5 great money habits every Nigerian millennial needs to adopt to gain financial independence

Here's how to gain financial independence
  • True financial independence and security is not easy to achieve but it is possible.
  • To get here you need to reduce financial stress by taking certain things out of the equation.
  • Business Insider Sub-Saharan Africa has compiled a list of five tested and trusted strategies to help you gain financial independence.

Financial independence means being secure and not having to worry about money. To achieve this, here are five tips to help you achieve financial independence:

Once money comes in, avoid the temptation to start spending. Instead set some money aside to save and invest first.

In Warren Buffett's words, "‘Do not save what is left after spending; instead spend what is left after saving."

The best way to make more money is to make your money work for you.

According to Tomie Balogun, a Nigerian Certified Financial Education Instructor (CFEI), "You’re better off starting small with what you have than waiting to invest when you have a lot of money. Make the best use of time and compound interest by starting small and building up your investment portfolio over time."

She adds, "If we don’t want to keep working for the rest of our lives, we need to make sure our money works as hard as we work."

You can start with 5% or 10% of your income and build up as you go.

To gain financial independence, you need to spend less than you earn.

Figure out what your monthly expenses are, set up a budget to cover everything and save/invest the rest.

It is impossible to become financially independent if you are constantly in debt. This is why you need to avoid spending recklessly and stay out of debt.

When you do have to get a loan or something, make sure you get rid of this debt as quickly as possible.

At some point, all that is left to do to gain financial independence is to simply increase your income. To do this, you should try putting in the extra work and then asking for a raise.

You could also start looking for a better paying job, gain more skills or have multiple sources of income.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Ranked: Top 10 best airlines in Africa

Ranked: Top 10 best airlines in Africa

Sammie Okposo takes down apology post to wife amid cheating scandal

Sammie Okposo takes down apology post to wife amid cheating scandal

Man hiding in aeroplane’s wheel survives 11-hour flight from South Africa to Amsterdam

Man hiding in aeroplane’s wheel survives 11-hour flight from South Africa to Amsterdam

Angry reactions as bulldozer transporting heavy log puts fear in Ejisu residents (video)

Angry reactions as bulldozer transporting heavy log puts fear in Ejisu residents (video)

Female prison warden's dance with physically challenged prisoner sparks reactions (video)

Female prison warden's dance with physically challenged prisoner sparks reactions (video)

How to have s*x: Ladies, 5 things you shouldn't do in bed

How to have s*x: Ladies, 5 things you shouldn't do in bed

Nigeria vs Tunisia: Time & where to watch Super Eagles' R16 AFCON2021 tie vs Tunisia

Nigeria vs Tunisia: Time & where to watch Super Eagles' R16 AFCON2021 tie vs Tunisia

Banky W and Adesua Etomi celebrate their son as he turns 1

Banky W and Adesua Etomi celebrate their son as he turns 1

Presidency mocks Gov Ortom over unpaid salaries and pensions in Benue

Presidency mocks Gov Ortom over unpaid salaries and pensions in Benue