To save money is to keep it aside for use in the future. You can decide not to spend all your income at once for different reasons. For example you can decide to save towards your retirement, buying a car, a house, or towards rent, going to school, start a business or for investment. Also you can save in preparation towards your wedding, buying equipment and electronic gadgets and for emergency known as emergency fund.
The method you use for saving cash is what will either help you or make you not to save. Life is filled with complications and to live without any savings is disastrous. Nobody wants to become indebted and the only way to avoid this is to budget, track you expenses and spending in order to save. In Nigeria, there are different ways we save money.
Here Are 5 Methods To Save Money.
- Contribution or Thrift -: This is when people form a partnership for the purpose of bringing their money together and giving it to one person to use. This contribution might be daily, weekly or monthly. Five people may contribute a certain amount money and give it to one of the five and every person takes turn to take the bulk until the circle goes round to every body.
2. Office Co-operative Society-: This is when you as a Staff save with your office. A certain amount of money is deducted every month from your salary until you have the targeted savings. In most cases, an equivalence of the saved amount is added to that which was saved in order to have a double of the money. Workers tend to lean towards this kind of savings when planning to buy a car or when renting an apartment.
3. Pension Contribution-: The Federal government of Nigeria has a policy that requires all employers of labour to key into the Federal government’s Pension contributory schemes. This entails that any company or organization that has up to five number of employees, must register them for the contributory scheme. Staff contribute 7 1/2 percent of their income towards retirement while the government or their company contributes the other half making the savings to be 15%. The fund is invested for the worker towards retirement.
4. Saving At Home in our saving boxes, pots, piggy boxes and under mattresses. In the north of Nigeria, these boxes are called asusu or piggy bank as it is known internationally.
5. Savings In Bank. This is the most popular way of savings as workers don’t have a n easy access to their money. Most workers ask their banks to do a direct debit into another account whenever salary is paid. Doing this takes off the burden of having to be physically there for the transaction to take place.
Which ever way you are using to save, the most important thing to remember is you must have a saving because of the unforeseen incidences that do occurs. Whether you save with you office, bank, do contribution, with government or at home, savings is very necessary. Therefore remember to save to save money no matter how small the amount.
How do you save? Share with us your own method.