Nigeria’s economy has faced numerous challenges in recent years, from high inflation to currency devaluations. Many Nigerians struggle to make ends meet. However, with some strategic money management, it is possible to weather tough times and even thrive financially. This comprehensive guide shares smart money tips on how Nigerians can achieve financial fitness even when times are tough.
Budget realistically and track spending.
The foundation of financial fitness is having a solid budget that reflects your real income and necessary expenses. Be realistic about how much money comes in and goes out each month. Account for expected costs like rent, utilities, transportation, food, etc. Also budget for periodic expenses like car repairs or medical bills. Use a budgeting app or spreadsheet to track all your spending and see where your money is going. Identify areas where you can cut back, like eating out, impulse purchases, or subscriptions. Sticking to a well-planned budget helps you live within your means.
Pay down debts.
Carrying excessive debt drains your finances through interest and fees. Make debt repayment a priority. Start by listing all debts and their interest rates. Pay minimums on all accounts and put any extra money towards the highest-interest debt first. Once that’s paid off, move to the next highest rate. This “debt avalanche” method saves money compared to just paying minimums. Explore debt consolidation options like loans or balance transfers to reduce interest. Consider extra work to generate income solely for debt repayment. Eliminating debts frees up cash flow.
Build an emergency fund.
A rainy day fund with 3-6 months’ expenses is vital for absorbing unexpected costs and avoiding debt during crises like job loss, accidents, or illnesses. Start small if needed, saving even ₦1,000-₦5,000 monthly. Put the money in an accessible, high-yield savings account. Only use the fund for true emergencies. Replenish it after use. Having this backup prevents panicking or making desperate decisions when urgent needs arise.
Negotiate better rates and fees.
Financial providers often have room to offer better deals. Ask your bank for fee waivers, lower loan rates, higher deposit rates, etc. Shop around and compare rates on loans, insurance, cell phone plans, etc. Leverage promotions for new customers. Push for discounts on large purchases. Landlords may also accept lower rents. This negotiation helps maximise value and minimise costs.
Limit impulse purchases.
Mindless shopping for random wants drains funds fast. Curb impulse buying by waiting 24 hours before purchases, removing saved payment information online, and avoiding stores where you tend to splurge. Unsubscribe from promotional emails. If you still want something after a day, ask yourself how it improves your life and whether it fits your budget. Create a 30-day list of the most desired items. Avoid purchasing on credit unless an emergency is necessary and you pay quickly. Stick to intentional purchases that move you ahead financially.
Use Cash-Back and Loyalty Programmes
Take advantage of cash-back credit cards and store/app loyalty programs. The small rebates and rewards add up, essentially giving you a discount on regular spending. Choose cash back over travel perks to maximise flexibility. Check cards for bonus category spending. Enrol in petrol stations, pharmacies, grocery, etc. loyalty schemes. You can earn a few per cent back on routine purchases. However, I still pay my balances in full. The savings offset some costs.
Refine insurance coverage
Review insurance plans yearly and upon life changes. Raise deductibles to lower premiums if you have ample emergency savings. Drop unnecessary coverage types. Compare rates and coverage often as new options emerge. Ensure you have adequate but not excessive life, health, auto, disability, homeowners/renters, etc. insurance tailored to your needs. Buy only what you need from reputable companies. Read the fine print to avoid gaps or surprises. The right insurance protects against major losses, but over-insuring wastes money.
Automate Finances
Autopaying bills, saving, investing, etc. help build financial discipline. Set up automatic bank drafts for fixed monthly expenses so you never miss payments. Automate transfers from checking to savings and investment accounts too. Start small if needed, increasing the amounts later. Building these consistent money habits prevents procrastinating or forgetting essential financial tasks. Just be sure to review statements and balances periodically to catch any errors. Automation makes money management easier.
Live below your means.
Spending less than you earn is essential for financial fitness. Build a lifestyle where your necessities like housing, food, and transportation fit your income. Avoid keeping up with others who spend more. Prioritise needs over wants. Splurges should be occasional, not habitual. Buy used vehicles, furniture, clothes, etc. to save. Eat out less. Downsize housing if it eases cash flow. Living modestly and within your budget frees up money to reduce debt, save, and invest. Enjoy free activities too. The happiness of financial independence is worth more than material excess.
Income-Boosting Ideas
When cash gets tight, finding ways to supplement income can provide relief. Look for freelance gigs in your field on sites like Upwork. Tutor students online or in person. Join the gig economy by doing errands, delivery driving, manual labour, etc. Turn your hobbies into an Etsy shop. Rent out a property. Sell gently used items. Enter contests. Participate in surveys, focus groups, or clinical trials. Ask for a raise at work if you add value. Pitch local businesses for sales or service referrals. Every bit of extra income creates more financial breathing room during hardships.
Pursue education and training.
Learning new skills boosts your income potential, job stability, and career advancement. Explore vocational programmes in growing fields like tech, healthcare, or trades. Many blue-collar jobs pay well with less schooling. Attend virtual seminars or classes. Use free resources like Khan Academy. Study part-time for an advanced degree with tuition assistance from your company, if available. Show initiative by expanding your knowledge and experience. This investment in yourself leads to a bigger paycheque down the road.
Choose used over new.
Buying used goods rather than new ones saves you substantially if you shop smartly. Search Craigslist, Facebook Marketplace, and eBay for great deals on vehicles, furniture, baby gear, clothing, electronics, and more. Browse thrift, consignment, and outlet stores too. Inspect items carefully before purchasing. Learn to negotiate costs down.
Cook meals at home.
Eating out, getting delivery, and buying packaged foods are very expensive compared to homemade meals. Spend a few hours prepping cheaper dishes in bulk once or twice a week. Try more beans, lentils, eggs, rice, pasta, and other low-cost ingredients. Bring your own snacks and coffee to work, too. Get creative by following cooking blogs and social media feeds. Whipping up simple, nourishing foods at home saves thousands a year over restaurant meals.
Slash utility bills
Utility costs can take up a sizable chunk of budgets. Call providers regularly to ask about money-saving programmes, re-negotiate rates when promotions expire, and ensure accurate billing. Conserve energy with smart thermostat scheduling, LED lights, closed doors and windows, full loads of laundry and dishes, and shorter showers. Unplug devices when not in use. Use fans instead of AC when possible. Lower the heat temperature and bundle up. Turn off the lights in empty rooms. Replace old appliances with energy-efficient models. These small habit changes create big savings over time.
Travel Economically
Vacations provide needed relaxation and enrichment, even on a tight budget. Avoid air travel and hotels, which are expensive. Take road trips close to home and camp or sleep in your car. Get around by bus, train, or rideshare. Cook your own food rather than dining out. Stick to free activities like hiking, parks, beaches, museums, and public events.
Lower monthly bills
Recurring expenses like cell phone plans, cable or satellite TV, internet service, subscriptions, gym memberships, and more drain finances. Review each monthly bill and see where you can cut or negotiate. Drop unused subscriptions and memberships immediately. Call providers to downgrade services, reduce fees, or cancel altogether if other options exist. Even small savings, like re-financing a mortgage, add up. Never opt into auto-renewals or financing without assessing the real need. Avoid premium channels, high-speed internet, and flashy smartphones if regular versions suffice. Downsize expenses to the essentials.
Prevent unhealthy money habits.
Many people turn to excessive retail therapy, gambling, expensive hobbies, or convenience purchases when stressed. These unhealthy habits derail finances further. Recognise your triggers, like boredom, anxiety, or loneliness. Remove shopping apps and avoid malls or stores. Limit time for online checking deals. Gambling should be very occasional entertainment, not a financial strategy. Find free or low-cost stress relief like exercising, reading, or meditating. Share struggles with supportive people or get counselling. Don’t waste precious resources trying to “feel better”; it will ultimately only worsen problems.
Pursue healthy money mindsets.
How we think about and relate to money has a huge impact on our financial fitness. Work on building positive money mindsets by focusing on value over price tags. Avoid comparing yourself to others. I appreciate the blessings you have. Destress and simplify the holidays. Cultivate non-material sources of joy like faith, family, friends, hobbies, and health. Be strategic but not compulsive over deals. Generously tip and donate despite your own challenges. See the future with hope. Practice gratitude, even amid difficulties. Changing self-talk habits develops healthy money mindsets that aid financial rehabilitation and contentment.
Invest Wisely
Investing provides the potential to grow wealth, even with limited savings. Follow investing blogs and forums to gain knowledge. Wise investing is key to expanding net worth and reaching goals.
Have Alternative Housing Options
Housing costs are often people’s largest monthly expense. Consider downsizing to a smaller living space if you are overhoused. Rent out extra rooms to earn rental income. Move farther from city centres for lower rents. Investigate sharing homes or apartments to split costs. Research extended-stay hotels for temporary lower rates. Stay with your family rent-free if possible.
Slash childcare expenses.
Childcare is extremely costly for many parents. Cut these bills by sharing a nanny or sitter with other families. Trade-free childcare with friends and neighbours. Hire responsible teens in your neighbourhood. Adjust work schedules for alternate care by parents. Get family help with housing or bills in exchange for care. Consider lower-cost daycare centres.
Learn DIY (do it yourself) skills.
Picking up basic home and auto maintenance skills allows you to tackle repairs yourself rather than hiring others. YouTube has tutorials on everything from drywall to electrical to plumbing. Invest in some basic tools and supplies. Start with simpler projects to build confidence. Ask experienced friends to show you how. Over time, you can take on more complex DIY projects. This saves thousands compared to replacement and service costs. Bonus benefits include pride of accomplishment, a healthier home, and skill building.
Negotiate Salaries and Raises
Have a clear understanding upfront about salary, raises, bonuses, and promotions when starting a job. Do market research on pay ranges. Counter initial offers if they are under market. Ask about annual raises before accepting an offer. Maintain records of achievements throughout employment. Regularly request reviews with supervisors. Politely probe opportunities for advancement and higher compensation. Before negotiations, list the business-case reasons you deserve higher pay. Don’t immediately accept “no”; keep politely discussing. Know your worth and advocate for fair pay.
Have multiple income streams.
Relying on a single income source is risky, especially in turbulent economies. Build multiple streams of cash flow to improve stability. Start a side hustle doing freelance work, online sales, consulting, etc. Invest in real estate long-term for rental income. Profit from hobbies, skills, or passions. Build YouTube channels, blogs, or social media presences that earn advertising income. Let go of limiting beliefs about extra work; it could save you later. Diversify income so no one employer controls your livelihood. Multiple streams provide greater safety and flexibility.
Advocate for policy changes.
Support larger reforms through voting, activism, and advocacy to expand financial security for all. Call and write elected officials, urging them to back proposals like student loans, healthcare reform, affordable housing, minimum wage increases, child allowances, lower-cost education options, and infrastructure to spark job growth. Organise and attend local rallies or information sessions. Share content on social media. Run for office yourself if you are passionate about policy solutions. There is power in numbers pushing for structural changes that reduce inequality and hardship.
Conclusion
Money struggles can feel daunting and demoralizing. However, taking active control of your financial life is empowering, even during tough times. Small daily choices and habits make a big cumulative difference. Focus on budgeting wisely, decreasing debts, saving for emergencies, earning extra income, learning new skills, and investing carefully for the future. Seek help from the government and nonprofit resources available. Believe in your ability to provide for yourself and your family, and build financial fitness over time. With strategic money management, you can survive and thrive in any economy.