• Thursday, July 25, 2024
businessday logo

BusinessDay

Efficient financial planning is also about saving cost

businessday-icon

High costs does not necessarily mean more value in goods or service, but the satisfaction you get at the best lowest price. In trying to achieve financial freedom, cutting cost or achieving your needs at least cost is critical.

Analysts say you can actually save so much by ensuring you get what you want at the lowest cost without necessarily compromising value. This will require that you understand the secrets of buying, the time you buy and how you pay for your buying.

Here, Financial Tip experts look at a number of daily and monthly activities where you can save cost.

Plan gift-giving well in advance. That will give you time to decide on the most thoughtful gifts, which usually are not the most expensive ones. And if these gifts are products that must be purchased, you will have the opportunity to look for sales.

When driving, avoid fast or accelerated start-ups and stops. Over time, you will save hundreds of naira on lower gas and maintenance costs –

Don’t pay for space you don’t need. Nigerians have relatively large houses, condos and apartments. Think about more efficiently using space so you can purchase or rent less square footage.

Check all airlines for cheap fares. Since no website lists all discount carriers, also check out the websites of discount carrier, possibly saving you hundreds of naira, if not thousands.

Develop or establish a business that would not put a strain on your main job. It’s would help you supplement your income.

When driving out plan your routes and day so you don’t keep going in circles. This would not only save you on petrol, but also wear and tear on your vehicle.

Research free or inexpensive entertainment in your community. Use local newspapers and websites to learn about free or low-cost parks, museums, film showings, sports events, and other places which you and your family would enjoy.

Aim for short-term savings goals, such as setting aside 2,000 naira or more a week or month rather than long term savings goals, such as 200,000 naira over a year. People save more successfully when they keep the short-term goal in sight.

Are you looking for an effective way to establish a budget? Beginning on the first day of a new month, get a receipt for everything you purchase. Stack and review receipts at the end of the month, and you will clearly be able to see where your money is going.

10. Read up on over the counter medications, vitamins and remedies or fruits that you can eat daily to boost up your immune system to prevent you from getting sick.

11. Take the amount the item costs and divide it into your hourly wage. If it’s a N5,000 naira pair of shoes and you make N1,000 an hour, ask yourself, are those shoes really worth five long hours of work? It helps keep things in perspective.

Modestus Anaesoronye