Personal finance in Nigeria is something that may sound very strange to an average citizen of over 173.6millions Nigeria because our mindset towards financial management is very poor. Our mindsets and beliefs actually made so many people to be poor and remains poor. In all parts of the entire world (especially in Nigeria), managing and planning our own personal resources (such as finance, time, relationships etc) efficiently is a very big problem and it will continue to, until we change, learn and develop new creative mindset around money and other resources. I have come across tens if not thousands of Nigeria who do tells me that in order to be financially independent you need to belong to at least of these calibers of individuals:
1. Your parents must be rich to inherit fortunes;
2. you must have a five to six digit job;
3.the wildest of all, you must be a cultist, a ritualist or even a big time scammer
(yahoo boy)
4. and the list goes on and on.
But, actually making this Naira is not that daunting or complicated as the world paints it but mastering it is what I actually see as the biggest problem that we have, even if you are making some 6-figures salaries, living an okay life, saving some monies in your retirement plan account or pension scheme, you may still end up working black and blue after your retirement to survive. The bottom line here is MASTERING NAIRA WORTH MORE THAN MAKING NAIRA! Believe me.
DISCLAIMER: all the principles listed in this article are opinions or/and, ideas of the writer. They are not guaranteed to save you from poverty, but to help you identify your weak spots in your personal financial management. Carefully read through and act on them on your own personal discretion.
Without much ado, here are my ten (10) principles about your personal financial management;
1.DRAW A LINE BETWEEN WHAT YOU EARN AND WHAT YOU SPEND:
There are actually two things here, what you earn and what you spend and there is a wide margin between these two phrases in everyday life of Nigerians. The first reason why you may be finding your financial in trembling state from total collapse is because, you can't actually define what you earn and what you spend, how much you earn and how much you spend. Now, you have two options, earn more naira or spend less naira! But, as a Nigerian and considering the lifestyles most “ Naija ” choose, spending less can be difficult because, we sees that like we’re losing our dignity before the eyes and minds of the society (but, as for me, cutting down some unnecessary spending is much e easier, you don’t need to please anyone, you’re the architect of your own life). But, if you need to earn more, you will need to have passive incomes generation schemes (sources of incomes even when you are sleeping). Let me lead you to number two principle;
2. FIND OTHER SOURCES OF INCOME:
Mastering your finance entails being independent, you need multiple streams of income; you need passive incomes in order to stand tall in your league. You can invest in real estate, profitable shares and stocks, and other businesses or you can earn extra naira online through many ways, learn a new skill, investing in small business ideas. You just to be dedicated on these passive incomes generation tools; they are more of long-term investments and also require deep research. But, do not put all your eggs in one basket, it’s very risky. Diversify your investment.
3.HAVE YOUR PERSONAL BUDGET.
Can you actually be financially buoyant, debt free and have your spending under control without personal budgets? It’s certainly very unlikely to happen, imagine a country or organization without a budget, it’s definitely not an organization. Take some time at the end of every week or month or even year to map out your financial goals. You need to do some simple calculations on your estimated incomes and expenditures; you’ll need to fill in the gap of your excesses with good choices. You can learn how to create a simple budget (I will soon write on that, keep your fingers crossed) and have your finances under control. How can you perfectly master and control your naira without mastering your budgets? I don’t think so as well, you need to plan well and know your strengths and weaknesses before taking some decisions. Budget is the back bone of your financial freedom.
4.SAVE AND INVEST:
Now that you can earn more and you can manage to cut down your spending a bit, you need to save and you have to invest. My dad will always emphasize on this many times, “if you want to be the man, you need to save, and earn more to save!” but, savings alone doesn’t actually guarantee your financial freedom in 21 st century, you’ll need profitable investments to do that. Interestingly, savings prevents you from been flat broke and bankrupt on some uncertain and unforeseen circumstances. Now look around very well, there are thousands of business opportunities here in Nigeria that you can invest your savings in and be comfortable on your returns (I have published some here on Naira Insider), Check around. The only difference between an investor and others is the ability to see and foresee problems, then turning them to real money-spinning projects. Entrepreneurs spirits is the ultimate recipe of financial freedom, you need to identify challenges in your area and turn them into Multi-Million Empire with time. Savings and Investments are very crucial; but again, don’t put all your eggs in one basket!
5.AVOID BORROWING AND DEBT ( AT ALL POSSIBLE COST):
Don’t borrow what you will you’ll need for your long term need, have personally involved in some creepy borrowing cases in my early career but one thing I will tell you about them is this, they aren’t funny! The society try to make you believe that you can’t survive without it, they will tell you that Billionaires like Dangote and others borrow money and even Government! Well, these billionaires don’t borrow directly, their companies do (for calculated investment clause), that is a legal entity and the rule of ownership and separation is clearly stated for the literates, but a common Nigerian doesn’t see or understand this. Hence, they run themselves into huge debts hoping to recover soon; those simple borrowing habits can eat up a significant part of your earnings for a long period. Now, in simple term, avoid, unnecessary borrowing when you can buy it, avoid debt when you can invest and work your way out, avoid frugal spending, avoid credit cards; they have their advantages, but they can work against you mercilessly if you misuse them.
6. CHOOSE THE BEST LIFESTYLE:
I always emphasis on this, enjoy your life but don’t be reckless, Yes, making money comes with choices including your lifestyle, but be wise in choosing your lifestyle, do not live to impress but live to impact positivity in things you do. Once an average Nigerian step up in his/ her earning, you will see grooving and reckless behaviors. You need to make choice of a better lifestyle to let you focus and determined in your quest to be successful and achieving your wildest dreams.
7. TIME:
Finally, I feel like I should add this to the list out of the context of this write-up. Make most out of your times, plan your time, it is a limited resources. I always wish I add more time on many occasions. Learn to manage your time resourcefully; engage in constructive thoughts, activities, and activities. Plan your day, schedule and evaluate yourself, your financial information and your business. Do not waste your time on unnecessary causes rather invest your time in valuable projects. Remember, time and tide waits for no man.
culled from www.nairainsider.com/2015/11/top-7-tips-to-guarantee-your-financial-NIGERIA Wishing You a better day ahead! cc: Lalasticlala, Seun. 
|
