So you want to be the next Ashish Thakkar, or the youngest African on Forbes 30 Under 30 list? It is going to take a lot of hard work and exceptional financial resources to get you there. It takes dedication and superb planning to reach any financial goal. But the secret is, it can be done!
Although sometimes it seems there is hardly anything left to o your salary to “take home” after you cover your monthly expenses, there are small changes you can make to your lifestyle to ensure that you can live the life you always wanted.. And yes you still get to eat out on occasion!
1. BUDGET, BUDGET, BUDGET! – Rule Number 1 forever and ever. If you don’t have a budget, you cannot save. Plain and simple. A budget tells us what we can and cannot afford, and keeps us on track to reach our financial goal.
2. Learn how to use Excel – This is a great tool for tracking your expenses. Make it your best friend. Download it on your smartphones and tablets. Take it everywhere you go. At the end of the month, you can see where most of your income was spent and make any changes if necessary.
3. Set realistic savings goals – Guys, we are not balling… yet. Remember the saying “slow and steady always wins the race”. Apply it. It’s easier to save little parts of your income, this way it doesn’t seem like a burden each month. You can apply the 50-20-30 rule. 50% on fixed costs rent and car payments, 20% for flexing, and 30% towards savings.
4. Save for retirement – Yup! You read that right. People never tell you to start saving for retirement when you are 21 years old, but you should! May people assume they can hold off saving for retirement until they are much older, but look at this scenario here: A 21 year old who saves N10,000 a month until she turns 65 and years an average of 6% annually on her deposit would have accumulated N27M by then! Do you know what you can do with 27 Million?? A lot my friends
5. Consider the cheaper option – This is not being a cheapskate, it’s being a wise owl! Instead of leasing an X5 with payments you cannot keep up with, buy a nice Camry. There’s no point flossing if your money isn’t “long” enough. Trust me people, when you are laughing to the bank, nobody is going to remember you cruising in your 2008 Camry.
6. Find the right bank that understands your financial needs – For instance, with Union Bank’s UnionVibe account, you get all the benefits of a savings account, only with better interest rates! You have access to mobile banking, which allows you to track all your spending on the go (also, they have really awesome personalized ATM cards!).
Savvy Saving Series if brought to you courtesy of UnionVibe
Images – c2.staticflickr.com, en.wikipedia.org, familymint.com