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Things You Should Do With Your Salary And How To Decide What Goes Where.

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As a young earner living in Nigeria, the aspirations to spend more,to be able to keep up with peers and trends due to influences becomes a habit. Having enough money to save after spending on unnecessary things is almost unachievable.

We are in a day and age where dreams come at a very expensive price. Getting a decent education for your kids could cost millions of Naira, and having a retirement plan cost a fortune. Basic needs have been elevated to dreams due to the high cost associated with them. Individuals mostly young earners will find themselves in situations where they have to work 2 more part-time jobs to get high income so they can meet their basic life goals.

The need to start making plans for the future with your income is essential. How do you go about them? See below

Make a budget and start saving

After receiving salary, the first thing to come to mind is making expenses plans for the month, which includes the allocation for transportation to work, allocation for food, allocation for emergencies, and allocation for health issues. After sorting out the expenditures for the month, set to save the rest of the money for future purposes.

Build a timeline for your financial goals

Say you’ve started saving already but always ask yourself, with this rate of my savings will I be able to buy a house in 10 years. So, when saving always plan with an actionable timeline, detailing if it is a long term or a short term goal. This way you can plan accordingly and know the amount needed to be saved to meet each goal.

Always have a fixed deposit

The biggest mistake young salary earners make is not knowing where and what to invest in, but the best way to invest is having a fixed or automatic deposit on an account to fund another saving account, such as Fundall. You can set an automatic deposit from your bank account to your Fundall savings plan.

Invest your savings

With the ways Nigerian bank accounts are setup, instead of earning more interest on your savings account, you will find out your funds are sucked away with ridiculous bank charges such as: maintenance fees; ATM fees; SMS fees; taxes etc. Many have active savings account but have no returns on it. Fundall provides you zero Nigerian banking “wahala”. Members that are actively saving are set to make up to 15% interest annually, this way you aren’t only saving your money but also making more in return.

Avoid debt traps

Young earners are vulnerable to debt trap due to the “keeping with trends” excuses. Ways to avoid these are simple:

  • Always follow your spending quota
  • Don’t take unnecessary loans
  • And stay away from bad influences
  • Say no to unnecessary subscriptions such as Netflix, music streaming services etc.

Don’t go too hard on yourself

It is your money and you worked for it, even if you won’t spend lavishly it is always a good thing to pamper oneself with some good treats. The salary serves as a reward for working hard and rewarding oneself isn’t a bad thing.

In conclusion, as a salary earner the key to saving successfully is knowing what you are saving for, where your are saving your money and what your savings will yield too in the nearest time goal. To start achieving your goals begin by signing up on Fundall now!