Welcome to 2024!

As we bid farewell to 2023 and welcome 2024, we are presented with an opportunity to reflect on our financial journey and plan for the future. Regardless of your financial experience or goals, there are key steps you can take to solidify your financial foundation for this year.

Let’s first of all talk about the economic situation in Nigeria.

The Nigerian economy has seen significant fluctuations in recent years. Things have been hard. In simpler terms, despite a World Bank projected Nigerian economic growth of 3.5% between 2023 and 2026, we are riddled with challenges, which have shaped how Nigerians behave with money. Many have turned to fixed/savings accounts, gambling, cryptocurrencies, and real estate, seeking security and growth.

Income and Expenses

Reviewing your income sources and comparing them to your budget projections is a crucial step in financial reflection. Ask yourself, did you achieve what you set out to do in 2023? If not, why?

It’s also important to monitor your spending categories. Many Nigerians tend to spend their money on necessities like housing, transportation, and healthcare. By grouping your expenses into different categories, you can track how much you’re spending and identify areas where you can make improvements. For example, if you find that you’re spending more than expected on dining out, you might set a goal to cook at home more often this year.

Investments, Savings, and Debt

As we transition into 2024, it’s time to reassess your risk tolerance, which is your ability to withstand losses, and adjust your investment portfolios accordingly. Diversifying your holdings, or spreading your investments across a variety of assets, can help mitigate potential financial risks.

 
It’s also a good time to review your savings and debt situation. Are you saving enough? Are you making progress in paying down your debt? If not, what changes can you make in the coming year? For instance, you might decide to increase your monthly savings by a certain percentage or set a goal to pay off a specific debt by the end of the year.

Planning for 2024 – Setting Financial Goals

Set SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) goals for income, spending, savings, and debt. This is a proactive and responsible approach to managing your money in the coming months. Break down large goals into smaller, actionable steps to make them more achievable. Prioritize your goals based on their importance and feasibility. For example, if paying off debt is your top priority, you might set a goal to pay off a certain percentage of your debt by the end of 2024.

Budgeting and Tracking

Budgeting is one of the most important aspects of financial planning. Develop a realistic budget for next year and actively manage it by revisiting it regularly. Use budgeting or expense-tracking apps to help you stick to your budget. A rule we like is the 50-30-20 rule of budgeting. Divide your net income into three categories: 50% for needs, 30% for wants, and 20% for savings. Remember, progress is more important than perfection, and taking some steps towards your financial goals is better than taking none. Download our Budgeting tool today.

As we move into 2024, Peer Lendly offers an opportunity to reassess your financial situation. Whether you’re looking to take out a payday loan to cover an unexpected expense or you’re looking for a quick way to make solid returns while making an impact, Peer Lendly is here to help.

In conclusion, year-end financial reflection and strategic investment planning are not just about setting goals, but also about taking actionable steps to achieve them and building a habit.

Here’s to a financially successful 2024! Remember, we are here to support you every step of the way. So, why not start your financial planning journey with us today?