The subject of saving is not new but it’s easier said than done. Many people struggle to save considering the ever-increasing inflation plaguing the economy.

An analysis of World Bank data by BusinessDay showed that the percentage of the Nigerian adult population (15 years and older) who saved at a financial institution fell to 17.7 percent in 2021, the lowest in ten years, from 23.6 percent in 2011. This development is not good for the country.

Even if the reasons for many people's struggles to save are understandable, especially for those with low incomes, one must still strive to save for the rainy days and build wealth soon.

This article will show you 5 proven ways to save money easily from your salary or income every month.

Why should you save? 

The importance of saving cannot be overemphasized. Here are some major reasons you should develop a saving culture.

1. You will have more money to spend on things you want and need. 

You will have more money when you need it, rather than relying on it to be available when you want it. Does this sound familiar? Just imagine if you wanted to invest in something urgently and realize you can’t afford it because you don’t have savings. 

When you have money saved up, you can access it whenever you need it. This can help you cover unexpected expenses, cover costs associated with emergencies, or even save for future goals.

2. You will be able to retire with more money

Retiring with more money is possible if you save ahead regularly. The sooner you start saving, the more money you will have when it's time to retire. You can even invest in other businesses after retirement simply because you have the cash. That is what saving can do for you.

3. Review your expenses and make changes if you can

The amount you can save over time will show you whether to cut your expenses or stick to them. If you are constantly having low savings, it means you need to improve your finances and cut unnecessary expenses

4. You will have a more secure future

It gives great pleasure to see that you have sufficient savings in your account. This removes the fear of the unknown and prepares you for any financial situation.

5. You can build wealth

Saving money can help you build a solid financial base which can translate to wealth over time. It has been proven that wealth creation happens gradually and not suddenly. So, if you want to build wealth in the nearest future, start saving today.

How to save money from salary in 5 simple ways

There are many helpful tips to guide you in saving money. These are the top 5 ways to save money from salary.

1. Know your expenses and track what you're spending.

When you start tracking your expenses, you'll be surprised at how much money you're spending. You'll also be able to see where your money is going and make better choices about what you spend your money on.

Start by creating a budget that reflects your monthly income and expenses. Once you have a rough idea of how much you're spending each month, it's time to track your expenses.

There are several ways to track your expenses. You can use a pen and paper, a budgeting app, or a website.

Whatever way you choose, make sure you track your expenses at least once a month. This will help you see where your money is going and help you make better spending choices.

By tracking your expenses and budgeting your money, you'll be able to live a more budget-conscious life and save money on the things you need and want. More on budgeting in the next tip.

2. Try the 50/30/20 budget rule and cut unnecessary expenses.

Having a budget and sticking to it is the bedrock of effective saving. But this is not always easy to follow. However, you can start with the 50/30/20 budget rule and see if it works for you.

According to the 50:20:30 budget rule, the first 50% of your income should go for necessities such as food, shelter, clothing, and transportation. The second 20% is dedicated to long-term saving and paying off debts if you have one.

The third 30% is for lifestyle choices covering items like entertainment, vacation, gym, cell phone, etc

keep in mind that the rule is only a guideline and should not be relied on as a strict rule. Second, the rule should only be used as a starting point and should be adjusted as needed based on your specific situation. 

Also, it is important to be realistic in your expectations and to make sure that you are fully prepared for any unexpected expenses while cutting out unnecessary expenses.

3. Save money by using available coupons and deals

One way to save money is to use coupons. Coupons can be found in newspapers, magazines, and online. You can also find coupons in stores. You can either print the coupons or save them on your smartphone. When you find a coupon that you want to use, you should check the expiration date. If the coupon is expired, you will not be able to use it.

Aside from coupons, do not look down on important deals such as discounts, cashback, bonuses, etc. They can be a great way to save costs when shopping.

4. Take advantage of employer benefits and save on taxes.

There are many benefits to taking advantage of employer benefit programs, such as paid time off, retirement savings, and health insurance. Paid time off can be a valuable tool for managing work and personal responsibilities and can help reduce stress and improve productivity. 

Retirement savings can help you cover costs during retirement, and health insurance can provide important coverage for you and your family. It’s important to understand the benefits offered through your employer’s benefits program and to take advantage of them whenever possible. This can help you reduce and cut some expenses.

5. Don't forget to create a savings account and invest 

Creating a savings account is a great way to build up your savings and invest in your future. Savings accounts are insured, which means that you can bank with confidence. Additionally, many banks offer attractive interest rates on savings accounts.

One way to save money is to make a monthly contribution to your savings account. This will help you to grow your savings over time. Another way to save money is to invest your money. Investing your money can help you to earn a return on your investment. Many banks offer attractive interest rates on investments.

You can also save money by growing cashback earnings with companies that offer cashback like Escamenu. If you're already subscribed to cashback companies, it is crucial to find out if you can leave your earnings to keep accumulating over time.

Conclusion on how to save money from salary in 5 simple ways

Saving is very essential because it has numerous benefits. Although saving from a low income may be difficult, one must still strive to save. The 50/30/20 budget rule may be a good way to manage your finances if it works for you.

Consider the possibility of being able to afford your lifestyle whenever you want. If you want to build wealth in the nearest future, saving is ultimately the solution. So, what is stopping you from saving?

Miracle

Miracle is an SEO Specialist at Esca Menu. He is a Digital Marketing and Brand Communications Professional.