Friday, 25 January 2013

Savings 101: A part of all I earn is mine to keep.

I will be dwelling on Savings this January. We all know about savings starting from piggy banks, you remember those days? That was when we were young and we had to save the kobos and the nairas. Those days were the foundation of our saving lessons.

Now we have savings accounts and a lot of other accounts specially designed by banks to help us save.

Do we really practice savings?What we set aside in our savings account, can we really call it savings?

OK, let's start

How much do you earn in a month? Two hundred thousand naira? Four hundred thousand naira? Fifty thousand naira? We need the amount so that you will know the amount to set aside each month.

Have you heard about the "paying yousef first" concept? Yes, paying yourself first. You worked for the money, you earned the salary but most times you end up paying yourself last or not paying yourself at all. You pay the bills, take care of the home, take care of the children and neglect yourself.

Last year 2012, how much did you save? how much were you able to set aside?

If you were to be sacked or retrenched, how long can you last with the amount you have in your bank account?

Are you living from salary to salary? How much have you spent out of the January salary you have not been paid? How many things did you buy on credit?

Now back to paying yourself first, it is the savings I am talking about.

No matter how little the amount you set aside, the amount you save, it should not be leser than 10% of your salary. For instance, if your salary is one hundred and fifty thousand naira, your monthly savings should be at least fifteen thousand naira.

No matter how tight the month is, get used to paying yourself at least 10% of your monthly salary.

That will be a start. Let us do the mathematics, if you do that every month, by end of this year, by December 2013, you should have One hundred and eighty thousand naira set aside as your savings.

You can say it is small but it is a begining, it is better than having nothing.

Who says it has to be 10%? It can be 30%, it depends on you.

New year is always full of resolutions, forget about this yearly ritual resolution thing you do, let's take the practical steps towards success together. Let us cultivate the habit of saving and paying ourselves first.

Also learn to do it with the cash gifts you get. If you are given ten thousand naira, set aside a thousand naira for yourself, let it go in to your savings.

It might be difficult at first but with time you will get used to it.

Follow me in this January series on savings and I bet you that your 2013 will be off to a good start.

If you need to ask me questions on savings, you can send me mail at or

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