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backSalary comes in on the 25th, but by the 10th, you’re already wondering, “How did this money finish?” Students know the feeling, too. Pocket money drops, but between data, feeding, and small expenses, it disappears before the month's end.
Business owners aren’t left out either: one delayed payment from a customer or a sudden rise in costs can scatter your entire plan.
This isn’t just a personal struggle. Nigeria’s gross domestic savings is only 32.7% of GDP, which shows how much we spend immediately instead of setting something aside.
The truth? Earning money is hard enough, but keeping it is even harder. One emergency, one fuel price hike, or one unplanned expense can leave you stranded. Savings is that safety net that helps you breathe easier when life throws surprises.
In this guide, we’ll break down savings in simple terms, why it’s important, the benefits, and practical ways to start building the habit today.
What Exactly is Savings?
At its core, savings is simple: it’s the money you choose not to spend today, so you can use it when you really need it tomorrow.
For instance; you earn ₦250,000 per month and spend it all at once. By mid–month, you’re already borrowing or stressing. But if you set aside just ₦50,000 immediately, that little amount could bail you out when transport fares rise, or when an unexpected bill shows up. That’s the essence of savings: holding back part of your money now so you don’t run dry later.
But here’s the thing: savings isn’t only for “rainy days.” It’s also how you fund the sunny ones. Want to buy a new phone without going broke? Planning that December trip with friends? Eyeing a car or even your own piece of land? Savings is the bridge between “I want it” and “I got it.”
So, while savings gives you safety and peace of mind, it also gives you freedom to pursue dreams, tick off goals, and enjoy life on your own terms.
Now, let’s clear up a common mix-up. Savings is not the same as investments.
Savings is about safety. It’s money you keep aside in a secure place, ready for emergencies, school fees, rent, or that rainy day.
Investments are for growth. That’s when you put money into things like mutual funds, treasury bills, or a small business, hoping it multiplies.
Both are important, but savings is the foundation. Without it, you’ll always struggle to handle emergencies, and you may even be forced to pull out investments at the wrong time.
Quick Tip: Keep your savings in a place that’s safe and easy to reach, but not so easy that you’re tempted to “borrow” from it for every small expense
Myths About Savings (Busted)
Savings are only for emergencies: Wrong. Savings can also fund your joys, from a vacation to a new gadget.
You must earn big to save: Not true. Even small, consistent amounts add up and open doors.
Saving means depriving yourself: Nope. Saving is how you “gift your future self,” whether that means paying rent easily or affording the things you actually want.
Savings delay enjoyment: On the contrary, savings make enjoyment stress-free because you’re not dipping into bill money or taking loans to treat yourself.
Why Nigerians Struggle to Save
Let’s be honest, saving money in Nigeria isn’t easy. Even when you plan well, the realities around us can make it feel almost impossible. Here are some of the biggest reasons many people struggle to save:
1. High Cost of Living & Inflation
Prices keep going up, from foodstuffs in the market to transport and rent. According to the National Bureau of Statistics, Nigeria’s inflation rate hit 33.4% in April 2024, one of the highest in decades.
That means the same ₦10,000 that bought you groceries last year barely covers half the list today. With essentials eating deep into income, there’s often little left to save.
2. Social Pressure
In our culture, it’s not just about what you need; it’s also about appearances. From ‘aso ebi’ contributions to weekend owambe, to the urge to upgrade your phone because “everyone has the latest iPhone,” social pressure can swallow money faster than you expect.
Sometimes, you’re not even spending for yourself, but to keep up with friends, colleagues, or family expectations.
3. “I Don’t Earn Enough” Mindset
Many Nigerians believe saving is only for people who earn big salaries. But the truth? No income is too small to save from. The habit matters more than the amount.
Even putting aside ₦200 daily adds up to ₦6,000 in a month, money that can cover an emergency or start a small project. Waiting until you “earn more” before saving only delays your financial stability.
Benefits of Savings: More Than Just Money
When people talk about saving, it often sounds like punishment, denying yourself enjoyment today for some distant future. But the truth is, the benefits of saving show up in your everyday life, not just “later.”
1. Peace of Mind
Emergencies don’t send a memo before they arrive. Whether it’s a sudden hospital bill, an urgent car repair, or even a family responsibility, savings mean you don’t have to run to loan apps or borrow in panic. That peace of mind alone is worth it.
2. Opportunities You Can Actually Take
Ever noticed how the best opportunities show up when your pocket is empty? Maybe a friend offers you a chance to join a cooperative, or your child’s school announces a discount for early payment. With savings, you’re ready. You can say “yes” without stress.
3. Financial Discipline
Saving is like flexing a muscle. The more consistent you are, the stronger your money habits become. Just like hitting a sales target in business boosts your confidence, seeing your savings grow gives you motivation to keep going.
How to Save Money: Practical Tips that Work
Most people don’t save because they think it requires big money or some complex formula. But saving is really about consistency, not size. Here are a few ways you can start today:
1. Pay Yourself First
The moment money enters, remove your savings before you touch anything else. Think of it as “future you” collecting rent from “present you.”
2. Start Small
You don’t need to wait until you’re earning millions. Even ₦1,000 a week adds up over time. What matters is building the habit.
3. Automate It
Discipline can fail, but systems don’t. With the Moniepoint Business and Personal Banking app, you can set your account to move money into savings automatically. That way, you save without overthinking it.
4. Track Your Spending
Most of us underestimate how much we spend on little things: snacks, data, and rides. Tracking your expenses helps you see where to cut back and free up money for savings.
Needs vs. Wants: Know the Difference
One of the biggest obstacles to saving is not knowing the difference between what you ‘need’ and what you just ‘want.’
Needs are the essentials you can’t live without: rent, food, transport, and school fees.
Wants are the extras that make life sweeter but aren’t urgent: the latest phone, designer clothes, or eating shawarma every night.
Take this example: eating eba at home is a need. Ordering small chops three times a week? That’s clearly a want.
A simple way to manage this balance is with the 50/30/20 rule: 50% of your money goes to needs, 30% to wants, and 20% straight into savings. Once you start applying this, you’ll notice your money lasts longer.
How Moniepoint Makes Saving Easier
Saving isn’t always about discipline alone; sometimes, you just need the right tool to help you stay on track. That’s where Moniepoint comes in:
Dedicated savings feature: set money aside directly in the app, separate from your main balance, so you don’t “accidentally” spend it.
Set goals and stick to them: whether it’s ₦50k for emergencies or ₦500k for rent, you can create savings targets and watch your progress.
No hidden charges: your savings stay yours, without unnecessary deductions.
Think of Moniepoint’s savings tool as your financial safety net: simple, reliable, and always within reach.
Wrapping Up
At the end of the day, saving is about building peace of mind and giving yourself options, whether it’s handling emergencies, planning for rent, or growing your business. It doesn’t matter how much you start with; what matters is starting and staying consistent.
So, take your first step towards smarter saving by downloading the Moniepoint Personal and Business Banking apps today.
