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Why Save? How To Save? Where To Save? All You Need To Know
Stanbic IBTC team
Not applicable

This is the sixth post in a series aimed at equipping you with the knowledge and skills to enable you to make more informed decisions about your finances and lifestyle. Please read the previous post here http://bit.ly/1qnH7CC
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There are a lot of myths and legends around saving money. This post aims to simplify the process to its very basics: The things we save money for may include

• To buy a car
• That holiday you've always wanted to take
• To buy a house
• To pay for school fees or or the short course you've always wanted to do
• For emergencies, whatever they may be
• Making sure your child goes to the best school possible
• Luxury - because you deserve it
.
How to start saving
1. Set goals. Know what you are saving for

2. Take decisions together with your partner. In this way you will both work together for the benefit of the family.

3. Identify the items in your spending that are not necessary

4. Take at least 10% of your money as soon as you get paid and deposit it into a savings account. If you can’t afford this, save what you can. Consistently.

5. Do not touch your savings if possible. When you get extra money in your budget set up an emergency savings plan. Doing this will safeguard your savings when unexpected bills arrive.

6. Keep yourself informed. Ask a personal banker for information on savings plans that earn the best interest and suit your needs.

7. Think of your family as business partners. To do this, get together now and discuss your financial state and revise your list of goals.

Where to save?

• Formal institutions like banks and investment companies:
These are legal and registered businesses, run by professional people. Your money is safe when invested there because they have to comply with strict regulations set down by the Central Bank of Nigeria and the Securities and Exchange Commission. Our savings and investments products might interest you - click here http://bit.ly/1vsJqaU

• Informal institutions. Examples of informal ways to save are:
- Cooperative societies
- Ajo or Esusu with friends and colleagues