According to this year’s Piggyvest savings report, 1 in 3 Nigerians earn less than ₦100,000 per month, and just over 1 in 3 spend between ₦50,000 and ₦100,000 monthly. It’s no surprise, then, that the percentage of Nigerians who don’t save has jumped from 21% to 43% since last year.


So, how can you build savings when you’re working with a limited income? In today’s blog post, we’ll be sharing practical tips to help you do just that.

Set Clear, Realistic Goals

One of the most important steps in saving is to start with clear and realistic goals. Goals give you a reason to save, and they help you stay motivated, especially when money feels tight. However, the key here is to make sure the goals you set are practical and achievable within your budget.


1. Start Small and Specific

If you’re just beginning, think about setting a simple, manageable savings goal. For example, saving ₦1000 each week or ₦5000 each month might be realistic and feel achievable without straining your budget. When the goal is specific, you can track your progress and feel motivated as you get closer. Even if it seems small, every bit saved is progress.


2. Break Down Your Goals

Big goals can feel overwhelming, especially on a limited income. So, break them down into smaller milestones. If your goal is to save ₦100,000 over in 5 months, consider setting a monthly target, like saving ₦20,000 each month for five months. 


3. Prioritize an Emergency Fund First

Before saving for larger purchases or experiences, it’s wise to start with an emergency fund. An emergency fund helps protect you from unexpected expenses, like medical bills or phone repair. It doesn’t have to be huge—aiming for a starter fund of about ₦100,000 can provide a small cushion for emergencies. 


4. Write It Down and Keep It Visible

Putting your goals in writing makes them more real and reminds you of the purpose behind your savings. Try writing down your savings goal and placing it somewhere visible, like on your phone’s notes app, on a sticky note by your workspace, or even on your fridge. Seeing it daily will serve as a gentle reminder and can help you avoid unnecessary spending.


5. Track Your Progress

Each time you add to your savings, record it somewhere. This could be in a notebook, the Earlybean app, or even a spreadsheet. Seeing your progress grow, even if slowly, can build momentum and encourage you to keep going. 


Even on a limited income, these simple actions make saving a natural part of your routine and help you move closer to your financial goals.


Track Your Spending Closely

Understanding where your money goes is a powerful way to take control of your finances. When money feels tight, it’s easy to overlook small expenses, telling yourself it doesn't matter. But tracking your spending gives you a clear picture of your habits and see where you might be able to save a little extra. Here's how to get started:


1. Start with the Basics: Record Every Expense

Tracking doesn’t have to be complicated. Begin by noting down every expense for at least a month. You can use a small notebook, your phone’s notes app, or a budgeting app—whatever feels easiest to keep up with consistently. Write each expense as soon as it happens. This process creates awareness, allowing you to see spending patterns and identify unnecessary costs.


2. Group Expenses into Categories

Once you’ve recorded your expenses, categorize them. Common categories include groceries, transportation, utilities, eating out, entertainment, and miscellaneous (for those small items that pop up occasionally). This way, you can see where your money goes and spot areas that might need adjusting.

3. Be Honest About "Wants" vs. "Needs"

Tracking spending helps you distinguish needs and wants. Needs are essentials like rent, bills, and food, while wants include entertainment, eating out, and non-essential shopping. Recognizing this difference can help you make smarter choices when money feels tight. If you notice spending on wants that you can reduce, even temporarily, it might free up money for your savings goals.


4. Keep Adjusting and Improving

Budgeting isn’t a one-time task. Each month, review your spending to see what worked and what didn’t. Maybe you spent less on groceries but more on transportation. Regularly adjusting based on your spending patterns will help you improve your saving strategies month by month.


Tracking might seem tedious at first, but as you begin to see your spending habits clearly, it becomes a powerful tool. This small effort pays off by helping you make smarter choices with your money and bringing you closer to your savings goals.


Find Ways to Save on Everyday Essentials

Saving money on essential expenses is one of the easiest ways to free up cash, even on a tight budget. Essentials are things we can’t avoid spending on, like food, utilities, transportation, and household supplies. But with a little strategy and planning, you can reduce these costs and make your money stretch further. Here’s how:


1. Plan Your Meals to Avoid Food Waste

Food is a big part of most household budgets, and one of the best ways to save here is by planning meals ahead. Create a simple weekly meal plan and base your shopping list on what you actually need. This reduces impulse purchases and keeps you from buying items that end up going to waste. 


2. Buy in Bulk When Possible

For non-perishable items, buying in bulk can be a great money saver. Items like rice, beans, pasta, and garri often cost less when bought in larger quantities. If you have space for storage, bulk purchases can keep you stocked up and reduce the frequency of shopping trips.


3. Reduce Utility Bills by Being Energy-Smart

Utilities are essential, but you can still save on them with a few smart adjustments. Simple steps like turning off lights in empty rooms, unplugging appliances when not in use, and reducing air conditioning can make a difference. You might also consider energy-efficient light bulbs or limiting water usage when possible. Small adjustments in your household habits can lower monthly bills and leave a bit more room in your budget.


Adopt a “Pay Yourself First” Approach (with Small Amounts)

One of the most powerful habits in saving, even on a tight budget, is the “pay yourself first” approach. This simply means that before you spend on anything else, you set aside a small amount for your savings goal. Let’s look at how this can work practically with small amounts.


1. Start with an Amount You Can Realistically Set Aside

The goal here is consistency, not a specific figure. Start with an amount that feels manageable to you—this could be as little as ₦500 weekly. What matters most is developing the habit of saving first, no matter how small the amount.


2. Make Savings Automatic

Once you’ve decided on an amount, find a way to make it automatic. If you use an app, you can automate the process. Automating this makes it easier because you don’t have to think about it, and you won’t be tempted to skip a week. 


3. Separate Savings from Spending Money

Creating a distinct “bucket” or account for your savings can help. If you’re putting aside ₦500 per week, try placing it in a different account or wallet that’s not easily accessible. This reduces the temptation to dip into it for other needs. You could even label it with your goal, like “Emergency Fund” as a reminder of what you’re working toward.


4. Increase Contributions Gradually

As you get comfortable with setting aside a small amount, you might find it easier to save a little more. If you started with ₦500 weekly, try bumping it up by another ₦500 after a few months. This gradual increase feels manageable and helps grow your savings without placing too much strain on your budget. 


Find Ways to Earn Extra Income

You can't avoid the fact that you need more money if you're going to achieve your goals faster. This doesn’t mean you need a full second job; sometimes, a small side gig or a one-time project can make a difference. Here are some practical ideas to help you find additional income sources without adding too much stress.


1. Consider Online Opportunities

If you’re good with tech, the internet offers numerous ways to earn. For example, online freelancing platforms like Upwork or Fiverr allow you to offer skills like writing, graphic design, video editing, proof reading, etc. Surveys are another option, while not high-paying, can provide a small but steady income if you do a few each week.


2. Sell Items You Don’t Need Anymore

Look around your home for items that you no longer use or need. These could be old electronics, books, or clothes that are in good condition. You can sell them online or to your friends and get some quick cash. You might be surprised by how much value is lying around in items you no longer want or need.


3. Turn a Hobby into a Side Income

If you have a hobby like drawing, baking, or photography, consider turning it into a small business. Many people are willing to pay for these services. You could start by selling to friends and family, or set up a simple social media page showcasing your products.


4. Explore Gig Economy Platforms

Platforms like Uber, Bolt, or food delivery services (depending on what’s available in your area) are flexible options that let you work at your convenience. Driving or delivering during peak hours can bring in a significant amount, and you get to choose when to work. This flexibility makes it easy to earn extra income around your main job or other commitments.


Saving on a tight budget can feel overwhelming, especially when it seems like there’s never enough left over at the end of the month. But the truth is doing this will actually challenge you to think of more ways to earn money.


Remember, the key to making saving work on a tight budget is patience. It’s about understanding that small amounts saved consistently can make a big impact. It might take time, but with a solid plan and commitment, you can reach your financial goals, no matter your income level. So, take it one step at a time, and start today—every little bit counts.