Stories by Omodele Adigun

AT a time like this when recession makes it hard to keep some money aside for the rainy day, these money-saving tips from the website of Bank of America could serve as guide for beating hard times. Excerpts:

Sometimes, the hardest thing about saving money is just getting started. It can be difficult to figure out simple ways to save money and how to use your savings to pursue your financial goals. This step-by-step guide to money-saving habits can help you develop a realistic savings plan.

Record your expenses

The first step to saving money is to figure out how much you spend. Keep track of all your expenses—that means every coffee, newspaper and snack you buy. Ideally, you can account for every penny(kobo). Once you have your data, organize the numbers by categories, such as gas, groceries and mortgage, and total each amount. Consider using your bank statements to help you with this. If you bank online, you may be able to filter your statements to easily break down your spending.

Make a budget

Once you have an idea of what you spend in a month, you can begin to organize your recorded expenses into a workable budget. Your budget should outline how your expenses measure up to your income—so you can plan your spending and limit overspending. In addition to your monthly expenses, be sure to factor in expenses that occur regularly but not every month, such as car maintenance. Find more information about creating a budget.

Plan on saving money

Now that you’ve made a budget, create a savings category within it. Try to put away 10–15 per cent of your income as savings. If your expenses are so high that you can’t save that much, it might be time to cut back. To do so, identify non-essentials that you can spend less on, such as entertainment and dining out. We’ve put together ideas for saving money every day as well as cutting back on your fixed monthly expenses.

Tip: Considering savings a regular expense, similar to groceries, is a great way to reinforce good savings habits.

Choose something to save for

One of the best ways to save money is to set a goal. Start by thinking of what you might want to save for—anything from a down payment for a house to a vacation—then figure out how long it might take you to save for it. If you need help figuring out a time frame, try savings goal calculator.

Here are some examples of short- and long-term goals:

Short-term (1–3 years) Emergency fund (3–9 months of living expenses, just in case)

If you’re saving for retirement or your child’s education, consider putting that money into an investment account. While investments come with risks and can lose money, they also create the opportunity for compounded returns if you plan for an event far in advance.

Decide on your priorities

After your expenses and income, your goals are likely to have the biggest impact on how you save money. Be sure to remember long-term goals—it’s important that planning for retirement doesn’t take a back seat to shorter-term needs. Prioritizing goals can give you a clear idea of where to start saving. For example, if you know you’re going to need to replace your car in the near future, you could start putting money away for one.

Pick the right tools

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If you’re saving for short-term goals, consider using these insured deposit accounts:

Regular savings account

    High-yield savings account, which often has a higher interest rate than a regular savings account

        Certificate of deposit (CD), which locks in your money at a specific interest rate for a specific period of time

For long-term goals consider:

   insured individual retirement accounts or Retirement Savings Accont(RSA), which are tax-efficient savings accounts

    Securities such as stocks or mutual funds. These investment products are available through investment accounts with a broker-dealer. Remember that securities, such as stocks and mutual funds, are not insured, are not deposits or other obligations of a bank and are not guaranteed by a bank, and are subject to investment risks, including the possible loss of principal investment

Make saving automatic

Almost all banks offer automated transfers between your checking and savings accounts. You can choose when, how much and where to transfer money to, or even split your direct deposit between your checking and savings accounts. Automated transfers are a great way to save money since you don’t have to think about it and it generally reduces the temptation to spend the money instead.

Watch your savings grow

Check your progress every month. Not only will this help you stick to your personal savings plan but it also helps you identify and fix problems quickly. These simple ways to save money may even inspire you to save more and hit your goals faster.


Embrace VAIDS for voluntary tax compliance, CITN urges taxpayers

The President of Chartered Institute of Taxation of Nigeria (CITN), Dr (Mrs). Olateju Somorin, has urged taxpayers to key into the Voluntary Asset and Income Declaration Scheme (VAIDS) to enhance their tax compliance just as she charged the Federal Government to keep its word of ensuring that taxation is taught at all levels of education in the country.

Mrs Somorin, who gave the charge during the 36th Induction Ceremony of the Institute Thursday in Lagos, also called on the inductees to actively participate in the programmes of CITN District Societies to enable them contribute to the growth of the Institute and make themselves relevant to their professional callings as tax practitioners or administrators.

On VAIDS, she noted that the National Economic Council has approved its implementation with a view to addressing high rate of tax evasion in the country. “The VAIDS, which is likely to become operational next month, is hoped to boost the revenue portfolios of the federal and state governments. Indeed, FIRS is targeting an increase in tax contribution to the Gross Domestic Products to 18 per cent by 2020.

The scheme will offer a window for those who have not complied with the extant tax regulations to remedy their positions by the provision of limited amnesty to prompt voluntary declaration and payment of liabilities. The scheme will also have incentives in place to encourage early participation. For example, taxpayers will be allowed up to three years to settle their tax  liabilities.

The Institute uses this medium to call for cooperation from taxpayers as we are of the opinion that those  who wish to take advantage of this voluntarily disclosure should go ahead and encourage voluntary tax compliance..We at the CITN will therefore join hands with relevant stakeholders in achieving the set objectives of the revised policy,” she said.

On the revised National Tax Policy(NTP), she said CITN “aligns with  the changes introduced in the revised policy. Of all the changes introduced in the Revised NTP, the one that gladdens my mind most is that Paragraph 5 (i) xvii which provides that ‘government should make concerted efforts to ensure that taxation is taught at all levels of education’. It is our fervent belief that the review and amendment of extant tax laws will soon be carried out as indicated in the Appendix to the NTP. We at the CITN will therefore join hands with relevant stakeholders in achieving the set objectives of the revised policy.”