HOW TO ENJOY MAXIMUM BENEFITS FROM YOUR MONTHLY INCOME

We work really hard in order to live well and take care of our loved ones. Some people say that money burns the pocket. That is, money is always hot and never enough. But I think that we can lead meaningful lives with the money we have while we work towards having more. 

I constantly live on a budget. It's just my nature regardless of how much I earn. Over the years, I have learned a thing or two about maximizing my income. If you earn 100k or less per month in Lagos, the following tips will guide you well. 

1. Divide Your Salary into Portions: 

In my opinion, fifty percent (50%) of your income should go into living expenses and this should include housing, transport, electricity, groceries, and other expenses related to keeping your work-life in motion. Then twenty 25% should go into meeting your lifestyle needs in terms of health, fitness, fashion, dining, and holidays. Budget another twenty percent (20%)  for savings and  5% (five percent) towards an educational fund. 

So: 50%:  Living expenses

       25%: Lifestyle

       20% :Saving

       5%: Educational fund

2. Tips for minimizing your living expenses: 

•  Don't keep up with the Benjamins. Just because someone else can afford a certain lifestyle doesn't mean you have to keep up with the said person. Relax, your time will come too. 
• Take the bus. You'd spend more money on fuel and maintenance if you own a car. Plus, taking the bus gives you more time to read a book or learn a new language. 
• Live in a shared apartment. It's best to live with your parents if you have that option. But if you don't, please share an apartment with a friend. You'd both split a lot of the living expenses. 
• Live close to work so that you save money on transportation. 
• Plan and prep your meals. If you enjoy constant power supply where you live, you'd save more by meal prepping. 
• Avoid impulse food buying.

3. Lifestyle. 

• If you enjoy sports, then you should pick up running because it is very inexpensive. You can also do indoor strength workouts with dumbbells. Or schedule your visits to the sports center. I don't live close to the National Stadium in Lagos but I plan my visits there and enjoy good facilities for charges next to nothing. 
• Mix your wardrobe. Always invest in good shoes (buy new) but mix your wardrobe with new and old items. 
• Fine dine and take pictures for social media. You can actually budget for a fine-dining experience every other month. Please split the bill with your friends and go with people who can take good pictures (for the 'gram). 
• For major expenses, target activities, or experiences that could be catalysts for very interesting conversations later. You need to be able to make interesting soft conversations with people even as you build your professional network. 
• Save for splurging. Overseas travel is also possible. You just have to save for a really long time. 
• Take care of your personal space. Decorate your personal space with paintings and plants. These items are not expensive if you know where to buy them. 
• The biggest tip to remember when it comes to lifestyle expenses is that you can't do everything just yet. But with time, you will do more.

4. Save some, invest some

Save to save and save to expand your income.  You need some savings in case of an emergency.  It could be money readily available or money that can be available in 30 days at the most. 

Invest the rest in businesses you understand very well. Personally, I use crowdfunding investments like Thrive-agric and Agropartnership for investments. To save towards these crowdfunding investments, I use apps like Piggyvest which allow you to automatically deduct certain amounts from your income every month. 

5. The last bit is about educational funds. Just save some money (again, maybe on Piggyvest) for education. There would always be some program or exam you would need to take to advance your career and your life. Even if you don't know the particular exam or process now, in a few years, you would. 

I'll also mention that the goal of this strategy is to use your time to maximize your funds. Regardless of how you choose to adjust these ratios  (based on your level of income) always make you cover all these areas of spending: living, lifestyle, investment, and education. 

Thank you. 

-Tobi Amokeodo