Half the year is gone, but it’s never too late to reset your finances. That was the central message delivered by financial literacy advocate and journalist, James Emmanuel Nwankwo (MSc, MBA, PhD in-view), during a recent Young Professionals Club session.
Nwankwo, who has over ten years’ experience in the financial services industry, urged Nigerians not to be overwhelmed by economic hardship but to adopt smart coping mechanisms that can guarantee stability.
“The perfect time for a half-year financial audit could have been 30th June; the second-best time is now,” he said.
The Struggles Young Nigerians Face
According to him, young Nigerians today grapple with:
Family obligations (Black Tax): providing for parents, siblings, or extended family.
Impulse spending: on data, subscriptions, and social outings such as Owanbe parties.
Rising bills: from rent to school fees and food inflation.
He warned that without proper planning, income earners could face financial collapse if jobs are lost or emergencies strike.
Budgeting and Smart Habits
Nwankwo recommended two key approaches to budgeting:
50-30-20 Rule: 50% for needs, 30% for wants, 20% for savings or debt repayment.
Zero-Based Budgeting: Justify every kobo spent, cutting waste and aligning priorities.
Other habits include avoiding impulse purchases, buying in bulk, and looking out for discounts.
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Building Resilience
Practical coping mechanisms include:
Emergency funds: save 3–6 months of expenses.
Debt management: read the fine print before borrowing.
Smart investing: start small with Treasury Bills, Bonds, and Money Market Funds, then explore equities.
Diversification: spread investments across different assets to reduce risk.
Nwankwo also highlighted the need for risk assessment, urging individuals to know whether they are conservative, moderate, or aggressive investors.
Side Hustles Matter
To reduce dependence on one income, he encouraged Nigerians to explore side hustles that match their skills, such as freelancing or digital services.
The Bottom Line
Nwankwo concluded with a call to action:
“Instead of focusing on what we haven’t done right, let’s shift our energy to what we can do now to change the trajectory. Your financial future depends on the choices you make today.”