In Nigeria today, the consequence of not saving money is dire. With an average of about 33.87% Nigerians saving, there’s a pressing need to boost that statistic. SAVING is one of the most important aspects of financial planning that many individuals neglect to include when establishing a budget.
When unexpected needs arise, you are more likely to resort to loans or rely heavily on friends and family, resulting in debt or interest payments that might have been avoided with smart planning.
Understanding this problem gave rise to the vision of Havvest and having a long-term solution to this problem resulted in the emergence of this great company.
Benefits of Saving Money
While there are several benefits or gratification attached to spending money, there are just as many advantages to saving it. The earlier you start saving, the better because small amounts saved regularly can grow over time, thanks to the power of compounding returns.
One of the most obvious benefits of saving is the availability of money in the future. This can be helpful in a number of ways which will be discussed in the next paragraphs.
- Achieving long-term goals: everyone has long-term goals we daydream about achieving. These achievements usually fall into our list of futuristic goals(as most of us would call it), which might range from purchasing a property to taking a trip around the world. Knowing that you have funds set aside to cover your expenses can help you feel more in control of your financial situation and give you peace of mind.
- Financial Security: a fun fact that somehow manages to elude almost everyone is the level of financial security saving gives. This is evidenced by the availability of funds for emerging expenses which may include unexpected loss, illness or the birth of a child.
- Savings offers financial liquidity: this means you can access your funds when you need them. Savings can be used to fund investments, consolidate debt, or even establish a business. First, it allows you to take advantage of chances that come without worrying about running out of money, then it helps you take advantage of investment opportunities.
Strategies Used in Saving Money
With the right strategies, saving money can be easier than you think.
First and foremost, it is important to have a budget. Knowing where your money is breaching each month helps you make sure you are getting the most out of your money. It is vital we set clear goals with our finances so we can account for each penny spent.
Secondly, comparing prices of items such as groceries and gas should be considered. Contrary to popular opinion, taking advantage of any discounts you may qualify for doesn’t make one a miser, instead, it helps keep our spending habits in check.
Thirdly, consider automating your savings. This is where Havvest comes in, we are aware of the current occurrences in the country, therefore, we provided saving plans where everyone is included, especially low-income earners. This way, you can set up deposits each month.
Your money is actively invested and this would further yield interest over time. This can be a great way to build up a nest without having to think about it.
Fourthly, look out for investment opportunities. What other better way to do this than referring back to this blog for updates. We will be answering all your questions on savings and investment opportunities.
Finally, consider the power of compound interest. Compound interest is when the interest earned on an investment is added to the principal and further interest is earned on the new total. This can be a great way to boost your savings over time.
Understanding Money Goals
Money is a crucial aspect of life, and having a clear understanding of your financial goals is an important step towards achieving financial freedom. Financial goals are the foundation of living a secure and prosperous life; which is why money in its various forms serves as a source of security, a means to purchase goods and services, and a tool to build wealth.
When you have a positive outlook on the worth of money in your life, you’ll be able to see the opportunities it may open up. Eventually, you will learn that money is merely a neutral, unbounded resource that is available to anybody who is willing to exercise control over it.
Tips for Effective Money Management
When it comes to money management, there are different techniques that can be considered. We only suggest you choose what works best for you.
These tips include:
- Setting up a budget: this can be done by calculating your income and your fixed and variable expenses. Once you have a clear picture of your finances, you can start to make necessary adjustments to ensure that your spending aligns with your goals.
- Tracking your spending: Upon establishing a budget, it’s important to stick to it. Put in sentient effort to know how your money is being spent, then make necessary adjustments if you discover that you are going overboard in some areas.
- Cutting down on unnecessary expenses: budgeting and tracking your expenses help you identify the loopholes in your saving journey. When those flaws are found, proactive steps should be taken to rectify the issue. These precautionary measures may include keeping abreast of news and current market developments which will be provided on our blog page.
- Investing your money: As Pooja Agnihotri rightly said: “The best gift you can give to yourself is investing in yourself.” Investing in yourself can include decisions to include good saving and investment plans which we offer. By doing this, you are making deliberate efforts to invest in your future.
Automating Your Savings Plan
As we continue to explore methods to optimise our finances, automating our saving plans has become an increasingly appealing alternative. Automating our savings allows us to save money with minimal effort and reap the benefits of a good financial plan.
When we automate our savings, we commit a certain amount of money that will be withdrawn from our accounts on a regular basis. This may be accomplished through a variety of means, including bank transfers, manual payments, payroll deductions, and automated transfers from your checking or savings accounts. Automating our savings helps reduce the incentive to spend and instead save our money.
It is important to note that when determining which automatic savings strategy to utilise, we must evaluate how much money we can afford to save and how frequently we want to make such deposits.
In conclusion, saving money is a beneficial and important activity that can help you reach your financial goals. understanding the various benefits, tips, and strategies, can help individuals choose the approach that best fits their unique financial situation. With the right attitude and information, anyone can be successful in saving money.
To get started saving, sign up at Havvest to check out our saving packages.