In this economic uncertainty, many of us are looking for ways to save money for a long term and retire well. Let us review nine basic ways to save money for the long term, according to www.lifehack.org.
*Don’t waste your money: Every naira that you waste on something you don’t need (like cable or new clothes or a bigger TV) is a naira that you cannot save for your future. Cancel your extra monthly subscriptions and anything else that you no longer need. Run outside instead of paying for a gym membership.
*Plan ahead and have a savings goal for retirement: Make a plan to save money for your retirement. Having a written plan is the first and most important step to long-term financial success.
*Become debt-free as soon as possible: Paying off your debt is essential to being able to start saving money for the long-term. How can you save money if you are constantly paying for credit card bills, a new car, a bigger house, or old student loan debt?
*Eat all of your meals at home: Instead of eating breakfast, lunch, and dinner out at restaurants, commit to eating all of your meals at home, every day. This will likely save you some cash per month if you are currently eating out daily. Look at your current bank statements and calculate how much you spend on eating out at restaurants each month. You may be surprised at how much you are really spending on food.
*Get a piggy bank and save your change every day: This may sound like a small step, but saving your change each day and watching it slowly grow will motivate you to keep saving. Make a plan for that extra change. Take it to your bank monthly and put it directly into your savings or retirement account. Every naira helps!
*Look for buy-one-get-one-free deals on groceries: Many grocery stores offer buy-one-get-one-free deals on everyday grocery items and these savings can really add up! Many of these deals happen during the middle of the week so stock up your canned goods and pantry items. Groceries are a large part of any budget, so even saving N1,000 per week on groceries will add up to large savings each year.
*Use cash instead of your credit card: It is so easy to spend frivolously using a credit card and not even think about how much you are spending. Credit cards are also really terrible for impulse shopping so stick to cash: it forces you to only buy what you can afford.
*Set up an automatic payment for your retirement account: Determine how much you will need for retirement. Then, set up an automatic payment for that amount each month. Just set it to a reasonable percentage. Many people choose 15 to 25 per cent of their income, but that depends on personal financial goals for retirement. But remember, do not change this unless you need money for an emergency that is not covered by your emergency fund.
*Always think long-term: Instead of thinking about short-terms wants, think about long-term financial goals like retirement. This will motivate you to keep saving your money long-term. This will also keep you on track.
Saving money for long-term or retirement is important and it does take planning! Start saving your money today and set yourself up for a successful and enjoyable retirement! Good luck saving your money!
Copyright PUNCH.
