2018 has come and gone and some of us are still wondering what we did with all the money we got in 2018. If you are one of those still biting their fingers in wonderment and disbelief about where the money went to, there is no need to cry over spilled milk, but you can write the wrongs of prior year by getting it right in the current year. There are a few things that can be done to save more. Here are they:
Avoid extra budgetary spending
Create a family budget and abide by it. I already blogged on the importance and process of budgeting but of what use is budgeting if you do not adhere by it. By creating and adhering to your budget, you instill in yourself some financial prudence which will leave you with some reserve that can be saved for the rainy day. As much as possible, avoid extra budgetary spending.
Cut down on your bank charges by doing some comparison shopping of banks
Find out how much your bank charges for transactions, compare that with what another banks charge and see how much you can save by making a switch. Another way to reduce bank charges is to reduce the frequency of those transactions that generate the charges. I discovered that each time I make a transfer from my account to someone else, I pay ₦52.50 including VAT, so what I resorted to is to combine about 5 to 10 transactions, by making one transfer to my trusted friend who then pays the rest in cash. If you have to pay someone via a bank transfer, ask if they have account in the same bank that you do, and by so doing you save on those transfer charges.
Shop for High interest paying Banks
Shop around for banks that pay more interest on their deposits. Interest rate is around 14% on the average and may rise slightly within the year. Some banks pay less or more on time deposits, so shop around for banks that pay more than what you are currently getting and make a switch especially if you do not need the cash anytime soon.
Buy Based on need not want
There is always the temptation to buy something because you want it even though you do not need it. It does not help to save when you buy things based on want and not need. So, this year, decide to buy only those things you are in need of and you will save more.
Make additional voluntary contribution to your Retirement Savings Account
Pension funds in Nigeria have been consistently outperforming the market. In 2018, Retirement Savings Accounts made 10% on the average while Retiree Accounts made 13% in a year when the stock market lost about 16% of its value, so if you can, take advantage of this consistent out performance of pension funds.
Invest in FGN Savings Bonds
Gone are the days when bond investing was the prerogative of the rich. With the introduction of FGN Savings Bonds, retail investors can now benefit from the seemingly high yield that comes with bond investing. Depending on your financial disposition and needs, you can build a formidable bond investment portfolio using laddering strategy aimed at reaping the benefits of high interest rates.