Hi guys. I’m back again. How have you guys been? I’m here to talk about something that I’ve been struggling with. My savings. I know a lot of people are on this table because if you’re like me, then your incoming money goes to bills and unnecessary nonsense. I have wanted to make this post for a while now but I had to make sure these hacks were working for me before I shared it. Right, let’s get to it.
At the beginning of the year, I discovered three things:
- I was in debt and in overdraft
- I had 0 in any currency saved anywhere
- I was spending money on unnecessary things.
After taking a look at my bank statement, I decided that something had to be done. I started to research and think of ways I could save money. Now I did not earn that much from work but I knew I could put just a little bit aside every month which is what I decided to do.
The first thing I did was to make a budget outlining my expenses and recording my income. After my calculations, I concluded that I could save between 12-15% of my monthly salary which I started doing.
Then I lost my job in February , basically finished my savings by March and began to panic. Thankfully, in April, I got another job and I knew I had to start building my savings again but this time I had to revise the way I saved incase I find myself jobless again so I have created 3 ways in which I keep money aside and 3 ways to cut out unnecessary spending
1. Savings Account
This seems fairly obvious but I added my own spin to it. I created a new account with a different bank. I have no ATM card and I can’t perform online transactions with this account. If I could use it for online transactions, Lord knows I would have used it to buy all the Fenty products available. The only way to access funds from this account is to walk to the bank, queue and then give all my life details to the cashier before i can get my money.
However, I found myself making trips to that bank whenever I needed cash and my savings kept disappearing as quickly as it got into the account . It was at this point I knew I had to create a new account. I call it my emergency fund account
2. Emergency Fund Account
I just started this last month. All I do is transfer a little amount into it. In order to fund this account, I have had to cut out on my daily expenses. I have not bought anything new of recent but I am saving for a rainy day. The purpose of this account is for emergencies like when you are broke or if you lose your job. It is not a lot but I think it’ll save me from dipping into my actual savings when I get very broke.
3. Moneypot, Piggybank, Komkom…..
However you want to call it, everybody should have one. Everyweek, £5.00 goes into the pot. You can set your own amount and time. I am going to keep doing this til the pot is absolutely full. After that, I’ll either break it or get a new pot. The temptation to break the pot and take all the money is real but this is why we have emergency fund accounts.
Have I sorted out my debts?- I’m working on it. This is why my savings is not any higher than it is right now because I am slowly paying them off. I got into debt because of unnecessary spending. Don’t be like me. Please save whatever you can
Aside from creating all these accounts, I had to cut out unneccesary spendings such as:
I am subscribed to a number of things. Spotify, VSCO, Netflix and others. However, I found that I don’t even need half of these and I had to start unsubscribing from things like Amazon Prime and NowTV. I don’t know why I had NowTV when I was already subscribed to Netflix.
2. Eating out
I hate cooking but unfortunately, it’s a lot cheaper than eating out. Also, I have added a lot of weight and I will confess that it contributed to my decision. It’s okay to eat out once in a while but if you’re out buying food like me all the time then you need to take a step back.
3. Avoid Sales
The minute my eyes land on a discounted item, my ATM card is out exercising itself. Not that I have money for it but I will still buy it. This is how I ended up in overdraft. Now I tell myself, don’t buy this dress and you will be able to buy a house. That is how I now walk past anything on sale. It’s very hard but I want to have the money later.
These are the ways I keep money aside and I am very excited to watch my savings grow. I want to use it to either get my own place(because I cannot imagine going to live back with my parents after Uni) or start a business. Getting my parents to agree for me to live on my own in Nigeria will be tough because my mother says only prostitutes and slay queens do it. 🙂 Maybe I can save for both of those things but let me take one step at a time. University will soon be over then I will have to move back and I want to have as much money as I possibly can because my father will not even answer me. The man has done his part for my education.
How do you guys save? However, you do it, I recommend an emergency fund account and a moneypot. I think they will save your life. That’s it for today guys. I hope you all have a nice day and see you in the next post.