1. Lifestyle

Being Broke is Expensive: Why it costs so much to be broke in Nigeria.

Being broke remains a never-ending cycle for an average Nigerian. In trying to escape “sapa” it is becoming clearer that broke has become more and more expensive.

How can you maintain a comfortable lifestyle if the bills never end and you keep saving to spend? In this article, we’ll take a look at how being broke impacts your life financially and discuss some solutions for the problem.

In order to understand how expensive being broke is in Nigeria, let’s first define what “being broke” looks like: Being broke  is having limited access to basic goods or services such as food, shelter and education; therefore being unable to meet one’s basic needs without assistance from others

As a lower/ middle in Nigeria, it’s easy to testify that most of your hard-earned money received at the end of the month is sucked away by responsibilities in a matter of seconds and you find living in survival mode so most of us  are waiting on the next paycheck. One of the major reasons for the inflation rate in Nigeria soared to 18.5% in June as a result the middle-class income earners kept shrinking.

We will look at some the essentials money is spent on

According to the World Bank, the average Nigerian spends around 18% of their income on items that are not immediately connected to fundamental requirements such as food and housing. This includes transportation and entertainment, which account for 15% of a person’s entire expenses. This may be a serious issue for low-income households, which frequently struggle to make ends meet on their salaries alone.

Several factors contribute to the high cost of being broke in Nigeria, and they include:

  • The high cost of living: The first factor is the cost of living, which includes the cost of food and water, energy bills, and rent or mortgage payments. With the annual inflation rate in Nigeria at 18.6% in June of 2022, inflationary pressures on goods and services pricing has made being broke so much more expensive, as not having enough money to buy quality goods and services becomes a cost one pays for later on.
  • Poor financial management skills: A major factor contributing to the high cost of being broke in Nigeria is the lack of financial literacy. Since most people don’t know how to manage their money, they often spend more than they earn, which means they have less money than they need.
  • You become susceptible to bad loans: Being broke means you never have enough to take care of bills, hence you always look outwards for extra cash, in today’s climate where there are several loan platforms (with high interest rates) at the click of a button, without proper research, a broke person could easily fall victim to one of these bad actors and get caught in a web of never ending debt payments, continually paying for being broke.

We know how hard you work to make your money, hence we are that financial partner that helps make life possible for you, not harder. Paga has developed several programs and reward systems to give you more value for your money.

For starters, we know the average Nigerian spends a staggering 67% of their income on bills and utilities, hence it only makes sense we help our customers spend less on bills. Make paying bills fun again. Here are 2 ways in which Paga helps you spend less each month.

2% Cashback

If you are reading this article, you are probably doing so from an internet enabled device, according to the NCC, Nigerians spent N1.25tn on airtime and data in the first 6 months of 2022. Did you know Paga offers 2% cashback on all airtime and data purchases, Yes! With Paga you ALWAYS get a rebate when purchasing airtime/data bills. To put this in perspective, if every Nigerian bought their data/airtime through paga, they would have cumulatively saved N24.6 Billion naira. The next time you want to buy your monthly data or send airtime for your loved one, do it on Paga and save yourself some money.

Monthly Payment Rush Plus

Every month Paga rewards their customers for paying their bills in the Monthly Payment Rush Plus. You stand a chance to win N10,000 every month for simply doing these things;

  1. Pay a bill. E.g Pay TV subscription, Nepa bill, waste bill, etc.
  2. Buy data.
  3. Buy airtime.
  4. Send money twice.

Every Paga customer who does the above automatically stands a chance to be one of the the next winners if you take action now.

Conclusion

This article has outlined some of the reasons why being broke in Nigeria is expensive. If you are looking for ways to improve your financial situation and increase your savings, Paga is a great option for you. It’s easy to use and will help you save more money each month than ever before! With Paga, Sapa no fit catch you!

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