As a young professional with a relatively steady income, there is usually the belief that the world is your oyster because you’re suddenly earning more than you imagined and you’ve begun your journey to financial independence.


With the current financial situation and the dollar-naira difference, there is the need to be very smart with money. Yes, expenses will come, but life must be lived. So, how can you protect your finances against the knocks of adulthood and life?


We have developed a mini-guide on how to make smart money moves with your income.

1. Learn Self Control:
If you’re lucky, your parents taught you this skill as a kid or you have the natural ability to wait and enjoy the finer things at a later date. If not, keep in mind that the sooner you learn the fine art of delayed gratification, the quicker it is easy to keep your finances in order.
Always ensure your basic needs are covered first - data subscriptions, electricity bills, etc - before you consider your wants, i.e. things that aren’t essential. If you are fickle, ALAT has the Collections feature that allows you to collate your bills like electricity, water etc, and automate payments. Although we advise you to treat yourself once in a while, try not to spend too much on the non-essential.


2. Create a Solid Financial Plan:
Your financial plan should comprise how much you intend to spend, save, and invest. As soon as you earn your income for the month, plan how best to maximize it and remain debt-free. Having a financial plan motivates you to take control of your finances.

You might also consider getting financial advice from trusted financial professionals so you can explore your options.

Set financial goals to help you better manage your money because then you know what you’re working towards. Perhaps you’re planning on getting a new apartment or maybe you would like to go on a holiday or buy a car.

You can also separate your savings into short-term and long-term savings. With ALAT Savings goals, you can create separate goals for your long-term and short-term savings.


3. Budget Every Single Spend:
A financial plan and a budget are not the same thing. A financial plan is a long-term plan for your finances - income, wealth generation, investment, etc. While your budget curtails your spending to ensure you live a luxurious life within boundaries.

One of the most important steps is to plan your monthly entertainment and miscellaneous expenses. No one has ever died from being organized.

Your budget gives you an overview of how you want to spend your money. It helps you to track your spending and can prevent you from overspending and going into debt.

4. Establish an Emergency Fund:
An emergency fund, also known as ‘rainy day’ savings, is your personal insurance policy attained through your savings. Apart from having long-term savings, you need to have a rainy day saving plan that provides you with a cushion against large unexpected expenses. This way, you won't tamper with your savings.


5. Avoid Getting Into Debts:
This is very important. When you’re young, and you’re earning a good salary, there’s always the pull to enjoy your life to the maximum. There’s nothing wrong with that!

However, avoid borrowing to sustain your newfound lifestyle, especially for unnecessary things. Don’t fall into the trap of trying to keep up appearances or spending irresponsibly.

The cost of borrowing puts a strain on your income, and this can be stressful in the long run.

You can also use apps and solutions that can help with this. For instance, ALAT customers have a safety cushion with the Pre Qualified Payday Loan, which allows salary account owners to qualify for salary advances or loans ahead of their next payday. If you’re not an ALAT customer, you can apply for Migo Loan serviced by ALAT that provides the required service you need.


6. Save for Retirement:
If your dream is to retire by age 35 or 40 - it is possible. Saving and investing smartly could mean early retirement, and you get to live your baby boy/baby girl lifestyle. So it's only wise to open a pension fund now and allot a segment of your income to that fund.

If you think you are too young to start saving for retirement, remember that small monthly deposits over a course of 20 to 30 working years will become huge sums and can end up with as much (if not more) as someone who made a lot of deposits each month but started saving at a later time.


7. Insurance:
Lack of a good insurance policy can be a huge financial drain on you or your family if an emergency arises. This is Nigeria, anything can happen at any time.

You may think that it’s too soon to buy property or life insurance and that it’s only something necessary when you get married and start your own family. Please, if it’s valuable, insure it.

Getting insurance coverage early can protect you against the exorbitant costs of treating illnesses, cost of recovering from motor accidents, and so much more. Since you have a lower individual risk it means a lower premium that you can sustain.
Being adequately insured can provide you with the assurance that you and your family will have enough financial resources if you face an untoward life event.


With 2022 swinging around, there is a heightened need to be smart. And with the added responsibility of running one’s business, smart and well-informed options are a necessity. Overall, find a balance between living your life to the fullest and cultivating a healthy saving and investment culture.