A personal finance expert and founder of Money Africa, Oluwatosin Olaseinde, said it is important to avoid lifestyle inflation, among other things.
He said: “Please avoid lifestyle inflation. This is when people start to increase their expenses at the same rate as their incomes; don’t compare costs before you make a purchase; always compare before you buy that purchase;
“Thinking you have time and delaying your investment, start investing now; Time is a critical component in investing. Don’t invest in yourself, you are your greatest asset. The more skilled you are, the more income you can earn
“Going into lifestyle debt. There is good credit and bad credit. Stay away from bad credit and don’t try to catch up with the Adenugas.”
A personal finance coach, Bisoye Okwoli, who he spoke to the PUNCH, he said personal finance was the ability to multiply and manage money.
According to Okwoli, achieving success in personal finance was easy if Nigerians avoided certain mistakes like overstretching themselves to meet certain family commitments.
While some Nigerians could comfortably afford their monthly outgoings, Okwoli advised that it was a good idea to set a budget.
Okwoli said: “I usually tell people to budget to the last naira. Set an amount every month to save. You can’t meet everyone’s needs or you will die soon.
“So put aside what you want to give and after you’ve spent it, let people know you’ve crossed your donation threshold.”
Okwoli also added that one mistake to avoid during the year was not automating financial decisions in terms of savings.
“After you automate, take action,” he said.
Okwoli explained that not having a financial accountability partner during a financial journey could delay the actualization of personal finance success.
“If you hang out with people, one of the things they do is make you responsible. According to her, these partners help keep expenses and financial decisions under control.
Personal finance, according to experts, encompasses budgeting, banking, insurance, mortgages, investments, retirement, taxes and estate planning.
According to Investopedia, individual goals and desires and a plan to meet needs within financial constraints also affect how things are approached.
According to the above, personal finances are fundamental to the survival of both individuals and families. As an entrepreneur, it is imperative that personal finance is practiced to ensure success in market operations.
According to a World Bank report on “A Better Future for All Nigerians: Nigeria Poverty Assessment 2022”, four out of 10 Nigerians live below the national poverty line.
He stated that many Nigerians, especially in the north of the country, also lacked education and access to basic infrastructure such as electricity, drinking water and improved sanitation.
The report revealed that the jobs do not translate the hard work of Nigerians into a way out of poverty as most of the workers were involved in small scale household farms and non-agricultural enterprises; only 17 percent of Nigerian workers held the wage jobs most capable of lifting people out of poverty.
Despite the high poverty rate, a report by Bankrate and the US finance platform said managing money could be a challenge, even if a person received some financial training in school.