5 Simple Ways to Save More Money and Grow Your Savings

5 Simple Ways to Save More Money and Grow Your Savings

There are various ways to grow your savings account to achieve your targets. Many of us struggle with keeping cash. Our savings account is not different from our normal wallets or purses. We deposit money in today and tomorrow we take it out. Many of us are forced to act this way due to economic challenges. We however, do not make any efforts to improve our savings. Withdraw money regularly from the account should number one thing to avoid if we intend to grow our savings account. It is not a bad idea to take money from your savings account especially you created the account for an emergency. The problem however, is when the withdrawing is outside the purposes for which the accounts were created. Below are steps to take to help improve your saving habits and growing your account.

Keep your savings out of reach

Once you have developed a saving habit and consequently you now have a saving. You need to learn to stop dipping your hands into the account for purpose other than that which you opened the account. This is one of the challenge many people have when it comes growing their saving account. They make their savings account very easy to access and are therefore tempted to withdraw funds from the account. You should try your best to ensure that you do not take money out of the account randomly. It is advisable to just forget that you have money somewhere. Because as long as your reminded that you have money somewhere and it is accessible, you are likely to spend the money. 

Watch your expenditure

In order for you to save, you need to watch how you spend your money, learn to spend less than you earn. Similarly, to grow your savings you need to spend less than you are spending at the moment. There are various tools online that can be used to help you keep your expenditure in check. All you have to do is to ensure you document all your expenses, lets say for example: weekly, monthly or yearly, depending on how regular your income is. At the end of the period you can always review the expenditure to determine what you spend your money on and expenditure you can reduce to cut costs. To keep your expenses in check, budgeting is a must and you cannot do without it. It is not about drafting a budget and dumping it somewhere, you must stick to it. Failure to do this might see your expenses rise instead as you will be prone to spontaneous shopping.

Make your savings automatic

Sustaining s savings habit can be a very huge challenge for many people. It is common to see people save regularly for months only to stop abruptly for a longer period some people are consistent while other are inconsistent in terms of savings, some end up blaming it economic challenge. For you to overcome this challenge, you should adopt automatic savings approach. This will ensure that part of your income is automatically saved. Many banks offer products that allows for such arrangement. Such arrangement would ensure that instead of you receiving your salary and the later battling with yourself to push part of it into savings account, a part of will be deducted automatically and kept in your savings account while the rest will be paid to you. This sound great right! Just as you are able to cope with your tax and pension deduction you should also be able to cope with the deduction for your savings account. It is also a great way to avoid making your savings too accessible.

Monitor your account balance

It might sound weird but some people have never demanded an account statement from their bank before. While some who received the statements hardly bother to even look at them. Such people are likely to be shocked to see someone in a banking hall demanding to see the bank manager because a certain amount was deducted from their accounts. It is important to take note of your account balance and always strive to understand the implication of new financial regulation on your accounts and savings. In order for you to grow your savings accounts, you need to understand what the interest on your savings is and that it has been or is been paid into your accounts. You also need to understand the fees you will have to pay for any transaction you will carry out on your accounts and ensure that not more than the stated amount is deducted from your accounts. 

Choosing the eight savings account

The basic services offered by banks are inter-related, the interest rate they offer and the charges for their services differ from bank to bank. It is important you choose the right kind of savings account or else it would be difficult to get the desired benefits from your savings. When choosing a savings account it is important you consider; the interest rate, account charges, minimum and maximum balance and the cost of withdrawals. Always find out first so you don’t end up losing excess money to the banks.

Although there are no magic tricks to make you an instant millionaire, there are a few things you can learn to help you reach your goals. No matter how much debt you have or how little income you make, with a right attitude toward money you can figure out how to make your money grow in a saving account with the right financial plan. If your goal is to make millions so you can buy your dream house, travel the world, buy new cars, pay children school fees or even to help other people, then these seven steps will help you get there in no time.

Making a budget is not difficult, but it can seem daunting if your personal finances need a big overhaul and you are desperately trying to build wealth. A helpful budget app may get you on the right path, but the most important thing to remember here is to make your budget realistic! When you are trying to decide what to cut off from your current spending, look for things you know you can live comfortably without. That’s mean getting rid of some of your monthly subscriptions like: phone, magazines, trips to nail salon or anything you know that is more of a want than a need.

After you have made those cuts, divide your income into three piles like this below lists:

1. One for your saving account
2. One to pay your bills and basic necessities with
3. And the left over extra cash just for fun or other minor emergencies.
Too strict of a budget will drive you crazy, and the best way to maintain good financial habits is by rewarding yourself even if it is just with a new outfit from time to time.

· How to build money by setting goals

Even if you make the most amazing financial plan in the world, without setting a specific saving goal in mind, the chances of you actually sticking to your budget are pretty slim. Do you want to save up to buy a home? Create an emergency fund? Whatever your goals are, assign price tags and deadlines to give your budget purpose and to keep you motivated while saving money.

· How to build saving quickly set it and forget it

The great thing about online banking today is that for almost everything, you can set it and forget. If you want to allocate 15 per cent of your monthly income for retirement saving and five per cent for your down payment fund, set up transfers for every pay cheque so that money goes exactly where it needs to automatically. This will help you build your saving habit by reinforcing the habit of paying yourself first, and will save your time and effort as well.

· How to maximise saving by avoiding credit purchases

Today many people are wary of using credit cards since this can lead to hefty debts if not used wisely and responsibly. But not only are they generally more secure to use than debit cards; they can also make you money that you can put directly into your saving. Depending on the cash back credit card you get, for every Maura you spend, you will get money back either directly onto your card or in cheque form. Now that is just easy money right! As an added bonus using credit cards responsibly will help raise your credit score by lower your interest rates and save you money down the road.

· How to build your money by knowing your worth

Although sometimes you might just be thankful to have a job, it is also important to know your worth and be paid accordingly. Do some research to see if you are being paid the median salary for your current role, and if not, it might be time to ask for a raise or look for a new job that pays better while still working! Remember don’t leave your current job until you find one that pays more. And the more money you make, the more money you can put into a saving account.

· How to make money grow in a saving account by getting a side gig

Many people these days have second job called side hustles to supplement their full-time income, and it is a great way to accelerate your savings, too. Are you natural at crafts? Maybe you should consider selling some of your crafts. Do you enjoy concerts and sporting events but don’t want to pay for them? why not find a part-time job at night working at the stadium to maximise your savings.

· How to maximise saving by investing

Putting extra money into saving is important. But to make sure that money grows or even just maintains its worth over the years with inflation, you need to start investing with a good investment strategy. The more you save, you need to make sure that big chuck of change is put to good use, and that might mean putting it into investments, bonds, stocks, shares, mutual funds or other investments in the money market, or consider venture into small business.

· How to build your money by making sacrifices

Above anything else, the oldest trick in the book to build up your savings account is to make some sacrifices with products and services. That might mean cutting back on eating out or participating in social activities. No matter what, at the end of the day, all of those sacrifices will be more than worth it. Not only will you be a heck of a lot richer for doing it, but you will never have to waste another night losing sleep worrying about money.

You don’t need a financial adviser to learn how to build your money. If you are really serious about getting on the right track financially and build wealth, these seven tips provided will help you to make money grow in your saving account. Regardless of your age or current financial situation, now is the right time to start curbing those bad spending habits and planning for a richer and more fulfilled future. Do you have a suggestion or contribution? Please leave a comment below and share your thought with us.
Advantages of incorporating small business in Nigeria

Advantages of incorporating small business in Nigeria

Although incorporating a small business requires a considerable amount of paperwork and can seem confusing to new entrepreneurs, forming a corporation can hold a number of benefits for profitable small businesses, experts say. Small business owners often feel the taxman’s pinch when reporting earnings, as the tax bill on a small venture can quickly climb into double-digit percentages. This high tax rate on unincorporated businesses comes from a combination of federal income taxes on the business earnings and an additional self-employment tax depending on the location and country. Different states in Nigeria usually have their various tax requirements, but it is important that you incorporate your small business if you have the wherewithal to do so. Experts note that incorporating a small business/ venture pays and has its way of impacting positively on one’s business. You can visit the Corporate Affair Commission for more details on how to incorporate a firm.

Liability

Small business entrepreneurs who do not incorporate typically bear full liability for the business’ obligations. If the business amasses debt that it cannot pay, creditors may take a legal action against the business owner to secure repayment. Similarly, customers or employees who become injured on the business property may pursue claims against the business owner’s personal estate. When a business incorporates, the incorporation becomes a separate and distinct legal entity. This entity, rather than the business owner, assumes liability for the business’ obligations. For this reason, many business owners who incur significant debt or who operate in high-risk industries tend to incorporate as a way of shielding personal assets from liability. 

Funding

Most businesses require some kind of outside funding to get off the ground, and incorporation can help to improve the business’ fundraising capabilities. A corporate structure lends a measure of credibility to the business in the eyes of some investor, as the business owner must register the business with state authorities and complete certain procedures during the incorporation process. In addition, some investors feel more comfortable funding a corporation, as the business’ status as a separate legal entity allows investors to recoup assets from failed ventures. Because owners who incorporate may also be able to raise funds and even attract top talents by issuing stocks, an option that is not available to unincorporated organisation.

Consideration It is important you make adequate considerations and checks before incorporating your small business. Meet with qualified attorneys and know what is required of you before going ahead with the process of incorporation. Although the corporate structure offers a number of benefits to small business owners, entrepreneurs should keep some considerations in mind before incorporating. Many states require corporations a file paperwork and complete various verification procedures as part of the incorporation process, and many states charge corporations to file mandatory annual reports. Finally, corporate officers may still bear personal liability for corporate debts and lawsuits; so, business owners should consult a qualified corporate attorney before beginning the incorporation process.

6 Factors to Consider Before You Decide to Sell Your Business

Not all business owners have the intention to sell at the beginning of their business, as the business grows and conditions like retirement or liquidation set in, many entrepreneur consider selling their business. Before you decide to sell your business, several decisions have to be made to get good returns from it. Selling a business requires a critical thinking process and an adequate planning because decision on the appropriate timing to sell is important for profit making. You also need to consider the reasons for selling your business, the structure and strength of the business.

Although the process could be challenging, complex and emotional due to years of hard work and creative input, you still need to be prepared, most business owners actually fail to make profit from the sale of the businesses, the key to having a profitable sale is to enlist the services of a broker, an accountant and an attorney earlier on to ensure that the businesses are adequately prepared before presentation for sale. You need to convince the buyer that they are making the best choice by buying your business. What you are offering them should be the solution they need and should guarantee the right results. Experts have pointed out some things that you should consider to ensure that your business is properly prepared and eventually sold to the right person at a good price.

Prepare for the sale

Most entrepreneurs sell their business due to constant losses, illness, retirement or partnership dispute, this should not be the main reason because every potential buyer takes precautionary measures and check for signs that the business is not profitable. Therefore, consider your business appeal to potential buyers, its readiness and your timing. Your business must have strong customer base, consistent income figure, a high profit margin, evidence of successful executed contracts and landmarks of growth. Early preparation is important because the fact that the business is valuable does not mean it will attract buyers immediately, its need to be properly groomed to sell at a profitable price. The grooming will help to improve your financial records, business structure and customer base to make the business more profitable. These improvements will also ease the transition for the buyer and keep the business running smoothly years after sale.

Reflect on your potential buyers

Before you put your business up for sale, you need to consider who is likely to show an interest in it. Will it be competitor, a foreigner or someone working with a similar customer base? The reality is that each buyer will be looking for something different so start thinking about attractive attributes of a thriving business at an early stage as it is likely to pay dividends. It is certain that any price that they are willing to pay is driven by what they believe the business can achieve in the future. This is why the presentation of your growth of your growth opportunities is so important. 

Get the services of a broker

However, in other circumstances, an experienced broker who can sacrifice the time for you to keep the business up and running, keep the sale quite and get the highest price because the broker will want to maximise his or her commission will be better. A broker will help you with the complicated planning you will require to do before you put the company up for sale. Discuss your expectations and advertisements with the broker and maintain constant communication.

Make a business valuation

Consultation with experts is critical to reap the fruit of your years of labour. Accept divestment advice to avoid taking unnecessary risk. The next step is to determine the worth of your business to ensure a high asking price is fixed for it. The appraiser will draw up a detailed explanation of the business worth which could be presented as evidence to the buyer. The document which should also contain a list of equipment being sold with the business will bring credibility to the asking price and can serve as a measure for your listing price.

Prepare the important documents

There are number of documents that you should prepare, both before you pursue a sale and after. Create a list of contacts related to sales transactions and suppliers and dig up any relevant paperwork such as your current lease. Create copies of these documents to distribute to financially qualified potential buyers. You should gather all financial statements and tax returns dating back three to four years, depreciation deductions, contributions, interest expense and income and any other items of income or expenses that are important to the business and review them with an accountant.

Effective negotiation

Negotiation tactics will get you the best business deal. A deep understanding of the buyer’s need will clarify the negotiation tactics to use. You should be able to understand the purchaser’s motives and needs then align yourself with them. Once an overlapping interest has been identified, take advantage of it immediately and build on it. Your tactics should neither be resistive nor combative but should reinforce the linkage, shaping an agreement. Emphasise the strength of the business you are putting up for sale. Act in a self-assured manner and don’t be defensive rather be persuasive. Expressed feeling are irrefutable. A statement like ‘your price is not fair’ will provoke attack. It rejects the seller’s notion of worth. However, statements like, ‘I don’t feel the price is fair enough’ relate your feelings better in a polite manner. Stay calm and be firm in your decisions. Do not be aggressive or emotional because it is a sign of desperation to the buyer.