Navigating your 20s can be both exciting and challenging, especially when it comes to managing your finances. As a young Nigerian, laying a strong financial foundation early on can significantly impact your future financial success. Yes, we concur that you should ‘’chop the life’’ of your head but we strongly believe that if your decisions are tapered to building generational wealth then, these essential decisions listed, should be considered for making money in your 20s:
Being a Budget Baddie is better than being a Spendthrift: Setting up a budget teaches you restrain and proper financial management. It gives you the opportunity to track your income and expenses diligently. This is where the famous 50/30/20 rule plays a big part. Set aside funds for essentials like rent, groceries, and transportation, but also set aside money for emergency savings and discretionary spending. In this digital age, quite a few expense tracking apps exist to help you monitor your budget effectively. You can do it with friends or do it solo but do a budget.
Build an Emergency Fund: Have you seen how milk has suddenly become a luxury in Nigeria? With inflation rising faster than your heartbeat after a 5km morning run, we have realised life is unpredictable, and having an emergency fund can provide a safety net during challenging times. We know it might seem difficult, but target to save at least three to six months’ worth of living expenses in a separate account. Start small but be consistent in contributing to your emergency fund to ensure financial stability.
You are your greatest investment: Over the past few years, we have seen a rise in skills in exchange for travel opportunities and more young people maximise their learning opportunities. Your 20s are an excellent time to invest in your education and skills. Pursue certifications or courses that can create a career transition and improve your earning potential. Investing in yourself early on can yield significant dividends throughout your lifetime.
Manage Debt Wisely: With an ever-increasing rise in the availability and access to loans, it’s very easy to get carried away and sometimes unforeseen circumstances saddle us with the option of unavoidable loans. However, managing these debts wisely is essential. Scrutinize loan offers, compare rates (Transkredit offers competitive rates. Click here to learn more) and read all fine print to ensure you are not dabbling into something a lot more complicated than you envisioned. accumulating high-interest debt from credit cards or personal loans whenever possible. Prioritize paying off existing debts and adopt responsible borrowing habits to maintain financial health.
Just remember that your 20s are a critical time for laying the groundwork for your financial future. By making informed decisions and cultivating good financial habits early on, you can set yourself up for long-term success and stability. Remember to stay disciplined, stay informed about financial matters, and seek professional advice when needed. With careful planning and perseverance, you can achieve your financial goals and secure a brighter future for yourself in Nigeria, no matter the odds. Not everyone will Japa, so if you’re staying behind, make the life you want here beautiful.
