Have you heard about the 50-30-20 budget rule for savings? If you haven’t, I’ll tell you what it is, and if you have, this could be a reminder for you.
The 50-30-20 budget rule is a practical rule to help you cultivate and achieve your financial goals. The rule helps simplify your expenses into three main categories; needs, wants, and savings respectively, providing an easy way to allocate your funds. But why should you spend 50% of your earnings on the things you need when you can actually reduce it and add it to your savings? We obviously can’t change rules, but we can make our own. So, I’d like you to think about this and make your own rules. That’s not the reason for this article, by the way.
Let’s talk about how you can use Earnipay’s savings features to build financial security over time.
Earnipay’s savings feature is a highly effective tool for building long-term financial security, and it provides a simple and convenient way to save money for a variety of financial goals, including retirement, emergencies, and other goals you may have. With the added benefit of the on-demand pay feature, you can access funds when you need them most, bridging the gap between paydays and ensuring financial stability even in unexpected situations.
Here’s a comprehensive guide on how to use Earnipay’s savings
- Set a savings goal: Before you start saving, it is important to set a specific financial goal you want to achieve. Without a clear target mapped out, it can be difficult to stay motivated and keep saving money over time, as a well-defined financial plan provides a framework for planning and managing your finances effectively.
When setting your financial goals, it’s important to be specific and realistic. A specific goal gives you a clear target to work towards, while a realistic goal ensures that it is achievable and doesn’t become a source of frustration for you. For example, instead of setting a general goal of “saving more money,” you could simplify it to “saving N50,000 per month towards building an emergency fund.”
Additionally, it’s important to consider your current financial situation before setting your goals because your consistency will depend on that. If you have outstanding debt, you should prioritize sorting that out first before saving for other goals. On-demand pay options can also be considered to manage immediate financial needs while working towards your long-term savings goals.
- Know how much you want to save: Once you have set a specific financial goal, the next step is to determine how much you want to save daily, weekly, or monthly to reach your goal. This is solely dependent on how much you earn and the timeframe you have set for each of your goals. For example, if you want to save N120,000 in a year, you will need to save about N10,000 monthly. To determine how much you need to save, start by breaking down your financial goals into smaller chunks, and once that is done, you can start to make adjustments to your budget or spending habits to achieve your financial goal. It could be cutting down on the number of times you buy Pizza from your favorite brand or minimizing the number of clothes you buy every month.
- Automate your savings: The easiest way to save money is to automate your savings. With Earnipay’s savings feature, you can automatically transfer money from your checking account to your savings account regularly. To automate your savings, you can simply link your bank/checking account and your savings account, then choose the amount and frequency of your savings.
For example, you might choose to save N50,000 from your checking account to payout your savings account weekly, and once you have automated your savings, you can sit back and let Earnipay do the work for you, and the transactions would be done without any effort on your part. This helps you stay on track with your savings goals and also helps you deal with the temptation to spend all your money.
- Track your progress: Tracking your progress is an important part of achieving your financial goals. By monitoring your savings regularly, you can stay motivated and make adjustments to your budget as needed. With EarniPay’s savings dashboard, tracking your progress is easy and convenient. The savings dashboard provides you with a comprehensive view of your savings activity over time, as you can see how much you have saved so far, how much you have contributed each month, and how close you are to reaching your savings goal. You can also view your transaction history and track your savings performance over time.
- Increase your savings: when it comes to saving with Earnipay, you can be flexible. As your income increases, it is important to consider putting in some extra funds towards your savings goal, as this will help you reach your goal faster and build a strong financial foundation for your future.
With Earnipay’s savings feature, increasing your savings is easy and convenient. Simply adjust the number of your automatic transfers to reflect the additional money you have available. For example, if you get a raise at work, you might consider increasing your automatic transfer by a percentage of your net income or just adding an extra amount you desire.
Ready to start building a strong financial future for your future? Get started here.
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