In our article on how to achieve your financial goals during your service year, we mentioned that an emergency fund (a financial cushion for unexpected expenses, like medical bills and job searches after NYSC) should be one of your key goals during your service year. After all, having one ensures that you stay financially poised to handle the rigours of adult life. But how can you build an emergency fund as a youth corper?
You can build an emergency fund during NYSC by crafting a budget that suits your lifestyle, setting a savings goal, and then saving consistently using a safe and reliable platform like Piggyvest.
Here’s a pro tip: saving should be one of your top financial goals as a young Nigerian, and you can kick things off by building a 100k reserve. In this article, we’ll explore practical steps on how to build an emergency fund during NYSC and share valuable tips to make the most of your finances during your service year. Ready? Let’s begin!
1. Create a budget that suits your lifestyle as a corper
You need to first manage your spending if you want to save money. Start by tracking your expenses to understand where your money goes. Prioritise essentials like feeding, transportation, and rent (if you pay rent), and then identify areas where you can cut back.
We recommend using the simple (but effective) 50-30-20 rule when budgeting:
- Set aside 50% for your needs (rent, food, transport).
- Use 30% for wants (entertainment, shopping, outings).
- Keep 20% for your savings (your emergency fund!).
So, let’s assume you earn ₦100,000 per month as a corper — including your allawee and additional income from side hustles or your PPA.
You can use the 50-30-20 rule to budget by following the steps below:
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- Set aside ₦50,000 for your needs — essentials like food and data.
- Use ₦30,000 for your wants — activities like shopping and hangouts with friends.
- Save ₦20,000 — you can save every Naira towards your emergency fund or separate your savings into different goals.
2. Set a savings goal for your emergency fund
Now, it’s time to define exactly how much you need to save and break it into smaller, manageable amounts. We (as well as financial experts worldwide) recommend that you have at least three to six months of living expenses in your emergency fund.
However, you’re a corper, so we understand it might be difficult to do this during your service year. Therefore, we recommend that you aim to save at least ₦100,000 during NYSC. This is enough money to cover most emergencies (at least to a certain extent) and gives you a solid foundation to save even more after your service year.
If your target is ₦100,000 by the end of NYSC, you can save:
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- ₦8,500 monthly for 12 months
- ₦17,000 monthly for 6 months
- ₦2,100 weekly for 12 months
Choose a plan that works best for you and adjust as needed based on extra income from side hustles or stipends.
3. Choose a suitable savings plan on Piggyvest
The easiest way to stay committed and reach your savings goal is by automating your savings.
Fortunately, Piggyvest offers three features that can help you save during NYSC:
- PiggyBank: This wallet is perfect for disciplined, automated savings with set withdrawal dates. You earn 18% per annum while you save and can access your funds anywhere, any time.
- Flex Naira: This wallet is similar to a regular bank account but has a 12% annual interest. You can save as often as you like and withdraw almost as easily—up to four times a month—without losing your accumulated interest.
- Target Savings: Target allows you to create a specific goal (like a ₦100,000 emergency fund!) and track your progress while earning 12% yearly interest. We recommend leaving this plan unlocked when saving your emergency fund so you can access your savings whenever possible.
4. Withdraw your money only during emergencies
It’s called an emergency fund for a reason! So, avoid the temptation to dip into it for non-urgent needs like shopping or weekend trips. Only use it when necessary — such as for unexpected medical expenses or urgent travel.
Stay strong and consistent!
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5. Achieve your saving goals and then increase your target
Once you successfully hit ₦100,000, consider increasing your target. If you get a side hustle or additional income, put extra funds into your emergency savings. Remember: having a financial cushion after NYSC will reduce financial stress while you transition into the job market or entrepreneurship.
Tips for building your emergency fund as a corper
As we’ve mentioned, the best approach to your finances as a young Nigerian is to start by saving (particularly building an emergency fund) before considering low-risk investment options and other opportunities.
Here are some handy tips for building your emergency fund as a corper:
- Start small and save consistently: Even small amounts add up over time.
- Reduce unnecessary expenses: Cut back on subscriptions or frequent outings.
- Find a side hustle: Extra income makes saving easier.
- Stay accountable: Track your progress and stick to your savings plan.
- Automate your savings: Use Piggyvest so you can save without thinking.
- Use extra funds well: Save and spend your windfalls wisely.
Final thoughts
Building a ₦100,000 emergency fund during NYSC is possible with the right mindset and financial habits. By budgeting wisely, setting clear goals, using Piggyvest, and staying disciplined, you can secure your financial future — even on an NYSC allowance. Start today, and your future self will thank you!
The articles on the PiggyVest Blog are developed by seasoned writers who use original sources like authoritative websites, news articles and academic journals to perform in-depth research. An experienced editor fact-checks every piece before it is published to ensure you are always reading accurate, up-to-date and balanced content.
