Nowadays, if you ask people why they don’t have any business or investment, they will say “I don’t have money”. Little do people know that you have to save money to start a business or an investment.
If you have a business plan that needs Ten Million Naira to get started, you can’t just sit and be waiting for the day Ten Million Naira will fall on you miraculously. You need to save money.
Below are the 6 simple steps to help you save money effectively:
1. Know Your Monthly Income
Your income can come in different ways, earned income(income from a job), profit income(income from your business), interest income(income from lending money), dividend income (income from owning stocks), rental income (income from renting a property), passive income (income from side hustle).
If your income varies every month, take down an average of the last 3 paychecks.
2. Write Down Your Expenses
List out all your expenses, that is those things that take money away from you. Knowing your expenses will help you know where your money is going and who or what you are spending your money on.
MUST-READ: How To Track Your Expenses
3. Cut Down On Some Expenses
After writing down your expenses, you will notice that some expenses are not necessary, and you will realize that you are wasting money on some expenses.
All you have to do is to cut down on some of these expenses.
4. Have a REASON For Saving Money
According to research, humans are capable of saving more money when they have a reason for saving. People save for different reasons.
People save money to start a business, invest, buy a new car, start a family, buy a new house, for vacations, etc. You too should have a reason to save money.
The secret here is that let’s say you want to save money to start a business next year, anytime you get money or you get paid, you will surely want to save money because you want to start a business next year.
5. Have a Budget For Your Savings
Since you already know your monthly income and expenses, you can now decide for yourself the amount of money you want to be saving every month, or you follow the 50/30/20 rule.
6. Save Money Automatically
There are different ways you can save money, you can either save money in a piggy bank or with a FINTECH company of your choice. I will suggest you use PIGGYVEST to save your money.
To know more about piggyvest tap here.
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