Savings deprive you of something good today so that you can have something better tomorrow.
I will be sharing my personal principles of savings. These are principles I formulated for myself and they have helped me overtime and served as a guide.
They are:
Deduction Saving Theory;
This is a form of savings where you deduct a fixed amount of money you want to be saving every week or month. This theory is used monthly by most people. For example, every month, I will be saving 5k. This theory is very helpful especially for students.
This could also be as a standing order for your savings account or that of your children. When this standing order has been given to the bank, every month, the bank acts in accordance to your standing order.
Remnant Savings;
This is a type of savings theory where you save the remnant left after all spending. Is it possible to have some money left after all spending? Adams Smith made us to understand that human wants are insatiable and at every point in time, so many necessary and unnecessary wants pop out for our attention.
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This saving theory will help you achieve a very little savings culture or no savings culture at all. After all the spending is over, what you have left is very little or nothing. Hence, this is a faster route to poverty and stagnation. This particular savings theory has no advantage but the disadvantage is way too much.
This theory will compensate those who live by the theory of "Na person wey don chop finish dey save".
Daily Savings;
This is a type of savings where you save a fixed particular amount of money daily. For e.g.
You decide to save 1k every day. Between the 1st of January and the 31st of December, you have saved N365,000.
If you decide to save 2k everyday, between the 1st of January and the 31st of December, you have saved N730,000.
If you decide to save N500 everyday, between thr 1st of January and the 31st of December, you have saved N187,500.
This is amazing! Isn't it?
If for some reason, you don't have that particular money to save for today, you can save cumulatively.
You can buy a safe, build a safe or have somewhere very secured and secretive enough for your daily savings. I will also advise you to always deposit this money to the bank monthly, if, you are saving, physically, incase of unforeseen contingencies like theft and fire outbreak. You can also decide to save electronically using your Bank mobile application to carry out your transactions.
This article will be incomplete if I don't talk about the attributes or characteristic a good saver must possess. They are;
1. Discipline;
A good saver must be disciplined. This is what most people lack. Indiscipline is a bus stop to poverty. A good saver must be disciplined enough to let go of so many distractions. Have you noticed that the greatest distractions appear during that moment of "savings". The distractions were hiding until you decided to start saving.
At this point;
Your babes are getting married and the aso-ebi material is too beautiful to ignore.
At this point, Apple releases iPhone 12 whose camera is so clear enough that it can reveal your sins to you and even take a good picture of the cloud and show you the real face of Jesus.
This is the period where Louboutin, Paul Smith, T.M Lewin, Tommy Hilfiger and Rolex will launch their new products online.
This is the point where you will always remind yourself of how you've not had shawama and pizza in 2weeks and your body is doing you somehow.
It takes discipline to be a good saver.
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2. Strong Willed.
On the other hand, a good saver should be strong willed. Being strong willed is the ability to stand up for what you want to do in the midst of so much pressure and distractions. Some people easily get swayed by their friends and they end up purchasing unncessaries.
While some others can be so strong willed that, nothing you buy will move them. As long as they have made up their mind to spend N10k in this outing, nothing will make them spend an extra N1k, even if heaven is falling down. I am a Perfect example of this.
3. A should saver should prioritize.
A good saver should be able to differentiate between wants and need and knows that which he can do without. My priority list could be different from yours,still,have a priority list. Prioritise things and ask yourself this question before you buy anything or do anything with money, "Chuma, do you really need this?
Is it so important or is it something you can do without? What if you don't buy it, will anything change? What if you buy it, will anything change?".
4. Sincerity.
A good saver must be sincere enough to admit that his saving culture is so bad and he needs to step it up. He must be sincere enough to admit that he did not save in the Month of April, hence, he needs to double his savings for the Month of May in order to make up for the other month.
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He should be sincere enough to appreciate himself for being a good saver and also remind himself that he can do better. He should be sincere enough to call himself to order and work on some sundry expenses that he can do without.
The richest man is not the man that earns more but the man that saves more.
Save!
Written by Chukwuma Aguwa.
Chukwuma Aguwa is an undergraduate Law student at Benson Idahosa University Benin-City. He is a Business Consultant, Business Blogger and an Entrepreneur. Reach Chukwuma on Chumabusinessconnect@gmail.com