You want to save. You swear you’re going to save. But you said that last year, too, and your bank account doesn’t look much healthier.

Saying “I need to save” means you’ve recognized a basic financial fact: You need to take responsibility for your financial life. You really intend to do it – one of these days.

Or maybe you’re just financially overwhelmed, especially if you haven’t gotten a raise lately or if you’ve undergone a spell of unemployment. It’s easy to convince yourself that you’ll save “later.”

The best time to start saving money? Ten years ago. The second-best time? Today.

Want 2014 to be the year you turn things around? Simple tactics can make all the difference.

Step 1: You need a goal

The first thing to do is set a specific goal. “In 2014 I’m going to start an emergency fund” or “I resolve to have a healthy bank account this time next year” are both fatally vague. What’s a “healthy” account? Try this instead: Pick a specific sum. It could represent, for example, your emergency fund, the cost of a long-deferred vacation or a down payment on a house. Your choice.

You could divide that amount by 12 and put that result into savings each month. Or you could divide that goal by 52. Why 52? Because a small, weekly savings plan is less traumatic than a once-a-month withdrawal. You learn to live on what’s left week by week, vs. losing a (relatively) big chunk all at once.

Let’s start with an easy example: Let us assume you intend of saving N150,000 this year. Divide the N150,000 by 52 and you get N2,885 or if you want to be having such saving every month, it will be N150,000 divide by 12 which is equal to N12,500. Depending on individual capacity, just divide any amount you are targeting by either daily, weekly or monthly to know much you will be contributing to your Savings Account.

Step 2: Pay yourself first

The old saw holds true: Pay yourself first. Otherwise that “extra” N2,885 will get spent on something nonessential, like going to eatery, etc.

Or even for something essential, like rent. Paying yourself first forces you to get smarter about the way you let money slip away each month, as you will have to decide on how to manage the remaining balance left after deducting a certain amount that you target to be going to your Savings Account.

Step 3: Automate

Automate a weekly withdrawal of N2,885 (or whatever your selected amount is) from your other Account to that dedicated Savings Account. Why automate it? Because that way it’s sure to happen every week or month. Treat your savings like any other bill that you pay without been reminded every month.

Step 4: Track your expenses

Track your expenses by writing everything you spend down or you can get a free Expenses tracking service on www.PowerWallet.com, which shows you where your money is going. Now you can look for ways to save on everyday expenses. Just register on that site and start tracking your expenses and income. The service offer the service for free.

Step 5: Earn more or spend less? (Why not both?)

Most of the people either always or usually live paycheck to paycheck. If you’re in this situation you might wonder how to find that N2,885 per week or N12,500 per month (or any certain amount you intended to be saving).

Let’s turn that idea on its head: If you had an emergency, how would you find the however-many-naira it would take to fix things? Better to sacrifice N2,885 a week than to have to come up with N150,000 all at once or sometimes, the friend you are hoping to rely on might not be able to help or borrow such money when the needs arise.

Even if you’re not in that situation, you’ll need to find ways to set extra money aside to meet your goal. Here are a few ideas to get you started:

A. Pick up extra work. If extra hours on the job aren’t available, you can find other ways to earn more money. You might start Mini Importation Business (there are many threads on Business Section of Nairaland that have talked extensively about this business and people are already making it big in the business), house cleaning, Laundry Services, and the like are all tried-and-true methods. Try thinking outside the box, though.

B. Cut back on eating out. Way back. Cooking at home is much, much cheaper. Can’t cook? Go online or to the library for easy recipes. Do this gradually if you’re a total restaurant junkie. For instance, cook two times a week at first (and make the meals big ones so you’ll have leftovers to carry to work).

C. Cut other everyday expenses. Reduce Cable subscription costs by ditching traditional TV stations (or at least subscribing for a lesser one). Look for cheap or free ways to entertain yourself.

D. Look for savings elsewhere. For instance, always try to negotiate price, most of us are fond of paying a certain amount a Sales Girl tell us at the store, always ask if there is some sort of discount on the product you are about to purchase. You will really be amazed on how much you will be saving, if you imbibe the culture of price negotiation.

E. Sell stuff. Selling in Nigeria are now made easy with the introduction of so many free online classified advert website like olx, tradestable, etc., you can easily go through Mini Importation threads of Nairaland to start importing hot selling goods and sell on these sites or look for an importer or a wholesalers who can sell such goods for you at a lower rate in order for you to resell and make your own profit. You will be amazed how much most of the cloth they sell online for N3,500 to N5,000 are sold at Balogun, Idumota and the rest where they sell in wholesale price. Most of these wholesalers at Idumota, Balogun and the rest, never know anything like online free classified advert website, you can cease that opportunity to buy from them at a more cheaper rate and sell at exhorbitant price online.

F. Tell yourself “no” more often. Well, scratch that: Tell yourself “not now” or “not today” when you’re itching to buy any unnecessary item. Don’t stop treating yourself entirely – just pick your spots. Most of what we buy sometimes are unnecessary and moreso, does not always add value to us. Nigerians most especially are technology freak, they always want to buy latest phone in the market, whereas, the mobile phone they are currently using can also perform the same or up to 90% functions of the new very expensive gadgets.

Try one new tactic at a time until you’re confident you can pry that whatever amount you’ve picked – from your budget. Watch that savings account creep up. If through luck or diligence you find a little extra money in the budget some weeks, shoot it over to savings.

Pat yourself on the back (just a little), but don’t consider the matter closed. Instead, keep looking for ways to increase your savings. (Hint:Slow growth is better than no growth.)

Yes, it can be tough. But it gets easier, or at least becomes second nature to pay yourself first. If times are tight, don’t let that undermine a better future – and that future starts now.

culled from MoneyTalksNews.com and edited to fit into the Nigeria context