
3. Pack Lunch for Work
Another great way to save money is packing lunch to work. You’ll save money and time when you prepare food from home and bring it along with you to work.
4. Save money automatically.
You can save money without having to think about it or going into your bank apps or wallet to do it manually. You can set up your bank account to automatically transfer funds into a savings account every month.
If you’re not convinced with digital banks or fintechs in general, you can set up a direct deposit on your bank account to automatically transfer into your savings account.
5. Cut Down on the Flexing
Are you wondering what this tip has to do with saving money? Well If you think about how much money you’ve spent on going to get pizza or a beer, clubbing etc.
You might notice how it all leads up to quite an amount. So cut down on how much you spend on your hangouts.
6. Lower Your Mobile Phone Bill
How much do you spend on making calls or on data every month?
If your monthly phone bill is competing with your monthly food and grocery budget, it’s probably time you find a way to cut back.
You can save money on your mobile phone service by getting rid of extras like costly data plans, tele-servicing messages and any unneccesary plans.
It might require a little persistence and research, but it might be worth it.
7. Try a Staycation.
When your goal is to save money now, a vacation is one of the worst money-saving things you could spend your money on.
Instead of going off alone or with a few friends to Dubai, try being a tourist in your country. Not only will this will save you thousands and potentially millions of naira but you can also explore Nigeria with fresh eyes while having fun doing it.
8. Spend Extra or Unexpected Income Wisely
When you get money gifts, a bonus at work or an inheritance, you should put it to good use. And when we say “good use,” we don’t mean putting it in the bank to camp out or buying that new iPhone.
Also See: Best Loan Apps for iPhone in Nigeria
If you still have outstanding debts then you’re better off using those funds to clear up those debts. If you have no debts, you can use the extra funds to build up your emergency fund or even add it to your investment fund.
9. Don’t just save money, save for your future.
Saving isn’t just about spending less. You have to save with a purpose. Save for emergencies, save to buy more foreign stocks, or for that couse that can help you start earning more.
10. Treat yourself, but also save for yourself.
Saving doesn’t mean you don’t get to treat yourself. You should treat yourself but also use it as an opportunity to save. Match the cost of your spending on nonessential things in savings., if you buy ice cream while running errands, put the same amount into your savings account. Kuda bank has a special feature for this.
11. Use only the ATMs of your Bank.
Using the ATM of another financial institution once or twice a week might seem like no big deal, but if it’s costing you N35 after every third withdrawal.
12. Get Health Insurance
Whether it’s malaria or something even more severe, your health insurance can cover it. If you are registered with HHIS, you can see What NHIS Covers in Nigeria.
Checkout: Top Insurance Companies in Nigeria
How to Start Saving Money in Nigeria.
There is one simple secret for saving money that we left out. It is making a zero-based budget before the month starts.
A budget means you’re intentional about your money. It helps you create a plan that shows you where your money is going and how to spend and save it better. Zero-based budgeting is where your income minus your expenses equal zero. Your expenses have to match your income during the month. That way you’re giving every naira or dollar that’s coming in a job to do.
Ready to start saving and reaching your money goals? There are a ton of free budgeting apps out there.