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Top 5 Money Mistakes Young Nigerians Make

         Financial education is not included in the curriculum for students in Nigeria, but it should be. It is not enough to make money; it must be managed properly and made to grow. If you find yourself struggling financially, even despite having good income, you are likely to be making one or more of these 5 mistakes.  1. Living above your means: You need to track your spending and know if you’re living within your means. Spending more than you earn will ensure that you never amount to anything financially. A good place to start is to track your daily spending. Looking at a record of where all your hard earned money really goes is an eye-opener, and you just may be surprised at what you discover. If you’re spending so much that you have nothing to save, you will never know financial freedom no matter how much money you earn. Which brings us to our next point… 2. Not saving money: If you think saving money is a waste of time, think again. Putting money in your savings account before you start spending is a great way to pay yourself first; most of the money you make goes to other people. A savings account will help you stabilize your finances, and it also gives you something to fall back on when a genuine emergency comes up, so you don’t find yourself broke or worse, in debt. Once you’ve accumulated a tidy sum, you can even open a fixed deposit account and earn more interest on your money. However, you may not have any money to save if you’re making this mistake… 3. Paying too much in rent: Living in a highbrow area can be great for your ego and even your reputation, and access to opportunities and amenities that abound in these places can increase your quality of life, but you have to make sure that your income can conveniently carry it. If you spend more than a third of what you earn on house rent, then you’re living in a place you can’t afford. Move to a less expensive place, or if you must remain where you are, get a flatmate and split the cost between you so you don’t end up giving away all your earnings to landlords, and inevitably end up making mistake number 4… 4. Neglecting to invest: It is not enough just to save. There is a difference between passively saving money, and actively growing your money. The latter can be done only by investing. Whether you’re buying shares and treasury bills, or investing in mutual funds, make sure you are making your money work for you. There are many financial houses with a range of packages to help you invest your money and make good returns. Even if you’re not a risk taker, there are many forms of low risk investment that you can put your money into. Find what works for you and get on it as soon as possible; the good news is you don’t have to wait until you’re wealthy before you fix mistake number 5… 5. Ignoring charity: “A generous person will prosper; whoever refreshes others will be refreshed,” the Bible says, and charitable giving- both obligatory and voluntary- is an essential part of Islam as well. Whether you are a spiritual person or not, the benefits of giving are undeniable. Many successful people, including Bill Gates, Oprah Winfey and Jim Rohn believe strongly in the power of giving. When you are a giving person, you open yourself up to the blessings that come with an open hand; so make charity part of your life.   About the writer: Joy Ehonwa is a writer, copy-editor and online proofreader who is passionate about relationships and personal development. She runs Pinpoint Creatives, a copy-editing, ghostwriting and transcription business, blogs at www.anafricandiva.wordpress.com and www.girlaware.wordpress.com and tweets @JoyEhonwa
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