Make a realistic budget

This is the starting point for personal finance, yet many people struggle with it. One of the reasons people struggle with justifying their spending is because they do not have a budget or do not set a realistic budget. Also, a lot of young Nigerians get carried away by the salary they earn that they don’t bother to account for it.

Before you can put together a realistic budget, you must be able to track your spending, all of it. Know the needs you spend on and the wants you are likely to spend daily. Prioritize what is important to your survival first before adding your fun and splurge expenses. Though you might be able to afford some splurge, but ensure they are trimmed so you won’t spend more than you earn.

Pay yourself first

This rule was first mentioned in the book ‘The richest Man in Babylon’ by G.S Clason and it is the start of financial freedom. This applies to both short and long term savings. This includes saving for buying of a car, your wedding ceremony, vacation and even retirement savings. By paying yourself first you are paying down for the future so when you need those things, you would be able to pay with ease. It also means your future needs goals would always be met. Money in your 20’s can be difficult to manage so don’t fall into the trap of spending first and then saving if you have something left over.

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