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Gaya

Contrary to popular belief, <a href="https://aura.ng/life-and-love/can-you-afford-love-a-guide-to-dating-in-nigeria-s-economy">money</a> alone cannot create wealth. It needs to be saved and invested with sufficient discipline in order to culminate in wealth eventually. And this is right where you may be getting it wrong. So, before quitting that job in search of higher pay or requesting a raise, consider these reasons that may be keeping you broke.

It is not a law that you must increase your spending every time your income increases. Actually, it’s unwise and dangerous. Next time you are tempted to increase your living costs unnecessarily, ask yourself if you can conveniently afford the additional spending two to three times over.

Stop using rewards and treats to justify frivolous spending. Take enough responsibility to curb your compulsive buying because, whether you like it or not, it’s taking a toll on your finances. Just recall how many times you had to adjust your budget and probably leave out savings for the month just because you splurged.

As much as you can, try not to leave your money idle. Instead, put it to work for you and let it replenish itself by investing. Nowadays, you can invest in stocks, shares, bonds, and even mutual funds from the comfort of your home via digital platforms like Cowrywise, Bamboo, and even Afrinvest. You can also invest in businesses and startups—no rule says it must be stocks. As long as your money has the potential to yield returns.

<b>Budgeting with Gross Income Instead of Net Income</b>

It is very risky to plan your expenses based on your gross salary rather than after you have made the compulsory and inevitable deductions. For instance, from a salary of<a href="https://aura.ng/the-streets/does-the-middle-class-in-nigeria-still-exist-"> ₦500,000</a>, your net income could be as low as ₦200,000 after deducting transportation costs, utilities, and the like. In such a scenario, your personal budget shouldn’t exceed ₦200,000, even though your pay cheque says you earned much more.

In the words of the young Nigerian sages, “Your savings will save you.” Save as much as you can so that you do not have to depend on loans or credit when unexpected expenses arise. Because, guess what? Emergencies will never cease to arise, and remember, you never see them coming.

<b>Paying for Things You Don’t Need</b>

This is your sign to discontinue unused subscriptions and all your unnecessary recurring expenses that cumulatively take a tangible chunk of your income.

This one is very subtle but equally harmful to your finances. Stop trying to match the <a href="https://aura.ng/culture/the-nigerian-social-tax-how-celebrations-are-quietly-draining-young-people">lifestyles</a> of friends and colleagues—even if you earn more than them or as much as they do. To each their own! Life is not a competition, and you shouldn’t be trying to prove a point to them.

Stop confusing your high income with wealth. It is incorrect to assume that a fat salary automatically means you’re financially secure. Start setting clear financial goals and targets, imbibe the right discipline to sustain them, and watch yourself transition from a higher earner to a wealthy person!

Earn ₦500K+ monthly but still stressed about money? These 7 subtle habits are silently draining your wealth—and most people don’t realise they’re even doing them.

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