Sometimes the hardest thing about saving money is just getting started. It is not where to save. It is about starting to save, and then continuing to save through thick and thin, until your target is reached.

Having a roof over your head is one of the basic needs of human. This means you have to meet this need somehow. If you are not a Landlord, then you are a tenant and sometimes you can even be both. According to research, over 50% of Nigerians in the urban parts of the country lives in rented apartments. Unlike most cities around the world, rent in Nigeria is mostly paid upfront annually and this only has led to many people unable to pay up at due date. Not that they didn't make the money to pay the rent that year but because they believe "if I don't gather the rent this month, there's always next month" until it gets too late and they get kicked out. The toughest month for Nigerians who pay annual rent is the month when rent are due for payment. We've all been there at different points in time.

So why continue with this lifestyle when there is a better way ?

It’s a big misunderstanding to think if you make a ton of money each month then you are on the safe side. While earning a lot of money helps, what will help you, even more, to live better is to have some positive saving habits. We know saving towards your rent can be a bit challenging but it is totally achievable.

See how it can be done;

1. By Keeping track of your expenses
This is not tricky at all. There are several ways you can stay on top of your expenses. Tracking your spending regularly can give a clear picture of where your money goes and help you plan where you’d like it to go instead. The mismanagement of money makes many overpaid people seem underpaid. This is why budgeting matters for your financial health, for you to see how you really spend your money and how you allocate your income across different activities. The process of keeping a record of your income and your expenses will create a better discipline when it comes to managing your money.

2. Finding ways you can cut your spending
Your budget should outline how your expenses measure up to your income—so you can plan your spending and limit overspending. If your expenses are so high that you can’t save as much as you’d like, you should try and cut back.
Eliminate the unnecessary expenses and try to find cheaper alternatives to the primary expenses such as:
DSTV packages, Netflix or Amazon prime and other subscriptions
Mobile and WIFI operator
Electricity usage
Transportation

You can also eliminate unproductive charges and fees such as the ATM withdrawal fee on your debit card. They just take your money.

3. Decide on your priorities
After your expenses and income, your goals are likely to have the biggest impact on how you allocate your savings. Priortizing your saving goal gives you a clear idea of where to start saving. Let's say you are looking to relocate to a new apartment in the near future, on a different part or town where most likely, the rent is higher compare to your current apartment. You can start putting money away now.

4. Defining a Savings goal:
In this case, the goal is your rent. The rule of thumb in personal finance is to spend between 25 and 30 percent of annual income on rent. So for example, if you make ₦5,000,000 annual income, your annual house rent should range between ₦1,250,000 to ₦1,500,000. This means if you keep tucking ₦170,000 into some back wallet monthly, you can easily save up for your annual rent in just 7 - 9 months. This is easier said than done right ? We know.

5. Picking the Right tools - Introducing Kwaba 2.0
These are part of the reasons we have created Kwaba 2.0. With our automated rent saving feature, we can help you reach your goal in no time. We help you create target savings and make sure you stay commited to reaching your goal by providing you with instant loans when life happens without you having to touch your actual savings. We make your rent a priority. As if that's not enough, another interesting part is the fact that your monthly “rent savings” will accumulate interests on its own.

Financing is not the finish line for success. It means you are ready to start the marathon with the backing of fiscal endurance. You don't have to see the whole staircase, just take the first step.

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