Looking to save up money as quickly as possible towards investing?
It is said that saving is the simplest form of investing and a veritable method of capital formation.
If you could save for emergencies or expenses, then you can definitely save for investing.
Here are 7 quick ways you can save up funds towards investing even if you’re a beginner.
Tithe Your Expense
This is the simplest way to save money in a stretch.
Since we make expenses on a regular basis, it makes sense to attach our savings to every expense we make.
Tithing your expense is simply saving a percentage of your expenses as you make them.
This is usually in the region of 1% to 5% of expenses made.
So, if you spend 1000 Naira, you can save 1% of that, which is 10 Naira or 5% which is 50 Naira.
Convert Cash To Saleable Assets
Another quick way to save is to convert cash to saleable assets.
This could be jewelry, antique furniture, properties, vouchers, or even cryptocurrency.
The goal is to put money into assets that are immediately usable, can appreciate in value, and are quickly saleable.
Use A Blocked Account
Blocked accounts are best for people who do not have the necessary skills to manage money.
With a blocked account, specific amounts of money will be released monthly, while the rest of the balance remains blocked.
This is very strict but also structured to save no matter the cost.
If you have a blocked account, all you have to do is instruct the bank to release money for your monthly expenses plus other miscellaneous, while keeping the rest of the funds saved.
Join Cooperative Savings
We are social beings, and we tend to conform to what other people are doing.
What better way to save than to join a community of active savers?
Joining a cooperative savings group is one of the quickest ways to build a savings habit.
Not only is savings broken down to the barest minimum, there are almost no barriers to saving.
Some cooperatives allow members to save on a daily basis with as low as 100 Naira, and they sometimes even have foot soldiers who go around to collect the savings.
The best part of joining a cooperative savings group is that most of them offer members overdrafts, which can help boost their business, and in turn their savings.
Use Auto Savings With Fintechs
If you’re tech savvy, then you’ll definitely be spoilt for choice in terms of available savings methods.
One good thing about today’s fintech apps is that most of them offer auto savings for people who do not have time to save.
All you have to do is set the amount of money you want to save and the dates for making such savings.
Click click, and your savings is set.
This is by far the easiest way to cultivate a savings habit.
With this method, as long as you earn some money, you’ll definitely save a part of it.
Avoid Debit Cards – Cash Only
Another way to cultivate a savings habit is to avoid Debit cards and use cash for your expenses.
I’ve observed that my bank accounts that have no debit cards usually incur lesser expenses.
Because there are more barriers to spend with cash than with a debit card. If you have a debit card, all you have to do is whip it out and spend.
By using cash for your expenses, you create a barrier to accessing your savings and spending unnecessarily.
Keep Foreign Currencies
Finally, one the smartest ways to save is to hold a few foreign currencies.
You don’t want to keep all your money in the local currency, which is a direct gateway for expenses.
Keeping some part of your money in foreign currencies creates a barrier for expenses and also avenues for balance appreciation.
If you’re in Nigeria, you could set a part of your income for holding foreign currencies like the USD and the Pound Sterling.
This would help create a broader view of your income, and even encourage you to acquire more FCY and save more.
And that’s a win-win.