05 Sep 2024
Achieving long-term objectives and ensuring financial security requires saving a lot of money. Nigeria has endured severe financial hardships for many years, including significant rates of underemployment and unemployment. Furthermore, due to political unrest, violence, and insecurity in some regions of the country, several Nigerians have fled to Italy in search of more secure living conditions. They work, make a living, and send money to Nigeria from Italy to provide for their families.
Given their country's underperforming economy—which has a GDP of $ 1.277 trillion (GDP Report Q1 2024, National Bureau of Statistics Nigeria and a GDP per capita income of $6.7K GDP Per Capita, Current Prices, IMF — many Nigerians live and work abroad, with Italy being their primary destination. Even though Italy's economy is robust enough, is there a guarantee that your current job will last for a long time? No. You don't. In addition, do emergencies ring before they arrive? No, they do not. Consider yourself in a situation where you have an emergency that needs your money, but you are broke.
To build wealth, you must save money while earning abroad and sending money online to Nigeria from Italy. Whether you're a Nigerian or an Italian, it's essential to plan, monitor and grow your finances proactively.
Navigating life in Italy can be quite exciting and challenging for many Nigerians, especially while managing finances. To help you make the most of your experience, here’s a tailored guide offering five practical strategies to maximize your savings while living in Italy.
In Italy, various banks offer various benefits and fees, which can significantly impact savings. A high-interest savings account can help your money grow exponentially. Following are the steps to optimize banking choice:
Look for high-interest savings accounts or fixed deposit accounts. Traditional banks frequently provide lower rates than online ones.
Avoid accounts with high maintenance fees. Some banks offer accounts with no fees if you maintain a minimum balance.
Many digital banks offer competitive rates and lower fees.
Managing your expenses is crucial for saving more. By keeping track of your earnings and outlays, a budget helps ensure you only spend what you make. Effective budgeting helps control spending and allocate more funds to savings. To create an adequate budget and track expenses, you need to:
Use tools like budgeting apps or a simple spreadsheet. Track income and categorize expenses. Monitor Spending
Examine your spending habits regularly and make any necessary budget adjustments.
Find places to save money, like eating out or making unnecessary memberships.
Expats regularly send money online to Nigeria from Italy, and the process incurs a lot of costs; therefore, you must find a reliable service provider that charges a low fee and offers you live and market-competitive currency exchange rates through fewer transactions and every money transfer. So, If you wisely choose your money transfer service provider, sending money to Nigeria from Italy will help you save money.
As a Nigerian in Italy, you might earn in euros and spend in the same currency. However, if you receive money from Nigeria or have investments there, fluctuations in exchange rates can significantly affect your savings. Exchange rate fluctuations between the euro and the Nigerian naira can affect your savings and transfers. Therefore:
Use apps or financial websites to track currency exchange rates.
When there is a favorable exchange rate, convert naira to euros.
Some banks offer accounts within multiple currencies, which is helpful if you frequently deal with both euros and naira.
Investing can offer higher returns than traditional savings accounts, helping you grow your savings faster. Following are the steps to invest wisely:
Consider Italian investment opportunities like government bonds (Buoni del Tesoro), ETFs, or mutual funds.
Spread your investments to reduce risk. Look into Italian real estate or international stocks if it seems appropriate.
Seek advice from a financial advisor familiar with the Italian and Nigerian financial systems.
Cutting costs on daily expenses might significantly boost your overall savings if you:
Look for local promotions, student discounts, and coupon apps.
Buy bulk for non-perishable items and take advantage of sales and seasonal discounts.
Additional Steps
Following are some additional steps for saving money as an expat in Italy.
Explore Local Markets
Farmers' markets or local markets can offer cheaper fresh produce than supermarkets.
Emergency Fund
Maintain an emergency fund equivalent to 3-6 months of expenses to cover unforeseen situations.
Understand Tax Implications
Be aware of how your savings and investments are taxed in Italy and Nigeria. Seeking advice from a tax adviser can help you maximize your tax plan.
Non-Essential Spending
Reducing non-essential spending increases the amount of money available for savings. Life in Italy might seem costly, and going over budget for pleasures like eating out or shopping is simple.
By implementing these strategies, you can use your money more effectively and make online money transfer from Italy to Nigeria to increase your savings while living in Italy. By diligently setting up a budget, tracking expenses, and making informed adjustments, you can effectively enhance your savings, achieve financial stability, and work towards your financial goals.
To save money, familiarize yourself with local prices and special offers. Establish an emergency fund to manage unforeseen costs and prevent financial stress. Using budgeting applications, monitor your spending and establish a monthly budget that aligns with your earnings.
Nigerians living in Italy can economize by taking advantage of local and seasonal product discounts. They can also decrease their living expenditures by using loyalty programs and investigating local markets.
International bank accounts that provide multi-currency services and high-interest savings accounts are advantageous for Nigerians residing in Italy. Features that cater to expatriates might also be beneficial in terms of investment accounts.
Use online transfer providers for better deals and cheaper fees. Additionally, evaluate the expenses of various providers and consider transferring a huge amounts of cash to save money on transactions.
Nigerians in Italy can earn extra money by investing in local stocks or real estate. They can also consider launching a business or investing in mutual funds for diversified growth.
