Is your budget still working for you? You started with a plan. You set limits, tracked expenses, and maybe even celebrated small wins. But suddenly, things feel off. You are constantly overspending in some areas, cutting back too much in others, or just feeling like your budget is not keeping up with your life.
The truth is budgets are not meant to be set in stone. Life changes, priorities shift, and what worked a while ago might not work today. So, how do you know when it is time to reassess?
The Warning Signs
- Your income has changed. Got a raise? Switched jobs? Started a side hustle? More money should mean more flexibility, but without adjusting your budget, it might just mean more mindless spending. On the flip side, if your income has dropped, trying to stick to your old budget could leave you struggling.
- Your expenses do not fit your lifestyle anymore. Maybe you have moved to a new city, had a baby, or started working remotely instead of commuting. Big life changes often mean big financial adjustments. If you are still working with an old budget that does not reflect your current reality, it is time for a tweak.
- Your goals have shifted. When you first created your budget, you might have been saving for a laptop, a vacation, or an emergency fund. Now, maybe you are thinking about investing, or starting a business. If your goals change, your budget should, too.
Making the Shift
Reassessing your budget does not mean starting from scratch. It means looking at what is working, what is not, and making small changes to fit your current situation.
- Recalculate your income and expenses. Be honest about how much you earn and what you are actually spending.
- Prioritize needs over wants. If money feels tight, cut back on the extras (for now) and focus on essentials.
- Adjust savings and debt repayment goals. If you can save more, do it. If you need to reduce your savings temporarily to stay afloat, that is okay too, just have a plan to bounce back.
- Try a different budgeting method. Maybe the 50/30/20 rule worked for you before, but now it does not. Be open to switching things up.
Budgets should work for you, not against you. If yours feels outdated, restrictive, or out of sync with your life, take that as a sign. Checking in on your budget every few months can help you stay in control of your money and reach your goals faster.
So, when was the last time you gave your budget a reality check? Maybe today’s the day.
Now to the News
NIBSS upgrades NQR payment to enhance digital transactions in Nigeria
The Nigeria Inter-Bank Settlement System (NIBSS) has unveiled significant upgrades to its Nigeria Quick Response (NQR) payment system, designed to streamline and enhance digital transactions for businesses and individuals across Nigeria.
Premier Oiwoh, MD/CEO of NIBSS, emphasized the evolving capabilities of NQR and how it is poised to revolutionize payments, transactions are processed instantly, ensuring immediate settlement.
“This account is the only QR in the world that is instant for the beneficiary,” he said.
CBN Report: Banks, Other Financial Institutions Reported Higher Default Rates for Loans in Q4
Central Bank of Nigeria (CBN) disclosed that lenders, including commercial banks and other financial institutions, recorded higher default rates for secured, unsecured and corporate loans in the fourth quarter of last year (Q4 2024).
Credit default refers to when a lender is unable to collect a payment on an outstanding debt. The apex bank revealed the default rate in its Credit Conditions Survey Report, Q4 2024, which was posted on its website.
Similarly, the proportion of loan approval increased for secured and corporate lending types, while the proportion of loan approval for unsecured lending decreased within the quarter under review.
Under the period, the overall spreads on secured and unsecured lending rates to households relative to Monetary Policy Rate (MPR) widened. For corporate lending, all lending type spreads on loan relative to MPR also widened, except OFCs, which narrowed in the current quarter.
Naira, public borrowing seen pushing money supply growth by 51%
The naira devaluation and government borrowing have pushed money supply growth by 51 percent in one year, according to analysts.
“The surge in the growth of money supply can be attributed to persistent fiscal deficits and the federal government’s recourse to monetary financing through ways and means advances to fund budget shortfalls,” analysts at FBNQuest said.
The continuous rise in money supply (M3), which is a broad measure of the total amount of money circulating in an economy, has remained a concern as analysts see this as one of the underlying drivers of Nigeria’s inflationary pressures.
Nigeria’s inflation rate increased to 34.80 percent in December 2024 from 34.60 percent in November last year, according to the National Bureau of Statistics (NBS).
FG, World Bank to mobilise capital market financing, others for infrastructure development
The Federal Government has initiated discussions with the International Finance Corporation (IFC), a member of the World Bank Group, to explore capital market financing and other funding options within Nigeria to drive infrastructure development through Public-Private Partnerships (PPPs).
Jobson Ewalefoh, Director General of the Infrastructure Concession Regulatory Commission (ICRC), stated this in a statement issued on Sunday in Abuja by Ifeanyi Nwoko, the Acting Head of Media and Publicity.
Ewalefoh said that the visit of the team was an important one that could redefine the space of infrastructure development in Nigeria.
This was the focus of a meeting between the Infrastructure Concession Regulatory Commission (ICRC) and the World Bank Team, who were on a fact- finding mission on how to develop and unlock the capital market in Nigeria.
