Achieving financial freedom can feel overwhelming, and if you’re like most people, you probably don’t know where to start. But here’s the good news: financial freedom is easier than you think. In fact, you don’t even have to be a finance expert to do it.
The key is to start small, stay consistent, and build good money habits over time. Towards this end, we’ve put together these 7 simple but powerful tips that you can put into practice to help you take control of your money and build a more secure future.
Whether you’re aiming to get out of debt, build your savings, or simply take more control of your finances, these intentional habits will get you started in the right direction.
Let’s begin!
Understand the Difference Between “Needs” and “Wants”
It begins with drawing an intentional line between wants and needs – this means learning how to prioritize your spending. Most people make the mistake of spending money on non-essentials and end up owing money or having a deficit at the end of the month. It’s important to understand what is essential (needs) for you, and what can wait (wants).
Let’s look at a list of common needs and wants so that you have a clear picture of what is what.
| Needs | Wants |
| Rent or mortgage | Streaming subscriptions |
| Utilities (electricity, water, internet) | Takeout meals |
| Food | Designer clothes |
| Transportation | Latest gadgets |
| Health-related expenses |
Of course, life should be enjoyable, so this process is not about cutting out all your wants! But if you’re always overspending on wants and struggling to save, it’s time to reassess.
To make things easier, you may want to try the 50/30/20 rule. This rule means that you spend 50% of your income on needs, 30% on wants, and 20% on savings or debt repayment. It’s a great starting point for balance.
Take a Hard Look at Your Expenses
Next, you need to take some time to review your current spending habits. Why? Because you can’t improve what you don’t measure. Print out your bank statements for the past two or three months and take a critical look at every expense. You may be surprised by how much you’re spending on small, recurring purchases.
Here’s how to get started:
- List your fixed expenses (rent, utilities, insurance).
- Track variable expenses (groceries, entertainment).
- Identify “leaks” — money spent on things you don’t really need or value.
For example, you may be spending N7,000/month on streaming services you rarely use. That’s N84,000 a year — money that could go toward debt, savings, or investments. There may be lower subscriptions that you can use if you must use these services.
Doing this periodically will help you prioritize what matters and make room for your financial goals.
Understand Why You Spend the Way You Do
You may also need to take the time to understand why you spend money the way you do. Of course, this is not rocket science; after all, spending habits are shaped by your mindset, emotions, and past experiences. It’s not just about numbers — it’s about human behavior.
To this end, it is important to ask yourself:
- Do I shop when I’m bored, stressed, or emotional?
- Am I spending to keep up with friends or social media influencers?
- Do I make impulse buys and later feel regret?
Awareness is the first step toward change. If you understand your financial triggers, you can start to manage them better. For some people, this might mean unfollowing certain accounts on social media, using a 24-hour rule before big purchases (think about what you want to spend money on for at least 24 hours – enough time to change your mind), or leaving credit and ATM cards at home.
Pro tip: Journaling your purchases for a week and noting how you felt when you made each one can reveal surprising patterns.
Track Every Penny
Now that you’ve looked at your expenses and spending behavior, it’s time to get serious about tracking your money. This is where many people go off course. They are not actually financially irresponsible, just that they’re unaware of the need to pay attention to cash flow.
The good news is that tracking spending is easy with a good budgeting app, your regular spreadsheet, or even a physical notebook.
For at least a month, record every naira that goes out — groceries, fuel, takeout, impulse buys, everything.
- You’ll feel more in control
- It’s easier to catch overspending before it gets out of hand
- You can see exactly where to cut back
When you’re aware of your spending patterns, you’re more likely to make intentional financial decisions instead of reacting on the fly.
Set Specific Savings Goals and Automate Them
Savings is a key part of small financial planning, whether for emergencies, future purchases, or retirement. However, deciding to start saving is one thing, actually doing so is another thing, and truth be told, setting aside money every month is one of the hardest things to do. However, it is not impossible, only requires a high dose of self-discipline.
There are three categories you can choose to save under:
- Short-term (under 1 year): emergency fund, holiday travel, minor home repairs
- Medium-term (1–5 years): down payment, starting a business
- Long-term (5+ years): retirement, children’s education, financial independence
A good idea is to break big goals into smaller milestones. For example, if you want to save N250,000 every year, that means putting away N12,500 every month or about N1,800 per week.
If possible, set up recurring transfers to a high-yield savings account or investment fund. You won’t miss what you don’t see, and automation builds discipline without extra effort.
Prioritize Your Financial Goals
Not all goals can be tackled at once, especially if your income is limited. The idea is to tackle them one after another. This way, you will not get overwhelmed.
So, how do you decide what to work on first?
Here’s a simple guide:
- Build an emergency fund (money set aside monthly or bimonthly that can handle at least 3–6 months of expenses for when the going gets tough)
- Pay off high-interest debt (especially bank and loan apps)
- Contribute to your retirement fund (try to set aside at least 15% of your income towards your retirement if possible)
- Save for personal goals (home, travel, education)
It is a good idea to keep a short list of your top 3 financial goals. Review them monthly and track your progress. Knowing your priorities helps you say “no” to unnecessary spending and “yes” to what really matters.
Pay Yourself First
This is one of the oldest — and probably the smartest rules in personal finance. “Paying yourself first” means putting money into savings before doing anything else with your paycheck.
Even if you own a small business, learn the habit of paying yourself a fixed amount of money every month, just as you pay your employees. Even from your salary, give yourself a small percentage every month, call it self-appreciation.
- Decide on an amount or percentage to save from each paycheck
- Move that money to savings or investment accounts immediately
- Spend what’s left — not the other way around
Even if it’s just N5,000 a week, those small amounts add up. Over a year, that’s N60,000 — a good enough sum for a personal Christmas present..
A good idea is to increase your savings rate over time. Whenever you get a raise, get a contract, or close a deal, increase how much you set aside before lifestyle inflation sets in.
Also, consider investing in a personal finance app or program to keep your plan on track. These tools help you:
- Budget more effectively
- Stay on top of due dates and financial tasks
- Monitor your progress toward financial goals
Wrapping Up
Financial planning doesn’t have to be complex or overwhelming. It starts with a few small changes that can create a massive long-term impact.
Here’s a quick recap of the 7 smart tips:
- Differentiate between needs and wants
- Review and evaluate your spending
- Understand the emotional drivers behind your habits
- Track every dollar for at least 30 days
- Set clear savings goals and automate them
- Prioritize your financial goals based on your life stage
- Pay yourself first and build good habits early
Remember, financial freedom isn’t about how much money you make — it’s about how well you manage what you have.
Start today. Even if it’s just tracking your expenses or setting up a small automated transfer. The sooner you begin, the faster you’ll feel in control of your finances — and your future.
