How to save money as a budget entreprenuer11 min read

Reading Time: 9 minutes

One of the things I regret from shutting down my first businesses is not saving money for rainy days

I was so focused on making the business work that I was not thinking so much about what if it doesn’t

I took out all the moey in my savings that was close to 210kk at the time

used all the money I was being gifted for my business

threw in all my shopping money and even back to school money when I started

By the time we were shutting down, I was broke AF

I am grateful I still had pocket money from my family and then, allawee from youth corp if not, OYO would have been my name

Hunger would have shaved me

This made me start asking myself how exactly an entrepreneur who doesn’t have a lot of money in the bank nd is trying to grow their business can save

I badly wanted to gain financial freedom but, the first step to this would be financial literacy

And, financial literacy starts with “Learning how to save your money”

I tried different things and eventually, I found a method that works for me

In this article, I share with you how to start saving even if all you have in starting is N20k

Step 1: Have an added source of income

This isn’t very popular opinion

So people have argued that real entreprenuers do not enjoy working at a 9-5

To them I say “I agree”

Real ntreprenuers also need money and they need a plan B just in case things go south

You can’t really set up a plan B when you are living off your business before it even starts breathing

Even if that job pays you 40k at the end of the month, what that does is, it helps reduce the burden on your income from the business

I currently have a part time job where I work fully for 3 days every week and earn less than 100k

I am very happy with the job

I get to work on my own hours, I get to work on my project with little supervision

But, above all, I get to save profit from my business while using their salary to hold body

Of course, the more flexible the job, the better

It is even best to pick a vrtual job, that way, you can work at your own hours and you are spending nothing or little on transportation

You can also choose to pick a skill

Learning a skill you can monetize will help a ton in creating an extra source of income for you

You can offer services around that skill on the side while still running your business

Step 2: Separate your business account from your personal account

You want to do this so that your leisure expenses don’t get entangled with your business profit

Most importantly, you need a separate account for business alerts because of step 3

I am about setting this up mainly because, I realize that even though I am saving, my money is way too intertwined

In implementing this, I focused on using one account for collecting business alerts and anither for salary or gifted cash

Step 3: Use the envelope method for your expenses

I first came across this method in Ramith Sethi’s book “I will teach you to be rich”

The concept revolves around taking your ATM card and sending it on vacation

You can’t go without one because of emergencies

But, you can go without using one in your day to day

The first thing to do when using this method is to look at your expenses now and look at all the things you spend on

Then, using your current expenses, create a budget

When creating your budget, don’t focus on cutting down expenses

Be as realistic as possible with your expenses

Then, write it down

After which, look at what you are blowing the most money on, that shit needs to be managed

So, for example, I relapsed I blow up a lot on cinemas and sharwamas

I also do on internet

I had to come up with creative ways to cut down my expenses

I decided I am entitled to two cinema visits every month and only on discount days so N1k per day and 600 for popcorn so that is N1,600 X2 . My budget for this is N4,000

Sometimes, big eyes will push me to order large sized popcorns so, I shall throw in the extra cash

Now, I went to ebeano in Lekki 1and got these envelopes below

I have one written movies and it has N4k on it so, I will place N4,000 cash right there

Next is sharwama which is N1,800 and so, I will place N3,600 for twice a month

Withdraw and send to the envelope

I live with my house mate so, I will have to split the fee for Gen fuel and budget car fuel which is N5k for my car and N3k for my GEN

There goes N10k

Then, I will have to get internet of N12,500 naira monthly

I am currently using spectranet and while it is 70% useless for me to do my work which I actually got It for 🙄

It is pretty slow and unstable

I can use it normally on my phone

You get the method , budget, manage and then send to an envelope

The whole idea behind the envelope method is to help us spend consciously

Once that money in the envelope is gone, our money to spend on that is DONE

After you have written out all your expenses and then budgeted

Next step is to set up your accounts

Step 4: Set Up Your Piggy Bank Accounts

This step changed everything for me

Go straight to the App Store and play store and download Piggybank app

Registration is super easy

Add your account which you want to use and then your card for withdrawal and deposit

You will need to do 3 things while in piggybank

  • Set up autosave
  • Figure out Quick save
  • Set Up Safe Lock

Autosave allows you to save money on the fly from your account

I am currently on the N500 daily saving plan

I saved N18,500 in my first 3 months or 2

Quicksave allows you to save large sums of money in one GO

You will need to do this every time you get that big N10k alert or N50k

I will explain this when talking about the piggybank process I use

Finally, set up safe lock

So, if you are reading this and you don’t have a dime, you want to focus on the first two

If you do have some money even if it is N10-20k , you can lock it away in safelock

It is like Piggy’s fixed deposit feature and they give you 17% on it

You can lock it away for 3 months

And also, keep adding money small small on it

Okay, that last part I am not so sure of but, will confirm

How To Set Up Your Autosave

Once you log in and decide to start your journey

Look through the app for this

It should be right on your front page, if not

You want to go hunting for it

This should come up when we tap on the box in the first image

Tap on “Quick Save”

Enter an amount for them to withdraw immediately

Select the source of the money.

If you have separated your accounts like I told you, the card and account used to set up piggybank should be the one connected to your business

Once you tap the green button, piggybank will credit your piggybank account with the money and you are debited automatically

You will have to do this every time you want to save quickly

My advise, please pull out the money once you get it

This can be money from your side business that you are saving or your profit

Send it out so you don’t mistakenly use it

I also find that , you can decide to send 3k5 out of 5k and choose to keep the N1,500 as reward money

This way, saving won’t be so painful

How To Set Up Your SafeLock

Follow the pink arrow

Make sure to preview and then, choose the timeline to lock away for

My PiggyBank Savings Process

For this to work effectively, you need to have a process that makes it super effective

This is the one that works for me

First thing I have set up is my daily save which is N500

I have been considering moving this up to N700

But, my pocket has to be ready so I can maintain that savings level

Next, I use quicksave like my village people are on my matter 😀

As the alert from my business is entering there, I am immediately sending it to piggybank , I cannot shout

I don’t even try to think twice about it

Finally, I am working towards setting up safe lock so that, funds will be locked away there as well

I have a fixed deposit account with my bank so that I am not putting all my eggs in one basket

The worst thing is waking up one day and piggy has shutdown 😩

Such risk, I cannot take

Lies We Tell Ourselves About Saving

We are supposed to be putting all our money into our business so it can grow

I get this and if this is your absolute belief, that’s fine

But, I hate being broke

I hate not being able to buy data for myself

I love having kudi in my bank account

So, if you are reading this and you are like me, you don’t need to give your business everything

Why?

It may crumble on you and you want to be able to get back up

Give it 95% of you but please, have the 5% backup plan

I don’t have enough money to save

We all do

You are just spending it on something else

Start with that 1k, 3k here and there

It will shock you what happens when you stop saying “I don’t have “and start saying “ how do I get it? “

I want the money to be big first then I will save

If we don’t know how to save when we have 2k, we won’t know how to save when we have 20k

Start small and begin now to build your savings strength because, what will be worse off for us is finally beginning to see some good cash, only to spend it anyhow

I have been there and man, I regretted for months

Is Piggybank Safe?

My answer is I don’t know

My advise is to never stiore all your eggs in one basket

I have a fixed deposit account

I save some here and some there

When my money hits 100k, I move it over

Before you start your saving journey, please note this

Piggybank will eat your money if you let them

So, recently, I had N170k in my piggy and wanted to withdraw the money

I got to the bank, filled out my form and said let me do piggy withdrawal

It comes in like 5minutes after so, I wasn’t worried about speed

That is how I got alert of 161k and 9k was missing

Ha, 9k , in this times 😩😩😩

I checked again and rushed to pitggy’s IG handle because I wasn’t understanding

That was when they told me they have a charge of 5^ on eArly withdrawals

I hadn’t really noticed before because the fee was small , 135 Naira or 200 as I wasn’t withdrawing big money

I laid my complaint and after explaining that I didn’t know, these people shocked me

They sent me back my 9k

This single thing they did made me a fan automatically

I was so proud

I was so happy

I started there in the bank to play ambassador and I decided to write this article

because they showed me they are an excellent company

Start Here

Want to start your own savings journey and stop making excuses

Start here, with my piggy link

No, I am not a special affiliate and they didn’t give me plenty money for this

Once you sign on, you have a link that you can use and for everyone who signs on, you get 1k

Ik is enough to buy fuel for gen

If you are Dantata’s child, you are lucky but this sister knows money, no matter how small is important

So, plisss dear, if you have reach this point, join the platform using my link below

https://piggyvest.com/l/527e0cd

This will bring me to the end of this article

If you have any questions, do ask and I will answer them

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