It is no longer news that a lot of Nigerians hardly survive on low salary or income, without engaging in side jobs, popularly referred to as private practice, ‘PP’, which affects concentration on their main jobs. What may be news is that many Nigerians are ignorant of the fact that there are ways to live comfortably, even with that low income.
Financial managers admit that, though it is difficult to survive when you live in major cities across the country, but with discipline and self-regulation, you can be successful.
If you follow the steps below, you are bound to succeed this year, at least, better than 2017, the experts assure:
Use income minus savings equation
Some people argue that they don’t have anything left after all their expenses and that is because their financial equation is based on the equation of, Income minus Expenses equals Savings. That means they save what they have left, after deducting expenses. If you belong to this school of thought, then it is time to turn the equation around. Use Income minus Savings, which equals Expenses, instead. That means you have made up your mind on what you want to save, which should be fixed, before the salary comes.
A financial manager, Mr. Wale Adeniji, explains that instead of saving what is left after expenses, you should spend what is left after you are done with your savings for the month.
He says, “We know controlling expenses is easier said than done but note that there will be some expense that will gobble up the surplus and prevent you from saving. The solution lies in automating your savings. If you follow the advice, you will discover that the money keeps growing till you retire or when the real needs come.
Take eyes off wants
It is natural for you to desire to buy what you like and such urge can be overwhelming at times, but remember that whenever you want to buy something expensive but not essential, you have dragged yourself back by 10 or more steps, depending on the plan you follow.
Adeniji insists that if you follow the 30-day rule, you will be safe. What that means, according to him, is to postpone the purchase by days or even a month. Impossible, you think! During that period, think hard whether you really want the item. At the end of the postponement, if you still want to buy it, go ahead and purchase it. However, if the item was not really essential, you will get over the urge to buy and will probably junk the idea.
The rule works very effectively when you crave for wants like buying gadgets, apparel, footwear or other accessories. It’s also not very difficult to follow, because you don’t actually deny yourself the item. You merely postpone the purchase by a month. As a fringe benefit, you also get to do a research on the item over the next 30 days.
Avoid taking YOUR ATM card everywhere
Your Automated Teller Machine card is essential as an increasing number of financial transactions take place on peoples’ palms (using smartphones). Going everywhere with the card(s) is dangerous, especially if you are a reckless spender or impulse buyer.
A fellow of the Institute of Chartered Accountants of Nigeria, Ms. Bimbo Success, explains that people tend to overspend if they use a credit card for a
purchase.
She said, “To suppress the impulse-buying urge, leave your debit and credit cards behind when you go to the mall.
“Take cash instead, as some extreme measures for serious shopping addicts. Some say you should just note down the card details and then cut the card into pieces so that you can’t use it anymore.”
Others suggest you keep the card in a paper sleeve and stick pictures of your kids or spouse on it. You will be reminded of the other goals you may be jeopardising when you swipe the card for an unnecessary purchase.
