Let’s be honest with each other, saving money isn’t an innate characteristic of humans and it isn’t the easiest habit to develop either but it is one thing that guarantees financial freedom. Saving money when you have commitments and responsibilities can be challenging, when I started to think of savings as a gift for myself it became easier to do. When you stick to your plan to keep money aside from your income, it ensures that you have money when you need it and gives you the boldness to walk around like Otedola is your accountant. Here are 10 compelling reasons to save money.

1. Bad times: the randomness of occurrences in the universe does not allow us to accurately determine when/if we fall into bad times. COVID-19 took the entire world by storm and is still at our doorsteps, as a result, economic activities across the globe came to a complete halt for close to 4 months. Savings is what took many people through these trying times, many more unprecedented occurrences are yet to come and one way to ensure you aren’t caught unawares is to save money. There is no particular figure to this fund but a good estimate would be ‘6 months living expense’. How much do you need to save to live through 6 months in the unlikely event that you lose your source of income? This fund should be kept in an accessible savings account where it can accrue interest.

2. Emergencies: It requires discipline to build an emergency fund and even greater discipline to use it strictly for emergencies. For the sake of clarity let’s define what an emergency is “An emergency is a serious, unexpected, and often dangerous situation requiring immediate action.” Having money set aside for an emergency can truly be the difference between life and death and is probably one of the most important reasons to save. Use a target savings account such as UBA’s Target Account, this is a savings account specifically designed for individuals to save towards a project or set goal. To determine if you are in an emergency, ask yourself these questions: is this an unexpected cost, is it a necessary cost and is this urgent?

3. Save for a house: An ultimate goal as a true Nigerian citizen is to have your own house. That is something our society has shown us is a sign of adulthood: that you have your own house. In our country, owning your own house is a sign that you have arrived and a house does not just arrive at your doorstep, you need to consciously save for it. When you own a house, the burden of rent is taken off forever, it also doubles as an investment because in 10 years the value of your property would have significantly appreciated. Utilising a target account to save for this is a perfect option. Every month, put away a certain percentage (e.g. 10%) of your income towards owing a house and in a short time you would be able to shown property in your fatherland, a truly ecstatic feeling.

4. School: Learning never stops, as a BSc holder I really thought that I would never end up in school again, I left university thinking: I’m never intentionally going to put myself through this again but here we are, for the past year I’ve been applying to different universities for my masters. When you go through life you realise how necessary it is to have a higher degree (spoiler: once you are fully employed, a higher qualification translates to a higher pay). Saving money to go to school is a compelling reason to save, you don’t want to go to school on a loan because it takes a while to pay it back, a viable option is to save for it using a target account.

5. Travel : COVID-19 spoilt all our 2020 plans, I know, but we can make plans for the future. I personally cannot not wait to pepper my Instagram followers with my travel pictures that is by the way. To get to the pepper dem nation point, you need to have money for it. I cannot emphasize this enough, save money for flex, so you don’t finish your budget for the coming month. I will suggest using a UBA Bumper Account to save for travel because you stand the opportunity to earn more while you save. Travelling does not need to cost a fortune all you need to do is plan ahead.

6. Freedom: Having money gives you the ability to be free, to have options, to walk out of opportunities that do not sit well with your values. I have this theory, if you are able to say no, you appear more desirable, if you appear desperate, you lose respect. This situation opens you up to the possibility of better opportunities. Save more so you do not have to shalaye. You can enjoy the things in life that truly bring you joy, you can comfortably provide the most pressing needs for your family.

7. Retirement: Save for your future. That’s the whole post. You won’t always be able to earn as much as you currently do. A lot of organisations already require you to save an amount of your monthly earning for your retirement, whether this is enforced or not, you need to save for when you are no longer able to work and provide for yourself and your family. Put aside money every month for future flex, it is noteworthy to state that a trustworthy bank like UBA is what you need for your retirement saving.

8. Financial Security: We didn’t come to this life to only hail DJ Cuppy on twitter or admire Temi Otedola’s posts on IG. We all want to be rich but that cannot happen without saving money and investing that money to earn passive income that is the truth. You might blow, get a high paying job but if you don’t know how to manage your money and make investments, you will go back to the point where you started. Save money and invest it in federal government investment instruments like treasury bills that pay as high as 5.3% per annum.

9. Power to take risks: “Saving gives you the freedom to live life on your own terms,” says Matt Becker, a certified financial planner and the founder of Mom and Dad Money, a financial planning practice. When you have money saved, you have freedom to take calculated risks and pursue your life passions. Sure, taking a loan to pursue a business is a good idea but building your savings gives your liberty that isn’t accessible any way else. Visit https://www.ubagroup.com/nigeria/bumper-account/ to learn how you can earn while saving.

10. Jaiye: Together we have done all this work to save and make our lives more comfortable, it wouldn’t be balanced if we don’t have a flexing budget. In addition to saving more for monthly expenses, emergencies and bad times, set aside a small percentage for enjoyment to remind you why life is good.

These are reasons you should save money, not all will apply to you but I know you know which ones speak to you. Developing a saving habit is a great habit that has short term and long-term benefits. When you save and invest well you are better able to enjoy the benefits of adulthood. Deciding to save as little as N2000 every month is a great step in the right direction and this amount can be increased as your income increases.

Saving is one thing, getting the money in the first place is another. I think people need to know how to get money first then they'll learn how to save. Nevertheless, nice piece op.

See that no 1, bad times and no 2 emergency. They’re unforeseen circumstances, that’s the main reason I save. It can just come at anytime and scatter your plans.

Thank you for this

Okay but u only save if u get money to chop na

Saving takes a lot of discipline. But it's very important to save.

I can't stress it enough. Savings is very important. Saves stress and makes life a lot better