Several Nigerians wish to be like Alhaji Aliko Dangote, or even Bill Gate, but not many are ready to pay the prices they paid to become wealthy. While some believe wealth is just about making more money, others think it is all about creating strings of income without considering being prudent with spending.
However, many financial analysts insist that you can make wealth by acquiring more money or creating strings of income but that if you are not prudent, the wealth can develop wings and fly away like a bird.
Instead of living an unsustainable life, experts are of the view that Nigerians could save as much as possible on avoidable expenses, if the suggestions offered in this piece, by them, are followed.
RECALL
• Go for need, not want
• Avoid avoidable bills
• Plan before you make any purchase
The Managing Director, A+ Global Consult, Mr. Oluwatobi Azeez, advised all individuals, irrespective of their financial status, to be prudent because it is a way to save more today. The effect, he said, may not be seen today, but if such a habit is sustained, it could make huge difference over time.
He said, “An important way to avoid waste is to make a financial plan, which can be daily, monthly or periodical, whereby you come up with a budget and make sure you work within the budget.
“Also, you can reduce wastage by cutting down frivolities like acquiring luxury items or switching off television sets or lights while not at home to avoid incurring high electricity bills.
“One should look out for ways in our daily lives to cut out unnecessary bills. It would reduce your exposure to some spending. It helps to cut down electricity bills and perhaps a lower cable bill, if you downgrade your subscription, and it gives you more time to focus on other things in life such as an extra income business.”
Aside from making a financial plan, Azeez, an auditor, also advised Nigerians to avoid impulse buying, which he believed most people, especially low income earners, were guilty of. According to him, cash intoxicates at times with a force that may want to push you into spending on things you can do without.
“You can avoid buying impulsively and save some money. Avoid buying gifts for friends and loved ones all the time. Check out the gifts you have received over time, change the wrapper and rebrand them before giving out to others; or you make spectacular gifts for friends with some special touch.
A lot of us keep gifts we have not opened for years in the store and still buy gifts for friends when celebrating some milestone,” he added.
Another finance manager, Mr. Ayodele Esho, explained that for every expenditure, consideration must be given to its necessity. Otherwise, such cost(s) will be classified as wasteful spending.
“Every expenditure is incurred on its merit and presumably for the benefit accruable. It is dangerous to continue to assume that all is well even in financial handling of expenses at this period.
“Unfortunately, many businesses will be hit by this consumption pattern, because most ‘take-homes’ can no longer take most people home anyway, and therefore, has caused people’s spending to reduce,” he said.
Instead of eating fast-food or just nuking some prepackaged dinner when you get home, Esho added that you can try making some simple and healthy replacements that you can take with you. A few hours’ worth of preparation of food in one weekend can leave you with a ton of cheap and easy dinner or snack options for the following week.
“All you need to do is to package and preserve the food well. You can also invite friends over, instead of going out, because going out has a way of completely destroying both your food budget and your entertainment budget, in one fell swoop.
“It is always cheaper to stay in with friends and come up with your own entertainment. Drinking more water, whether in a refillable bottle or at restaurants means spending less money on beverages like soda, juice, and tea. Remember that tap water is not only just as clean as bottled water, it is also free,” he said.
