How To Save Money: Simple Ways To Start And Stick With It

The hard part about saving is doing it every month when you have rent, transport, food and a few surprise bills to sort out. But you don’t need a big salary to start saving. What you need is a plan that fits your income and a system that does most of the work for you. Here’s how to start, and how to keep going once you do.

Why saving money feels so hard

 When money comes in, it usually goes to the things that matter most; rent, food, data, transport, and by the time you get to saving, there’s often nothing left.

A few other things make saving harder:

• Your income changes from month to month, which is common if you have a side hustle or run a business.
• Small spends are easy to miss, like snacks, food delivery and subscriptions you forgot you had.
• You don’t have a clear reason to save, so the money in your account feels free to spend.

None of this means you’re bad with money. It means you need a system that saves for you, because relying on how you feel at the end of the month rarely works.

How to start saving money

1. Find out where your money goes.

Go through your account statement from the last month or two and put your spending into needs; rent, food, transport, bills,  and wants; eating out, new clothes, subscriptions. If you’re not sure which is which, our guide on how to know what you need vs what you want will help. You’ll likely find money going to things you don’t remember buying. That’s where your first savings will come from.

2. Save first, then spend.

You might want to spend first and save whatever is left. Do the opposite. As soon as your salary or a payment comes, save first before you pay for anything else, then plan your spending around what you have left. Here are three smart money moves for payday that can help you do this.

3. Start small.

If money is tight, don’t wait until you can save a big amount. Pick an amount you can comfortably save every week or month. Then increase it when your income grows or your costs drop. At the start, this habit will matter more than the amount.

4. Save a percentage even if your income isn’t regular.

A fixed monthly amount can be hard to stick to when you run a business or earn from a side hustle. Instead, save a percentage of every payment you receive. You’ll save more in good months and still save something during slow ones.

5. Try the 30-day rule.

When you want to buy something you don’t need, write it down with the date and wait 30 days. If you still want it after that and you can afford it, go ahead and buy it. Often, you’ll find you don’t want it anymore, and that money can go into savings. The wait also gives you time to compare prices.

6. Cut what you don’t use.

Check your statement for subscriptions and repeat payments, and cancel the ones you haven’t used in a while. Cooking more often instead of ordering food every day can also free up a lot of money over a month.

7. Give your savings a reason.

Money with a purpose is easier to leave alone. Decide what you’re saving for, whether that’s rent, school fees, or a new phone. If you don’t have any savings yet, start with an emergency fund so a hospital bill or a broken phone doesn’t automatically mean borrowing money. That’s why it’s important to have an emergency fund. Or plan the rest of your money, with these simple budgeting tips for Nigerians.

Make saving automatic

Deciding to save every single month takes effort, and it’s easy to skip a month when things are tight. When your savings are automatic, you only have to make that decision once.

You can do this on theKuda app in a few ways:

• Spend+Save: Turn it on and choose a percentage. Every time you spend from your Kuda account, that percentage of what you spend will be moved to your savings.
• Save Frequently Pocket: Choose how much you want to save in total, how often you want to save whether daily, weekly or monthly, and a start and end date. Pro tip: Give your Pocket a name that reminds you why you’re saving.
• Fixed Pocket: Lock away a lump sum for a set period and earn up to 16% annual interest on it. You can’t withdraw from a Fixed Pocket until it matures, so only lock money you won’t need before then.
• As You Want Pocket: Save whatever you like, whenever you like, with no schedule.

Where should you keep your savings?

Keep your savings away from the account you spend from every day. When your savings is next to your spending money, it’s easy to use them without noticing.

If you’re looking for an app to save money in Nigeria, check if:

• It is licensed by the Central Bank of Nigeria (CBN), with deposits insured by the Nigeria Deposit Insurance Corporation (NDIC).
• Lets you  save automatically.
• Pays interest on your savings.
• Show you clearly when and how you can withdraw.

Kuda is licensed by the CBN, and your deposits are insured by the NDIC. With Kuda Savings, you can choose the Pocket that fits how you save. 

You don’t need to wait for a pay rise or a perfect month to start saving. Pick a saving habit that fits how you earn and spend, then stick with it, one day or one week at a time.

Frequently Asked Questions About Saving Money

How can I save money fast on a low income?

Start with cutting off things like unused subscriptions, daily food orders and impulse buys. Move whatever you free up into savings immediately, then set up an automatic amount, even a small one, so you keep saving without having to remember.

What are some smart ways to save money?

Use the 30-day rule before buying anything you don’t need, save a percentage of every payment you receive, and turn on Spend+Save so you save a little every time you spend.

What are the benefits of saving money?

Savings give you something to fall back on when an emergency happens, so you don’t have to borrow. They also help you pay for big expenses like rent or school fees, and they give you money to work with when you want to grow your business or start a new one.

How much of my income should I save?

There’s no single right amount because it depends on what you earn and what you spend. Start with an amount you can keep up every month and increase it whenever you can.

Can I save with Kuda if my income isn’t regular?

Yes. An As You Want Pocket lets you save whenever money comes in, and Spend+Save moves money to your savings every time you spend, whether you spend a lot or a little that month.

Download the Kuda app and start saving today.