​Your money or your life (II)

Dear Madams,

In our last conversation, we established a powerful truth: taking control of your finances is taking control of your life. We agreed to stop trading our peace for a paycheck and our freedom for financial dependency. That was the ‘why’. Now, let’s get into the ‘how’. This isn’t about complicated theories; this is your practical blueprint, the step-by-step guide to building your financial fortress, one block at a time.

Step 1: The Financial Mirror — See Where You Truly Stand

You can’t plan a journey without knowing your starting point. For the next 30 days, I want you to become a detective of your own spending. This isn’t about judging yourself for buying that extra meat pie or paying for an Uber when you could have taken the bus. It’s about gathering data.

Get a dedicated notebook or use a simple notes app on your phone.

Write down every single Naira you spend, from the ₦200  to the ₦15,000 you spent maybe on subscription. Don’t leave anything out.

At the end of the month, categorize your spending: Food, Transportation, Airtime/Data, Aso Ebi, Skincare, Family Support, etc.

This simple exercise is revolutionary. It’s like looking in a mirror for the first time. You’ll see exactly where your money is going. This knowledge is not a weapon to beat yourself with; it’s the map you need for the journey ahead.

Step 2: The 50/30/20 Rule — Your Simple Money Map

Now that you know where your money goes, it’s time to tell it where to go. A simple and effective way to do this is the 50/30/20 rule. It’s a guideline to divide your after-tax income.

50% for Needs: This is for the absolute essentials. Rent, utility bills (like NEPA), groceries, transportation to work, and your children’s school fees. These are the non-negotiables you need to live.

30% for Wants: This is for your lifestyle. Eating out, new clothes, entertainment, gifts, and that extra data for TikTok. These are the things that make life enjoyable but aren’t critical for survival.

20% for ‘Future You’: This is the most important category for building freedom. This portion goes directly to savings, investments, and paying off high-interest debt. Think of this as paying your future self first. Before you pay for a new dress or a night out, you set aside 20% for the woman you want to be in 5, 10, or 20 years.

Step 3: From Saving to Growing — Plant Your Money Tree

Saving and investing are not the same thing, and you need to do both.

Saving is for safety. Your first goal should be to build an emergency fund. This is 3-6 months’ worth of your essential living expenses (your ‘Needs’). This money should be liquid (easy to access) but not too easy. Keep it in a separate high-yield savings account, like those offered by apps and lock it down, not in your main bank account. This fund is your shield. It’s what allows you to leave a toxic job or handle an unexpected family emergency without going into debt.

Investing is for growth. Once your emergency fund is in place, you can start making your money work for you. Investing is how you beat inflation and build real wealth. Don’t be intimidated! You can start small.

The key is to start, even if it’s just with ₦5,000 a month. Consistency is more powerful than a large starting amount.

This journey is not about deprivation; it’s about intentionality. It’s about choosing the life you want and funding it yourself. Every time you track your spending, follow your 50/30/20 plan, or invest that small amount, you are casting a vote for a future where you are in complete control.

You are choosing your life!

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