We all know that your salary is not enough but you can do yourself a favour by learning how to save your salary after payday.
In this article, I will be showing some of the ways I used to save some part of my salary when I was still working for my formal company.
Most people will say “Ah my salary is not enough”. But I want to ask have you seen or heard someone say “my salary is enough?”.
No matter how small your salary is I expect you to save part of it. Let’s use the seed and harvest time as an example. Imagine a farmer harvesting all he/she produced for the season after which he goes home to eat both his seed and harvest.
It is expected that you keep a part of your salary no matter how small it is. This will compound more cash over time.
You need to save no matter how little, especially if you do it consistently over time, and doing several things all at once may mean that you can save significantly each month. Most times all it takes is that first step in the right direction to get things moving in your favour.
Tips To on how to Save your Salary after Payday
Over the years these tips have guided me towards having a better output. I have learned how not to eat both my fruit and the seed. It might be hard when you start but over time you will have more reasons to implement these tips.
- Draw out clear Goals
- Keep Track of every Dim you spend
- Create a Budget and follow it
- Value your Time
- Make savings Automatic
- Have something in mind while you save
- Open a fixed deposit account if need be.
Draw out clear Goals
If you are really serious about saving part of your salary every month then you need to carefully draw out how much you would like to keep in your savings at the beginning of every month.
You need to plan early how much you would like to keep in savings and stick to it. You need to choose an amount that is very stable that you can keep to no matter what.
Let’s say for example that Mr. Kunle is saving for a new house that costs over N3million and his salary per month is N250,000.00. He can decide to keep a part of the salary after taking out the family feeding expenses, transport allowance, upkeep, etc. After all the cash has been taken out Mr. Kunle still has over 150,000.00, he can decide to plan with 120,000.00/month.
That will be 3000,000.00/120,000=12Months. That means he needs to keep 120,000.00 every month for 25month to make up the money to buy a house.
Have a figure in mind while saving part of your salary every month.
Keep Track of every Dim you spend
One of the ways you can save your salary is by tracking your expenses every month. Please note that if your expense is far above your income then you have a problem. Tracking your salary will guild you towards knowing and avoiding those things that take cash from.
Create a Budget and follow it
As we said earlier if your budget says 120,000.00 follow it. Make sure you obey your budget and never for any reason or reasons should think of spending above it. You can also accommodate more cash into your budget but don’t take anything out.
Permit me to say that how to Save your Salary after Payday is solely dependent on your ability to create and follow a feasible monthly budget.
SEE ALSO: How to Start a POS Business in Nigeria
Value your Time
Most times we go to a place we are not needed or even occasions we are not welcome only to shoot our budget.
Your ability to value your time will help you towards cutting down on excessive spending.
Make savings Automatic
You can decide to go further by making you saving automatic. You need to be proactive toward your goal. Adopt any method that will help you save part of your salary effectively.
The easiest way to do this is to talk to your account officer or your bank to automatically deduct a fixed amount of money month from your account.
You can deposit the cash deducted into another account or you can decide to put it in mutual funds.
Putting your cash into mutual funds will enable you to take advantage of the compound interest of your cash depending on the portfolio you invest your cash into.
Have something in mind while you save
Having something in mind while you save is one of the things you must do when saving part of your salary.
You need to tell yourself what you want to use the money to enable you to feel motivated to keep to the goals.
You may decided to save for a house, a car, your children school fees abroad, etc.
Open a fixed deposit account if need be
In the process of automating your savings you can decide that money be paid into your fixed deposit account.
Putting your savings into a fixed deposit account will make you think twice again while considering withdrawing the money.
Conclusion
How to Save your Salary after Payday depends on your ability to be diligent with your expenses. As we said earlier try not to spend more than you earn else you earn up poor. Also, learn to spend for the right reasons.