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Here is your step-by-step guide on how to save for long and short term goals
How to Save Cost
Sometimes one of the hardest things to do when creating a personal or corporate budget is saving costs. Even more difficult, is to find the areas where minimal spending can be applied.
Here, we are going to develop a step-by-step guide so we can save for all the short and long-term goals. Some of which have been stated earlier in our budgeting article but will be emphasized here:
Record all your expenses:
To properly budget and save costs, you need to figure out how much you spend. You need to keep track of all your expenses - that means every coffee, household item, groceries, cash tips, and even monthly frequent bills. Record your expenses however is easiest for you, a simple spreadsheet, or online spending tracker app. Make sure that your spending is organized.
Make Saving a big part of your budget:
Now that you know what you spend in a month, you need to include it in your budget. Your budget should show what your expenses are relative to your income monthly so that you can limit overspending. Make sure to consider expenses that occur regularly but not every month such as car maintenance or black taxes
Find ways to cut spending:
Identify the expenses that are not essential, such as entertainment and dining out, that you can spend less on. Look for ways to save on some of your fixed monthly expenses. Here are some ideas on ways to cut down spending:
Search for free activities - free events, shows, concerts, etc.
Examine the cost of eating out vs. Cooking at home.
Always give it a second thought before you purchase that high-price tag item.
Set financial priorities:
After your expenses and income, your goals are likely to impact how you save. For example, if you are going to need to replace your car,, you could start putting away the money for one now. But be sure to remember long-term goals like planning for your retirement or signing up for health insurance.
Make Saving Automatic:
One of the best ways to save with ease is by automating deposits in to your savings account. We recommended you create a Herconomy account, set up Easy save on Vault and enjoy a 10% interest rate on your savings at the end of the year!
Click on the links below to download the Herconomy app on your Android or iOS device to start an exciting savings journey with us and don’t forget you can set up your easy save with as little as 50 naira.
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