In a tale as old as time, Olayinka Adeyemi’s quest for a better life led her from the quiet charm of Ondo State to the bustling metropolis of Lagos in 2023.
Embarking on a journey for greener pastures, this 26-year-old visionary soon found herself balancing the scales between ambition and financial reality.
After settling in with friends, she landed a role as a marketer in a tier-one bank.
Despite a good paycheck, Olayinka’s bank account did not reflect her earnings, confusing her and sparking endless conversations with her circle of friends about her unending financial woes.
Being broke in Nigeria is a common experience for both employed and unemployed youth.
However, some individuals seem to go through this phase more frequently than others.
Despite the tough economic conditions, experts suggest that with proper money management, people can avoid constantly being broke.
Here are some reasons why you might find yourself always short on funds.
Reckless financial habits
Financial experts have noted that many people who claim to be broke are often materialistic and spend more on things that do not have sustainable values. This, they said, is one of the most common reasons why people do not have money saved for daily survival and even emergencies.
Unending black tax
Spending on family, also known as black tax, without planning, is one of the fastest ways to stay broke. A finance and wealth creator, Jennifer Okpechi, said black tax is a major constraint for every high-earning member of any family. She said, “Supporting family members financially regularly contributes to financial strain and makes it difficult for you to save, invest, and build wealth.
Struggling low-paying job
Another reason why you are always broke is because of your job. If your job does not offer much in terms of monetary compensation but you spend almost all your time working, you may continue to struggle financially. This, experts agreed, means feeding from hand to mouth.
Jack of only one trade
Okpechi noted that having only one source of income can be risky considering the current economic realities in the country. She said, “Having only one job is risky, especially without a proper financial plan or budget. It is easy to overspend and live beyond your means. “Effective financial planning involves setting goals, tracking expenses, saving for the future, and creating multiple sources of income
Faking it till you make it
When you embark on the fake-it-till-you-make-it journey, you are very likely to commit to spending lavishly on frivolities which eventually keeps you broke. “Constantly comparing your financial situation and possessions to those of others can drive the desire to match or surpass others’ standards of living. This is an easy way to become broke and strapped in the cycle of living from paycheck to paycheck and can even lead to debt,” Okpechi explained.
Too many investments
An investment coach, Opeyemi Ogundipe, said chasing too many investment opportunities will wreck your finances despite guaranteed returns on those investments. He said, “You see a lot of people who, because of fear of losing out on opportunities, just jump on anything. As humans, we need to know that there is a specific amount of your investment and another specific amount that should go to expenditure.
Poor money management
According to Adegoke, your salary will not keep you out of being broke if you do not learn how to plan your finances. “Lack of money management skills like budgeting and saving can cause anyone to go through financial difficulty regardless of the income bracket,” she said. Experts agree that the choices you make play a crucial role in your financial health as they determine whether or not you struggle with being broke or enjoying a wealth of available resources.
