Money Smart, Life Savvy

Truth be told, saving money is not easy. It can feel like saying no to enjoyment or buying new clothes. Between data top ups, uber rides or Friday night outings your paycheck can disappear faster than anticipated. But you can enjoy your lifestyle and save some money. In fact, with a few smart habits, you can build a healthy financial cushion without killing your vibe.

Track your spending

As simple as it may seem, it is a very important step in attaining financial stability. Know where your money is going. Tracking your expenses will help reveal your spending habits and help you make good financial decisions. You are probably spending too much money on fried rice and fufu joints than you think.

Create a budget

Traditional budgets can feel restrictive. So instead, think of yours as a spending plan, prioritize what matters most. For instance you can try the 50/30/20/ rule where you spend about 50% of your income on needs, like food. Then 30% for wants like events and fun activities, and the 20% for saving.

Automate your savings

Do not be tempted to think you can save easily; therefore you must put measures in place that will force you to save. Treat your savings like a non-negotiable bill. Set up an automatic transfer to a savings account right after payday. If it is out of sight, it will be harder to spend on that last-minute plan your squad is most likely to drop on a Friday evening.

Cut cost without killing fun

Try to get night bundles which are relatively cheaper for downloads instead of daily bundles. Consider sharing rides on bolt or uber, this way you can reduce cost instead of riding solo all the time. Who knows you may make a new friend. Try cooking at home a few times in a week to reduce the cost involved in eating out all the time.

Start small but be consistent

You may not be able to save 1,000 Ghana cedis a month to start. Even if it 200 cedis every payday, it will add up over time. What matters is consistency, not the amount. If your job pays irregularly for example freelance or commission-based, save a percentage like 30% of every payment that comes in.

Invest over time

Once you have built some savings, do not let the money just sit. Look into investment opportunities like Treasury bill, Mfund and the likes. Always do your research, make sure you get all the necessary information on the investment plan you decide to go with. And most importantly do not invest money you cannot afford to lock away.

In a nut shell, saving money is not about cutting off your joy, it is about being intentional. You are worthy of the soft life now and later. The sooner you start building good money habits, the more financial freedom you will enjoy down the road.