For example:
Do you follow a rule?
Do you prioritize needs first?
Do you invest first before spending?
Let’s learn from different approaches …..
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For example:
Do you follow a rule?
Do you prioritize needs first?
Do you invest first before spending?
Let’s learn from different approaches …..
The decision between spending and investing should not be emotional—it should be structured. A simple way to approach it is this: Every money you receive should have a purpose. PRACTICAL STRUCTURE Before spending, ask: Is this a need or a want? Do I already have something saved for emergencies? HaveRead more
The decision between spending and investing should not be emotional—it should be structured.
A simple way to approach it is this:
PRACTICAL STRUCTURE
Before spending, ask:
SIMPLE RULE THAT WORKS
You can use a basic structure like:
HOW TO DECIDE
WISDOM NOTE
The goal is not to stop spending…
👉 It is to make sure spending does not stop your future from growing.
See lessA smart investor doesn’t randomly spend or invest — they follow a decision framework. Here's a simple, practical method many disciplined investors use: The 4-Step Rule to Decide: Spend or Invest 1. Prioritize Needs First (Always) Before investing, make sure your essential expenses are covered: FoodRead more
A smart investor doesn’t randomly spend or invest — they follow a decision framework. Here’s a simple, practical method many disciplined investors use:
The 4-Step Rule to Decide: Spend or Invest
1. Prioritize Needs First (Always)
Before investing, make sure your essential expenses are covered:
Food
Rent
Transport
Utilities
Health
Family responsibilities
If these are not secured, investing becomes risky.
Rule:
👉 Needs first, always.
2. Pay Yourself First (Invest Before Spending on Wants)
This is one of the most powerful wealth rules.
Popularized in books like The Richest Man in Babylon, the idea is:
Save and invest before spending on non-essentials.
For example:
Salary comes in
Invest 20% first
Then spend the rest
Rule:
👉 Invest first, spend later.
3. Use the 50-30-20 Rule (Simple Budgeting Framework)
A practical guide:
50% → Needs (food, rent, bills)
30% → Wants (clothes, outings, gadgets)
20% → Investments & savings
If you want to grow wealth faster:
50% Needs
20% Wants
30% Investments (better if possible)
4. Ask Yourself These 3 Questions Before Spending
Before you spend money, ask:
Is this a need or a want?
Will this make me money in the future?
Will I still value this in 3 months?
If the answer is No to #2 and #3 → consider investing instead.
My Personal Recommended Rule (Simple & Powerful)
Use this order:
Cover needs
Build emergency fund (3–6 months expenses)
Invest
Spend on wants
Example (₦100,000 Monthly Income)
₦50,000 — Needs
₦20,000 — Invest (stocks, treasury bills, mutual funds)
₦10,000 — Emergency savings
₦20,000 — Wants
When To Spend Instead of Invest
Spend when:
It’s essential (health, education, tools for work)
It increases your income (like buying solar for your cyber cafe — which you mentioned earlier, that’s actually investment, not spending)
Golden Rule
👉 Spend what’s left after investing, not invest what’s left after spending.
This one rule alone separates:
People who struggle financially
from
People who build wealth
See lessHere’s the simple step,and what to consider first; Cover needs,secure safety,invest first,& spend the rest. 1) Needs come first: Always pay for your essentials, first ,like,you can bring out,some portion of your income or money,for your basic needs(food,housing,bills, health,etc). 2) Build a safRead more
Here’s the simple step,and what to consider first;
Cover needs,secure safety,invest first,& spend the rest.
1) Needs come first:
Always pay for your essentials, first ,like,you can bring out,some portion of your income or money,for your basic needs(food,housing,bills, health,etc).
2) Build a safety net:
Save 3,to 6 months,of expenses,first,that is,after being out,your basic needs money,aside, before,any serious investing, especially,for any emergency.
3) Invest before spending:
Automatically invest,10–20%,of your income,though,it’s depends on the amount,you earn,and your management skills,in terms of, family size,personal use,and things,in between,then spend what’s left.
4) Control wants:
Always pause,before spending on, non essential things. Because,if it’s not meaningful,you invest instead,that is,after your basic needs, emergency funds,have been kept aside,or settled.
5) Think long term:
Sometimes ask,“Do I want this now,or more money later?”
My final point,discipline first,lifestyle second,then,wealth always compounding.
See lessIt is imperative to have a balance on investing and spending. Do not invest and become stranded, instead, apply the 5% rule. This rule entails saving half of your money for investing, while saving the other half for spending. While spending, ensure to prioritize your needs over wants. Some basic neeRead more
It is imperative to have a balance on investing and spending.
Do not invest and become stranded, instead, apply the 5% rule.
This rule entails saving half of your money for investing, while saving the other half for spending.
While spending, ensure to prioritize your needs over wants.
Some basic needs are: food (buying non-perishable goods in bulk saves money), transportation and utilities.
While investing, it is also imperative to save emergency funds for matters of urgency.
See less