How I fixed my payday problem in under one year

For a long time, my relationship with money was solely in the receiving and the spending of it. Then, I became an adult and responsibilities followed.

I moved to Lagos. I got my own apartment. I now had to pay rent. To be able to get a place that I could afford, I had to live far away from the office – which meant paying more to get myself to and back from work.

Little by little, with every small new responsibility that came, all the money that I typically had left over from when I lived with my parents was nearly depleted before I even received it. Payday was a pot of beans – I never knew what I’d find.

My first fix was to cut things drastically. I started with my seemingly innocent love of junk food, which was in fact, an addiction. It was pretty painful to wean myself off it but it wasn’t enough for a complete turnaround

Independence clearly comes with a hefty price tag. And so I joined the throng of workers around the world living for payday, salivating, fiending for that credit alert at the end of each month. But that isn’t me. I hated that feeling of not being in control. It was time to make a few changes.

My first fix was to cut things drastically. I started with my seemingly innocent love of junk food, which was in fact, an addiction. It was pretty painful to wean myself off it but it wasn’t enough for a complete turnaround. Eventually, I found what worked and am proud to say that these new habits were what made all the difference.

Habit 1: I made savings a priority

Instead of hoping to have some leftovers at the end of the month, it became “save first, spend later”. In fact, I send the money out into my money market funds within the first three days after receiving it before I start paying my bills or otherwise, just in case I forget any important expense before spending it. No more leaving things to chance. I didn’t get paid by chance so I won’t spend the money like I didn’t work for it.

Habit 2: I channelled my inner “No”

If you know you cannot afford that trip, or party or whatever, say no. I can’t clearly state how much it’s given me in left over cash, but at least, I now have peace of mind. It has definitely cost me a few “friends” but I am glad to advise that friends who cannot understand and respect your financial decisions may not be your friends after all. Cut your coat to your size, not to the size of others around you.

Habit 3: I now live by a budget

Going to a wedding? Budget it. Buying snacks? Budget it. Celebrating your birthday with a party? Budget it. Buying petrol? Budget it! Challenge yourself. A budget might seem like cruel and unusual punishment at first but I promise you, just like everything else you’re doing for your financial life, it gets better with time and forces you to think of ways to grow what’s available.

Habit 4: I learned to share responsibilities

No doubt, there’s a certain pride that comes with doing things yourself but there is respect in allowing you to be helped. It all started when I got a roommate the year before I got married. I had a spacious apartment that I found out I could sub-let. Not only did this ease my housing financial burdens, it also allowed me to enjoy my money more. I saved 45 percent on my rent just by getting a friend who just started working nearby to live with me, share in the rent and other household costs. I used part of the money I saved to pay for an important certificate course.

If you live with family, you may not be able to share your apartment but there are responsibilities you can delegate to others. You can carpool with a colleague, you and a friend can get on the same HMO to make hospital bills cheaper, get creative and you’ll find a way.

How about you? What habits are preventing you from doing more with your money or simply having more money? Decrease your expenses like I did! If you want to see how you’re currently spending money so that you know what to fix. You’ll find that in just one year, those habits you thought you couldn’t live without will become a part of your past you struggle to remember.

JR Kanu holds an MBA from Stanford University, a master’s in Journalism from NYU and a bachelor’s in Engineering from Calvin College. His career has included time at Konga, Amazon, The United Nations, Esquire, CNN, and Black Enterprise magazine. Armed with a strong conviction that you can live a great life no matter how much money you have, JR founded REACH Technologies, www.reach.africa. His company builds software to help young people and companies to manage and grow their money.