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6 Modern Ways Of Saving Money In Nigeria

Odi Chukwuemeka Valentine

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Modern ways of saving money

6 Modern Ways Of Saving Money In Nigeria

One of the major challenges associated with becoming an adult is accepting and tackling responsibilities head-on. Sadly, responsibilities do not have a budget, naturally, human needs are insatiable, hence, they come spontaneously without informing us.

Immediately one starts to pay his/her bills, pressure somewhat creeps in, causing panic and unrest, especially when one is not financially buoyant to foot the bills. You know, one of the painful things that can happen to anyone is being broke and at the same time, not having anybody to borrow from or a backup plan. Hence, it is important to learn modern ways of saving money in Nigeria.

Related: 7 short term investments in Nigeria for Youths

This year further placed everybody in panic mode, with everything revolving around having money and being able to cater for oneself and maybe, family and friends in extension.

The year has thought everyone the great lesson-the importance of Saving for the rainy days. In the midst of all of the challenges, an average Nigerian has the capabilities and can live above financial inadequacies. This article is a guide on five modern ways of saving money efficiently, all things being equal.

Kindly read through with an open mind, being optimistic about good financial results via the application of financial intelligence tips, going forward.

The Modern Ways Of Saving Money In Nigeria

  1. Have a Budget

A budget can be defined as a financial plan over a period of time; say monthly, quarterly, or yearly. Having a budget helps an individual keep track of his/her finances especially against unplanned expenses. In the same vein, having a savings budget can be of great importance to an individual towards achieving financial freedom in contemporary society.

Modern ways of saving money

For example, one can set a savings plan of N500,000 over a period of 12 months. This plan is achievable and is solely dependent on the individual’s source of daily or monthly income.

The amount received is also considered in this regard. While making room for unforeseeable circumstances beyond human control, it is possible for an individual not to be able to achieve his/her budgeted savings plans, however, one can come close to the budgeted amount.

Be it as it may, savings have been made which is the ultimate goal which qualifies it to be a modern way of saving money.

  1. Make savings from your salary/wage.

Salary is the sum total of a person’s worth for a well-defined role, usually paid at the end of every month. Wage, on the other hand, is the money received hourly upon completion of a task or service.

These two are the major sources of income, aside from financial favors granted by benefactors and benefactresses. Another source of income is money made from the business. Being able to save a certain percentage from either salary, wage or business can help you plan for the future.

It is advisable to save at least 30% of your salary/wage. It may be difficult to start, but as we all know, there will always be a first time for everything we do. Before carving out 30% of your income for savings, it is necessary to draw a plan similar to a budget for transportation, household needs, feeding, and miscellaneous expenditures.

This will make the saving percentage effective and that’s what makes it a modern way of saving. In the past, people plan on saving but do not define the percentage, hence, they alter their plans by frequent withdrawals.

  1. Use of digital saving platforms.

Thanks to technological advancements, there have been good digital savings platforms developed by tech-savvy individuals with a proper understanding of the finance sector and the money market.

These digital savings platforms are certified and regulated by the Central Bank of Nigeria (CBN), Nigeria Deposit Insurance Corporation (NDIC), amongst others. This is to ensure that peoples’ hard-earned money is not carted away not neglecting internet fraud. So which platform do I recommend? Sumotrust!

Sumotrust is among the leading digital savings platforms in Nigeria, with thousands of users subscribed and active with savings plans.

It was set up to meet the financial needs of Nigerians through savings. Unlike commercial banks that for every transaction made, there are charges, Sumotrust rather gives her customers 10-15% annually when they save on the platform. Interesting, yeah?

To further ensure ease of their services, Sumotrust has its app compatible with both PC, Mobile phones, and Tablets available for iOS and Android devices on apple store and play store, respectively. The Sumotrust app interphase is user friendly, a click on each icon has its features explained.

One of the striking features of the Sumotrust app is the ability to link your commercial bank account via BVN with Sumotrust, hence, you can use the ‘Autosave’ feature to automatically save. Sumotrust uses the highest levels of internet security, and it is secured by 256 bits SSL security encryption to ensure your information is completely protected from fraud.

Additionally, it uses a powerful blockchain security protocol to secure users’ accounts against hackers. To cap it up, Sumotrust has an active Customer care representative whose service delivery is second to none. All of these qualities are the reasons why I recommend Sumotrust as a modern way of saving money. To learn more about Sumotrust, kindly visit www.sumotrust.com

  1. Join a savings challenge.

Yes, join a savings challenge. A savings challenge is advisable amongst peers with common goals. Ideally, we humans love being pushed by our friends towards achieving a goal. A savings challenge inspires you to keep pace with your peers, though, not necessarily seen as a competition.

In the olden days, people are known for contributing money monthly and sharing amongst themselves in an orderly, rotatory manner, handled by a treasurer. In this modern era, the savings challenge is majorly held on digital saving platforms.

People enter into the challenge with a common goal-a a target amount to be saved over a period of time. I encourage you to sign up on Sumotrust to enjoy this feature of a modern way of saving money.

  1. Invest in Cryptocurrencies

 

Modern ways of saving money

The world is constantly moving fast with daily innovations. One of such innovations is the use of digital currencies. Cryptocurrencies are widely accepted for transactions even within the Nigerian cyberspace. However, before you get involved in crypto you would have to do your due diligence by understudying how the systems work.

Why did I suggest cryptocurrencies? The Nigerian ‘Naira’ has been devalued over time and in most cases, is not appreciated, hence, its usage can be limited. Cryptocurrencies are accepted worldwide. Crypto is the future.

  1. Create Multiple Bank Accounts.

The essence of coming up with this idea of creating multiple bank accounts is to enable you to dedicate each of the accounts for a specific purpose. It is advisable to have a savings account and a salary account. As their respective names imply, you know your savings account is mainly for you to save money.

You can even place the account on ‘fixed deposit’ which will discipline you from withdrawing from the account until the due date. A salary account, on the other hand, will be can for day-to-day activities. However, it is advisable to have plans for days of withdrawal in a week or month. It is a way of avoiding too many expenses, including impulsive buying.

In summary, the above discussed five ways of saving money in Nigeria cannot be achieved without good financial discipline. I usually tell people to only use money meant for savings in a situation where human life is on the line. At least, life would be saved in the end. However, careless expenses have to be avoided.

Do not buy things you don’t need, do your laundry while you can, cook your meals, cut down the amount spent eating out. Be frugal in your spending.

Most employers do not have good retirement plans for their employees. Even civil servants suffer after retirement due to problems with their pension. As such, people tend to live from hand to mouth.

These amongst others validates the need for you to get involved in modern ways of saving money.  If you truly understand that people whom you look up to for financial favors also have challenges, you would be fired up to save daily, no matter the amount.

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7 Best Loan Apps of 2021

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The inconveniences associated with accessing loans from the bank can be avoided, all thanks to the ever innovative financial technologies available today. Loan apps reduce and even eliminate the inconveniences of accessing money from traditional financial institutions such as time wastage, request for collateral and other securities.

With loan apps, anyone and everyone can access loans at any time of the day for emergencies such as bill payments, subscription renewals, school fees, even medical supplies. This article reviews 7 vest loan apps out there which anyone including you can use to access loans right now.

loans apps in nigeria

7 Best Loan Apps of 2021

Below are the 7 best loan apps of 2021:

1) Fair Money

Fair money does not demand collateral neither does it demand any processing fee. It offers loan from #1500 to #500,000. Fair Money interest rate ranges from 10% to 30%. With Fair Money, loans can be repaid by installments. All that is required to obtain a loan from Fair Money loan app is information about your education, your work details, your bank details, and your bio-data. only requires has an impressive rating of 4.4 out of 5.0 on Google play store. Hence, it is a highly-recommended loan app which you can try today.

2) Carbon

Formerly known as Paylater, Carbon app offers loans to interested customers from #1500 to #1,000,000 with interest rate between 1% and 12%. Carbon loan app offers loans without demanding any collateral. The interesting thing about Carbon loan app is that it rewards users for every bank transaction made with the app. What more? With Carbon loan app, you are offered cashbacks. These are subsidies provide to customers who repay their loan on time as a way of encouraging early loan repayment on the app.

3) Renmoney

Formerly known as Rencredits, Renmoney lends to people of 25 years of age and above. To get a loan on Renmoney, you must have a verifiable source of income as well as an active account with a commercial Bank in Nigeria. Renmoney offer loans ranging from fifty thousand naira to six million naira. You can repay your loan in a month or by installments in 12 months. Renmoney interest rate ranges from 9.8% to 40%.

4) Palmcredit

Palmcredit is owned by Transsnet, a subsidiary of Transsion Holders. This loan company is popular because it offers low interest rates ranging from 14% to 24%. Palmcredit offers loans from #2000 to #100,000. Anyone can get a loan on Palmcredit loan app without any collateral. All that is required is for the user to download the Palmcredit loan app app from the Google play store, install on his/her phone, set it up and apply for loan with the app. It’s that simple.

5) Okash

Okash is a subsidiary of Opay. They offer loans up to #50,000 with yearly interest up to 36%. Their loan approval process is really fast and requires no collateral.

6) Branch Loan

Branch is an online platform that makes it easy for people to access a loan anytime and anywhere. All it requires for you to access loans from Branch loan app is your phone number, your bank verification number, and your bank account number. Branch offers loans ranging from #1000 to #200,000, their loan amounts increase depending on how fast you repay your loan. Interest rates range from 14% to 28%.

7) Kia Kia Loan

Kia Kia is a pidgin phrase interpreted “quick, quick” or “quickly”. True to their name, Kia Kia Loan process their loan application with incredible speed. They enable peer-to- peer donation of loan. Kia Kia loan does not require documents or credentials. However, they employ chatbot in their services which requires your Email address.

Conclusion

Loan apps give a faster and easier approach to accessing loans. All you need to do is download these apps, give your details and access loans for your projects. Having gone through these 7 best loan apps of 2021, it’s easier and more convenient for you to apply for your loans now.

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5 Mistakes that Can Sabotage Your Business Credit Score

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Business credit score is an indication of the ability of a business to repay loans as at when due. An excellent business credit score enhances your chance of expanding your business and being on track for exponential growth. You’re able to afford the necessary expenses of your business if you maintain a decent credit score.

However, there are mistakes than will sabotage your business credit. Sabotaging your credit score will disqualify you from accessing loans from credit companies, this might negatively affect your business. Avoiding these mistakes will improve your business credit scores.

5 Mistakes that Can Sabotage your Business Credit Score and How to Avoid Them

1) Inconsistency in Business Account Details.

Inconsistency in account details like email addresses, web addresses, records, taxes, etc. are mistakes that can sabotage your business credit score. These inconsistencies open up gaps which make businesses to be perceived as being non-credible. Whenever credit agencies and trade credit vendors notice these discrepancies in details, they withdraw from lending money to such a business.

2) Not Maintaining a Positive Cash Flow

A business that is unable to maintain a free cash flow (available money a company has to pay investors their dividends, when repay their creditors) and a positive cash flow (having more money coming in than going out) will earn low credit scores. It is pertinent to maintain a positive cash flow as a business owner; it communicates the value and stability of your company.

Business Credit Score

3) Irregular Deposits

Inconsistent deposits reduce a company’s rating and chance to get business loans. It is really important for a business to be making consistent bank deposits. Also it is critically important that the rate of deposits should be significantly higher than that of withdrawals.

4) Slacking on Loan Repayments

The history of payments of your past loans is a key factor in determining your credit score. This has to do with the promptness of your loans repayment – how early you repay or how late you repay your loans. To maintain a good credit score for your business, please endeavor to keep repay your past loans on time or as at when due. Failure to repay your loan on time can drastically reduce your credit score which is not good for your business. As much as possible, avoid missing any payments date as this can have a significant impact on your credit score.

Inability to keep up with your credit card payments can sabotage your credit score. Payment history is one of the most important factors considered in loaning money, thus, it’s needful to set up automatic payment in order to prevent delay in payments. Paying your loans much longer than your due date will attract a low credit score to your business by business credit agencies.

Where you forget or you are unable to repay your loan, kindly contact your creditors and ask for an extension of repayment date and/or time. This way, you save you and your business the risk of being in the black book of your creditors and the Credit bureau. Besides, it helps to prevent your credit score from dropping and going low.

5) Being in Debt

This is a costly mistake that can affect a business’s credit score. A business in debt will find it difficult to access loans. To avoid debt, ensure you pay your vendors on time and clear your outstanding debts.

Conclusion

There are numerous advantages of a good business credit score. One of the notable advantages is low interest rates on business loans. Besides, with a good credit score, you enjoy almost instant financing for your business whenever you run out of cash. Besides, with a good score you are qualified for low insurance premiums and higher credit limits, and an open access to several credit opportunities from financial house, credit lenders and vendors.

It is really important to constantly monitor your credit history, ensure your account details tally, maintain a positive cash flow and keep up with early payment of loans to avoid sabotaging your business credit score. Do not forget to clear your debts as failure to do this can sabotage your credit score history.

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6 Tips for Small Businesses Before Making a Business Partnership

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The next line of action an entrepreneur especially someone running a small business considers to boost his/her business is partnership. This is because the main goal of every business is to make money and business partnership can offer a great deal of that.

Starting a business gives the business owner the power to choose the people he/she is willing to work with. Making the right business partnership decisions has the potential of escalating the profits and scope of a business almost overnight. However, partnering with individuals, brands or companies without the proper guide or information do not guarantee 100% profit.

There are things you should take into consideration before you go into business partnership (s). These things can make or break your business hence it is important to take note of them ahead of time.

I implore you to take your time and consider the points I am about to share with you if you truly value your business and intend to maximize your business partnership(s) and get full returns on your investment.

Useful Tips Small Businesses Should Consider Before Going Into A Business Partnership

  1. Be Clears With Your Motive(s).

When you are starting a business partnership, it is important that you have thorough understanding of your reasons for going into the business.

You should clearly define your motivation for the business venture which is to say what you hope to get out of the relationship. There should be a clear reason behind your quest for business partnership instead of running the business alone. Is it to increase your business’ income, to add more value to your products or to reach out to a greater audience?

You must have a firm reason behind your need for business partnership and why it is necessary. Be clear about your motivations or intention behind the partnership and make it clear to your prospective business partner. This will help to steer your small business partnership in the same direction.

  1. Choose A Partner With Complementary Skills.

You can’t have a partner that has the same strength as you. You have to double the power of your startup team right off the bat. For example, a shy tech expert who wants to start an Internet business would do well to find a partner with sales, marketing, and people skills. This way, both partners can focus on doing what they enjoy and are good at. So, partner someone, a company or a group with skills that are complementary to yours.

business partnership

Business partners dialogue how to move the business forward.

  1. Discuss the Long-Term Vision of the Business With Your Partner.

You have found a complementary partner, what next? Strategic business partnerships are in many ways like a marriage, and both parties must be committed to the growth and long-term development if it’s going to work. From the onset of the partnership, express your expectations and sign contracts with one another so that trust is established.

  1. Define The Job Roles Of Each Partner.

Having strategized and established a vision for the business, you proceed to discuss roles differentiations between you and your business partner(s). That is, what roles will each partner play? This is a keen move to eliminate any confusion on what each partner’s duties will be.

A business partnership is bound to fall apart soon after it is formed when one partner believes the other should be performing certain tasks other than the ones he or she is performing.

To avoid this confusion, prepare a written document with your partner stating the roles each individual plays so it can always be referred to when the need arises.

  1. Devise A Way to Measure Each Partner’s Contributions.

There will be times when partnerships experience stress and at that time one party may be tempted to assume that the other party is not pulling in the much-needed weight. To avoid mounting resentment, define clear and objective performance indicators from the beginning to measure each of your contributions to the business’s success. This way, if one or the other of you fails to meet up with his/her end, you can have a level-headed conversation based on facts instead of feelings and thoughts.

  1. Make Provision For The Demise/Exit of a Partner.

What happens if one partner is deceased or wants to leave the partnership? To manage these situations you need a buy/sell agreement document.  This establishes a method by which the partnership interest can be valued and the interest purchased either by the partnership or individual partners. In addition, it will do you extremely good to develop an exit strategy. Like a prenuptial agreement, an exit strategy should clarify what will happen to the business’s real and intellectual properties should the partnership come to dissolution.

Conclusion

Great businesses are founded on great partnerships. But great businesses can also be destroyed by bad partnerships. Small business partnerships can be harmonious, mutually beneficial relationships that help propel a business forward. You should endeavor to choose a business partner just as carefully as you’d choose a romantic partner. This could be someone you spend the rest of your life working with, so don’t go into it loosely.

Have you analyzed these tips? If you have carefully done that, you can finally say “I do” to that business partnership and go ahead to execute it.

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