Naira Life Vol 105

Good morning ☀️

Last week, Piggyvest released its 2024 Savings Report, and the data puts a few things we've all suspected into context— Nigerians' earning power and purchasing power have taken a serious hit compared to last year. 

It appears 65% of Nigerians now earn less than ₦100k a month or have no income. Even having multiple income streams isn't the cushion it used to be, as fewer people have more than one income source. The report also establishes that feeding and transportation costs are Nigerians' biggest expenses.

Nigerians' saving habits are the most affected — only 57% of Nigerians have a safety net of some sort, down from 64% in last year's report. Additionally, just 15% of Nigerians have managed to increase their savings in the past year, and 19% who had emergency savings no longer do.It paints quite a picture doesn't it?

Let's look at the stories in this week's dispatch.

In this letter:

• The #NairaLife of a Hustling Medical Student Raking In ₦2m/Month
• Love Currency: The Asaba Freelancer Hoping His Girlfriend Won’t Leave Because of His Unstable Income
• My Father’s Money Is His, and It’ll Probably Never Be Mine
• Ask Aunty M: How Do I Build My Emergency Savings Separate From My Regular Savings?
• QUIZ: Are You Money Smart?
• Where The Money At?!

This 24-year-old student grew up watching his parents struggle with money and has been hustling since secondary school. He got his first big break in 2020 and now makes millions without having to leave his house.

But how’s he thinking about his future?

Jollof+ is a cutting-edge savings app providing up to 21% net interest rate with no hidden charges. Designed to help combat inflation, Jollof+ offers personalized saving features, ensuring steady financial growth for users.

When Josiah* (23) started dating Glory* (21) in 2023, he was in a decent financial situation. But a year later, things have changed and his unstable freelance income makes him worry Glory might leave him.

He talks about it on #LoveCurrency. Read more here

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It’s easy to expect people from privileged backgrounds to have it much easier, but that isn’t the case for Jamal*.

He talks about struggling to fend for himself despite having a rich dad and shares why he doesn’t mind being cut off financially. Read the full story here

I'm a lawyer and work as a legal and compliance officer for a finance company. My monthly income is ₦640,000. I have side incomes from CAC, legal consulting and the like that bring about ₦100-₦150k monthly, but this is not steady. While I have a good savings culture, I'm afraid I don't have emergency funds, and I also don't know if my savings are commensurate with what I earn. Mind you, I have spent the past two years preparing for grad school in the US, and I honestly believe that is the next step forward for my career. In 2022, I saved about ₦4 million, which is down about ₦2.5 million. The rest went into paying for transcripts, LSAC, my parents' hospital bills, etc. However, I'm sure that that amount should triple between now and next year's fall. I save ₦300k monthly from my earnings, and I don't know if that amount should double. I also have some investments here and there in the money market, commercial paper, real estate, shares, and dollar fixed deposits -- this should be about half a million. I also want to improve oan this. I used to have self-sponsored health insurance but stopped when they failed to pay for my new glasses. It felt like I was dashing money to people who didn't care about me. How do I have emergency savings separate from my regular savings? Also, do I need to do better with my savings? I'm the first child; although the black tax is there, it is not a must. I give what I can when I can. - Sugar, 28

Hi Sugar, thanks for writing in. Congrats on your job and your great salary + side hustles. You are very thoughtful about your finances and your life, so kudos.

The first step would be to house your emergency savings separately from all your other money. You already know how to save; you just need to have all your savings goals in separate accounts to track how much you have to reach your goal accurately. I gather that your priorities are an emergency fund, a black tax fund, and a grad school/japa fund. I suggest opening a high-interest account for each of these and contributing to them monthly. This way, if hospital bills pop up, you won't be taking from your grad school funds to help out. You may want to consider saving in dollars for things like your grad school fund because of the devaluation of the Naira.

You also asked if ₦300k is enough to save. Only you can answer that because it depends on your goals and the timeframe they need to be achieved. ₦300k is an amazing amount if you want to save ₦3.6m in a year, but if you need to save ₦5m in a year, it's not.

So, I want you to work backwards…what are your financial goals? How long do you have to save up for them? Once you know that, you can calculate how much you need to save toward each goal to reach your goals. Also, remember to account for your expenses.

I hope this helps!

Xoxo, Reni

• If you're here, you probably have a money or work dilemma. Ask your question and we'll figure out an actionable solution for you.

Not at all? Only a little? Or could you possibly go toe-to-toe with Dangote?

We can't say we're about the money and not actually help you find the money.

So we've compiled a list of job opportunities for you. Make sure you share this with anyone who might need it because in this community, we look out for each other.

Again, don’t mention. We gatchu.

• Sales Manager, E-Commerce - Kora
• Customer Service Agent - MANO
• Tax Officers - FIRS
• Accounting Manager - PetroApp
• Content Marketer - 390 Technologies
• Senior Product Designer - Apex Networks

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All good things must come to an end. But not this good thing. We’ll be back next week.

In the meantime, keep reading Zikoko’s articles and be sure to share the love.

See you next week...

Yours cashly,

Toheeb,

Zikoko's 'OG' Mr. money

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