Recently, our president, President Mohamadu Buhari signed the new minimum wage bill to law – making it look like this is the best thing since sliced bread but it’s not. You’ll see the reason I said this in a jiffy.
The new minimum wage 30,000 naira which was formerly 18,000 naira couldn’t do much but the lowest-earning Nigerian seems to have gotten his way around it on getting through his monthly expenses (even though he can’t save).
He has looked for unique ways in managing his earning like:
- Renting a one-room apartment (face me I slap you) instead of a room self contain.
- Drinking borehole water instead of pure water.
- Seeking public health care services instead of private and so on.
But now that the new minimum wage has been pushed up to 30,000 naira, he feels everything about him need to change and this is the problem and why most Nigerians are still living below the poverty line.
Asides this mentality, there’s also the mentality of how much they earn is never enough.
Many Nigerians have been able to convince themselves that this is the reason they are still miserably poor. I used to have this thinking too until I started reading up so many books on managing finances (money) before I had a change of heart.
You see, from what I’ve learnt so far, it’s not about how much we earn but more about our spending habits.
The problem is we (humans) have unlimited want and we don’t keep in mind that this should be based on what we earn.
Here’s the solution.
1. Believe that the money you earn is enough for you (at least for now)
Yeah, I know this sounds absurd but it’s true. The money you’re earning right now is enough to take care of all your expenses and even save – if you believe.
2. Forget about your expenses (what you need to buy) and pay yourself first
Yes, if you’re a regular reader of our blog, you’ll have seen me use this term a few times. This is a fact! Your expenses will always be there (even if you take care of some now, more will crop up later) so why not pay yourself first?
There are many rules to this – paying yourself first. We have the 80/20, 90/10 and so on. Depending on the one that suits you, save part of your money before mapping out your expenses.
I personally follow the ‘90/10 rule’.
3. Follow rule – “if it’s not urgent I don’t need to buy it”
I can’t remember where I saw this rule but I’ve practised it a lot and it has worked for me. I think it will work for you too.
Because I no longer buy things; I mean wears, gadgets and the likes only If really need it. This lifehack has really protected me from impulse buying and excessive spending.
Yeah! The super rule ‘If it’s not urgent, you don’t need to buy It’.
4. Don’t keep your “kolo” savings forever – invest
Yes, this is very important especially now that our naira devalues like yesterday’s pounded yam.
Saving money is not enough if you want to be rich in Nigeria, you have to invest the money you’ve saved into something to yield more interest.
And there are many investment opportunities out there that can help you achieve this.
We have buying of shares, bonds, and also buying and reselling of assets like lands, companies, businesses and so on.
Doing this really takes your money venture to the next level.
5. Move with the movers and shakers of Nigeria
I’ve talked about this in some article ago – how to meet rich and influential guys in Nigeria.
Because we all need this, I mean is there anybody amongst us that doesn’t want to be friends Odetola, RMD, Linda Ikeji and the likes?
Building wealth in Nigeria is not a solo journey and shouldn’t be one. We should walk with the high and mighty as this will give us a shoulder to lie on in terms of advice and counselling (when we need one).
More post on building wealth in Nigeria is coming soon.
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