Having emergency funds is a smart way to spend your money. However, if you do not use the most appropriate saving method that suits your income and spending, those emergency funds will become a regular pocket to dip in when you necessarily don’t need to.

For self and saving awareness, here are some common saving methods you can adopt to arm yourself for rainy days and achieve your saving goals.

Ajo (Thrift Contribution)

Good old fashion ajo saving scheme is a saving method where a group of people gather money over a period of time and at the end of that period, a single member of the group takes all the contributed cash. 

The collection of accumulated funds is based on a rotatory succession which means that everybody in the group will get the accumulated funds when it’s their turn. The amount of money to be saved solely depends on the group. 

The good thing about this saving method is that you have no access to your money until it is your turn to collect it. So, if that fine pair of sneakers is calling your name on Instagram, you cannot buy it because the money you would have used to get it (by breaking your safe) is not with you.

Kolo (Piggybank)

Contrary to the pig-like fragile structure of piggy banks, a kolo is more like a sealed wooden box with a small slit at the top – small enough for money to enter… or come out (if you know, you know). They both serve the same purpose of keeping money for a period of time. 

Some people use their kolo to keep spare change while others use it for more serious contributions. Having a kolo is a good saving method; You can put money in it and collect your money back anytime you need it. It is preferable to have a goal when using this saving method because breaking a piggybank is permanent.

Some people have found a way to remove money from that tiny slit of the kolo (Heeheeee** You know yourself Boss). Just know if you are one of them, having a kolo is not an appropriate saving method for you because you will spend all your savings without realising it.

Automatic digital savings

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Automatic savings is for those who are not diligent and consistent enough when it comes to saving money. Banks and money-saving apps provide this service.

This mode of online saving automatically deducts a sum of money from your account and puts it in a separate account, specially created for your savings. 

You can choose for the money to be deducted daily, weekly or annually. You know the sweet thing? Most of these apps give you interest on your saved funds as long as you do not bail on your savings routine.

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The interesting thing is, like the ajo, this savings account cannot be accessed until after a particular period of time. It’s a “fixed’ thing.

However, if you decide to still break your savings, a sum of money will be deducted from it. If you know your body usually shak you to ‘break’ your savings before it is due and you cannot afford for any kobo to be deducted from your account, this saving method is best for you.

Burying

This orthodox way of saving money entails looking for a safe location and burying the money there until you need it. It could be underground, in a mattress or under your cupboard. This mode of saving is for those who neither want to partake in ajo or want to use a kolo but have easy access to their money. 

Let’s be serious, this mode is not safe at all because if you bury it in soil and rain washes it away or if animals dig it up and tear it, SORRY. 

If your mattress gets soiled and the money gets destroyed, PELE. 

If you know your mind will constantly be fixated on the spot where you saved the money, begging for you to spend it, this saving method is not recommended for you. 

Besides, who burries money in 2022??