In our journey to distinguish between needs and wants, it’s crucial to develop practical strategies that help us make mindful money decisions. Let’s explore some techniques that can serve as your personal financial advisors, guiding you toward smarter spending choices.

1. The “Sapa” Reflection

If you are the type of person who splurges unnecessarily and ends up becoming broke, then this is for you. Before making any purchase, especially one that feels like a “want,” take a moment for the “Sapa” Reflection. Ask yourself, “Will this bring me joy, or will it bring me sapa (broke-ness)?” The answer should be able to make you retrace your steps to that store.

This simple question encourages you to consider the long-term consequences of your purchase. Will the momentary pleasure of buying that new gadget outweigh the potential financial strain it might cause? There is just that feeling of joy that often comes from financial security rather than fleeting material possessions.

Practical Application:

– Create a “Sapa Scale” from 1-10, where 1 is “Definite Sapa” and 10 is “Financial Bliss”

– Rate each potential purchase on this scale before buying

– Set a personal rule, like not buying anything that scores below a 7

– Get someone to always keep you accountable and review it with you weekly.

2. The Bank Alert Test

Imagine you had to transfer money immediately for this item – no credit, no installments, just a direct debit from your account. Would you still buy it?

This test helps you distinguish between impulsive desires and genuine needs or carefully considered wants. It’s easy to say yes to something when the payment is delayed or spread out. But when faced with the immediate impact on your bank balance, your perspective often changes.

Practical Application:

– Before using credit or installment plans, calculate the full cost of the item

– Transfer that amount to a separate savings account

– If you can comfortably do this, then consider the purchase. If not, it might be wise to reconsider

3. The Village People Vibe Check

Have you ever tried explaining your purchase intent to your no-nonsense disciplined uncle or elder? Now, bring this item you want to buy into the picture- Would they nod in approval or threaten to call a family meeting?

This mental exercise taps into our cultural values and long-term thinking. Our elders often have a wealth of financial wisdom, having navigated through various economic climates. Their perspective can help us differentiate between fleeting trends and lasting value.

Practical Application:

– Keep a picture of a respected elder or mentor as your phone wallpaper

– Before making a significant purchase, imagine explaining it to them in detail

– If you feel uncomfortable with the imaginary conversation, it might be a sign to reconsider

4. The 30-Day Rule

For non-essential purchases, especially big-ticket items, implement a 30-day waiting period. If you still want the item after 30 days and can afford it, then consider buying it. This rule helps combat impulse buying and allows you to differentiate between genuine desires and fleeting wants. Often, the initial excitement of a potential purchase fades, revealing whether it’s truly important to you.

Practical Application:

– Keep a “30-Day Wish List” on your phone

– Set a calendar reminder for 30 days after adding an item

– Review the item after 30 days, considering if it still aligns with your financial goals

Takeaways

Understanding these psychological and cultural influences is like having a financial GPS in the complicated terrain of Nigerian spending habits. It’s not about denying yourself every want, but about making conscious choices that align with your true needs and long-term financial health.

Remember, the goal isn’t to never enjoy your money. As the popular saying goes, “Chopping life is not a crime.” However, it’s about chopping life responsibly, in a way that ensures you can keep chopping life for many years to come.

By implementing these mindful money moves, you’re not just avoiding “sapa” – you’re building a foundation for lasting financial wellness. You’re developing the ability to manage your money so well that you can confidently face any financial situation, knowing you’ve made smart, considered decisions.

Remember, every naira invested is a step towards the financial freedom you deserve!

That’s all for now on mindful money moves.

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