October 25, (THEWILL) – Financial mistakes are not confined to the young, the old, the wealthy or the struggling. Anyone can fall into habits that make money disappear faster than it comes in. In Nigeria, where food prices, transport fares, rent and utility bills can change quickly, managing money takes more than earning a decent income. It requires clear priorities and habits that can withstand both good times and unexpected hardship.
One common mistake is having no emergency savings. It is easy to assume that a steady job, a supportive family or a promising side hustle will always be there. But a medical bill, car repair, delayed salary or sudden job loss can disrupt even a carefully planned month. Without savings, people may turn to expensive loans or borrow from relatives at a stressful time. An emergency fund does not have to appear overnight. Setting aside a small amount regularly can gradually build a cushion for essential expenses.
Another trap is spending first and saving only what remains. After receiving a salary or payment, someone might buy new clothes, replace a phone or join friends for an expensive outing, intending to save later. By the end of the month, little is left. A more reliable approach is to save as soon as income arrives, even if the amount is modest. Treat savings like a bill that must be paid, rather than a leftover that may or may not exist.
It is also easy to spend more whenever income increases. A promotion, a better-paying contract or a profitable business month can bring welcome relief. But it may also lead to a more expensive apartment, frequent restaurant meals and purchases made mainly to impress others. This is lifestyle inflation: expenses rise alongside earnings, leaving little progress despite making more money. Enjoying a higher income is reasonable, but putting some of the increase towards savings, debt repayment or investment can make the improvement last.
Social pressure can make this harder. Online, people display holidays, designer goods and celebrations, but rarely show the loans, family support or financial strain behind them. Trying to match appearances can leave anyone overstretched. A relatable example is accepting every invitation to an expensive restaurant because friends are going, even when rent or school fees are due. It is possible to maintain friendships without copying every purchase. Suggesting a less expensive outing is not a failure; it is a sensible choice.
Many people also postpone planning for retirement, assuming there will be time to think about it later. Yet the earlier someone begins saving or investing appropriately, the more time their money has to grow. This does not mean neglecting today’s needs or putting money into every scheme advertised as an investment.
It means learning about available options, understanding the risks and making regular contributions where possible. People in countries such as the United Kingdom and Canada are encouraged to plan for retirement over many years; the same long-term thinking can benefit Nigerians, whatever their age or income.
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Debt is another area that demands care. Borrowing can sometimes be useful, especially for productive purposes, but using credit to fund everyday spending or maintain an image can become costly. A person who repeatedly borrows to cover bills may find that repayments consume the next month’s income, leading to more borrowing. Before taking a loan, understand the interest, fees, repayment period and consequences of missing payments. If several debts are already causing pressure, listing them and making a realistic repayment plan is a practical first step.
A budget can help prevent many of these problems, yet some people consider it restrictive or too complicated. In reality, a budget is simply a plan for where money should go. It can be written in a notebook, tracked in a spreadsheet or recorded with a phone app. Start by noting income and regular costs, such as rent, transport, food, airtime and school expenses. Small purchases matter too: frequent snacks, unplanned rides or unused subscriptions can quietly add up. Tracking them helps reveal where adjustments are possible.
Good money management is not about denying yourself every pleasure. It is about choosing what matters, preparing for setbacks and avoiding decisions that create unnecessary stress. Income levels and responsibilities differ, so there is no single plan that suits everyone. But at any age, knowing what comes in, deciding what must go out and saving consistently can improve financial confidence.
Start with one manageable change: record your spending, save a small amount on payday or review a recurring expense. A modest habit, repeated over time, can be more powerful than a grand plan that is never put into practice. Your future self may be grateful you began today.
By Adeniyi Bamgboye
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Bamgboye, a chartered accountant, tax expert, and policy analyst, is the managing partner of Empyrean Professional Services.
