You earn money. You hustle. But by the end of the month, you’re wondering where it all went.
This isn’t just your story; it’s a common reality for many Nigerians. And most times, the problem isn’t how much you earn. It’s about what happens to the money after it hits your account.
Managing money is tough, and it’s even harder in Nigeria, where inflation, unstable income, and societal pressure all collide. Many people fall into financial traps that could be avoided with the proper knowledge. This post breaks down the most common money mistakes Nigerians make and how to fix them.
Common Money Mistakes Nigerians Make
1. Living Above Your Means
This is the top mistake on the list, especially in this digital age, where most people want to live a fake life. Trying to “keep up appearances” is a major issue.
For instance, you earn ₦150k but live like you earn ₦300k. You take short-term loans, borrow from friends, or wait for the next salary with a red account balance. While behind on rent, many Nigerians spend more than they earn to look successful.
How to fix it:
Create a realistic budget based on your actual income. Stick to it. Spend less than you earn. Track your expenses using apps like Mint or local options like Reach or Cowrywise. Prioritize needs over wants.
2. No Emergency Fund
Many Nigerians don’t have any savings for emergencies. Job loss, medical bills, or even sudden rent increases can cause financial ruin if you’re unprepared.
How to fix it:
Start small. Set aside a fixed amount each month, even ₦5,000, into a dedicated emergency fund. Use separate savings accounts or digital platforms that lock your funds.
3. Relying Too Much on “Owambe” Credit
Borrowing money to attend weddings, birthdays, or other events is common, especially when there’s pressure to spend money or show up in expensive aso ebi.
How to fix it:
Set a monthly “entertainment” budget. If you can’t afford to attend or contribute, it’s okay to say no. Real friends will understand.
4. Ignoring Investments
Too many Nigerians stash money in savings accounts that lose value due to inflation. Others avoid investments out of fear or lack of knowledge.
How to fix it:
Learn the basics of investing. Start small with mutual funds, agricultural crowdfunding platforms, or government bonds. Diversify. Apps like Bamboo, Trove, and Risevest make it easy to get started.
5. Falling for Quick Money Schemes
From Ponzi schemes to fake crypto platforms, many Nigerians have lost savings chasing “double your money” promises.
How to fix it:
If it sounds too good to be true, it probably is. Do your research. Avoid platforms that guarantee outrageous returns with little to no risk. Stick with licensed and regulated financial services.
6. No Long-Term Planning
Many people focus only on short-term needs such as bills, food, and school fees, without thinking about retirement, homeownership, or their kids’ future.
How to fix it:
Set long-term goals. Break them into smaller steps. It could be buying land, funding your child’s university education, or retiring comfortably; just make sure to start planning early. Compound interest is your friend.
7. Not Talking About Money
Money is still a taboo topic in many Nigerian households. Couples avoid the conversation. Parents don’t teach their kids about finances.
How to fix it:
Normalize money talks. Discuss budgets and goals with your partner. Teach your kids basic financial habits early. Follow finance content creators or join communities that talk money in a relatable way.
Read Also: How to Start Investing with Little Money
Conclusion
Nobody gets it right all the time, and that’s okay. But the sooner you recognize your financial mistakes, the sooner you can fix them. Building better money habits takes time, but it’s worth it. It doesn’t matter if you’re earning in naira or dollars; the principles stay the same: spend less than you earn, plan ahead, and invest wisely.
