Avoid poor financial habits with these 6 tips

November 6, 2023
Temilola Adeyemi, ACIB, ACS, Ph.D.
Senior Research Associate, Money Africa

Let's talk about something many Nigerian workers don't consider or don't let themselves think about:

Planning for your financial life after you stop working.

If you're like most people, your primary source of income will eventually cease when you retire.

Maybe you're lucky enough to work for a company that has a good retirement plan, and you plan to stay there for a long time to build up your retirement savings.

But here's a question for you: 

“Why rely completely on others for your financial future?”

If you do not want life after retirement to be filled with uncertainty, you must take responsibility for preparing for that future. You can't depend on your boss, the government, or even your partner.

But I get it, there are many reasons why it might be hard to plan your finances:

  • The cost of living keeps going up.
  • Your expectations for lifestyle are increasing.
  • Your income isn't going up or is staying the same.
  • Your health is getting worse, and maybe your partner isn't into financial planning.

In this article, I'll share some simple tips to help you secure a better financial future, even when dealing with these challenges.

Make a Money Plan

Creating a plan for your money is one of the smartest things you can do. It's like a map for managing your money wisely. With a plan, you can figure out which bills are important, how much you can save, and plan your spending.

Live Within Your Means

Living within your means means not spending more than you earn. No matter how much you make, this is the key to saving money.

Get Rid of Debts

Paying off your debts is an important step to being financially healthy. Debts don't just cost you money; they also make you feel stressed. If you owe money, make a plan to pay off the most important debt first. And try to make more money to help you get rid of your debt.

Automate Your Money

This is a good trick for making sure that you do not get tempted to spend all your money. Set up automatic payments for your bills and savings. But don't forget to check your accounts regularly, even if they're automated.

Create an Emergency Fund

An emergency fund is like a safety net for your money. It's there for unexpected events, like losing your job. Try to save money equal to 3-6 months of your important living expenses. If that's too much, start by saving 10% of your income each month.

Invest to Grow Your Money

Investing can help you make more money and grow your wealth. You don't need a lot of money to start. In Nigeria, you can use apps like Bamboo, Cowrywise, and Piggyvest to begin. If you're not sure how to start, you can join the MoneyAfrica community or email sales@themoneyafrica.com for help on where and how to invest.

Taking control of your financial future is your responsibility. By following these steps and making smart choices, you can get ready for a secure and successful retirement. Don't let money worries hold you back; start taking charge of your financial future today.

About the Author
Temilola is an investment professional who conducts in-depth financial research, market analysis, and portfolio management. She is a strategic thinker, known for her ability to identify investment opportunities and provide valuable insights that guide clients' financial decisions.