Do you need help to set aside some regular savings from your income? You’re not alone.  Most people struggle to save effectively thanks to a number of factors. 

From low-paying jobs to tough economic conditions, saving can be hard. But with the right financial practices and a bit of discipline, you can make it work. 

In this article, we’ll explore a few tested and proven tips to help you improve your ability to save and grow your wealth. Before we dive into it, however, we’ll briefly discuss the importance of saving. 

Why Should You Save?

With inflation currently being so high, you may be tempted to wonder if there is any point in keeping some money away. You might have observed that money kept in the bank tends to lose value over time.

While this observation would be partly correct, this doesn’t mean you shouldn’t save. Instead, you need to simply apply some of the clever savings tips that we’ll share with you in the next section.

Before that, here are the top three reasons why everyone needs to save: 

1. You Need An Emergency Fund

Keeping away some money to help you deal with unforeseen events is crucial. Things like medical emergencies, job losses, car trouble, and so on can happen at any time. But while you cannot completely eradicate these threats, you can minimize their effects by keeping aside some money.

2. You Need Funds For Investments

Savings allow you to build an investment fund. If you’re looking to grow your wealth, you’ll need to have some start-up capital to either build a business of your own or invest in the stock market.

3. You Need Funds For Your Retirement

Savings helps you keep away some money for your retirement. The earlier you start putting away some money for retirement, the more you’ll have to fall back on. The best part is that with compound interest, your retirement fund will grow exponentially over time. 

The Best Tips for Saving Effectively

By now you probably agree with us on the importance of saving. Excellent! Now we’ll dive into the deep end with a look at some of the most effective savings tips you can try. Let’s get started!

1. Set Financial Goals

Setting financial goals is the beginning of your savings journey. Having specific needs that you’re aiming to solve can help you determine just how much to set as a savings target, as well as help to keep you focused.

2. Create a Budget and Track Expenses

Budgets are essential for controlling your finances. In creating your budget, try to be as detailed as possible, outlining every anticipated cost and determining how much of your income to allocate to this. 

3. Track Your Income and Expenses

Now that you’ve created a budget, you should be intentional about tracking your income and spending. Without accurately tracking these items, you’re not likely to stick to your budget, which would be counterproductive. 

4. Use Budgeting Tools

While you can easily create your budget using a pen and paper, or even an excel sheet, there are tons of digital budgeting tools like NerdWallet, EveryDollar, Mint, and so on, that can help you plan and manage your finances. 

5. Saving in High-Yield Accounts

Traditional savings accounts with local banks typically don’t offer very high-interest rates on deposits into savings accounts. So while you should definitely save some money, keeping it with a traditional bank is not always the best idea.

Fintech apps like Boldapp, Kuda, Piggyvest, and so on generally offer higher rates than traditional banks do. Boldapp in particular offers a whopping 15% interest rate on savings, making it an excellent choice of savings platform.

Boldapp also makes it easier to save by allowing you to lock away your funds for a period of time. Does this sound interesting? You can learn more about Boldapp here.  

6. Investing in Crypto Assets

Cryptocurrencies can be excellent alternative savings options. Major crypto coins like Bitcoin, Ethereum tend to significantly gain value while others like USDT tend to maintain their value relative to the US dollar. 

In comparison with the naira, these cryptocurrencies can be a smarter way to save your money. Just remember to use a reliable crypto exchange like Oyola to buy and hold cryptocurrencies.

Ready to Get Started With Savings?

Having some savings is important. But you need a good strategy to be able to keep up with an effective savings plan. With the tips we’ve shared, you will be off to a great start! Don’t forget to save with Boldapp – all you need to do is download the app, create your account, and start saving!