Save Money in Nigeria: A Beginner's Guide to Financial Freedom

Save Money in Nigeria: Beginners Guide to Financial Freedom - Mkobo App

Save Money in Nigeria: A Beginner's Guide to Financial Freedom

Saving money can feel difficult, especially when faced with rising expenses. But don't worry! This guide will equip you with practical steps to start building a secure financial future in Nigeria.

Save-money-in-Nigeria-Mkobo-app-scaled

Set SMART Savings Goals

Why it Matters: Clear goals keep you motivated and focused.

How to do it:

  • Specific: Exactly what are you saving for (e.g., new laptop, emergency fund)?
  • Measurable: How much money do you need to save (e.g., ₦50,000)?
  • Achievable: Set a realistic target based on your income.
  • Relevant: Ensure your goal aligns with your financial priorities.
  • Time-bound: Set a deadline to achieve your goal (e.g., 6 months).

Example: A Lagos-based freelancer wants to save ₦50,000 for a new laptop within 6 months. This translates to saving approximately ₦8,333 each month.

Create a Budget to Track Your Money

Why it Matters: Budgeting helps you understand your income and expenses, allowing for better financial planning.

How to do it:

  1. List your monthly income.

  2. Categorize your expenses:

    • Essentials (rent, utilities, food, transportation)

    • Non-essentials (entertainment, dining out)

Example: A Lagos shop owner earning ₦100,000 allocates:

  • ₦30,000 for household expenses

  • ₦20,000 for business needs

  • ₦10,000 for children's education

  • ₦20,000 for savings (Mkobo Flexi Savings is a great option!)

  • ₦20,000 for additional costs or emergencies

Make Saving a Priority

Why it Matters: Building a savings habit is crucial for financial security in Nigeria.

How to do it:

  • Treat savings like a fixed expense.

  • Automate transfers from your salary to your savings account.

  • Start small (e.g., 5% of your income) and increase gradually.

Example: An Ibadan wholesaler earning ₦50,000 can set aside ₦5,000 monthly for savings. Utilize Mkobo Flexi Savings for automatic transfers and easy access!

Online saving app - Mkobo.jpg

Choose the Right Savings Option for You

Why it Matters: Different savings options offer varying features and benefits.

How to do it:

  • Research available options in Nigeria.

  • Consider factors like interest rates, fees, and flexibility.

Mkobo offers competitive savings solutions:

  • Mkobo Flexi: Flexible savings with easy access and attractive interest rates.

  • Mkolo Locked: Short-term to Long-term saving options for salary earners. Save for 3, 6, 9 months at great interest rates

Example: If you deposit ₦100,000 into Mkobo's HYPA Fixed deposit account with a 12% interest per annum. You earn an extra ₦12,000 without extra effort!

Build an Emergency Fund

Why it Matters: An emergency fund protects you from unexpected financial situations.

How to do it:

  • Create a separate savings account for emergencies.

  • Aim to save 3-6 months of living expenses.

Example: Amaka, a clothing boutique owner in Abuja, had an emergency fund that helped cover her father's unexpected medical bills.

Read Also: Save Money in Nigeria:Practical Tips to Stretch Your Naira

Educate Yourself Financially

Why it Matters: Financial knowledge empowers you to make informed decisions.

How to do it:

  • Read blogs like the Mkobo Blog for budgeting and saving tips.

  • Utilize free online resources (webinars, videos) to learn about personal finance.

Example: Adobi, a young Lagos professional, improved her financial literacy through online resources and is now saving for an emergency fund.

Conclusion

Saving money might seem challenging at first, but with consistent effort, you'll achieve your financial goals. Mkobo is here to help you on your journey to financial freedom! Explore our savings options and budgeting tools to get started today.

Unlock a world of financial possibilities - join our savings feature waitlist to be one of the first folks to know when it goes live soon!