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Saving Money in Nigeria: Reasons You Need a Saving App

Saving money in Nigeria comes with so much obstacles. That is why you need a saving app to help you save money

Saving money is a little bit different in Nigeria because of many money factors. I mean the concept of saving money is the same you keep some percentage of your income aside every month to save for rainy days or to have emergency funds. however, to save money effectively as a Nigerian you have to save money the Nigerian way. one thing is for sure saving money is a piece of advice we hear all the time and trust me it is the best personal finance advice you can ever receive. but the truth is saving money is not that easy I mean let's tell ourselves the truth. Especially if you are on a low income and the fact is the majority of the people who want to save money because they understand its importance are low-income earners. whether we like it or not this is a money factor that makes saving money difficult and different in Nigeria. 

However, the good news is this, if you want to save money you can save money whether your income is low or you have an inconsistent income you can still save money. today you will be seeing how to effectively save money as a Nigerian and most importantly why you need a money-saving app to make it easy for you. but before we go any further I would like us to see the importance of saving money yes we know it is important but there cannot be too much emphasis on the benefits of saving money.

Importance of saving money

  • Receive money for emergencies or what we know as Rainy Days.  Having an emergency fund is equal to money security and this is why you need to make saving money a priority.  you never know when something will come up that you'll be needing emergency cash and instead of going around and begging friends, calling for a favour you take from your savings which will save you the stress of begging people and accumulating debt.

  • When you want to make a big purchase like buying a house, car or house appliances just something that will cost you a lot. Saving money is the best way to go about making those big purchases. It might not be the fastest way but definitely, the best way to go about buying expensive things. 

  •  saving money makes it possible for you to grow your income.  when you save money you can use that money to make Investments or start a small business.  this will save you the stress of getting a loan to start a business and this means you won't be accumulating debt.

  •  saving money helps you to live a debt-free life.  we have clearly seen when you have an emergency fund you won't need to go and borrow money from friends or take loans from anywhere. You won't be going into debt and you'll be able to live without debt piling up for you.

  • Financial independence can come through saving money.  when you are able to start a business or make investments with your savings as time goes on you gain financial independence

10 ways to save money effectively in Nigeria 

There are so many ways to save money but not every way is effective in Nigeria. We are going to be seeing 10 ways to save money effectively in Nigeria. These money-saving tips are very practical and you can start saving using these methods right away.


1 Automate your savings

Given that one of the major factors which stop us from saving money Is low income. the best way and fastest way to save money are by automating it.  by the time your salary comes and debt or bills that are on your head are too much for it, you will see that saving money becomes difficult even if you really want to save.  hence, the best way to go about it is automatically saving your money.  all you need to get this done is a reliable saving money app which I will recommend a few good ones in Nigeria.  therefore one of the best ways to save money in Nigeria is by automating the process. 


2 Invest in quality

When I say invest in quality it means buy product that has high quality to avoid buying the same thing over and over which is a waste of money.  For instance, if you are going to buy your phone it is better to buy a phone that will last you a while than a phone that would keep developing problems which will make you keep spending money.  This is not only for appliances or gadgets, even in buying clothes most especially shoes. You clearly don't have a lot of money that is why you are considering saving to be able to invest or make your life better. Investing in quality products is one way to save money. Buy that work shoe that will last you a while rather than constantly thinking of buying new shoes because the one you just bought recently is already bad. As long as you apply this principle in buying things products, gadgets, and utensils you'll be saving money.

3 Track your Spending

when you know where your money goes or what you do with your money then you can be able to save money because you will know what to watch out for, and things to cut down and save money on. Tracking you're spending does more than help you control your spending but is also a very practical way of saving money.


4 Start thrift shopping
One effective way to save money is to buy things from the thrift market or shop. And thrift shopping means buying second new things. When it comes to clothes we call it “bend down select” or we call it gonjo. The idea behind buying new things is to first live according to or below your means then the second reason is to save money.  These days you can get everything fairly used so you can save money on every purchase you want to make. 

5 Cancel subscription

If you desperately want to save money for a period of time you can let go of some luxury. Start by cancelling your subscription or not paying for the next one. find new ways for entertainment and save money to achieve that goal. 


6  Lower utility bills

As Nigerians saving money on energy bills should not be a difficult thing to do. If you are using a prepaid meter I’m sure you’ve found ways to not consume units. And if you are not using prepaid like in some parts of the country then you must learn to be prompt in switching off lights when not in use. And overusing heat-generating appliances. Don’t let the tap run or leak and if your children are small keep an eye on them. Alternate the use of gas with kerosene and charcoal. Just find a way of consuming less energy. 

7 Avoid debt

We are so used to debt in this country that we feel it’s normal. If you keep piling debt on your low income be sure to never be able to save money even if you want to. Learn to make payments in instalments for big purchases and don’t take credit for luxury. Debt is debt. So I can’t tell you there is a good one but one thing is for sure you must avoid taking debt on things that are wants instead of needs or real emergency situations.


8 Have a saving goal

To effectively achieve something having a solid motivation is key. When your goal is to move out of the shitty apartment you are in by a certain time. Then I believe you won’t joke about saving money. Let your goals be reasonable so you don’t quit or feel like a failure. Rather set goals that are realistic that will make you determined and disciplined.


9 Start  budgeting

Start making a monthly budget and in that budget make saving money an item of expenditure in your budget. Make sure it is the first expense you take care of. 

10 Make extra money

Making more money is the most reliable way to save money in Nigeria. When you have a side hustle which gives you extra money even if it's not steady as a full-time income. You stand a chance of saving money and achieving your financial goals faster. 


The reason you need a saving app

The number one reason you need a  money-saving app is to be able to automate your savings. As a matter of fact, I believe it is the only reason you need a  saving app. Hence, let’s look at some factors that affect saving money and why you should get a saving app ASAP.

Factors that affect saving money in Nigeria that will need you to get an app

  • Minimum wages: It is a fact that we have very high low-income earners in this country. You reading this might be a low-income earner like me. You want to save money but your salary finishes even before it arrives.

  • The constant increase in prices of goods and services. What we know as inflation. You might be making more money than you did last year but it feels like you are making less because what used to be 200 naira last year is now 800 naira. This makes saving money hard.

  • The interest rate on saving accounts is very low and that can be a discouraging factor to saving money. Your money just seats there and you get nothing on it.

Reliable saving apps in Nigeria

Piggy vest

Piggy vest helps you reach your financial goals faster. They also have investment options. However, this is all about saving money so start from there. Our regular banks have very low-interest accumulation on a savings account but with Piggy vest, you get to earn 5% to 15% when you save with them.


Piggy vest has so many saving options. The number is the automated savings which is the piggy bank. Where you allow a certain amount of your income to be deducted and saved once you receive your salary. There is also a fixed saving plan where you can’t touch the money up until a time. I really love what Piggy vest has to offer.


Kuda Bank

You can create a budget with kuda to help you track your spending. Isn’t that amazing? personally, I find it great because I’m a personal finance enthusiast. 


Like Piggy vest Kuda has automated saving options and if I’m to be honest more beneficiary features than the rest.

Cowrywise

You can have multiple saving plans with Cowrywise. It is another saving platform like the rest listed above that allows you to automate your savings. It is easy to use and not complex.

Cowrywise will soon be introducing US Stocks and Bonds. Which to me is an interesting offer as you get the chance to invest in foreign currency.

How to access these saving apps

  1. First creating an account with these online banks are free. You will need to save money of course that's the whole idea behind it. However, to start by creating an account you don’t spend a kobo.

  2. Creating an account is very simple all you need are basic credentials such as name, address, phone number, and email address.

  3. Follow the links above to check out more about anyone you are interested in. See the best for yourself and start saving money. 

  4. Download the apps for easy access and security to avoid accessing them on a browser.

Conclusion on why you need a money-saving app in Nigeria

I won’t waste any more of your time talking about what has been mentioned already. The number reason and the only reason you need a saving app in Nigeria is to be able to automate your savings,


Why do you need to automate it? You need to automate your saving because there are concrete reasons affecting your ability to save even if you are willing to save. Hence, we need to come up with a safe and effective way to achieve our financial goals.


Now that you know why you need to save at all costs. It is time for you to start saving money at all costs using the tools and resources available to you.



Saving money in Nigeria: Reasons you need a saving app






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