104 - Taking charge of money things
Small moves that can have a big impact on your personal finances
A few weeks ago, I went back to Lagos after two years away. The trip was planned around my friend's wedding, but I squeezed in as much time as possible with everyone I’d missed. Lagos was shockingly expensive, but being home was amazing. Time flew, and before I knew it, I was back on a plane because, unfortunately, I only have so many annual leave days.
One of the best parts of my trip was finally meeting my online bestie in real life. She insists we must have met before, but we both left Lagos around the same time—her to Canada, me to the UK—so in the time that we’ve known each other, we’ve never actually been in the same place at the same time.
Last year, she told me she was planning to quit her well-paying tech job to travel and focus on creative work. I thought it was slightly unhinged but super bold and brave and so I wished her luck.
Well, when we met up, she had actually done it. She saved up, quit, gave up her apartment, and moved back to Lagos (for now), with plans to hop around the world while keeping a home base there. The jealousy I felt? Immense.
At first, I thought it could never be me—how would I even afford that? But there’s something about seeing somebody you know doing something that makes you feel like maybe you can do it too.
Of course, to achieve this dream, my first order of business would be to get my finances money up.
As with most things in my life now, I try to think about how my current habits are helping or hindering my progress and what habits I can build to get me where I want to go. In today’s newsletter, I shall be sharing some of the things I am currently doing as well as those I hope to add in on this journey of financial growth.
Financial education. This is something I have been doing passively for a few years via Instagram. I follow many relatable personal finance pages on Instagram and have gained quite a bit of knowledge while scrolling. Some of my favourite finance accounts are: @themoneyfox, @savingmoneybish, @gofundyourself, @delyannethemoneycoach and @financemattersuk. Most of these are UK/Europe based which is important because different financial products/services exist depending on your geographical location so it is more beneficial to find people who can give advice that is relevant to your location.
I’m also picking up more books on personal finance. I read: You Are a Badass at Making Money by Jen Sincero a few years ago and it changed my attitude to money. I am currently reading Rich AF by Vivian Tu. I’m only a few pages in but I’m liking the relatable vibe already.
Schedule regular money dates. I first heard about money dates from Tori of the Financial Feminist podcast. A money date involves making time to look at where your money has gone and is going. As simple as this sounds, it can be quite scary for some of us but it is such a good place to start taking control of your finances. There’s nothing like seeing the number of Uber Eats receipts to remind you that there is rice at home. You might even discover a service you’ve been paying for and not using or do not use.
She’s based in the US and has a website with great personal finance resources.
Build an emergency fund.
Just like the name implies, an emergency fund is money that can tide you over in the face of a potential emergency. Emergencies can range from job loss to ill health and everything in between and while no one wishes for such events, life can and does happen sometimes.
The general rule is an amount that covers 3-6 months of essential expenses. So things you must pay for, like rent/mortgage, utilities, groceries, insurance, and minimum debt payments. Despite knowing about this for a while now, it was only yesterday, while prepping to write this that I actually put the figures together to arrive at the sum that I need and let’s just say I have a lot of work to do.
Get Comfortable With Investing (Without Overcomplicating It)
Investing has always seemed like one of those big scary things that other people do—people with finance degrees and an appetite for risk. However, it’s the one thing that all the finance girls and boys consistently agree that we should all be doing. I decided to learn more about this by paying for an investment BootCamp with Female Invest. Seeing/hearing young women like myself talk about investing made it seem less scary. They’re based in Europe and have a website and an app with various resources on everything from personal finance to investing and everything in between.
Automate savings.
This is one I’ve been doing for at least 6 years. I have weekly direct debits set up for my different savings accounts and this way I have managed to accumulate a tidy sum without putting much thought into it. Because I know I am constantly putting money away, I also feel less guilty about spending the money in my account.
Increase earning potential.
This one is a bit of a struggle for me. Unfortunately, I am not in one of those industries or fields where you can negotiate a higher salary or increase your earnings by switching employers. I also have a pretty busy job and my time is somewhat limited so hearing the words *side hustle* really annoys me. However, it has become quite obvious to me that my current career may never afford me the lifestyle I desire, so what to do?
I have started thinking more seriously about how to use the skills and qualifications I have to pivot to something else that will pay me better. I would prefer to concentrate my talents and effort on one thing that pays me well, rather than spread myself thin doing several things that might cumulatively pay well.
I am still figuring this one out but if you see me dancing on TikTok, just make sure you like and share or do whatever it is that puts money in creators’ pockets. Thanks.
Cut the Unnecessary, but Keep the Joy
In all of this, it is still very important to me that I maintain my baseline level of happiness. This means that I do not intend to deprive myself of the things that truly spark joy because I truly do not believe in making myself miserable today for a tomorrow that is not guaranteed.
As with everything in life, there is no one-size-fits-all approach. Some (or even all) of the above may not be applicable to your current circumstances, and that is okay. Feel free to take what applies and leave the rest.
Recently I listened to
Episode 211 of The Knowledge Project with Codie Sanchez talking about Financial Freedom. This was very timely and full of valuable nuggets. When she said “You don’t get rich by investing, you get rich by earning”, it reminded me of the time I reached out to a financial manager and they very politely let me know that I did not have the types of funds that need managing.
She spoke candidly and gave some very actionable tips for not just making more money but building the mindset and relationships that can help you get your money up. She also has a book titled Main Street Millionaire - How to Make Extraordinary Wealth Buying Ordinary Businesses. And a Youtube channel and a podcast and she does all these looking perfectly turned out, even wearing heels and makeup so you already know I’m in love.
Another highlight from my Lagos trip was getting to record an episode of IATGL in person with my girls. It’s the first time since we started the pod that we were all in the same room and it felt so so good. We took a break almost all of last year because life was lifing severely but we are back (with a reduced frequency of episodes) now.
Since we’re on the subject of money, I’ve thought about making this a paid newsletter, but for now, I like keeping it free so anyone who’s interested can read it. That said, if you feel like I deserve to be paid for my musings, I will happily accept your money. Feel free to make a Substack pledge, and who knows, a Patreon might be in the works soon.
I’d also love it if you shared this newsletter with someone who might enjoy it. That new subscriber email gives me endorphins.
Wishing you the wisdom (and willpower) to take an honest look at your finances and do what needs to be done.
Chioma.
Loved reading this! As someone who is gung ho about her personal finances and helps organizations manage theirs, this is very spot on. Yes, investing can be tricky especially with all the noise around crypto but as long as we stay away from meme coins, wa wa alright 😂.
BIG HEART EMOJI!