With the rising cost of living in Nigeria, stretching your salary for 30 days can feel like an impossible task.
Many people find themselves trapped in a cycle of borrowing, not because of a curse from a wicked uncle, but due to inflation and increasing expenses.
But is borrowing the answer? You already know it isn’t. So, how can you survive on a small salary without taking extra jobs? The key lies in cutting costs and maximizing your income. Here are practical strategies to help you make the most of your salary.
1. Create a Smart Budget
Budgeting is the foundation of financial stability. To avoid running out of money before payday, track your income and expenses and create a budget at the beginning of each month. Follow the 50/30/20 rule:
- 50% for necessities (rent, food, transportation, and bills)
- 30% for wants (entertainment, hobbies, and lifestyle choices)
- 20% for savings and debt repayment (adjust as needed)
Using a budgeting app can make tracking expenses easier and prevent unnecessary spending.
2. Cut Unnecessary Expenses
Many expenses drain your finances without adding real value. If you can’t afford something, cut it out. Here’s how:
- Cancel or downgrade subscriptions to streaming services and data plans.
- Cook at home instead of eating out.
- Buy secondhand items like clothes, electronics, and furniture to save money.
- Reduce transportation costs by carpooling or using public transport instead of ride-hailing services.
3. Save Money the Smart Way
Saving money may seem impossible on a small salary, but it’s essential for financial stability. Try these strategies:
- Automate your savings so a portion of your salary goes directly into a savings account.
- Use high-interest savings accounts to grow your money over time.
- Follow the ‘Pay Yourself First’ rule, meaning you save before spending on non-essentials.
4. Increase Your Earning Potential
While getting an extra job might not be feasible, you can increase your income by leveraging your skills. Consider:
- Freelancing (writing, graphic design, tutoring, or social media management)
- Selling handcrafted products online
- Offering services like hairdressing, photography, or baking
With many free resources available online, you can learn new skills and start earning extra income without quitting your current job.
5. Plan for the Future
Financial success requires long-term planning. Start by:
- Building an emergency fund (aim for 3–6 months’ worth of expenses)
- Investing wisely (consider mutual funds, stocks, or cooperative societies)
- Setting financial goals (such as buying a home, starting a business, or funding higher education)