Planning Your Finances So You’re Not Going A-Borrowing Before Your Salary is Paid

Gather around people, let’s discuss this issue that is painful and, at the same time, avoidable.

We have just started a new month, so this means salaries were paid last week. Shout out to employers who don’t owe their employees wages. For those of you who still believe in using other people’s money for flex, we have no words. Just do better. Do better and stop owing your staff.

Anyway, back to we the employees. You guys, have you noticed that it seems our salaries have collectively agreed to disappear immediately they enter our accounts? Or are we the only ones who have noticed? After the first week of pride, the second week humbles us and we suddenly find ourselves trying to manage our funds and reduce our binge spending. But sometimes, no matter how you try to manage this money, once you just go out to have little fun, fiam! The money haf finish.

It doesn’t always have to be so, though. Planning and spending your salary shouldn’t be so hard for you to do. As a matter of fact, if you manage your funds properly, you can slay and save at the same time. Let’s teach you how.

Be financially oriented

The first step to making good use of your money is to be financially literate and the best time is now. Don’t wait until you’re 30, 40, 50… Many people assume that just because they save, they are good to go. But truth be told, there are situations you will find yourself that even your savings will not be able to save you. Being financially literate is not just about stacking money somewhere, it is ensuring that you are gathering enough assets, and your money is working for you. That is: your money is bringing in more money. So, start reading books, consulting financial gurus, attending seminars and so on. Trust us, you will enjoy this in years to come.

Save first

When you receive your salary, there’s this evil voice that is always whispering “make we go club na, make we go show them say we don arrive”, don’t listen to it o. If you always feel the sudden urge to paint the city red or go on a shopping spree, you better start casting and binding that urge. While we will encourage you to spoil yourself and live your best life – after all, you worked for it, it is important to save first. Every month, remove a certain percentage of your salary and padlock it safely. Thankfully, we now have apps like Cowrywise, PiggyVest, etc., that will help you save properly. These apps have made it easy for you to save first as they remove a certain amount of money from your account immediately you receive your pay. So you have no excuse not to save.

Join the pepper dem gang only after saving, so that pepper will not pepper you when you get to the second week of the month.

Go make a budget

You see all those people who spend money anyhow and you admire them, what if we tell you some of them have enjoyment allowance? Surprised? Financially literate people don’t go about spending outside their budget. Remember we advised you to live your best life? One of the best ways to do this is by allocating a certain percentage of your salary for enjoyment. This way, your flexing won’t affect other financial areas of your life. Not having a budget will give you a false sense of being rich or still having enough money. This means you will keep spending and spending until your account balance starts blinking red.

Never accumulate debts

One thing about debts is that they are very sweet to collect, but sour when it is time to pay back. Debts hardly ever come to an end too. You keep paying and paying and your finances will not improve in any way. It is a shit-hole that is very difficult to come out from. One of the ways to enjoy your money while sleeping with your two eyes closed is to run away from debts – as far as your legs can carry you.

Now, this is different from business loans and the likes, many of these are collected with the anticipation that the business will bring in more money. It’s a case of suffer now, enjoy later. But personal debts – like buying clothes and shoes on credit, or borrowing money to travel for that vacation – will yield no return profit and should be avoided.

Invest, invest and invest

Remember we talked about making money work for you? Good! Investing your money is a good way of getting your money to work for you. While saving is good, saving means your money will be redundant. Investing, however, puts your money to work. Search for companies that have a high ROI (Return on Investment) rate and invest there. Real Estate and agro-businesses are businesses that promise good returns. However, it is very important to shine your eyes and ensure you are not being scammed and the company is very legit.

Don’t be Father Christmas

Giving is good, but ensure that you do not give until you drill a hole in your pockets. Don’t go on a dashing spree just because money has arrived. You’ll go broke faster than you can say jack.

Final tip: Asset vs. Liability

Know the difference between Asset and Liability. Before you buy that next item, ask yourself: will this be an asset or a liability? Will this fetch me more money or continually chop my money instead? Embrace assets and run away from more liabilities.

Have other tips for us? Let’s hear it. Have you also spent your salary carelessly and gone broke in the second week of the month? Oya coman gist us.