Guaranteed, money issues can be a terrible nightmare we all wish will pass by the time we wake up the next day, but unfortunately, it never seems to go away.
Your income has remained the same while your debts continue to pile up like a monster threatening to eat you up. Does this sound like you? Before we look at options to increase your income, which is very important by the way, let’s first tackle and plug those spending leaks.
Spending leaks are unplanned expenses that often leave a hole in your pockets every month. They are so small and seemingly insignificant but surely robbing you blind and leaving you constantly in the ‘broke zone’. Where, you are always looking for handouts from friends and family.
What are these tiny culprits you may ask? Where does all your money go ?
1. EATING OUT REGULARLY.
Take, for instance, you can cook a tasty bowl of Nigerian jollof rice for N4000 ($8) and it will last you a week. However, instead of taking lunch to work, you prefer to frequent the restaurant two blocks away from the office for your favourite plate of jollof rice. This costs N1500 ($3) – N2500 ($5) every day.
Let’s assume you conservatively spend N1500 ($3) daily, N7500 ($15) weekly. In essence, you could have saved N3500 ($7) weekly, N14000 ($35) monthly, and N168,000 ($420) in a year. Not to mention the cost of eating breakfast and dinner out as well. Calculate for how many years you have worked so far and let me know much you could have saved on lunch alone.
2. DISCOUNT SALES
Imagine having all your favourite items at half the price. There’s nothing as enticing as discount sales right? Wrong! Before you continue raving about how nothing beats a good bargain, you need to first ask yourself do you really need those items or are there more pressing needs you could use that money for.
3. PAYDAY LOANS
The easiest way to spend money you have not earned is by getting a salary loan. It will give you a false sense of your true worth and throw you deeper into debt. By the time your salary comes, you are left with so little to see you through the month and the debt cycle continues.
4. EMOTIONAL PURCHASE
Just like emotional eating, emotional spending is a real thing. You find yourself buying items you don’t really need just to make you feel better but that relief is only temporary. By the time you get over your depression, you may have incurred unnecessary debt that you have no means to pay back.
5. CREDIT CARDS
Like payday loans, swiping your credit card is the easiest spending leak you need to plug now, as they come with very high interest rates.
Credit cards can be a good thing if you are disciplined enough to pay down your debt in full at the end of every 30 or 45days circle. But, if you keep swinging your debt into the next cycle, it is more advisable to cut that card up before it burns a hole through your pocket.
6. FRIDAY NIGHT FRENZY
You have worked so hard all week, and it’s only natural you want to unwind and have some fun. But as they say, all good things come at a cost. So, If you can’t afford to hang out every Friday night, you can invite friends over to see a movie, and have everyone come with something to drink and nibble on. There are other fun activities you can do with little or no money
7. CARRYING MULTIPLE CARDS
Apart from the risk of theft and losing all your cards in one day, carrying multiple cards gives you a false sense of confidence. You will find yourself most times, spending above your budget. To fix this, Lock up extra cards in a safe drawer at home while you go out. Only use your extra cards for emergencies.
8. SAVING ONLY POCKET CHANGE
Saving pocket change is not bad, but instead of saving leftovers, your savings and investment should be treated as a priority. The best way to do this is to give your bank an automatic mandate to debit you immediately you receive your salary and credit your savings or investment account. This will ensure you pay yourself first before other expenses and secure your financial future.
9. IMPULSE SPENDING
Do you get easily carried away when you see that new shoe or bag while scrolling through your Instagram feed, window shopping or working past your favourite store? To fix this, tell yourself, If it’s not in your budget, then you can do without it. That extra money could be put into an investment and the interest earned will buy you many more expensive items.
10. FREE SUBSCRIPTIONS
The easiest prey is those subscriptions that give you one 7days or 1month free and ask you to put in your card details. Chances are you will forget to cancel the subscription even if you hardly use the service and get charged a token every month. If you don’t need it, cancel it right now!