MoneybyZikoko: How Do You Handle Debt?

Volume 89

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Good morning,

We’ve covered stories of tech talents who have lost their jobs as macroeconomic conditions across the continent bite harder. But did you know that over 1400 people lost their jobs in the first half of 2024? This puts things in context.

I pulled this number from TechCabal Insights’ State of Tech in Africa report and found some other useful highlights.

a. African startups raised $779.4 million, the lowest half-year raise since 2020.

b. Only one startup raised over $100 million in funding from January to June.

c. Debt deals made up 32.6% of total funding.

If you want to know more about how the tech industry has performed this year, download the report for free here.

Now, let’s look at today’s stories.

In this letter:

#NairaLife: The Content Sales Rep Living on ₦625k/Month
“I Spent Nights in Jail” — 6 Nigerians Talk About Going Into Debt
Aunty M: I’m not Making Enough Despite Salary Increases ans Job Changes
QUIZ: How Good Are You With Money?
Where The Money At?!

The Content #NairaLife of a Sales Rep Living on ₦625k/Month

Up until 2017, the highest amount this 29-year-old medical sales rep had at a time was ₦14k. Now, he’s averaging ₦625k/month. According to him, his standard of living has gone from zero to 200%, and things can only continue to improve.

This is his #NairaLife

Jollof+ is a cutting-edge savings app providing up to 21% net interest rate with no hidden charges. Designed to help combat inflation, Jollof+ offers personalized saving features, ensuring steady financial growth for users.

Find out more here

“I Spent Nights in Jail” — 6 Nigerians Talk About Going Into Debt

Almost everyone has an experience with debt, albeit differently. But how do most people deal with being in debt? Are there lessons to be learnt?

We asked six people ehre

Ask Aunty M with Reni

Despite salary increase and change in Jobs, I’m not making enough money. I couldn’t move houses like I would have loved, so I am closer to work. Worrying about using all my current resources in getting a car. I don’t know what to do. I’m using alcohol as my escapism. – Paul, 30

Hi Paul, thank you so much for writing and sharing with me. I empathise with you and understand why you feel very stressed. Here are some steps you can explore to regain control of your situation:

First, create a detailed budget. Let me be clear—budgeting does not help anyone escape poverty, but often, we spend money on things that we could cut out, allowing us to redirect the funds to savings and investments. Start tracking your income and expenses to see where your money is going and identify areas where you can cut back and save.

Second, explore additional income streams. The reality is that there is only so much that you can cut back, and Nigeria is an expensive place right now. Increasing your income and keeping your expenses constant will help you to have more disposable income. Are there any remote gigs you can take? Any part-time jobs? Look outside of everything you know as traditional work and explore other options.

Third, instead of leaping into this car purchase and having no resources left, plan towards the car as it is a big purchase. Set a goal of how much you need for a car and then put money towards that goal monthly until you reach it. Using all your savings for the car purchase will leave you stressed. Also, remember that the purchase is more than just the cost of the car. Consider the fuel cost, maintenance, and other things that come with the purchase before you buy.

Lastly, seek professional advice. Turning to alcohol to escape these problems is a very slippery slope. I understand it is a coping mechanism, but it is dangerous. A therapist or other mental health practitioner may be able to help find healthier coping mechanisms.

You can do this. Your situation can change.

Xoxo,
Reni

Have a money question? Ask Reni here and we’ll take it from there

QUIZ: How Good Are You With Money?

Money management is a skill. Some people are simply better at it than others. Where do you stand?

Take the quiz to find out

Where The Money At?!

We can’t say we’re about the money and not actually help you find the money.

So we’ve compiled a list of job opportunities for you. Make sure you share this with anyone who might need it because in this community, we look out for each other.

Again, don’t mention. We gatchu.