The topic of money saving is very old and usually a common topic in Finance. From the normal commercial banks that you are familiar with to the small akawo moving from one petty trader in the market to the other, money saving will always remain a popular topic of discussion anytime.
There are several reasons people put their money into savings such as buying a car, paying for school fees, building a new house and so on, and this is also a testament to the fact that saving money is usually for a good purpose and also to reduce stress.
In Nigeria for example, one activity that sometimes drives people nuts is the inability to pay house rent as and when it is due. This is why it becomes really important to save for House rent as well. But how?
In this post, I will share 5 quick ways to save money for rent in Nigeria. even though you have other things begging for your rapt attention.
Sounds good right? Yes, it is……
Let’s get into it.
5 Quick Ways to Save Money for Rent in Nigeria.
1. Save Monthly
Most house rent payments in Nigeria are done yearly. This gives you ample opportunity to save up really quickly for the rent.
While monthly savings can be really helpful as it takes the burden of having to pay a lump sum at the end of the year off your shoulders, it is really risky as it can either be done with an untrustworthy person or simply greeted with the inconsistency which makes the yearly consequence (Your house rent) far-reaching.
There are various strategies that can be employed to achieve not just a consistent monthly savings of your house rent, but also a safe monthly savings of your house rent. Let’s consider them below:
Consider your monthly income
Do not try to save more than you actually earn every month, that is dangerous as you do not want to be caught up in an emergency. An article on Personal Budget on Wikipedia suggests that only about 20% of your income should be saved and the remaining 80%, be spent on necessities.
Save with A Purpose
There must be a driving force that propels you to save or else, you lose the interest to save halfway. Paying your rent at the end of the year is enough driving force for your monthly savings.
Automate Your Savings
By default, we are never diligent with saving up for worthy goals like Yearly rent, this is why a lot of people start to save monthly and stop halfway because of a lack of diligence. One way by which you can stay consistent or diligent with your saving pattern is by automating your monthly savings online. This savings automation ensures that a certain amount is deducted monthly from your bank account and stashed up in the rent savings account.
2. Cut Down On Expenses
If you have not started doing this, maybe it is high time you started. There are several loopholes where your hard-earned money might be emptying without you knowing it. If left unchecked, these loopholes will definitely deny you the opportunity to pay your rent smoothly as and when it is due.
Some Key areas to Look into
- a. cut on the amount of browsing data and call credit you use in a month: So many persons spend a fortune on subscribing for their data and call connections and pay little or no attention to the fact that it is eating really deep into their ability to save up for their rent.
- Cut on your wear: While it is not a bad idea to look your best, it is very important to do everything in moderation. Buying every new dress in vogue or buying “Anko” is not a wise way of saving up for the yearly rent.
- Expenses on Junks: Apart from the health consequences of eating junk, it is never a wise financial idea to spend on them.
3. Make A Neat Budget
Closely related to expense reduction is creating a neat budget. Your budget simply helps you to track income and expenses plus make plans for the close future… (Sometimes the next month). With a budget, you may be shocked to find areas where you have been spending so much and how to alternate those needs. If your budget is drafted for the sole aim of saving for a goal (Like saving up for rent), it definitely will amount to a wise and happy decision at long last.
Components of a Good Budget
- Income plan: a good budget contains plans on how cash will flow in.
- Expenses Plan: A good budget also contains plans on how the inflow goes out.
- Apart from earning and spending which are good components of a typical budget, there is also a need to make provisions for saving inside of the budget plan.
- Goal: There must always be a reason for earning, spending and saving which is usually called the goal.
- Miscellaneous: A good budgeting plan must make provision for unforeseen circumstances.
- Tracking & Review: Every budgeting plan must be tracked and constantly reviewed. This helps you to stay on course and continue to make adjustments.
4. Develop an Extra Income Source
A complete reliance on one income source might jeopardize your chances to save every month towards rent payments. Savings becomes fun when there is a constant inflow of cash.
How do you develop an Extra Income Source?
- Learn a skill: Acquiring skills in Digital Marketing is a good way by which you can begin to generate extra income source.
- Diversify Existing Business: Diversifying your existing business in order to reach a new market is a great way of developing an extra income source.
5. Negotiate With The Landlord
While this may not be a popular norm in Nigeria, it is actually one of the quick Ways to Save Money for Rent in Nigeria. The landlord is also a human and should be appealed to.
Apps For Saving Money In Nigeria
There are several apps (Web or Mobile) that promise to help you secure your funds while also providing you with revenue to save your money towards rent payment, but only a few of them actually deliver on these promises:
- RentPady: Rentpady tops the list of Apps for saving money In Nigeria because of its feature for rent savings.
- PiggyVest: This is a local money-saving app with lots of juicy services. Piggy Vest falls short of Rentpady because it does not accept savings for rent payments.
In Conclusion
Saving up meticulously for your rent is the surest way of keeping the Landlord off your door for another 365 days, and the only means by which that happens is by going through and mastering the 5 Quick Ways to Save Money for Rent in Nigeria as outlined above.
Please leave us a comment below and let’s start a conversation.