Financial experts are familiar with this statement “increase the income while you cut down expenditures to the minimum”. It is one of the fundamental laws of financial success. When your earnings are more than your expenses, it means you are making progress financially. However, if your expenses can be further reduced, your progress experiences a financial boost.
1. Cancel TV Subscriptions most especially if you are single:
While this may not make sense for everyone and may not be appropriate for everyone, I noticed that as a single person, you can save so much. Instead of paying for cable, buy a Chromecast and an unlimited internet subscription. Chromecast ($35), Internet setup with Wifi.ng (30k), monthly subscription, (9,500). So how does this pay you? This serves multiple purposes- you can use your internet subscription for more things than just video.
2. Buy used cars:
If you can comfortably afford to buy new cars, then go for it. I am for getting very good used cars that you can sell off in a year to get another used car. Of course, the car has to be well inspected before you purchase it. You should sell it off before there are any issues whatsoever.
3. Wash your car yourself:
Instead of paying the car wash guy, you should find time during the week to wash your car. It doesn’t only save you money, maybe you’d find the spare change you left in the car from last week.
4. Use Whatsapp for calls:
Whatsapp calls will save you a tonne of money for international calls. Everybody(almost everyone) is on Whatsapp anyway. I noticed that Whatsapp calls are better in quality than any other VOIP service and far economical.
5. Cook your own meals:
You can save up to 400% from cooking your food for the week rather than eating out. A good piece of chicken is N1,000. 1kg of Zartech’s frozen chicken wings with about 12 pieces of wings costs N1,200. So what do you think? An average meal in Chicken Republic will cost you about N1350. Multiply that by 5. That’s 6750. With N6750, you can buy chicken, vegetables, and carbs that would last you one week for three meals a day. Take your meals to work.
6. Get an inverter:
Inverters are efficient and durable. They can last for more than 5 years without even changing batteries. An inverter can easily power your apartment(depending on capacity) for three days without power. Set up may seem expensive but the payoff is great!
7. Buy LED not LCD Tvs:
LEDs are huge power savers. Other types consume more power. I know power is cheap in Nigeria. But power is not cheap on your generators. Same goes for bulbs. But LED/energy saving bulbs.
8. Plan hangouts effectively:
Before going out on hangouts, budget your spending and let everyone know immediately you are hanging out. This prevents excess spending right from the beginning.
9. Leave Instagram alone:
The simple truth is, Instagram eats much of your data. So, you know you don’t have to be on Instagram much longer
10. Hitch a ride:
Though it’s more convenient and comfortable you drive yourself to work. But I realized it would saved you a lot of money hitching a ride. As a car owner who would rather control where he goes etc, plan the days you can save on fuel by hitching a ride. Not every time drive.
11. Keep track of your costs:
That tip itself is a money saver. You can’t manage what you don’t gauge. If you first start monitoring your spending you will be shocked how much you spend on some non-essentials. There are people who spend more on transportation than what they spend on their upkeep when it is possible for them to cut down on their transportation costs.
12. Don’t just buy quantity, buy quality:
When shopping, don’t just go for quantity, go for quality. Contrary to what some believe, buying quality saves you a lot I money. For example, a quality shoe though may be expensive will last longer than four low-quality shoes put together.
13. Insure your properties
In particular your car. It’s interesting that a lot of Nigerians who do 3rd party insurances don’t know they can claim money/repairs if they hit someone else’s car.
You hit someone’s car and then the two of you are shouting on the street! All that is unnecessary! Just contact your insurance company, exchange numbers and save yourself the stress.
14. Do your weekly, daily and monthly budgets:
This saves you from overspending. Your being deliberate with expenses keeps you in check. Your budget will control your financial expenditures.
15. Forget savings, invest in mutual fund:
Saving from your income is good. Making your savings work for you is a further step in wealth creation. A guy shared a story of how he started saving 20% of his income with a mutual fund (Old Mutual) a few years ago. His benefits include up to 18% returns and life insurance. According to him “I set a standing order on my account to debit as soon as my salary came in.”