10 Powerful Lessons from "The Smart Money Woman"

Hey there, beautiful Nigerian queens (and kings too – we see you!)! Let’s have a heart-to-heart about something that affects us all but we rarely talk about openly – money. Have you come across “The Smart Money Woman” by our very own Arese Ugwu? If not, you’re in for a treat that’s sweeter than chin chin!

This book isn’t just another boring finance guide that’ll put you to sleep faster than a heavy bowl of poundo yam. No, ma’am! It’s like having a juicy money gist with your smart, savvy big sister. So, grab a cold chapman, and let’s dive into 10 amazing lessons we can learn from this Nigerian financial gem.

First things first, why should you care about all this money talk? Well, in today’s Nigeria, being smart about money isn’t just nice to have – it’s as essential as knowing how to spot fake naira! 

Whether you’re climbing the corporate ladder in Victoria Island, running your own business in Abuja, or hustling as a freelancer in Enugu, these lessons will help you secure the bag and keep it growing.

Lesson 1: Take Control of Your Finances

Listen up, sisters! The days of waiting for Prince Charming to ride in on his white horse (or white Range Rover) to solve all your money problems are over. Zuri, the main character in the book, shows us it’s time to grab our finances by the horns, just like we’d grab the last piece of meat at a family dinner!

Start by asking yourself: Do you really know where your money goes each month? If your answer is “um, not really” or “it just disappears like ice cream in harmattan,” don’t worry. You’re not alone. 

Start by tracking every naira you spend for a month. Use a notebook, your phone’s notes app, or try expense tracking apps like Money Manager or Wallet.

You might be shocked to see how much goes to data bundles, Uber rides, or those quick snacks at Mr. Biggs. One of Zuri’s friends realized she was spending more on aso-ebi in a year than she was saving!

Lesson 2: Create and Stick to a Budget

Now, I know “budget” sounds about as fun as being stuck in Lagos traffic, but hear me out. A budget is like Google Maps for your money. Without it, you’re just wandering around financially, likely to end up in Mushin when you’re trying to get to Lekki!

Try the 50-30-20 rule: 50% of your income for needs (rent, food, transport), 30% for wants (that new iPhone, weekend owambe), and 20% for savings and debt repayment.

For example, if you’re earning ₦150,000 a month:

– ₦75,000 goes to needs

– ₦45,000 for wants

– ₦30,000 for savings and debt repayment

Zuri found that once she started budgeting, she felt more in control and less stressed about money. No more hiding from her bank’s SMS alerts!

Lesson 3: Pay Yourself First

This isn’t about being selfish – it’s about being smart! Before you pay for anything else, set aside some money for your future self. Even if it’s just ₦5,000 a month, start somewhere. It’s like giving yourself a salary before anyone else gets a kobo.

You could open a separate savings account (many Nigerian banks offer goal-based savings accounts) or try apps like PiggyVest or Cowrywise. These apps can automatically deduct a set amount from your account each payday, so you’re saving without even thinking about it.

Imagine how good it’ll feel to have a nice chunk of change saved up for emergencies or that business idea you’ve been dreaming about! Maybe you’ll finally be able to start that online fashion store or put a down payment on a piece of land in Ibeju-Lekki.

Lesson 4: Invest in Your Financial Education

Knowledge is power, especially when it comes to money. Zuri didn’t become a finance whiz overnight – she learned, and so can you! Think of it as going to money school, but way more interesting than those boring economics classes in uni.

Start with free resources like financial blogs (Nairametrics and Zikoko Money are good ones) or YouTube channels. Follow Nigerian financial experts on social media – people like Arese Ugwu herself, Oluwatosin Olaseinde, or Tomie Balogun share great tips regularly.

If you can, invest in books or online courses. Websites like Udemy often have sales where you can pick up financial courses for as little as ₦2,000. The more you know, the better decisions you’ll make with your hard-earned money. You’ll be dropping financial nuggets at family gatherings like a pro!

Lesson 5: Diversify Your Income Streams

In Nigeria, we know all too well that depending on one source of income can be riskier than crossing Lagos roads during rush hour. What if you lose your job or your business hits a rough patch?

Think about skills you have that could bring in extra cash. Are you a whiz at makeup? Start a weekend gig doing bridal makeup. Love to write? Try freelancing on platforms like Fiverr or Upwork. Good with numbers? Offer book-keeping services to small businesses.

Zuri and her friends got creative with side hustles. One friend started baking cakes for office parties, another began dropshipping on Jumia. The possibilities are endless!

Lesson 6: Avoid Lifestyle Inflation

This one’s tricky, especially in our “package” culture where everyone’s trying to pepper dem. When you start earning more, it’s tempting to start spending more too. New car, designer bags, moving from Yaba to Lekki – sound familiar?

But here’s the thing: if you can resist upgrading your lifestyle every time you get a raise, you’ll be able to save and invest so much more. Zuri learned to be content with what she had, and her bank account thanked her for it.

Instead of buying that fancy car, why not invest in a mutual fund? Instead of moving to a more expensive apartment, why not renovate your current place to make it feel new?

Lesson 7: Invest for the Future

Saving is great, but investing is how you really grow your money. It might seem scarier than watching a Nollywood horror movie at first, but start small and learn as you go.

You could begin with mutual funds, which are less risky than buying individual stocks. Companies like Stanbic IBTC, ARM, and Lotus Capital offer various mutual funds you can start with as little as ₦5,000.

Or look into real estate investment trusts (REITs) if you’re interested in property but can’t afford to buy a whole building yourself. The Nigerian Stock Exchange has a few listed REITs you can invest in.

Remember, investing is a marathon, not a sprint. Start small, be consistent, and watch your money grow over time.

Lesson 8: Don’t Be Afraid to Seek Help

You don’t have to figure everything out on your own! Zuri had a mentor who guided her, and you can find one too. It’s like having a financial godmother (or godfather) to show you the ropes.

Look for a trusted older friend or family member who’s good with money. Or consider talking to a professional financial advisor. Just make sure they’re registered with the Securities and Exchange Commission (SEC) to avoid 419 situations!

Many banks in Nigeria also offer financial advisory services to their customers. Check with your bank to see what they offer.

Lesson 9: Communicate Openly About Money

In Nigeria, we often think it’s taboo to talk about money. It’s like talking about that uncle nobody mentions at family gatherings. But keeping quiet about finances can lead to big problems, especially in relationships.

Practice talking about money with your friends, family, or partner. Be honest about your financial goals and challenges. You might be surprised at how supportive people can be once you open up.

For example, instead of going out for expensive dinners with your girls, suggest a potluck where everyone brings a dish. Not only will you save money, but you might also spark some interesting conversations about finances.

Lesson 10: Empower Other Women Financially

As you learn and grow financially, don’t keep all that knowledge to yourself! Share what you’ve learned with your sisters, friends, and colleagues. It’s like sharing the secret ingredient to your jollof rice – it makes everyone’s meal better!

Maybe start a money book club or a savings challenge with your girls. When women support each other financially, we all rise together. Imagine a Nigeria where all women are financially savvy – we’d be unstoppable!

There you have it – 10 powerful lessons from “The Smart Money Woman” that are more valuable than the last piece of meat in the soup! These aren’t just nice ideas; they’re practical steps you can start taking today to transform your financial life.

Remember, becoming a smart money woman isn’t about being perfect. It’s about making better choices, one naira at a time. So, which lesson are you going to start with? Maybe tracking your spending this month? Or opening that savings account you’ve been putting off?

Whatever you choose, know that you’re taking a step towards a brighter, more financially secure future. And trust me, in the future you will be so grateful you started today, she’ll be dancing Zanku in celebration!

So, go on and get your smart money on, Nigerian queens! Your financial glow-up starts now. Who knows? Maybe you’ll be the next smart money woman inspiring others with your story!

Want to dive deeper? Grab a copy of Arese Ugwu’s book from your local bookstore or order online. 

Follow financial experts on social media, or join online communities of Nigerian women talking about money. Your financial journey is just beginning, and the possibilities are endless.

Remember, in Nigeria, we don’t just survive, we thrive! So let’s thrive financially too. You’ve got this, and we’re all rooting for you. Now, go forth and conquer, smart money woman!