In today’s economic climate, many Nigerians find themselves struggling to stretch their salaries from month to month. With rising inflation and increasing living costs, it’s more important than ever to develop strategies to make your hard-earned money go further. Here are some practical tips tailored to help every Nigerian maximize their salary and improve their financial well-being.

Key Strategies on how to Make Your Salary Last Longer

1. Create a Realistic Budget

The foundation of any sound financial strategy is a well-planned budget. Start by tracking your expenses for a month to understand where your money is going. Categorize your spending into essentials (rent, food, transportation) and non-essentials (entertainment, dining out). 

Once you have a clear picture of your spending habits, create a budget that allocates your salary across these categories. Follow the 50/30/20 rule: 50% for needs, 30% for wants, and 20% for savings and debt repayment. Adjust these percentages based on your personal circumstances and financial goals.

2. Embrace the Art of Bulk Buying

In Nigeria, buying in bulk can lead to significant savings, especially for non-perishable items and household essentials. Take advantage of deals at markets like Mile 12 in Lagos or Utako Market in Abuja. Stock up on items like rice, beans, palm oil, and toiletries when prices are favorable. However, be cautious with perishables to avoid waste.

3. Optimize Your Transportation Costs

Transportation can eat up a significant portion of your salary, especially in major cities like Lagos or Port Harcourt. Consider carpooling with colleagues or neighbors to share fuel costs.

4. Take Advantage of Loyalty Programs and Discounts

Many Nigerian businesses offer loyalty programs that can help you save money over time. Sign up for programs at supermarkets like Shoprite or Spar, and accumulate points on your regular purchases.

5. Invest in Energy-Efficient Appliances

Given the erratic power supply in many parts of Nigeria, investing in energy-efficient appliances can lead to significant savings on electricity bills and generator fuel costs. Look for appliances with high energy star ratings, and consider solar-powered options for items like water heaters or outdoor lighting.

6. Explore Side Hustles

In Nigeria’s gig economy, there are numerous opportunities to supplement your income. Consider freelancing on platforms like Fiverr or Upwork, selling handmade crafts on Etsy, or offering services like tutoring or home repairs in your local community. Every extra naira earned can help stretch your primary salary further.

7. Cook at Home and Pack Lunches

Eating out, even at local bukas, can quickly drain your salary. Learn to cook simple, nutritious meals at home using local ingredients. Invest in good food storage containers and pack lunches for work. This not only saves money but also helps you eat healthier.

8. Negotiate Better Rates for Regular Services

Don’t shy away from negotiating better rates for services you use regularly. This could include your rent (many Nigerian landlords are open to negotiation), your cable TV package, or your internet service. Even small reductions can add up over time.

9. Utilize Mobile Money and Digital Banking

Take advantage of mobile money services like Paga or OPay, and digital banking options offered by traditional banks. These often have lower transaction fees compared to traditional banking methods. Plus, they make it easier to track your spending and avoid impulse purchases.

10. Plan for the Long Term

While making your salary last through the month is important, don’t forget to plan for the long term. Set aside money for emergencies and consider long-term investments. Explore options like Treasury Bills, mutual funds, or even the stock market through platforms like Bamboo or Chaka.

11. Practice Delayed Gratification

In a world of instant gratification, learning to delay purchases can significantly impact your financial health. Before making non-essential purchases, wait for at least 48 hours. This cooling-off period often leads to more rational spending decisions.

12. Regularly Review and Adjust Your Strategy

Finally, remember that making your salary last longer is an ongoing process. Regularly review your budget and spending habits. Be prepared to adjust your strategy as your circumstances change or as you find new ways to save.

By implementing these strategies, you can stretch your salary further, reduce financial stress, and work towards a more secure financial future. Remember, small changes in your daily habits can lead to significant improvements in your financial well-being over time. Start today, and watch as your naira goes further each month!

Bravewood is licensed by the Central Bank of Nigeria to provide investments with low risk and high returns for Nigerian professionals.