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Personal Finance: 5 Money Habits To Survive The Looming Storm
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Personal Finance: 5 Money Habits To Survive The Looming Storm

Ever heard the saying "don't live a champagne lifestyle on a beer income"? You have to take that seriously this year if you want to take your finances to the next level.

The economic pressure is becoming unbearable day-by-day, particularly for low-income earners- the cost of living generally had gone up in folds as the impacts of the pandemic are steadily stoking the inflation rates. To remain afloat, here are key money habits to live by as you battle the storm

1. Apply Some Level Of Discipline: Unless you are investing in something it's always advisable to buy only what you need per time. You already have steady bills/financial obligations. Focus on increasing income rather than an expenditure. Spend less, get familiar with all your (periodic) financial obligations, cancel impulsive buying, set aside an emergency fund. Just as your income, structure your expenses and put them under a heading e.g rent,  flex allowance, family, health, charity, wardrobe etc.

2. Don't Get Into Debt: Avoid unnecessary borrowing. Remember, the cost of funds in Nigeria is very high. Try to live within your means and avoid spending off-budget. If it's unforeseen, beyond your emergency funds and you must borrow, weigh your options properly and try to pay it up quickly to keep a clean sheet. Apart from giving peace of mind, it helps your liquidity position.

3. Create Multiple Income Streams: You need to deliberately try to increase and expand your earning power. Build multiple streams of income so,  you can always have a fallback.

4. Invest: This cannot be over-emphasized. Apart from your regular job or business, find other avenues where your money can work for you. You can invest in other business areas or if you're a nine-to-fiver and not so business incline, you can invest in self-development, expand your skillset and try to earn more, using your different skill sets e.g banker by day, writer by night. Whether you are actively or passively involved in your investments, the rule is simple, "higher risk, higher returns". So, try to do your due diligence before throwing in funds.

5. Save Little Drops: Don't wait till you "hammer" before you start setting aside small mine from your earnings. Remember, "he that is not faithful in little cannot be faithful in much". Saving is a habit and you need to groom yourself into it. No matter your income level, you can take out something for a rainy day.


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