Zainab Aderounmu 
My friend, Fathia, is terrified of turning out like her dad, financially. He’s a baby boomer, and life was relatively rosy in his twenties, when you could graduate at 23, get a government job, a car loan, and easily access basic needs. However, at over 50, he seems to be working harder than ever before. Where did all that money go? Her solution to not living that kind of life? Make more money, play it safe and avoid risky ventures.
Guess what? The biggest financial risk you can take is playing it too safe.
In our age, we’re living in a fundamentally different world from the one our parents grew up in; there’s rising inflation, the costs of living, which might actually kill the living, and we lived through a global pandemic. However, we’re also living in a time with more wealth-building opportunities than ever, thanks to the internet and social media. Besides that, we have more financial resources readily available to us than they were to them. So, while it is wise to be afraid of living a paycheck-to-paycheck life for the rest of your life, it’s also wise to take advantage of fundamental wealth-building strategies available to you.
Your mindset might be what’s keeping you broke.
Do you know how we all promise not to repeat some of the actions or belief systems our parents lived by, only to start adulting and discover that we’re living in that same way? Yeah! I grew up in a home where money was ‘for spending’: no plan, no investments, just vibes and in sha Allah. And I promised that won’t be me. Guess what? That was exactly me in the first three years of working and actively earning.
Which is why the first important step to building wealth is to rewire your money mindset – the one you grew up with. Financial advisor, Seyi Abiodun, calls them “money scripts”. Your money script often shapes your relationship with money; how you earn, what you spend on, and what you accept, financially. If you grew up in a household where you had to be frugal, you’re likely to hold on to every single kobo, and even fear investing because it has no short-term benefits. I know someone who would live above his means just for the gram – he must appear wealthy, even if it means accruing more debt. Some people, usually firstborns, see themselves as the hero, saving everyone but themselves. Dig deep, and identify the script that’s keeping you the way you are.
Next, you have to arm yourself with the right financial knowledge. It used to be: earn money, and save your way to retirement. Financial advisor Nischa Shah says, “You can’t save your way to retirement or financial freedom”. In fact, the ways we earn money today are radically different from what was available to older generations. It was: get a degree, get a good job, and start contributing to a pension, except for some who turned out as entrepreneurs.
Now, there’s technology and platforms where you can monetise your skills. For us, the internet isn’t just a tool, it’s a whole new economy. In 2024, digital creators made 20 per cent more money on social media than in 2023, according to a Forbes Under 30 billionaire ranking. This means you can accelerate your journey to investing and building wealth. You can follow Nigerian financial advisors like Seyi Abiodun and Tosin Olaiseinde or foreign advisors like Nischa Shah and Ramit Sethi. Numerous financial applications like Cowrywise and Piggyvest help you save from your comfort zone.
Meanwhile, the trick is to stay consistent. It’s very easy to be excited about starting a wealth-building journey, but quite tough to stay on track. Automating your savings and investments can help you with that. But, when you understand that consistently investing little over a longer period gives you more returns than investing twice as much when you’re older, you stay the course. Time is our biggest advantage, so it’s important to start now and start early. That way, you’re not only looking at the possibility of retiring well by 65 but also at the prospects of attaining financial freedom earlier than that.