Make Your Payday Count
It is that time of the month again, salary week. The sweet relief of seeing your account balance swell after a month of hard work. For most people, payday brings a mix of excitement and anxiety. The temptation to spend it all on long-overdue treats and bills is real. Before you know it, the money is gone, and you find yourself counting down the days to the next payday, wondering where it all went.
You are not alone. Many people fall into the same cycle of spending their entire salary within the first few days of receiving it. The good news is that you can break this cycle. With the right strategy, you can make your payday count by managing your spending wisely, saving effectively, and even growing your money. This article will walk you through practical steps to help you stretch your salary, build your savings, and still have enough to enjoy life.
Why Payday Spending Gets Out of Control
To understand how to take control of your money, you need to identify the root of the problem. Here is why you might struggle with managing your salary:
- Instant Gratification Mentality
When you finally receive your salary, the urge to reward yourself for all the hard work is natural. That new pair of shoes you have been eyeing? The dinner at that fancy restaurant you have seen all over social media? The impulse to spend is powerful because it provides instant pleasure. Unfortunately, this pleasure is short-lived, and once the money is gone, the stress creeps back in.
- Poor Budgeting Habits
Many people do not have a clear plan for their money. Without a budget, it is easy to spend recklessly and overlook essential expenses like rent, utilities, and savings. By the time you realize what is left, it is often too late to recover.
- Peer Pressure and Lifestyle Creep
Social media makes it easy to compare your life with others. When you see friends going on vacation, buying new gadgets, or dining at expensive restaurants, the pressure to keep up can lead to unplanned spending.
- Not Making Your Money Work for You
Keeping your salary in a regular account where it earns no interest is one of the most common financial mistakes. You might feel secure having the money available, but in reality, you are missing an opportunity to grow your funds effortlessly.
How to Break the Cycle and Make Your Payday Count
1. Start with a Payday Budget
The first step to managing your salary effectively is to create a payday budget. This is not just about listing expenses it is about assigning a purpose to every Naira you earn. E.g., follow the 50/30/20 rule as a starting point:
50% for Needs: Utilities, rent contribution, groceries, transportation, and other essential expenses.
30% for Wants: Shopping, dining out, and personal treats.
20% for Savings and Investments: This is where you build your future, emergency fund, investments, and long-term savings.
Example: If your salary is ₦500,000, your budget would look like this:
₦250,000 for needs
₦150,000 for wants
₦100,000 for savings and investments
The key here is to stick to these percentages as closely as possible.
2. Automate Your Savings with Vale’s My Target Plan
One of the easiest ways to ensure you save consistently is to automate it. As soon as your salary hits your account, set up an automatic transfer to Vale Target Plan.
Why My Target Plan?
Earn up to 13% interest on your savings higher than most traditional savings accounts.
Interest is calculated and paid monthly, so your money grows faster.
Easy access to funds when you need them.
By automating your savings, you remove the temptation to spend first and save later. It also helps you build a habit of treating savings as a fixed expense rather than an afterthought.
3. Divide Your Savings Between Short-Term and Long-Term Goals
While saving is essential, it is important to have a plan for your savings. Use Vale’s My Vault for long-term goals and Flex Wallet for short-term needs.
My Vault – Perfect for long-term goals that you would like to keep locked and untouched. You can earn up to 22% interest and lock the funds for a fixed period.
Flex Wallet – Ideal for emergency funds since you can access it anytime while earning interest daily.
4. Reward Yourself, but Within Limits
Saving does not mean you have to deprive yourself completely. The 30% allocated for wants should be guilt-free spending. However, set boundaries:
If you love dining out, set a monthly limit for restaurant expenses.
If you enjoy shopping, decide how much you will spend each month and stick to it.
Common Mistakes to Avoid
- Not Tracking Your Spending: It is easy to lose track of expenses, so use the Vale app to monitor your spending patterns.
- Dipping Into Savings for Non-Essentials: Keep savings separate from daily spending to avoid temptation.
- Ignoring Emergency Funds: Always keep at least three months’ worth of expenses for emergencies.
Payday should not be stressful. With the right strategy, you can stretch your salary, build your savings, and still enjoy life without feeling restricted. By setting up a clear budget, automating your savings, you will finally break the cycle of paycheck-to-paycheck living.
Take the first step today, set up automated savings, and start growing your money.
NOW TO THE NEWS
Nigerians lament as CBN’s new ATM withdrawal charges take effect
Bank customers are expressing dissatisfaction as the Central Bank of Nigeria’s (CBN) new withdrawal charges took effect on Saturday, March 1, 2025.
Under the revised fee structure, commercial banks are now charging customers N100 per N20,000 withdrawal from on-site Automated Teller Machines (ATMs) and N600 for off-site ATM withdrawals.
The CBN issued a circular on February 10, 2025, to all banks and financial institutions, announcing the review of ATM transaction fees. According to the new guidelines, withdrawals from one’s own bank ATMs will remain free of charge.
However, customers withdrawing N20,000 or less from another bank’s ATM will incur a N100 fee per transaction. The CBN cited rising costs and the need to improve the efficiency of ATM services in the banking industry as reasons for the new charges.
On February 28, one day before the new policy took effect, Zenith Bank notified its customers via email, informing them of the updated fees. When this writer used a First Bank ATM card to withdraw N10,000 from an Access Bank ATM, he was charged the new N100 fee.
Nigeria’s inflation slows for second consecutive month after rebasing
Nigeria’s inflation fell to 23.2 percent in February, the second consecutive drop after the National Bureau of Statistics (NBS) changed its methodology.
Annual consumer prices rose 23.2 percent in February from 24.5 percent in January, according to data by NBS in an email on Monday.
Last month, the National Bureau of Statistics (NBS) released the rebased Consumer Price Index (CPI) data of 24.48 percent from 34.8 percent.
According to the Bureau, the rationale for the rebasing exercise was to provide an updated methodology for capturing current household spending patterns and revise the composition of the country’s inflation basket.
Consequently, the NBS changed the price reference period (base year) from 2009 to 2024 and expanded the nation’s inflation basket from 740 items to 960 items. The decision to peg 2024 as the new base year was significant, as it was a period characterized by significant price pressures due to a combination of factors.
Nigeria 2025 budget analysis: ₦54.99 trillion plan faces revenue and debt risks
The Nigerian government has unveiled its largest national budget in 65 years, a record-breaking ₦54.99 trillion, representing a 56.89 percent increase from the ₦35.05 trillion budgeted in 2024 (including a supplementary ₦6.2 trillion).
President Bola Tinubu describes it as the “Budget of Restoration,” aimed at stabilizing the economy and driving growth.
The blueprint boasts ambitious spending on infrastructure, security, and social programmes. But with a history of revenue shortfalls and debt dependency, can the government truly finance these plans?
While the budget emphasizes infrastructure, some spending choices raise questions.
Inflation rate falls amid stable naira, lower fuel cost
Analysts have said that the recent decline in headline inflation can be attributed to naira stability and a reduction in Premium Motor Spirit (PMS) prices.
Nigeria’s inflation fell to 23.2 percent in February, the second consecutive drop after the National Bureau of Statistics (NBS) changed its methodology.
Annual consumer prices rose 23.2 percent in February from 24.5 percent in January, according to data by NBS.
“A relatively stable exchange rate has helped contain the cost of imported goods, easing pressure on core inflation,” Comercio Partners in a report.
Similarly, CSL Stockbrokers highlighted that “The inflation slowdown in February can be attributed to the relative stability of the local currency, which appreciated by approximately 2.1% month-on-month in the official market, supported by improved foreign exchange dynamics. Lower fuel prices also likely helped ease inflationary pressures.
