Fuel price fluctuations, growing expenses, and the ongoing pressure to “keep up” on social media are some of the particular challenges faced by millennials living in the country. With money, it’s natural to feel as though you’re constantly falling behind. Take charge of your finances and change the course of events with the right budgeting advice! You can stop living paycheck to paycheck with these five useful tips.
1. Track Each Kobo
Being aware of where your money is going is the first step towards managing it well. Most people assume that large corporations handle budgets, but individuals need to worry about them even more. Get in the habit of keeping track of every naira you spend, including your monthly internet subscription and that midweek shawarma feast.
2. Adopt the 50/30/20 Rule.
This guideline is extremely helpful! Your income is divided into three categories: needs (rent, utilities, food), wants (eating out, Netflix), and savings/debt repayment (20%). You can prevent those impulsive purchases on Konga or Jumia by using this system, which forces you to prioritize.
3. Make a Sinking Fund
This alters the course of events. Make a sinking fund to avoid being taken aback by large expenses (such as that December vacation or a new device). Set aside a tiny sum of money each month for your long-term objectives. You’ll have the cash on hand and waiting for the right moment. Put an end to borrowing and worrying about unforeseen costs!
4. First, take care of yourself.
Make it your habit to save money before you consider paying your bills or purchasing a new pair of shoes. If at all possible, automate your savings by setting up a direct debit or transferring a portion of your income as soon as you receive your paycheck to a different savings account. This guarantees that you will always have money set aside for investments or unexpected expenses.
5. Avoid Inflation of Lifestyle
It’s tempting to upgrade your lifestyle as you get more money—nicer restaurants, better clothes, maybe even a new apartment. However, consider whether you truly need it before acting on it. You can save more and make investments in your future if you maintain your current lifestyle while earning more money.
You’ll be well on your way to financial freedom if you heed these budgeting advice. Remember that managing your resources effectively matters more than your income. Put an end to your financial anxiety and begin budgeting like a pro!
