Why Do You Feel Stuck Financially?
You work hard, you earn money, yet it never seems to be enough. No matter how much you try to save, unexpected expenses always come up. At the end of each month, you find yourself wondering where all your money went and why you’re not making financial progress.
You’re not alone. Many people struggle with money habits that keep them stuck in a cycle of living paycheck to paycheck. The good news? Financial struggles are mostly about conduct. And once you recognize the habits holding you back, you can begin to break free and take control of your finances.
Let’s get into the most common money habits keeping you broke and more importantly, how to fix them.
1. Living Without a Budget:
If you don’t have a budget, you don’t have control over your money. You’re likely spending blindly, not knowing where your money is really going. This leads to impulse spending, unnecessary expenses, and financial stress.
How to Fix It:
- Start by tracking your expenses for a month. Write down everything you spend money on.
- Categorize your spending (essentials, savings, debt, and wants).
- Set a realistic monthly budget that prioritizes needs, savings, and debt repayment before wants.
Budgeting doesn’t mean restricting yourself. It simply means telling your money where to go instead of wondering where it went.
2. Spending More Than You Earn:
If your expenses exceed your income, you’re constantly digging yourself into debt or living paycheck to paycheck. This often happens when you rely on credit cards, take unnecessary loans, or try to “keep up” with a certain lifestyle.
How to Fix It:
- Identify areas where you can cut costs. Subscriptions you don’t use, dining out too often, or unnecessary shopping.
- Increase your income through side hustles, freelancing, or asking for a raise at work.
- Stick to your budget and prioritize saving before spending.
Living within your means is one of the fastest ways to achieve financial stability.
3. Relying on Debt to Survive:
- Debt, especially high-interest debt like credit cards and payday loans, can trap you in a cycle of paying interest instead of building wealth. If you’re borrowing money to cover everyday expenses, it means you’re spending more than you earn.
How to Fix It:
- Stop taking on new debt unless absolutely necessary.
- Focus on paying off high-interest debts first
- Build an emergency fund so you don’t have to rely on credit for unexpected expenses.
- Use cash or debit cards instead of credit cards whenever possible.
4. Not Having an Emergency Fund:
Without savings, any small emergency like a car repair, medical bill, or job loss can throw you into financial chaos. This leads to borrowing money at high interest rates, making the situation even worse.
How to Fix It:
- Start small. Even ₦5,000 to ₦10,000 per month can build up over time.
- Keep your emergency fund in a separate savings account to avoid temptation.
- Aim to save at least three to six months’ worth of living expenses over time.
An emergency fund protects you from financial disasters and gives you peace of mind.
5. Not Investing or Growing Your Money:
If you’re only saving money but not investing, you’re losing purchasing power due to inflation. Money sitting in a regular savings account isn’t growing. It is actually shrinking in value over time.
How to Fix It:
- Learn about low-risk and high-return investment options (stocks, mutual funds, real estate, or retirement plans).
- Take advantage of pension contributions (like PAL Pensions) to secure your future.
- Start small, even ₦10,000 invested monthly can grow into millions over time with compound interest.
6. Impulse Spending and Emotional Shopping:
Do you buy things just because they’re on sale? Or spend money when you’re bored, or stressed? Impulse shopping can quickly drain your finances without you even realizing it.
How to Fix It:
- Follow the 24-hour rule. Wait at least a day before making non-essential purchases.
- Unsubscribe from marketing emails and social media ads that tempt you to spend.
- Use cash instead of cards for everyday expenses to make spending feel more “real.”
7. Avoiding Financial Planning:
If you’re not planning for the future, you’ll always feel like you’re just “getting by.” Many people avoid financial planning because it feels overwhelming but not planning at all is far worse.
How to Fix It:
- Set clear financial goals. Saving for a house, retirement, or building wealth.
- Meet with a financial advisor or use financial planning tools to create a roadmap.
- Check your financial progress monthly or quarterly and make adjustments as needed.
8. Not Having Multiple Income Streams:
If your only source of income is your salary, you’re financially vulnerable. Relying on a single income stream means if anything happens to your job, your entire financial stability is at risk.
How to Fix It:
- Freelancing: Use your skills (writing, graphic design, coding) to earn extra income.
- Investing: Build passive income through investments.
- Small businesses: Sell products, start an online store, or monetize your hobbies.
Having multiple income streams creates financial security and wealth-building opportunities.
Now that you understand the financial habits that is hindering your growth, the next step is taking action.
✔ Start budgeting to control your expenses.
✔ Cut unnecessary spending and live within your means.
✔ Save and invest to grow your money over time.
✔ Reduce debt and avoid high-interest borrowing.
✔ Plan for the future because financial security isn’t accidental, it’s intentional.
