How To Automatically Save Money Each Month In Nigeria
To automatically save money every month may seem like a huge feat but is very achievable. I fell in love with money as a growing child, but to my dismay, I discovered that money finished fast. There’s not an end to the sweets, balloon, popcorn, and peanuts money could buy. In my exasperation, I asked my mom to make a safe (kolo) for me. I used the kolo, but at any sign of my cravings again, I removed all the money.
Related: How to save and invest money in Nigeria
If you were like me and you still don’t trust yourself so much, there is nothing to fear. The advent of technology has brought more automatic methods of saving.
You must be reading this article if you have come to a crossroads in your relationship with money and you are really at a loss on how to automatically save money each month in Nigeria.
How can I save money automatically each month?
Online savings platforms are portals, applications, or websites where one can save money or save and invest money. These platforms can be accessed with internet-enabled mobile devices, laptops, or desktops with internet access.
To use an online savings platform to automatically save money, you need to have a bank account, a debit card, a bank verification number (BVN), and a valid means of identification.
Using the online application, you can decide how you want to save if it’s on a daily, weekly or monthly basis. The online app can be synced to your bank account and the automated savings take place effortlessly.
Related: How to save money as a student in Nigeria
Examples of online savings platform to automatically save money includes Sumotrust, Kolopay, piggyvest, etc.
Using Sumotrust, you have different choices of savings plans to make.
For the main savings, choose your savings plan (Weekly or monthly). The interest rates are up to 10% and you choose a withdrawal day. The platform does not let you withdraw until your chosen withdrawal dates.
Fixed savings have a higher interest rate of up to 15% per annum and help you lock away your money for a longer period of time. It also serves as an investment account.
Missions saving is a goal-driven savings plan. If you want to raise money for a particular cause or project, this is a plan to use. You can set a financial target and start saving till the money is realized. Visit here for more information.
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Using an automatic savings plan
An automatic savings plan, according to Investopedia, is a type of personal savings system in which the operator automatically deposits a fixed amount of money of funds at specified periods of time.
This plan can be used to automatically save money each month.
Also Read: Top savings apps in Nigeria that pay high-interest rate
It operates by an automatic transfer from your bank account, into an investment or savings account every two weeks.
How to set up an automatic savings plan
It is not difficult to set up this plan. All that is required is just to open a savings account and link it directly to you’re checking account and request a direct deposit from your employer or to set up an automatic transfer from your checking account straight into the savings account.
The benefits of using this plan include
- a) It helps you stick to a budget and reduces overspending.
- b) It makes you avoid the time required to queue up in the bank to make a deposit.
Visit here for more information on automatic savings plans.
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Thrift societies
Thrift societies also known as Esusu is an old method of saving and investing money. It is an old yet great method of automatically saving money.
People have different motives for joining thrift societies. The commonest reason is to achieve financial goals.
The modus operandi of thrift societies differ from the regular banking system. Firstly they consist of about 5 or more people. They contribute monthly or weekly manually, or sync their bank accounts to the cooperate account, where deposits enter into.
The withdrawals are made by drawing lots. Whoever picks a particular month is paid that month and the cycle continues.
Thrift societies are very useful, especially in rural settings. The downside is that most times, an individual operates the savings account and can elope with the money. It is important to ensure that the account being used is registered in the bank as a co-operative/thrift society.
4) Direct deposit
A direct deposit is a great way to automatically save money especially if you are working. Money can be quite volatile especially if you have it. It’s honestly more difficult to save money after spending. A direct deposit is a method of saving money before spending. It helps guide your financial intelligence and place you within a budget.
Setting up a direct deposit can be quite easy. Open up multiple accounts or another account separate from the checking account and talk with your employers about making a direct deposit into the separate account.
Using a direct deposit into a different account serves to deceive yourself into thinking that you have less money than available.
The direct deposit also saves man-hours. Your employers pay it indirectly and you can save the stress of having to do it yourself.
5) Saving the change
This is not exactly an automatic way of saving. The more automated method called rounding up is applied in some other countries. Loose change that is not exactly in use can be kept in a piggy bank and accumulated till it can be put in a bank or used to meet a need. A whole lot of us applied this method as kids.
The downside to using a piggy bank is the inconsistency and temptation to use the money against money in the bank.
If you think you won’t be disciplined enough to use a piggy bank, you can keep it with a friend.
Conclusion
How to automatically save money monthly in Nigeria is not a big deal. It just needs diligence focus and consistency.
Along the way, temptations may arise and will want to sweep you away from your goal. To curb this, have a financial target for each year. For example, tell yourself “I want to save one million things year” and work towards it. Also learn to have a budget and stick to it and watch yourself become more dedicated to saving.
