Cultivating Healthy Financial Habits in 2025
Omolabake Fasogbon
Nigerians cannot forget in a hurry the devastating shock of the past year due to the spurring increase in prices of commodities and other basics which rose by over 200 percent. Many are still reeling in debt, among other severe consequences that followed sudden economic policies because they were not prepared.
Therefore, as Nigerians go about creating their new year resolution, a top priority should remain embracing healthy financial habits this year.
This is particularly important as analysts’ projections in the new year do not suggest respite so soon, but that Nigerians should brace up for a tougher economy where rising inflation and debt profile, among other indices, do not appear to wither soon.
Although analysis from some quarters appears promising, it is advisable that Nigerians take financial caution even right from the beginning of the year so as not to be let off guard.
Financial experts who spoke with THISDAY said this would help mitigate the effects of anticipated uncertainty, including the rising cost of commodities, fluctuating currency and events in the global market.
To this end, the President, Bank Customers Association of Nigeria (BCAN) Dr. Uju Ogubunka, said Nigerians must be practical about restructuring their plans and re-profiling themselves in tandem with prevailing reality.
“You need to study yourself carefully and see what you are to gain within the year or your earning capacity, then you build your spending within this capacity so you don’t overrun yourself with costs,” he urged.
Ogubunka highlighted the increasing gap between rising prices and stagnant incomes, warning that maintaining pre-inflation spending habits could lead to financial difficulties. “Unfortunately for us in the country, prices are increasing daily. And if your earning capacity is not rising as much as that, then you have gaps, negative gaps,” he explained.
He maintained that adapting spending habits was not impossible, although, it may be a bit hard.
“The key lies in adjusting spending patterns accordingly. Reappraise your income, then re-profile your expenditure. And then cut your costs according to your cloths.
“Don’t do things because somebody else is doing it. If you cannot afford it, suspend or eliminate it from your cost profile. Don’t go into areas that you won’t find yourself out. I’m talking about going into things because somebody else is there Remember, your income may not be as juicy as the person you seek to imitate”, he said
To the Managing Partner at Empyrean Professional Services, Mr. Bamgboye Emmanuel, budgeting and tracking of expenses will make some of the tips prescribed above more practicable.
Of importance, according to him, is having a realistic budget that aligns with financial goals.
“There are budgeting tools that can keep you on track, and not necessarily complicated ones like excel. This can be done through a note on the phone, WhatsApp or even a sheet of paper,” Emmanuel enlightened.
The management expert advised further on prioritising savings by setting clear goals. “Whether it’s for emergencies, future investments, or specific purchases like a car or house, automate your savings so that it’s deducted directly and you don’t have easy access to it,” he advised.
He encouraged Nigerians to explore high-yield savings options to ensure their money grows. “Your money shouldn’t just sit idle in the bank. Look for savings or investment accounts that yield reasonable interest. You can diversify your investments, and explore options like real estate or other viable opportunities”
Bamgboye added, “Try to stay debt-free as much as possible. Minimize unnecessary debts, especially high-interest ones, and prioritise paying off existing debts.”
Additionally, an economist, Prof. Chiwuike Uba, said Nigerian must learn delayed gratification strategy and clearly distinguish between necessities and luxuries.
He posited that it has reached a stage that everyone acquires some knowledge of financial concepts either formally or informally.
“Seeking expert guidance from financial advisors is paramount. Collaborating with seasoned professionals can assist in customising strategies that align with one’s financial objectives within the dynamic Nigerian economic environment,” he submitted.
And amid growing food inflation, Uba suggested, “It is imperative for every citizen to consider engaging in subsistence farming to ensure the provision of adequate food for self and family members.”
