Every Nigerian wants to be financially independent. We are tired of how the prices of bread and rice keep skyrocketing. Sadly, over 40.1% of Nigerians are struggling to make ends meet. And those who are managing to survive still have to take care of the needs of their friends and family.
Now, can I be honest with you?
Some people are thriving in this economy. They aren’t worried about the economy because they have attained financial independence. These people use the right financial tips that have helped them meet their financial obligations without breaking a sweat. In this article, we look at seventeen financial tips that can help you build long-lasting wealth.
What is Financial Independence?
Financial independence is the ability to live comfortably and meet all your financial needs without stress. It is being able to afford to buy a house or a car whenever you want, without worrying about how the big purchase will affect your finances. In other words, you control your income.
Let’s dive into the 17 tips that can help you achieve financial independence.
1. Build Good Relationships
2. Save 10% of Your Income Monthly
Depending on how much you earn in a month, save a portion of it. These savings will be your umbrella on rainy days and can be the foundation for other things like investments and assets. Thankfully, it is now easier to save. Just automate your savings monthly. You can use a feature on savings apps like Ajo+ on Jollof+ to automate your savings. You just need to set the date, amount, and payment methods. You don’t even need to start at 10%; start with 1%, but always set money aside monthly.
3. Give Generously
This doesn't have to be a shocker after all; givers never lack. Giving is one sure key to financial independence. Giving both financial resources and other resources can form the building block for healthy relationships and important connections.
4. Set SMART Financial Goals
How can you say you want to be financially independent if you don’t know where you are going? A financial goal backed up with financial education (more on financial education later) will determine how fast you become financially independent. You can use the SMART framework to set your goals: specific, measurable, actionable, relevant, and time-bound.
5. Invest in What You Know
Invest your savings in profitable sectors. However, know that not every investment is for you. Study the sectors in which you have an interest in and get informed financial advice; more on that later. Investing in anything will lead to more losses and deplete your savings.
6. Live Frugally
Spend wisely, and plan for big purchases. Have a good budget that controls your income. Focus on your needs and a few luxuries as you build your financial empire. Although they might be slightly more expensive, they will help you save money in the long run.
7. Get Financially Educated
Read books, listen to financial experts, and invest in financial education. Having the right education will help you make smarter and more informed financial decisions. You will know the difference between assets and liabilities. You will understand cryptocurrency and which coins are worth looking at. Having the right financial education can be a game-changer in your journey to financial freedom.
8. Buy Quality Stuff
Always buy good-quality things. Although they might be slightly more expensive, they will help you save money in the long run. This is because they last longer if they are maintained properly. Imagine buying school bags for your children that cost N2000, but you have to change them every three weeks. You will be spending a lot of money a year on school bags.
9. 30-day Spending Rule
If that new pair of shoes you saw in that online store is catching your eye, wait thirty days before buying. This will help you consider the pros and cons of getting a new shoe. That is the 30-day rule of spending. This rule will help you control your spending impulses.
10. Track Your Expenses
As you live frugally, also track your expenses to see where money can be saved. Change products or services for cheaper ones that still have a good quality option. Cut off avoidable expenses.
11. Have an Insurance Plan
Car insurance, house insurance or health insurance, get insurance as you earn. This will help mitigate bad situations and protect your wealth. Also, you won’t be pressured financially if a loved one is sick or your car spoils.
12. Pay Your Debts
Imagine driving your new SUV into your compound, and the people you owe money are waiting for you—embarrassing, right? You can’t be financially independent if you don't pay your debts. Have a debt repayment plan; whether the avalanche method or snowball method, just have a plan to pay all your debts so that you can focus on building wealth.
13. Make Your Health A Priority
Paracetamol went up from N50 to N200 in less than a year; the bottom line is that drugs are expensive. This is one of the reasons why you need to take care of your body. Another reason is that it is someone alive who can be wealthy. Eat healthy, drink water, exercise regularly, and have a good support system. Also, invest in health insurance so you will feel financially pressured anytime you or a loved one is ill.
14. Plan for Your Children
Start saving for your children's school fees, clothes, college education, and even their wedding. Have a financial plan for your children; this will ensure their future is protected as you chase new ways of building wealth. Savings apps like Jollof+ have features like the Babybox plan that allow you to save effectively for your children’s needs.
15. Have a Financial Mentor
Look for someone who is where you want to be financially and learn from that person. If possible, let the person be your financial advisor, advising you on investments, businesses, and all. You can get a paid financial adviser for this purpose. In the end, have someone who is leading you on your financial journey.
16. Have Multiple Sources of Income
Aside from investments, have multiple streams of income that increase your monthly income. There are different types of side hustles you can do now to generate income. You can also learn new skills to increase your earning capacity at your 9-5 job.
17. Build Your House
Rent in Nigeria is at everyone’s throats. Having a roof over your head that is 100% yours will save you a lot of money. You will also be able to plan better since a major basic amenity has been sorted.
Do You Want To Be Financially Independent?
Have the right mindset. With these tips and the right mindset, you will be able to achieve financial independence or freedom.
