“Your salary is about to be paid” — congratulations. Now having spent the salary mentally—Ahem— let help you out before it goes all away physically like an unserious talking stage. 

This blog is presenting to you again, “budgeting”. 

Now, now, don’t hurry away yet, you’ll surely find something you’re guilty of, and also how the new money laws affect your savings . Walk with me till the end. “You’re welcome”. 

In  Nigeria, saving money may feel like what only the rich can afford and not what someone surviving paycheck to paycheck would want to consider.

But , honestly, no matter your income level, you can save money. Your budgeting ability is more important than your earning ability. It’s not only about cutting out all the fun in your life, it’s just about making a few little tweaks, recognizing the 2025 new money laws and building habits to protect your money. 

Why Saving Money Matters

Life can happen at any time and emergencies do not note your account balance before it  happens. With savings and budgeting, you’re less likely to rely on loans while having the power to keep for goals. Knowing you have something set aside reduces stress and increases confidence.

Practical Steps to Save Money on a Low Income in Nigeria

1. Use budgeting to track your savings. 

Whatever you can’t account for, you can’t save.  

• Put down all your income sources .
• Put all your expenses into categories 
• Spot the leaks (quick top ups, snacks, more expensive transports)
• Identify all non-essential spending to cut back on.
• Employ the use of tools like : a book, Excel sheet, Free mobile apps like Mint, MyBudget, or Money Manager

Tip: Make sure you track for at least two months and the shock of seeing ₦50k gone on “just vibes” will give you more clarity. 

2. Pay Yourself First

This is a known rule in almost every financial advice. No matter how little, set something aside.  Automate the process and treat it like a non- negotiable bill. 

2025 Law Update: Under the new Nigeria Tax Act (2025), interest from savings and short-term securities is taxed at source. That means you should compare net returns (after tax) when choosing savings options. A 10% savings plan that leaves you 9% after tax may beat an 11% one with hidden charges.

3. Use the 60-30-10 Rule 

Realistically in Nigeria, the 50-30-20 rule might not always work , especially for low income earners. Food, transportation and rent is a struggle. 

Breaking it the Nigerian way:

• 60% Needs (food, transport, rent)
• 30% Savings and Debt Repayment
• 10% Wants (entertainment, airtime, social life)

It’s not always perfect, but it gives you a structure and here’s a sample for a 100k budget. 

4. Separate your savings account 

Don’t mix it! Don’t touch it! Preferably one without a card. 

Popular examples: 

• PiggyVest, Cowrywise, Opay Targets, Kuda Save with automated, lock features, interest.
• Risevest for dollar savings (helps beat naira depreciation).

Under the 2025 tax reforms, certain savings now have withholding tax at source. Always calculate your actual return after tax before locking your money up. 

5. Embrace “Susu” / “Ajo” or Rotational Savings Groups (Carefully)

Many Nigerians save through ajo, esusu, or thrift groups — community-based savings where members contribute regularly and take turns receiving the lump sum.

This works better for informal workers. Make sure the group is transparent. Always put your contributions into writing too. 

6. Slash your Non-Essential Spending

Go through your last one month expenses. 

Takeaway food & soft drinks?

• Mobile data and Airtime used without regulation?
• Airtime loans or betting?

Cutting just ₦1,000 a day on unnecessary expenses gives you ₦30,000/month — half a bag of rice. 

7. Eat Out Less

Food inflation is real, but planning meals, shopping in bulk, cooking at home and avoiding wastes would save you a lot. Even for students in universities , average basic food prices begin from 2000-3000 minimum. 

8. Buy in Bulk and Plan Ahead

Buying items like rice, garri, beans, soap, and oil in bulk (monthly or bi-monthly) reduces your spending compared to buying in small quantities. Buying a full bucket of tomatoes at a local market would cost about 1500-2000, similar to the cost of a little bowl in the area. 

Also:

• Look out for discounts or sales
• Avoid just looking around the markets or supermarkets, make shopping lists  before heading out to shop, because we all know now it ends if you don’t. 

9. Save Windfalls and Bonuses

Extra money (work bonus, birthday cash, refund)? Don’t rush to flex. For example: A 20k unexpected money for flexing — save 10k, spend 10k. 

10. Set SMART Savings Goals

Don’t just say, “I want to save.” Be specific.

• Specific: “Save ₦120k to swap your phone to a more functional one.”
• Measurable: “₦10k/month.”
• Achievable: Based on your income.
• Relevant: For your real needs.
• Time-bound: “By November, 2025.”

Seeing the goal (like a new phone, rent) ensures more discipline. 

11. Start a Low-Capital Side Hustle

sometimes savings alone won’t cut it. Add a hustle and track it.
Examples: tutoring, small online store, barbing, baking, phone repair.

Another 2025 Law Update: Under the Tax Act 2025, side hustle income may be taxable. Keep basic records: income, expenses, receipts. It’ll save you stress with FIRS.

12. Finally, Get an Accountability Partner

Share your savings goals with someone you trust. They can:

• Check in on your progress
• Remind you of your goals
• Celebrate wins with you

Bonus: The Envelope Saving System

This is an old-school method, but it works if you can be disciplined. Divide your cash into envelopes labeled for different purposes:

• Emergency
• School fees
• Savings

Especially if you deal mostly in cash.

Conclusion

Remember: it’s not about how much you earn, but how well you manage what you have.

Start today with what you have. 

Over to you: What’s the one expense you know you should cut today to save more? Drop it in the comments — let’s see who’s ready to start small and do better.