Nobody wants to be financially poor however there are factors that might hinder your financial liberation and send you down the poverty hole you are trying to avoid, while some of these might probably be out of our control, there are factors that if well managed might help out financial stability.
According to the research conducted by Brand Spur, there are so many ways to go broke in Nigeria and I will be highlighting 5 ways to go broke in Nigeria. The ways down the financial instability hole include:
The Black tax trap: As we know that the Nigerian Society is a collectivist society where the “We” behavior dominates and one is expected to take care of his or her relatives if one is seen to be financially stable in relations to other members of the family. Also, Africans attach importance to children taking care of their parents fully when the kids come of age, this thinking while it has its advantages, has also led to great dependence on one’s children as a form of retirement plan.
Money Matters: 5 Weird Ways To Go Broke As A Nigerian
This dependence by family including parents has its negative effect if you are not as financially buoyant as perceived. A recommendation is to strictly have money set aside for black tax, once expenses is beyond the money set aside except on emergency occasions, do not consider giving further money. You don’t want to be left with anything for yourself and your plans.
Lavish lifestyle: There are people who live beyond their means and lavish all their earnings on temporary enjoyment. While it is important to always find ways to enjoy what life has to offer, it also vital for me to have investment, savings and a good financial plan or budget that keeps one in check especially if you have a lavish lifestyle habits that can make you financially unstable.
Borrowing Habits: Learn to find it hard to borrow money from people. The reason is that being in financial debt especially when it is not for a useful initiative like starting a low-risk business would cost or rob you the money you should invest, save up or use for important things. Borrowing makes you short of more cash that could be used to help stay financially stable.
Poor Financial Management: Budgeting helps you to manage finances and forces you to choose only what is considered important at that moment in time. It is good to always have a budget of what you intend to use the money to do. It is also important to have an investment, savings, and emergency fund plan that enables you to avoid debt while planning for the future.
Impulse buying: Impulse buying can be dangerous if it becomes a habit and it can render you unstable financially if care is not taken. It is, therefore, vital that one sticks to a monthly budget in order to avoid the recklessness that comes with impulse buying not regulated.
These are 5 ways you can easily go broke in Nigeria. You don’t want to be among those who fail to plan, even when all does not go according to plan, planning helps focus on what is necessary and what to avoid in order to stay financially stable.