From the minute you got any sort of money in your hands, you were advised to save it! If an uncle/aunt gave you money, your mum saved it in a bank account for you ( she spent it LOL). The point is that the concept of saving  was planted in our minds very early on, for us to understand that money was  to be put aside and not to be spent recklessly, Now that you’re an earner or on the route to becoming one (if you’re still a student), it’s important to understand the mechanism of saving effectively! 

I gave some tips on some great savings and investment tools, but before you get there, its important to map out what and why exactly you are saving. As a beginner in the financial responsibility game, I believe there are three money pots you should build: 

1. Life Pot

This is a long term pot that will be dedicated towards saving for retirement, long term commitments, future plans etc. It’s best to accumulate these savings and lock them for different periods of time ( 6 months, 1 year etc) You also have a savings goal for this pot, and then consider making credible investments with some of the funds after a period of time to gain even more interest!

2. Emergency Pot

This is basically a rainy day pot for emergency payments that are totally unplanned for. This pot should be tied to an interest bearing savings account, and not a locked fixed investment. Its important that you can access the funds, because you never know when you're going to need it. 

3. Enjoyment pot

This is the one we all love! This is the pot for your fancy dinners, travel goals, designer items, crochet hair , fancy watches, you name it!! You should constantly build this fund to reward yourself once in a while.

*To put things into context:

Let’s assume that your monthly income is N200,000. If you’re aggressive about saving, you might want to save 60% of this amount (N120,000)

Monthly Allocation

  • Life Pot  ( 50% - N60,000) 
  • Emergency Pot ( 30% - N36,000)
  • Enjoyment  Pot  ( 20% - N24,000)

Yearly Allocation

  • Life Pot - N60,000 X 12 Months = N720,000
  • Emergency Pot - N36,000 x 12 Months = N432,000
  • Enjoyment Pot - N24,000 X 12 Months =N288,000

Check out the article ; How to afford nice things, for more details on Savings and investment tools that can help you reach your goals! 


CEO of Stationery & Lifestyle brand; Musings on Paper. Workaholic, obsessive planner, Loves TV shows, travelling and her 8 dogs!


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