Here are some practical tips for saving effectively from a monthly salary of 50K to 100K Naira in Nigeria:
1. Create a Realistic Budget
Track your income and expenses, breaking down your spending into categories like food, transport, rent, and utilities.
Allocate a specific percentage (e.g., 10-20%) to monthly savings and treat it as a non-negotiable “expense.”
2. Use the 50/30/20 Rule
For simplicity, try the 50/30/20 rule, where 50% goes to needs (rent, food, utilities), 30% to wants (entertainment, extras), and 20% to savings or debt repayment.
Adjust these percentages if necessary, especially if you’re earning on the lower end of the scale, but prioritize the savings portion.
3. Automate Your Savings
Set up an automatic transfer to a dedicated savings account on payday. This way, you save first before you have the chance to spend it.
Consider platforms like e-barcs, Cowrywise, or Kuda in Nigeria, which offer automatic saving options and even interest on savings.
The e-barcs regular savings will help you save your money with an interest of 8% P.A This account is designed for the everyday hustlers, that want to see their funds work for them.
4. Set Small, Achievable Goals
Break down your savings goal into manageable milestones. For instance, if you want to save 50,000 Naira, aim to save 10,000 each month for five months.
Track and celebrate small wins to keep yourself motivated.
5. Cut Down on Unnecessary Expenses
Audit your spending to identify non-essential expenses, like frequent dining out, excessive phone data plans, or impulse purchases.
Opt for homemade meals, cheaper transportation methods, and free entertainment options.
6. Use Savings Challenges
Try savings challenges like the “52-week challenge,” where you gradually increase the amount you save each week or month.
Another challenge could be the “No-Spend Challenge” on weekends or certain days to curb impulsive spending and save more.
7. Leverage High-Yield Savings Options
Consider savings plans with interest-earning potential. Some Nigerian fintech apps offer higher interest rates than traditional banks.
Explore options like micro-investments in money market funds, where you can earn modest returns on your savings.
others can give you up to 10% some 15% some preach on the security of your funds so the interest is usually around 8% P.A eg the e-BarcsMfb, Page Mfb StanbicIbtc etc.
8. Avoid Taking on New Debt
Limit borrowing to avoid adding repayment obligations to your monthly expenses, as debt repayment can reduce your ability to save.
Focus on clearing any existing debt to free up more of your income for savings.
9. Build an Emergency Fund
Start building a basic emergency fund to cover at least 1-3 months of expenses. This fund prevents you from dipping into your savings for unexpected expenses.
10. Take Advantage of Employer Benefits
If your employer offers benefits like a pension plan or savings contributions, take full advantage. Employer-backed savings are an easy way to build wealth without much extra effort.
11. Side Hustles for Extra Income
Look into side hustles like freelance work, weekend jobs, or small businesses to supplement your income. Even a few extra thousand Naira can go a long way toward achieving your savings goals.
