Top 21 Modern Ways of Saving Money in Nigeria

The use of technology can help you save more by engaging in smarter spending habits and this article will point out the top 21 modern ways of saving money in Nigeria.

As the Nigerian economy is dynamic and ever-changing, saving becomes crucial for financial stability and independence. The days of saving money by placing it under the mattress or in a piggy bank are now far behind.

Nowadays, you’ll come across numerous modern and efficient ways that can help you save and grow your money without much effort. Be it as a student, young professional, or homemaker, modern saving strategies can make a major difference in your financial journey.

Be it cutting on useless expenses, maximizing one’s savings, or investing the money wisely, these practical tips and tools will help you make the most out of that hard-earned money.

Let’s dive in and discover how you can save smarter and achieve all your financial goals in this fast-paced age.

Benefits of Saving Money in Nigeria

Increasing one’s financial stability and quality of life, and saving money in Nigeria, comes with many benefits. They include, but are not limited to, the following key advantages:

1. Financial Security: Savings put one in a better position to afford emergencies like medical cases, the loss of a job, or repairs without going for loans at high interest rates.

2. Investment Opportunities: One can be able to invest their savings in other profitable ventures, such as real estate, stocks, and other small investors that are prone to bringing more income.

3. Peace of Mind: Knowing that you have money set aside for future needs relieves one of much financial stress and anxiety, thereby offering better mental health.

4. Achievement of Goals: Savings help one strategize or attain long-term goals like purchasing a house, financing education, or traveling.

5. Better Creditworthiness: A good savings account may improve your borrowing score. Thus, the loan available to you at times of need will have better conditions.

6. Economic Stability: Generally, high levels of savings lead to economic stability by stimulating growth and development.

7. Better Money Management: Saving discipline induces better budgeting skills and financial planning, eventually into responsible spending patterns.

8. Less Reliance on Loans: A sufficiency of savings would rely less on loans, hence dodging the expenditure trap of debt servicing with exorbitant interest rates.

By saving, Nigerians are assured of a more secure and wealthy existence for themselves and their families.

Check out the TransferXO’s list of – 15 Best Apps to Save Money in Nigeria

What are the Top 21 Modern Ways of Saving Money in Nigeria?

Saving one’s money in this fast-moving world is not easy, but if one has the correct strategies laid down, they will build up sums of money which turn out to be quite large. Here are 21 modern ways to save money in Nigeria:

1. Make Use of Budgeting Apps

Imagine a pocket money manager! Budgeting apps record and maintain your income and expenses. You will only be required to enter your earnings and spending throughout the month, and the app will do the categorization. 

With that, you can know where every coin goes and express areas where you can cut back. Most budgeting applications are free and user-friendly, making taking control of your finances quite easy. 

The likes of PocketGuard, YNAB, and so many other apps can help you set your budget right.

2. Automate Your Savings

Automating your savings is like putting your money on autopilot! You could implement a system wherein, at periodic intervals, a predefined amount gets moved from the checking into the savings or investment account. 

You will ensure by doing so that periodic savings are made, overspending is avoided, and wealth creation for the set financial goals takes place over some time.

By automating your savings, you would be very disciplined in terms of saving, and it would become a habit.

TransferXO Savings section can help you automate your savings. You can opt for the Flexible savings that allows you save your money as you spend it. You can choose the 7 days plan, 30 days, and so on.

3. Invest in Mutual Funds

Think of a mutual fund like this—a basket holding investment products such as stocks and bonds. When you put money into it, you’re joining hundreds or thousands of other investors. From there, the positive thing is that a small piece of many companies can be bought by you.

You do not need to possess genius in finance because professional fund managers take charge of the investing. Most mutual funds offer diversification, which makes it possible to spread out your risk and probably boost your returns over time.

In addition, understand that with some risk involved in investments, you should always do your homework and know your risk tolerance before getting started.

Also take out time to read – Can Crypto Fear and Greed Index Save Your Investment?

4. Harness the Power of Digital Banks

Digital banks have taken over the aspect of banking activities within Nigeria. Many benefits exist with them in comparison to traditional banks. Most often, digital banks have no physical branches, which helps to reduce their overhead costs very low.

This can mean benefits to you, such as higher interest rates on savings accounts and lower or no fees on transactions. Besides, usually, a digital bank would provide you with a user-friendly mobile app, which makes it very easy to manage money on the move.

5. Cut Down on Subscriptions

Let’s face it: subscriptions can be a huge money drain! Streaming services and gym memberships may quickly add up. But here is the thing: generally speaking, we don’t use them as much as we think we do. 

Take a closer look at your subscriptions and ask yourself these questions: Do I need this? If you don’t use it regularly, cancel it, and your savings will surge.

You can even use the 50/30/20 rule to maintain your income wisely. Not to mention other options, such as free trials or sharing subscription services with friends.

6. Shop Using Cashback and Discount Apps

Shopping just got smart! With cashback and discount apps, you are earning rewards and saving money on the regular stuff.

These apps will give you back a percentage of your purchase as cash or credit from groceries to clothing. You know what that is? Free money! Popular apps include TransferXO, TopCashback, and so on.

Download now and do smart shopping. You can even dip into your savings by double dipping with cashback combined with sales and discounts!

7. Online Grocery Shopping

In-store grocery shopping just got a lot easier! Online grocery shopping lets you bid farewell to traffic, long store lines, and impulse buys. Moreover, there are discounts and promo codes available.

Most supermarkets now offer shopping online with delivery or a pickup service. One can even plan their meals, thereby listing down only the required groceries and minimizing food wastage. 

It’s truly a win-win situation! Plus, you can save time and fuel because you will not make the actual trips to the store.

8. Embrace DIY Culture

Get creative and save some real money; that is what DIY means to culture. You can splurge less from self-cooking services to self-repair at home, saving you money and earning you some new skills in the process.

You can even reuse and recycle obsolete things to minimize waste. It also helps you get closer to your family and friends. So, let your creativity out and get DIYing! You can also find several tutorials and inspiration online that can help you get started. So, happy crafting!

9. Buy in Bulk

Wholesale stores and markets have definite cost advantages over their retail counterparts for most household needs. Careful buying habits, however, dictate wholesale purchases.

Ensure adequate storage and focus on products with a longer lifespan. Share your purchases with friends or family members if need be, to avoid overstocking.

Think of it this way: you are to get a year’s supply of your favorite detergent at a fraction of the cost. It requires some planning and space in the beginning but the long-term savings could be huge.

Don’t miss out to read – How to Save in Dollars in Nigeria | TransferXO Guide

10. Use Public Transport or Carpool

Public transportation, including buses and trains, is relatively cheap compared to personal means. It might get crowded during peak hours, but it saves money in the long run.

Imagine the cash you can spare on fuel and servicing and, of course, forgetting not the pricey parking fees! Well, carpooling with friends or colleagues is an option, especially for people who do not have easy access to public transport to help share gas expenses.

Carpooling with people from work who live around your area won’t only save money, but you can also be closer to them as you help save the environment.

11. Invest in Energy-Efficient Appliances

Yes, energy-efficient appliances do have a slightly higher upfront cost, but of course, for the smart consumer, it’s all about looking at the long-term picture. 

Check its rating; recall that high ratings translate to huge slashes in your electricity bill over time.

Think of it as an investment in your future financial well-being. This slight increase in upfront cost will be more than offset by the substantial month-after-month savings for years to come.

12. Cook at Home

It’s easy to see how dinner outs can quickly drain your wallet. The savvy consumer looks to the health and financial benefits that come with cooking at home.  

Plan your menu for the week, consider bulk buying of your staple ingredients, and search online for tasty meal ideas that fit your budget. You’ll be surprised at how much money you can save off of the quality of the food you’re able to enjoy.

Imagine the satisfaction of being able to prepare a healthy, delicious meal for yourself or your family at a fraction of the cost you would pay in restaurants. You will save money, but you will also gain more control over the ingredients and portions used, thus eating healthier.

13. Negotiate Bills and Services

Smart minds negotiate bills and services. You never knew you argued with them, like your cable or internet provider? One could also negotiate with vendors for services like car maintenance or home repairs.

Not only will you save money, but you’ll also start to gain a priceless life skill: negotiation. Think about it—negotiation is a discussion, not a fight. Being friendly, polite, and confident will surprise you at how much you can save.

For example, you could call up your cable provider and ask them if they have any kind of promotion or discount available at the time being. Alternatively, ask a vendor if they will match the competitor’s price.

14. Start a Side Hustle

Starting a part-time business or freelancing, popularly known as a side hustle, is an excellent opportunity for hard workers. It’s a part-time business or freelance work done in your free time.

Acquire new skills, pursue your passion, and create a safety net by developing a side hustle.

For example, you can begin by writing articles, creating graphic designs, or offering services on freelancing sites such as Upwork or Fiverr. Or begin to sell products online using places such as Etsy or eBay.

15. Leverage Digital Savings Platforms

Saving with digital savings platforms is now an easy way to help you save your money! These are internet-based financial websites or applications where one will perform savings automatically by rounding up their purchases or transmitting a small amount of money from their checking account.

With minimal effort, digital savings platforms can help you save money, earn interest on top of it, and track your progress toward the attainment of financial goals. TransferXO will enable you to save money automatically.

You can also read – How To Take Profits in Crypto and Reinvest on TransferXO

16. Take Advantage of Loyalty Programs

The operation of loyalty programs often employs a simple philosophy: awarding customers for repeat activities. 

You can earn reward points or discounts off of purchases, get special offers on the things you buy the most, and save some hard-earned cash on everyday items—all while enjoying those perks. 

For instance, join a loyalty program with your favorite airline or hotel chain to earn points or miles.

17. Attend Free Event

Attending free events is one of the many ways to enjoy yourself at very low costs. A ton of these free events, like concerts, festivals, and workshops, occur in a great many cities. 

Attending free events saves you from blowing your money on your entertainment, and it helps you realize interests, meet new people, and have fun with relaxation.

Some examples include attending free outdoor concerts at your local park or attending a workshop free of charge on a subject that interests you.

18. Limit Social Media Influence

Social media can be a huge financial drain! By putting a cap on social media use, you reduce the temptation to make fewer impulse buys.

So many companies market products and services over social media, and one feels helpless to buy. Limit use and begin saving your money for things that won’t bring useless clutter into your life.

Set up a timer or log in to an app that allows access to social media only at specific times of the day. You can mute or unfollow accounts that trigger overspending.

19. Sell Unused Items

You have items lying around your house that you no longer use or need; it is possible to sell them and in the end, make some money!

Sell ad items on eBay, Facebook Marketplace online, or go the yard sale way. The result will be some extra cash with a clear home of a lot of unnecessary stuff. This money can be used to pay off debt or entrench your savings for a large purchase.

20. Get into Minimalism

Minimalism as a concept means staying simple—that is, living a life free from clutter. You will save money and enjoy low-stress living with financial control over your means. It involves cleaning out items that are no longer needed or used and holding on to the important ones in complete focus.

Start by cleaning up your closet or an area at your home, or refrain from having a too-large wardrobe. Adopt minimalist ideas of purchasing secondhand or not falling prey to impulse buying habits.

21. Review the Financial Goals Regularly

Checking on your financial goals from time to time keeps you on track. Setting targets and keeping them flexible will help you stay oriented and focused.

Set up a monthly review of your budget and goals. Check if there are any areas where you cut back and assess if you are on track towards hitting your serious, long-term goals. You can also use such moments to celebrate what you have achieved or change the budget as needed.

Remember, saving money is a journey and not a destination. With these modern ways of budgeting incorporated into your life, you will be much better placed in managing your finances toward living up to your dreams in Nigeria.

Don’t also miss out to read – 15 Best Ways to Invest 40k and Earn Monthly in Nigeria

What Factors Should You Consider While Saving Money in Nigeria?

Several other key considerations should be included when it comes to saving money in Nigeria, as their application would ensure effective financial management and growth. Some of these include:

1. Inflation: With the higher inflationary premium existing in Nigeria, whatever one saves will dwindle in value over some time. You should consider those investments that help beat inflation. Those assets that normally do well during inflations should be a key garden for your money.

2. Interest Rates: Scour through competitive savings options—those that will make your money grow. You can try high-yield savings, certificates of deposit, or treasury bills.

3. Economic Stability: The Nigerian economy sometimes comes with its own surprises. Be sure to factor in savings options that are least affected by the whims of an economy, such as diversified investments or foreign currency accounts.

4. Personal financial goals: Set savings goals and consider the amount you would want to achieve them. You can set targets like building an emergency fund or saving money for some big purchase.

5. Security: Be sure that your savings are secure, safe from fraud, and not lost. Deal only with reputable organizations with strong passwords and two-factor authentication in place, and monitor the accounts frequently.

Taking these factors into consideration can guide your decisions on how to effectively save money in Nigeria and achieve the goals set out thereof.

Also Read – 15 Best Ways to Invest 2k and Earn Monthly in Nigeria

How TransferXO Contributes to Modern Saving Methods

TransferXO appears to be a London-based money transfer service fintech keen on savings features. Here’s how TransferXO finds its niche in the new breed of saving schemes:

1. Automated Savings

It can be of great help in letting people save consistently by setting up automatic transfers from their income to their savings goals. There’s simply no hassle intervention every time, hence developing the habit of saving.

The following steps will enable one to save automatically using TransferXO:

• Create an account on the TransferXO website or download the app.
• Login to the TransferXO app.
• Go to “XO Wealth”
• Click on “QuickSave.”
• You can either choose from “Fixed Savings, Flexible Savings, or Group Savings”
• You may set the kind of plan you have in mind; you can save as low as ₦10,000 monthly. 
• You can save in Crypto or Fiat Assest.
• Tap “Continue,” then select the source of funds your favorite time to save, and when you would like to start. 
• Click “Complete.”

2. Fixed and Flexible Savings Options

TransferXO offers various savings options, including fixed deposits and flexible accounts, to suit all types of savings requirements. 

Fixed deposits can offer high interest rates but, in return, may put some kind of restriction on the accessibility of funds, while in the case of flexible accounts, it may pay less interest but will permit easy access.

3. Goal-Based Saving

TransferXO manages to keep people highly motivated to achieve their saving goals since it enables them to track their savings progress.

Overall, TransferXO can be a useful tool for people looking to automate their savings, set saving goals, and benefit from potentially competitive interest rates.

Frequently Asked Questions 

Final Thoughts 

The art of saving money in Nigeria has been much easier and more efficient with current ways. From using budgeting apps to tapping early cashback programs, there are several means through which you can make your money work the extra mile for you.

Of all available alternatives, TransferXO is the supreme platform to save. It’s clean UI and competitive interest rates will aid in growing your savings with utmost security.

Leveraging technology and smart financial tools will help ensure that your saving goals are realized quickly and fruitfully into reality in this highly digital era.

Reference 

• finance360.ng – Modern Ways of Saving Money in Nigeria: Full Guide
• cowrywise.com – 19 Ways To Save Money In Nigeria