One of the fastest ways to wreck your finances is by funding a lifestyle you simply cannot afford.
Let's assume you earn ₦300,000 per month.
Here are a few simple guidelines to help keep your finances in check:
House Rent: Your annual rent shouldn't exceed three months' salary (after tax). At this income level, spending more than ₦900,000 a year on rent is financially unwise.
Transportation: Using Bolt or Uber as your primary means of transportation may be convenient, but it's expensive. Stick with public transport for now. It's not forever, it's just for this season.
Feeding: Eating out every day or relying heavily on fast food is a fast track to financial stress. Cooking at home is both cheaper and healthier.
Internet: Spending more than ₦20,000 monthly on data for entertainment and social media is unnecessary. Let your data serve productive purposes first.
Groceries: Fancy supermarkets like Ebeano and Market Square are convenient, but they aren't always the most affordable. Open markets often sell the same items at significantly lower prices.
Entertainment: You don't need subscriptions to Netflix, Showmax, Prime Video, and every other streaming platform. Choose one and cancel the rest.
Social Life: Going out every weekend drains your wallet faster than you realize. Once a month is enough until your income comfortably supports more.
Shopping: Stay away from impulse purchases on Instagram and expensive malls. Visit the open market instead. Bend down and select.
Asoebi: You don't have to buy every asoebi for weddings and celebrations. Wear what you already own. After the event, very few people will remember what you wore.
Black Tax: At this stage you shouldn't bother about funding the living expense of others but if you must, then it shouldn't exceed 10% of your income
The truth is, trying to look comfortable when your finances say otherwise is a trap and many people are stuck in it today
Life is in phases, and men are in sizes. Know your current size and live accordingly
Don't go about living like a king when you don't even have a room in the palace
If you want to attain financial freedom, you must first master the discipline of living below your means
It isn't deprivation...It's positioning
Positioning for a brighter future
To your financial sense
#moneylessons247
