Personal Finance: A Guide to Budgeting and Saving

A few years ago, I sat at my desk staring at my account, and for the first time, I felt a wave of panic; “no, no, this account balance cannot be mine please”. Payday had been less than two weeks ago, and yet my account balance was dangerously close to zero. My rent was due in a few days, and I hadn’t even saved enough for emergencies, let alone for my dreams of getting a Masters’ Certification. Only a miracle could save me at that point.

That moment was my wake-up call. I realized that I had been living paycheck to paycheck, spending mindlessly on things I didn’t even value. If I wanted to build the life I dreamed of, I needed to get serious about managing my finances.

What followed was a journey of learning how to budget, save, and spend with purpose. It wasn’t easy, but it was worth it. Today, I want to share what I’ve learned along the way—because if I could turn things around, so can you.

1. Understanding My “Why”

Before I could figure out how to save, I neede d to understand why it mattered to me. For me, it wasn’t just about the money; it was about the freedom it could give me. I wanted to build an emergency fund, travel without guilt, and start investing in my future.

Take a moment to think about your “why.” Maybe it’s owning a home, clearing debt, or just having the peace of mind that comes with financial freedom. When you know what you’re working toward, the sacrifices don’t feel so hard.

2. Tracking My Spending

The first thing I did was take a hard look at where my money was going. I spent a month writing down every single expense—every plate of Amala with extra Ogufe, every online purchase, every unplanned Uber trip. What I discovered was eye-opening: I was spending more than I realized on takeout and impulse shopping.

It’s not easy to confront your financial habits, but it’s necessary. Once you see where your money is going, you can start making informed decisions about what needs to change.

3. Creating a Realistic Budget

Budgeting was intimidating at first. I’d tried it before and failed because I made it too complicated. This time, I kept it simple. I used the 50/30/20 rule:

· 50% of my income went to needs (rent, utilities, groceries).

· 30% went to wants (fun things like dining out or hobbies).

· 20% was for savings and debt repayment.

Breaking it down like this made budgeting feel less overwhelming. It gave me structure while still allowing room for that extra plate of Amala with obstacles.

4. Paying Myself First

One of the best tips I learned was to pay myself first. As soon as my salary hit, I set aside a percentage for savings before touching anything else. I automated the process so I wouldn’t be tempted to skip it.

At first, I started small, saving just 10% of my income. As I got used to it, I gradually increased the percentage. Watching my savings grow felt empowering—it gave me a sense of control over my finances.

5. Building an Emergency Fund

One of my biggest financial mistakes was not having an emergency fund. When unexpected expenses came up, like a medical bill or a car repair, I’d scramble to borrow money.

I started small, aiming to save one month’s worth of expenses. Over time, I built it up to three months, and then six. Knowing I had a safety net gave me so much peace of mind.

6. Tackling Debt

Debt was another thing holding me back. I made a plan to pay it off using the avalanche method, focusing on the highest-interest debts first. It was tough to stick with it, but every time I paid off a loan, I felt a little lighter.

If debt feels overwhelming, start small. Pick one method—either the avalanche or the snowball method—and stick to it. Progress, no matter how slow, is still progress.

7. Making Saving Fun

I’ll admit, saving wasn’t always easy. To keep myself motivated, I turned it into a game. I set small challenges, like seeing how much I could save on groceries in a month or trying a “no-spend weekend.”

I also celebrated milestones. When I hit my first N500,000 in savings, I treated myself to a nice dinner (budgeted, of course!). These little rewards kept me going.

8. Starting to Invest

Once I had my budget and savings under control, I started thinking about the future. I learned about low-risk investments like mutual funds and fixed deposits, which felt like a safe place to start. Over time, I grew more confident and started exploring other options like stocks and real estate.

If you’re new to investing, don’t rush it. Take your time to learn and start with what feels comfortable.

9. Staying Flexible

There were months when I overspent or dipped into my savings. I used to beat myself up over it, but I realized that life happens. What matters is getting back on track.

Now, I review my budget every month and adjust it as needed. Flexibility has been key to staying consistent in the long run.

Conclusion

Taking control of your finances doesn’t happen overnight, but it’s one of the most empowering things you can do. For me, the journey started with a decision—a decision to stop letting money control my life and start managing it instead.

Today, I have savings for emergencies, I’m debt-free, and I’m on track to reach my long-term goals. If I can do it, so can you.

At Capitalfield Investment Group, we’re here to help you on your journey. Whether you’re looking for tools to save smarter or guidance on how to invest, we’ve got your back.

Ready to take the first step? Start by tracking your expenses this month. It might just be the beginning of your financial transformation.

Temitope Shogunle