These days, saving money in Nigeria is not for the weak. Between rising food prices, unexpected expenses, and that one relative who always needs urgent help, keeping money aside feels like a struggle. And investing? That sounds like something only the wealthy can afford to do.
But here’s the truth—saving and investing are not just for the rich. They’re for anyone who wants financial security, whether you’re earning ₦50,000 or ₦500,000 a month. The real challenge isn’t just making more money; it’s overcoming the obstacles that stop you from keeping and growing what you already have.
Let’s break down these obstacles and how you can tackle them.
1. Not Enough Income
Many Nigerians feel like their salary barely lasts the month, so saving seems impossible. Between rent, transportation, feeding, and “urgent 2k” requests, where’s the extra money supposed to come from?
Solution:
- Track Your Spending: You might think you don’t have enough to save, but when you check your expenses, you’ll see where money is leaking. Use savings apps like the Trove app (earn by trove) to monitor your spending.
- Cut Unnecessary Costs: That daily shawarma or extra subscription you barely use could be redirected into savings.
- Increase Your Income: Side hustles are a lifesaver in Nigeria. From freelancing to selling digital products or running a small business, find ways to make extra money outside your salary.
2. Too Much Debt
Loans and debts, especially from quick loan apps, are draining many people’s finances. The interest rates alone can make it impossible to save or invest.
Solution:
- Prioritize High-Interest Debt: Pay off loans with the highest interest first to reduce how much you owe long-term.
- Avoid Quick Loans: Some loan apps charge ridiculous interest rates. If you must borrow, try family and friends or cooperative societies (ajo, esusu) with lower rates.
- Live Within Your Means: Don’t take loans just to maintain a lifestyle you can’t afford. Cut back on expenses instead.
3. Lack of Financial Education
Let’s be honest—most of us weren’t taught about saving and investing in school. And without knowledge, it’s easy to make mistakes like keeping all your money in a regular bank account where it doesn’t grow.
Solution:
- Learn From Trusted Sources: Follow Nigerian finance blogs, YouTube channels, and Twitter threads that break down money matters in simple terms.
- Read Books & Take Free Courses: Books like “The Smart Money Woman” by Arese Ugwu explain finance in a relatable way.
- Start Small: Invest in low-risk platforms like mutual funds or money market funds before moving to stocks or real estate.
4. Fear & Procrastination
A lot of us are scared of investing because we don’t want to lose money. Others keep saying, “I’ll start saving next month,” but never do.
Solution:
- Start With What You Can Afford: Even if it’s ₦5000 per month, just start. Small amounts add up over time.
- Automate Your Savings: Set up an automatic transfer to your savings or investment account so you don’t have to think about it. Earn by Trove allows you to automate your savings.
- Think Long-Term: Investing isn’t about getting rich quickly; it’s about building wealth over time. The earlier you start, the better.
5. Inflation & Rising Costs
With the way prices are going up in Nigeria, the money you save today might not have the same value next year.
Solution:
- Invest in Assets That Grow With Inflation: Stocks, real estate, and mutual funds can help your money grow faster than inflation.
- Save in Dollars or Stable Investments: If possible, save part of your money in dollar-denominated assets to protect against the naira’s depreciation.
- Increase Your Savings Rate as Your Income Grows: Each time you get a raise or make extra income, increase how much you save instead of increasing your spending.
6. No Clear Financial Goals
If you don’t have a goal, saving and investing can feel pointless. You need to know why you’re saving.
Solution:
- Set SMART Goals: Instead of saying, “I want to save money,” say, “I want to save ₦500,000 in one year for a car down payment.”
- Use Visual Trackers: Write down your goals or use savings apps that let you track progress.
- Reward Yourself for Milestones: Reaching small goals keeps you motivated to achieve bigger ones.
Read Also: How to Start Saving Money with a Low Income
Conclusion
There will always be reasons not to save or invest, but the best time to start is now. Even if you can only put away a little each month, consistency is what builds wealth.
