Folake earns 200k, Farrah earns 300k. They both know, like we all, that 100k has been behaving like 10k lately and sapa is everywhere. Folake decides to start budgeting her expenses so she can save more. She starts Stashing on ALAT and is able to save 600k in a year at 5% interest, earning 45k interest on her savings.
Farrah doesn’t believe in budgeting because “Bill pass Bill” & “You Only Live Once”. It’s understandable really, there are some kinds of bills you can’t exactly plan for and problem no dey finish. That’s all the more reason to budget your finances though. There’ll always be something to do, so when you can afford to, save as much as you can. That seafood boil you love is great and you work hard enough so if you really want it, get it. However, is it something you want to get everyday? One 16k bill isn’t the worst thing in the world but when it’s four 16k bills in a week, how much will you have to pay your 5-figure electricity bill that’s coming at the end of the month?
All I’m saying is, you can maximise your income by spending wisely.
Create realistic budgets for your finances weekly, monthly or however you’d prefer and make conscious effort to stick to it. If you know you only have 30k allocated for food weekly, you’ll think twice before spending 15k on one meal. Again, that’s not to say you can’t dine fine when you’re on a budget, we’re saying analyse your finances and factor fine dining in your budget so you’re 100% sure you won’t have to trek to work the next week because you went to Chai Tang and spent half your salary in one night.
I also used to find it hard to budget because problem plenty, the least I can do is eat. 2 months straight of overspending and I knew it was only a matter of time before poverty sent me back to my village. That’s when I got my Utility Card–best decision. Now I only go out with exactly how much I’ve budgeted for the day, unexpected expenses included. It’s not connected to my account, so I can’t just close my eyes and buy an extra phone case I absolutely don’t need because I have money with me. See budgeting as an exercise to test your discipline, you’d be surprised how much you can save..
In summary, be a Folake, even if you earn like Farrah. It saves you from unnecessary surprises and helps you avoid living from paycheck to paycheck. If you’re earning in figures we the broke people can’t relate to, you can get richer by just investing in ALAT. Don’t leave that 10 million naira lying around, invest and earn an additional 950k upfront.
Let your money work for you!