How to grow your savings



These tips are very helpful no matter how much you make. Following these tips would also never leave you stark broke as you would always have your own personal financial backup plan.

1.) Spend less than you earn
        Try as much as possible to be conscious of the way you spend. Dont spend irrationally. For instance, you make 40,000 a month and then spend 20,000 in a day on drinks at a club. 

2.) Budget- Do not spend more than 70% of your monthly earning. So if you earn 40,000 naira monthly, you should try to live on just 28,000 naira every month.

3.) Save 20% of your monthly earnings as your long term financial goals ( e.g rent or if you want to buy a land)

4.) Save 10% for short term expenses e.g a car, vacation etc

5.) Have separate accounts for separate purposes. But please have at least 2 ATM cards. Let the other savings account be unwithdrawable, don't keep a cheque book for that accout too. This way will help you resist the temptation of spending from your long term or short term savings account. 
 Live like you only earn 70% of your actual income.

6.) Aim to invest a larger chunk of your long term savings on assets i.e things that appreciate. For example, in properties, land or buildings will always be sold higher by the day. Also, aim to have a fixed deposit account as you will continue to receive higher interest. All this would come in handy when things go south, e.g during recession.

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