MoneyByZikoko: What Happens When You Can’t Refuse Billing?

Volume 86

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Good morning,

Whatever your thoughts on Nigeria’s billing culture, it isn’t likely to leave our society anytime soon. In one of the stories in today’s newsletter, we explore just how difficult the billing culture can be, especially for firstborn children, with some going into debt to shoulder family responsibilities.

Speaking on debt, today’s #NairaLife subject has been struggling with it since 2022, when a series of unfortunate events pushed her into a loan cycle. To manage her debt, she’s resorted to several money-making ventures, including stripping and bikini dancing.

Let’s get into the stories.

In this letter:

#NairaLife: The Corps Member Who’s Stripping to Pay Off Her Debt
6 Money Situations Where First Borns in Nigeria Just Can’t Say No
Aunty M: I’m Earning ₦270k. How Do I Structure My Expenses?

QUIZ: Are You Living Above Your Means?
Where The Money At?!

The #NairaLife of a Corps Member Who’s Stripping to Pay Off Her Debt

The 26-year-old corps member in this #NairaLife wants only two things: to pay off her debt and find dignified work. A series of unfortunate events pushed her into a debt cycle in 2022, and she’s done many things to get out, including stripping and bikini dancing.

How’s that working out for her?

Read her #NairaLife here

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6 Money Situations Where First Borns in Nigeria Just Can’t Say No

Nigeria is tough and being the first child in Nigeria is even tougher. A major source of this stress is money. No matter how many times you give, the one time you can’t, it becomes a problem.

What are some of the money situations where you just can’t say no?

We listed them here

Ask Aunty M with Reni

Hi, Aunty M.
I just got a job with a monthly salary of ₦270k. I have never saved or had a job paying this much. How can I structure my expenses and what percentage is advisable to save? – R

Congratulations!! I’m so happy for you. I’m happy to hear that you want to get a system around your finances. My suggestion is to follow the popular guideline 50/30/20. Remember, this is just a guideline and not a law but it can help you figure out how to allocate your money.

The 50/30/20 rule dictates that 50% of your income goes towards your essentials (housing, utilities, groceries), 30% of your income towards spending (entertainment, enjoyment), and 20% towards investing and saving. So, with ₦270k monthly, you would allocate ₦135k to your essentials, ₦81k for spending,
and ₦54k for saving and investing.
Personally, I think this a good place to start but again, it depends on your life circumstances. With my first job, I was still living with my parents rent-free, so I put closer to 50% of my income towards my savings and investments each month. This allowed me to fast
track my way towards my financial goals.

To figure out what the best structure is for you, I encourage you to:

1: Look through the past 3 months of your spending and see how much you are spending in each category.

2: Start budgeting and tracking your spending going forward so you can be more mindful of where your money is going.

3: Start setting goals. Yes, ₦54k monthly is a decent amount to save, but if you plan to buy a car in the next 6 months or go on a trip, you need to increase your savings rate.

4: Automate your transfers toward your savings and investments. This ensures you are always saving and investing before spending rather than vice versa.

5: Adjust regularly. Just because you start with a specific structure now doesn’t mean you have to stick to it forever.

Xoxo,
Reni

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

Are You Living Above Your Means?

Yes, you probably are. But let’s find out for sure.

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.