9 steps to financial freedom for Nigerians under 30

In a nation like Nigeria where economic challenges like inflation, unemployment, and unstable income streams exist, achieving financial freedom before 30 might seem like a mirage. However, this is possible only if Nigerians under 30 can be proactive, disciplined, and smart.

Discussed in this article is the meaning of financial freedom and how to achieve it as a Nigerian under the age of 30. 

Financial freedom is a state where you have complete control over your finances, allowing you to make choices based on your desires and goals rather than being limited by how much things cost. It means having enough income or savings to cover your expenses, giving you the freedom to live life on your own terms.

Below are 9 practical steps to attain financial freedom as a Nigerian under 30.

1. Understand Your Financial Situation

To be financially free before your 30s, you need to know where you stand financially. This is achievable by tracking your income and expenses, identifying unnecessary spending habits, and henceforth setting clear financial goals  (short-term and long-term).

2. Develop a Budget and Stick to It

You can achieve financial freedom through the creation of a budget as this helps you control your spending and prioritize savings. 

As a guide, for individuals with a stable income you can employ the 50/30/20 rule, that is, 50% of your income towards your necessities (rent, food, transportation, bills), 30% towards your wants (entertainment, shopping, etc.), and 20% for savings and investments.

If you, however, fall into the category of Nigerians with irregular income (freelancers, business owners, etc.), your budget should be based on your average monthly income to prevent overspending in good months.

Note that the goal here is not just about creating a budget but also sticking to it. 

3. Avoid and Manage Debt Wisely

If you want to be financially free, then avoid debt traps. The availability of digital lending platforms doesn’t mean you should take loans and get yourself into debt. However, if there is a need for you to take a loan either for business or other essential purposes, be sure to avoid loan apps with excessive interest rates, or borrow from trusted sources with favorable terms. 

In all, avoid debts as much as you can, and if not possible, manage debts wisely.

4. Build Multiple Streams of Income

Nigeria is a land of opportunities and this provides its citizens access to multiple streams of income depending on their creativity and flexibility. 

If you want to be financially independent before 30, you should consider building multiple streams of income. This helps cushion you from the effects of Nigeria’s unstable economy. In addition to your 9-5 job, you can consider freelancing, agribusiness, or monetising other skills you have to expand your sources of income. 

5. Prioritize Savings and Emergency Funds

According to Edmond Mbiaka, “Always prepare yourself for a financial emergency, even when you don’t see a possibility of a rainy day in your future.” 

In life, emergencies cannot be ruled out, so ensure you plan for them so they don’t catch you unawares and disrupt your financial freedom plans. You can consider creating a separate account specifically designed for savings and emergencies. 

6. Invest Early and Smartly

Robert Kiyosaki once said, “It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” 

To be financially free as a Nigerian under 30, investing early and smartly is a must for you. Knowing that investing is key to long-term wealth growth and that the earlier you invest, the more time your money has to grow.

7. Get Financial Education

An investment in knowledge is said to pay the best interest. To achieve financial freedom and make informed financial decisions, you need financial education. You don’t need to go to a school before you can get this form of education rather you can enroll for courses online or read books such as “The Richest Man in Babylon by George Samuel Clason”, “The Psychology of Money by Morgan Housel”, etc.

8. Plan for Retirement Early

A retirement plan may seem too early, but you must start early. The earlier you start planning for your retirement, the better you are able to secure your future financially. You can start small now depending on your income and increase it as time goes on. The ultimate goal is to kick-start a retirement plan early. 

9. Avoid Lifestyle Inflation

To achieve financial freedom, you should avoid lifestyle inflation. What this means is that, as you move ahead in life and your income grows, there is always a temptation to upgrade your lifestyle to suit your current earning. This should be avoided if you must achieve your financial freedom goal as delayed gratification and financial discipline are key to building wealth.

In all, financial freedom in Nigeria before 30 is achievable. With consistency, financial literacy, and patience, you can break free from financial struggles and enjoy a stable and secure future.