12 Tips That Will Help You Save More Money Easily

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Image credit – Ankur Rathi

Wealth creation always begins with saving money and then putting the money saved into an investment or business in order to yield more income. Being able to save money earned for the purpose of business and investment is a very vital step in achieving wealth and many people are poor because they are not able to save money and so they have nothing to invest or to start a part-time or full-time business.

Benjamin Franklin said, “The way to wealth is as plain as the way to market. It depends chiefly on two words, industry and frugality: that is, waste neither time nor money, but make the best use of both. Without industry and frugality nothing will do, and with them everything.”
Frugality basically has to do with saving money. It involves saving a part of your income for the purpose of investing it. Anyone who is not frugal will hardly become wealthy. The life of wastage and excessive spending will keep you poor. Wealthy people are good savers while poor people are most times excessive spenders. If money earned is not saved and invested appropriately in order to yield  more money, wealth creation will be impeded.

Most people, (including me) find it very difficult to save, because human wants are inexhaustible. It is easier to spend money, buy stuffs and have fun than to save money. Therefore, in this article, I will be sharing with you 12 tips that will make it easier for your to save money. These are strategies that I have practiced for many years and many people also use these methods to save money.

How to save more money easily

1. Have a savings plan – You don’t leave saving to chance. You should have a pre-determined percentage of your salary or income that you have planned to save monthly. The most popular savings plan is saving at least 10% of your income monthly.
You can do better than 10% but don’t do below 10%.
You may have heard about one unique principle of saving: ” Pay yourself first”. This means that once you earn any money, savings should come before spending and not the other way. The rich save first before spending while the poor spend before thinking of saving and in most cases, there is usually nothing left after they have spent.

2. Have a separate account for your savings – If you will succeed in saving, your money has to be off you mind.  Don’t keep your expense fund and savings in the same account. You need to save your money in a separate account where you won’t have to be thinking about it all the time.

Read Also:  17 Invaluable Principles Of Wealth Creation And Career Success

3. Automate your savings – Go to your preferred bank and set up an automatic debit of your salary or income account into your savings or investment account. Put your savings in interest yielding account. A mutual fund account is a good place to save your money. See how to invest and grow your money in the Nigerian mutual fund.

4.Dont allow your savings to be easily accessible – One of the best and easiest ways to save money over time is to ensure that your money saved is not easily accessible to you.
As I said do not use a regular savings account for your savings. It is better to keep your money in an account whereby before you liquidate your money, you need to go to the bank and fill out a liquidation form and wait for some working days before you get credited.
Keeping your money in an account where you can easily make withdrawals using your ATM card, is not an effective way of saving. You only need to have an ATM card for an expense account.

See how you can invest in treasury bills.

5. Prevent money loses – Warren Buffet said ,” There are two rules of wealth:
1.Never lose money.
2. Never forget rule number 1.”

Don’t invest in what you don’t understand. If you don’t know how the business or investment works don’t put your money in there. Don’t lose your hard-earned money to bad investment or business  Look carefully before you leap. Don’t be in haste. Make all necessary findings about the genuineness of an investment or business before you decide to get into it. Loosing money will not make you more wealthier.

6. Control your spending with a budget – Don’t spend without a budget. Spending or going for shopping without a budget will make it very difficult for you to keep any money. With a budget, your spending is controlled and regret buying is prevented. Through a budget, you are able to prioritize your needs and allocate resources first to the most important one.

7. Avoid impulse buying – There are many stuffs like  clothes and  accessories and properties in our houses that we seldom use, but they are just lying there. The money we used to buy those things would have been used to buy other more needed items or even invested.

We have this experience because we bought most of those things on impulse without giving proper and adequate thought to whether we really needed the items or not. We obeyed our emotions instead of our minds. When it comes to making money decisions and spending , our emotion is  not a reliable guide. Give more attention to your mind instead of your emotions.

8.Pay off your debts starting with those that have the highest interest rate and avoid getting into new debts You can’t really build wealth if you are stuck neck-deep in debt. I don’t mean business or investment debt. I mean debt incurred just to meet personal or  household needs.

Read Also:  Explained! How to Invest in the Nigerian Treasury Bills and Make Money

Debts, especially those with high interest rates are setbacks to wealth creation. You need to prioritize getting out of all your debts if you are serious about getting wealthy. After that, make a firm decision to stop borrowing. Resist vehemently the temptation to borrow. If your credit card is making you a perpetual debtor, you can decide to stop using one. See how to get out of debt easily on a low-income.

9.Start saving early in life – Don’t wait until you are too old or when you have too much expenses before you begin to save.
There are many benefits of starting early to save. It helps you to develop the attitude of saving early in life before you start earning large income. The reason is because when you give more money to someone who has not developed the attitude of savings, he or she will waste it almost immediately. More money doesn’t make anyone wealthy. It is more money in the hands of a frugal person that produces wealth. When you start saving early, you have more chances to benefit from compounding returns of the money if invested in a good interest yielding account.

Teach your kids to learn to save early in life. You can even set up an account for each of your children and begin now to put little funds monthly or periodically into a good interest yielding account for them. Before the children get to the age of entering college or university, annual interest from the money in their investment accounts may be enough to pay their tuition fees throughout college and university. I have seen someone who is doing this.  See 17 invaluable principles of wealth creation.

10. Record your expenses  – You don’t need to do this every day.  However, I recommend that you try recording you expenses for a month.  This will help you to know where your money is actually going. If you record your expenses for a month, you will get a clearer picture of your spending pattern.  You will be amazed how little habits are draining your funds and how much you can save by making little adjustments to your spending pattern.

Read Also:  The Basics of Stock Investing

By tracking your expenses, will know  much you are spending on fuel, transportation, phone calls, internet, feeding, housing, utilities, groceries, debt, entertainment and addictions. Once you have got a view of where your money goes in a typical month, you can begin to spot the trends and problem areas. After you’ve found the problem areas you’ll have a better idea of where you can cut back and by how much. Then you can put money saved in your savings account.

11. Stop addictions – Some addictions like drugs, excessive drinking, clubbing, smoking, gambling etc can hinder you from saving.
Therefore, you need to deal with any addiction holding you down. Ask for help. Seek counselling.  You can join a support group to help you quit addictions.

See 20 money habits that keep people poor and how you can avoid them.

12. Don’t wait until you have excess money before you begin to save – Start with the little you have. When you keep waiting till you have extra cash before you begin to save, you will wait forever, because extra cash rarely comes and when it comes, there are many expenses waiting to take it away. You have to start with what you have at the moment. That’s the wise thing to do.

See how developing an investment mentality can make you wealthy.

Bottom line

As I said, being able to save money earned for the purpose of investing it or putting it into a business in order to generate more income  is usually the basic step in creating wealth  However, it is not easy to save money, because we have  a lot of needs to meet and the money we earn always seem insufficient to allow us to save.

If you apply the steps I have shared above, saving will become easier and less strenuous.
Through savings, you can be able to make more money by investment or business.

See 30 lucrative business you can start with as little as N100K in Nigeria.

What are your thoughts regarding this post? Let us know by leaving a comment below.

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