Have you ever dreamt of becoming a successful real estate agent in Nigeria but found it difficult to start, maybe you think it’s gonna be a hell of a task or a non-profitable business? Well, no matter what you had in mind before you landed here, I will tell you how you can embrace and excel in the real estate market in Nigeria.
BUT let start with the most important question here;
Is Real Estate Business Really Profitable in Nigeria?
Yes, the real estate business is very profitable in Nigeria. You can make more than N1 million in a month if done rightly. This business has changed the lives of millions of people across the world for the better. Real Estate business is known to cover ⅔ of world treasure.
If you’re thinking of becoming a real estate agent in Nigeria, you have nothing to lose. Even if the economy goes down totally, the price of the property will keep rising and that’s a profit for realtors and real estate agents.
Here is another benefit;
If you have a job like being a banker, doctor, teacher, carpenter, or student, you can still become a real estate agent. There’s no law in Nigeria that forbids engaging in a side-hustle. So, you can say becoming a real estate agent in Nigeria is a source of passive income because you don’t need to quit your job (if you have one) and who knows, real estate might become your only business in the future when you start making some pretty profits.
What Does a Real Estate Agent Do?
A real estate agent helps people to buy and sell property such as land and house. Some smart real estate agent is now engaging fully in the real estate business as they don’t want to help others to sell their properties, but they are also buying and selling.
But, how can you start in the right way and make that crazy profits? Let talk about that;
How to Become a Super-rich Real Estate Agent in Nigeria
The following are what’s needed to become a real estate agent with or without quitting your job;
1. Enroll for Real Estate Courses
This is the first step before you can ever become a successful real agent in Nigeria or anywhere in the world. But you might be thinking that this is not necessary because you see most people in your area without any formal knowledge about real estate but yet, they’re making money.
Well, I understand. But how successful are those people? They have a house and maybe a motorcycle or car. But is that the type of success you want?
Going for rich-courses on real estate is an investment that you will never regret.
There are some FREE courses available online and also, you can go for PREMIUM or paid courses. But make sure you learn the nitty-gritty of real estate before you think of investing in the business.
After completing each course, you will be offered a certificate and this will really boost your portfolio as a real estate agent in Nigeria.
You can check out this https://schoolofestate.com/, they offer real estate programs and certifications.
2. Obtain Your Real Estate License in Nigeria
Remember I told you that I want you to become successful not ‘just rich’. The second step to achieve that success is to obtain your license.
Most self-acclaimed real estate agents in your area don’t have a license, all they have is a certificate and with that, they can’t do bigger things in the real estate market. But your dream is to conquer the real estate market in your town, city, state, and across Nigeria. Even, you want to be recognized internationally… right? If yes, you need a license that proved that you’re legit and experienced.
Nigeria’s real estate industry is regulated by The Real Estate Developers Association of Nigeria. You need to be recognized by them and this will give you an opportunity to connect and learn from top bosses in the business.
If you reside in Lagos or want to deal with properties in Lagos state, you can obtain a license from the Lagos State Real Estate Transaction Development (LASRETRAD) or go here >> http://www.lasretrad.com/Licensing.aspx
3. Define Your Business Model
This is another important stage in the course of climbing the ladder of success as a real estate in Nigeria. Ask yourself, do you want to deal with buying and leasing or selling of properties only?
Or do you prefer to be a middleman, introducing customers to the property owners and you earn commission on each sale you make?
I know you’re just starting, you can start by being a ‘standard’ middleman till you are able to start buying properties.
I will explain further in steps 9 and 10… Let’s go to the next step!
4. Choose a Unique Business Name
The next big deal is to choose a name that is unique.
When choosing a unique business name, the following needs to be taken into consideration:
- The name must be catchy and easy to memory or pronounce
- The business name must be available to be registered on the domain marketplace
- The social media usernames must be available for your business name
- The business name must not be competing with any other business name
- The real estate business name must have a call to action like “Stephen Realty” etc
You need to do your research thoroughly before you settle for a business name.
5. Register Your Business Name
If you have chosen the best business name, someone can still claim it by registering it before you. Yes, it is very possible.
The only thing you need to do is to register that unique business name before anyone does. To register a business name in Nigeria is quite simple but you don’t just jump into it without a guide.
6. Get an Office
This is necessary if you really want to position yourself as a professional real estate agent in Nigeria. You don’t need to spend money on a luxury office, for now, you can rent a shop in a good area and set it up attractively.
Later when you start making money, you can decide to rent an office in a luxury complex or maybe, build your own.
7. Join Big Real Estate Firms
Are you not confused, that I’m suggesting you join another real estate firm? Well, because you’re just starting your real estate career, you need to make some money before you can establish yourself fully (unless you have some millions of Naira to buy properties yourself).
Don’t get it wrong, you’re not working for these ‘big real estate firms’ but you’re working for your own commission but as “an affiliate” with those firms.
What I mean is this;
First, you can join many real estate firms as much as possible. And second, you make money if you help these firms sell a property and you’re paid according to a commission on whatever you help sell the property for.
Let’s say they list a property for sale at the rate of N2m and the commission for any agent that sells that property is 10%, that’s N200,000 for you.
The more expensive such listed property is, the higher your commission will be.
If you can draw a goal or plan to sell at least five properties per month, you could be making N1m naira every 30 days. Apart from the commission, you may be eligible to win a luxury car or a paid trip abroad (that’s when you reach a great milestone with that firm).
Can you see that you can definitely become a successful real estate agent in Nigeria if you know your onions?
In one of my upcoming articles, I will get you the best 10 big real estate firms that pay good commissions In Nigeria, so subscribe to my mailing list in order to get notified.
8. Buy House, Renovate & Sell
Now that you’ve been making some cash, you can thrive. I mean you can start establishing your own firm. To that, you need to start small and don’t leave the big firms you’re working with.
Look for uncompleted and abandoned buildings, find the owner and negotiate with that person, then finally buy.
Note, before you buy any building, make sure you have your lawyer guiding you in the process. And also analyze if the building is worth buying at the owner’s tagged price. Don’t forget to complete the transfer of ownership and other necessary documents.
If you don’t have enough money to buy the property, you can go to the bank for a loan, explain to them that you need it for real estate investing, and show them your license, business certificate, and other requirements.
After that, renovate the house and make sure that’s more attractive. Depending on the type of house, ensure that the water system is working and other things are in good order.
You can now decide to sell the house. If you decide to sell, calculate all the money you’ve spent and add your own to it, then sell.
Let’s say you spent about N5m, you can place the property for N12m and settle for something around N9.5 Million after negotiation.
This is getting more interesting, right?
9. Invest in Buying Lands
The land is said to be the most important natural asset in the world. Whatever we want to do, we need to do it on land. A lot of smart people are making millions of Naira by simply buying and selling land.
Because your dream is to become a successful real estate agent in Nigeria, I will advise you to heavily invest in buying lands. You can buy a plot of land for N500,000 today and in the next 6 months, that land may appreciate up to N1.5 million.
If you want to buy land, buy from an under-developed or developing area. There are chances that you will triple the capital in a few months or years.
You can go to a farming area and buy land at a very cheap price, then leave it to appreciate it for some time.
10. Lease Properties
- For house
You can make more money leasing out properties than selling them, but it’s going to take a while before you can see all the profits.
According to HuffPost:
If you put 20% down on a property, you will still receive rental income based on 100% of the property value, making it a great return for your 20%. Say your property is worth $100,000 and you charge $750 in rent with $500 in mortgage, taxes and fees. You have a $250 profit on $20,000 down
Let’s say you bought a 3-bedroom flat and renovated it to become 3 different “a bedroom self-contained” with N5 million.
You can choose to lease them out, depending on your area and the amenities, you can lease it for N80,000 – N150,000. If you lease for N80k, that will be N240k/year. If it’s 150k, that will be N450k/year. So, this depends on your area and the unique amenities in your house.
- For Land
If it’s land, you can lease it for the shop or kiosks owner. Let’s say you bought the land for N800,000. If the land can accommodate like 15 – 20 kiosks, you could charge them to pay 20K each and you’ll be making N300,000 to N400,000 on that land while at the same time, the land is appreciating.
11. Get a Property Listing Website
Your journey to success as a professional real estate agent in Nigeria is missing without having a property listing website.
I know you would have seen some examples of these real estate websites, either public or personal one, you see how it’s easy for people to buy or get the details of each property you have without much talk from you.
If you think this is important for you as a real estate agent, you can hire my parent digital agency. I am the owner of GbolaByte Web Solutions and we have built a lot of websites for our clients including the realtors and real estate agents, eCommerce store owners, etc.
You can hire us and we won’t disappoint you. Okay, let go to the next step;
12. Go Digital With Real Estate Marketing in Nigeria
Now. you need to combine your offline method of marketing with digital marketing. Embrace the use of Influencer marketing, social media ads, etc.
You can also use SEO (search engine optimization) to rank your website and do local citations for your business if you want to rank high in your area. For example, searching for “Website Designer in Ilesha or Osun State”, GbolaByte, my digital agency will be featured at the top in Google results. I can help you do that for a token.
Make sure to advertise all your listed properties online, in order to get more clients.
13. Help People to Sell Locally
This is one of the top 1% reasons you’re called a real estate agent. You need to build your portfolio, by helping more people to sell or lease their houses or lands.
Another way to make money locally as a real estate agent is to build loyalty and connection with people. With that, they will be able to recommend you to property owners and from there, you can be entrusted with people’s property.
You can as well reach out to property owners yourself, but make sure you always approach them with good presentation and proof that you’re the right real estate agent for their property.
14. Employ Sales Reps.
You should have started doing this for a while, but if you haven’t, it is high time you start employing sales representatives. Of course, these sales representatives are not going to be walking from house-to-house in order to help you sell, but you can allocate them in different areas across your city and your state at large.
The more effort and investment you put in, to expand your business, the more profits you’re going to make.
Conclusion: Step-By-Step Guide to Become a Successful Real Estate Agent in Nigeria
Don’t just stop, make sure you rinse and repeat all the processes, especially from step 6 to 13.
If you don’t skip a step, you’ll definitely become a successful real estate agent in Nigeria. If this blog post helps you, you can help others by sharing on social media platforms by clicking on the floating social media icons here.
You can as well subscribe to my mailing list in order to be notified when I publish content like this. Finally don’t forget to write down your comment below and I will be glad to read how helpful you found this.
How To Start a Logistics Business in Nigeria – (10 Easy Steps)
Have you ever want to launch your own logistics business in Nigeria but don’t know how to start or what exactly to do? I’m going to show you an easy and practical approach to starting a profitable logistics or delivery business in the country.
Do you know that some businesses are complementary to others? Yes, they work for the benefit of both businesses. And in this age of the Internet, the tendency to shop online continues to increase as the days go by, hence, the need for a complementary service, that’s a service to fulfill the deliveries.
Logistics or delivery business in Nigeria or any place in the world is not ending soon because almost all e-commerce business owners or companies are now on the internet and they need a logistics company to help bridge the gap between the end of the buyers.
Just in case you don’t know much about the logistics business, below is a quick explanation;
Understanding How Logistics Business Work
In a business sense, logistics aid the movement of goods/services from the manufacturer/wholesaler to the consumer. By definition, it sounds simple but by the implementation, it is rather complex. This is why manufacturing firms sparingly have their own logistics team—relying on an independent logistics company.
Logistics companies are tasked with the responsibility of the planning, implementing, and movement of goods, services, and other valuables from the point of origin to the final consumer. The origin of logistics can be traced back to world war 1 (WWI) and WWII where the military had to make supplies available for their soldiers.
Logistics is now a full-fledged business today and lots of money can be made. This is why I’ve made this post to guide you on starting a logistics business in Nigeria.
If you have ever shopped on Jumia, Konga, Amazon, Aliexpress, and other top online shopping sites, I’m sure you understand that the guy or company that picked the products from the manufacturer’s warehouse and delivered to you, in operating under what we know as logistics business.
Now, let’s talk about starting your own logistics business in Nigeria or anywhere in the world!
How to Start a Logistics Business in Nigeria: 10 Steps!
#1. Develop Your Business Plan
Writing your business plan is the first step to take when starting a logistics business in Nigeria. Many take this for granted but having one is pretty important. You really don’t need to have good writing skills or be a business expert before crafting a good business plan.
Although, there are a lot of services that can assist you in generating a business plan I advise you to write manually or hire the someone who can personally do it for you.
Since your business plan will be your guide as you grow your logistics business, a personalized version will always come in handy. I won’t go into great detail here as we already have a post on writing a business plan and a free template.
Check this guide on how to write a good business plan.
So, let’s talk about the next important step!
#2. Get Your Capital
After your business plan, the next thing is to get your capital – which you know is very important. And there are several ways you can source for your capital. You can choose to finance it personally or get a loan from the bank.
Getting a loan or financing your logistics business yourself has its pros and cons and it’s totally up to you. Lots of commercial banks would be willing to offer you a loan, you can as well apply for business grants which will save you from the stress of providing collaterals.
Once the funding is acquired, the next step is to;
#3. Get an Office Space
You don’t need a big warehouse, but an office where you can attend to clients and enquires in case a company or a customer need to see you before transacting with your company.
Ensure your office is well decorated, not beautifully but professionally.
- Your main office should be separated from where you keep customer goods
- Your office should be easily located, don’t rent an office space very far to the main road
- Your business location should be google (You can hire me for this)
If you’ve got your office space, then do this:
#4. Choose Your Delivery Mode
Logistics business in Nigeria can take different forms. We’ve got companies who make use of motorcycles, buses, mini-vans, or trucks. You can start with one of these, or you could mix them up for flexibility.
Knowing what means to use for transportation will determine what you choose to use as your capital. Using a motorcycle/bike means less capital expenditure but also, it limits you to carry certain goods.
Also, you’d be choosing between:
- Intra-state (e.g within Lagos state)
- Inter-state (e.g Within and outside Lagos state – to Kwara State, etc.)
- Inter-countries (e.g from the USA, China, etc to Nigeria)
Or perhaps, you can decide to do both but keep in mind that you’ll have to learn more travel routes in a short span of time.
Okay, the next up in purchasing the tools needed for your business and also, hiring some personnel to fill out different positions. From our definition of logistics, it is very evident that you will be needing a good number of workers to ensure everything is carried out seamlessly.
#5. Buy Necessary Equipment & Vehicles
You need to buy important Items like computers, stationery, dispatch box, telephones are some of the important items needed to run a successful logistics business in Nigeria. With these and more in place, it is expected that you have an effective logistics business like the top brands in the country.
Considering your mode of delivery, you can buy some motorcycles or small buses and brand them with your business identity, just like the like of Jumia, etc.
Some logistics companies also partner with taxi drivers and okada riders to fulfill the deliveries instead of using their own cars, motorcycles, and drivers.
If you want to deal with inter-countries, then you need to grow your network with aviation companies.
#6. Setup a team or Employ Staff
About getting the necessary requirements, the next big deal is to set up your own team or employ some people to work with you.
Also, make sure to hire staff to fill out different positions and not just drivers. Asides from delivery, business management, customer care service, and planning need to be top-notch which the driver can’t do.
This team or staff includes;
- The drivers (if you have motorcycles or buses)
- The customer care agents
- The marketing team
If you don’t have enough money to pay staff, you can hire university students, or those people who are smart and conversant enough, then train them yourself or hire an expert to come and train your team.
#7. Register Your Business
If you want your logistics business in Nigeria to be taken seriously as a business entity, then getting your business registered should be a top priority for you. These days people are getting more aware of fraudulent businesses. Failure to register yours puts up a red flag for potential customers.
Looking at it critically, the cost of registering your business with the Nigerian Corporate Affairs Commission isn’t expensive, so why not do it? Starting with N10,000, you can register your business in Nigeria. If you have a business name already for your logistics company but don’t have enough funds to register, you can reserve your business name for 6 months with just a little token of N500.
Check out our post on how to register a business name in Nigeria.
If you need me to register the business for you, it cost N25,000 and I will get your business approved and your business registration certificate will be sent to you, or you collect it yourself.
#8. Go Digital with Your Business
The world is digital itself, all businesses are going digital and if you’re not on the internet, then you don’t have a business yet. And when I say you should go digital, I’m not saying you should just open social media pages and that’s all.
You should try and get a professional website, do your google business listings, list your logistics business on business directories, do Search Engine Optimization (SEO) and of course, your business social media pages are important.
If you need a professional website design or development, my Web Design and Digital marketing agency can handle that for you. Kindly contact me here or visit our website here >>> https://www.gbolabyte.com
We can also handle your digital marketing, google business listing, SEO, and other digital or remote tasks you need us for.
Remember that most of your customers are online, you also need to get your business and the first approach is to get a business website for your logistics business in Nigeria.
#9. Brand Identity Design & Branding
Business identity and branding will really differentiate your business from other logistics businesses in Nigeria. When it comes to branding, you need the service of a professional graphics designer.
Note that some graphic designers are not experts when it comes to branding.
Branding is more than designing a logo, it involves anything that will make your business stands out. Brand Identity designer offers everything ranging from your logo, icons, social posts banners, ID cards for your staff, brand your company vehicles, brand your office equipment, and everything brandable.
This is very important and it goes along with your marketing, that’s what I’ll be explaining last!
#10. Market Your Business.
You’ve come a long way in starting your logistics business in Nigeria. As a new player, unless you’re extremely lucky, no one is going to find out about you. Which is why you’ve got to market your brand.
The top logistics firms in Nigeria like GIG Logistics, Creseada International Limited, Ocenj Logistics, and more didn’t get to where they are today by chance. They sent the word out about their business and then delivered on the customer’s expectations.
And in this age of the Internet, it’s much easier to market your business by using available tools like social media. Remember, you’ve got to offer something different from the rest, or make a service offered by your competition better. With these, your logistics business will soar to great heights.
Part of your marketing strategy is to try and connect with e-commerce website owners or companies in Nigeria so that they can recommend you to their customers. Try to reach out to these companies and your business network will continue to grow.
CONCLUSION – How to Start a Logistics Business in Nigeria
E-commerce is getting bigger by the day in Nigeria and this is why the logistics business in Nigeria as a complimentary service is getting more traction. And yes, like every business, this has its own risks but with a good management team, these risks can be reduced to its bare minimum.
At the moment, the logistics space in Nigeria isn’t that saturated which is a good reason to start as soon as you can. As you do, keep in mind the steps above as they’ll be your guide when you experience obstacles.
So, over to you, when do you wish to start your logistics business in Nigeria? And if you own one already, how did you start yours? Let’s hear from you!
President Muhammadu Buhari’s Full Speech on #EndSars Protest
Have you watched the broadcast of President Muhammadu Buhari’s full speech on the #EndSars protest? Well, many of us are opportune to watched it live on NTA (their YouTube channel).
We all know what’s happening in the country since two weeks ago and the President hasn’t until today, address the citizens of Nigeria. Before he went live to deliver his speech, Nigerians had set their expectations so high to listen to see what Mr. President planned to do with Lekki Toll gate’s Massacre, Police brutality, bad government, corruption and other things happening in the country.
But, well… Nigerians are left disappointed.
I know by now, you have being seeing some posts on social media by Nigerians, saying they need need to leave this country and travel to Canada and sort of cruise like that regarding President Muhammadu Buhari’s full speech on #EndSars protest.
You’re eager to listen to it right? Worry no more! You can watch the video below or read the speech.
VIDEO: Full Broadcast of President Muhammadu Buhari on #EndSars Protest
You can read the speech speech below;
ADDRESS TO THE NATION BY HIS EXCELLENCY, MUHAMMADU BUHARI, PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA ON THE ENDSARS PROTESTS, 22ND OCTOBER, 2020
It has become necessary for me to address you having heard from many concerned Nigerians and having concluded a meeting with all the Security Chiefs.
2. I must warn those who have hijacked and misdirected the initial, genuine and well – intended protest of some of our youths in parts of the country, against the excesses of some members of the now disbanded Special Anti-Robbery Squad (SARS).
3. On Monday 12th October, I acknowledged the genuine concerns and agitations of members of the public regarding the excessive use of force by some members of SARS.
4. The choice to demonstrate peacefully is a fundamental right of citizens as enshrined in Section 40 of our Constitution and other enactments; but this right to protest also imposes on the demonstrators the responsibility to respect the rights of other citizens, and the necessity to operate within the law.
5. As a democratic government, we listened to, and carefully evaluated the five-point demands of the protesters. And, having accepted them, we immediately scrapped SARS, and put measures in place to address the other demands of our youth.
6. On approving the termination of SARS, I already made it clear that it was in line with our commitment to the implementation of extensive Police reforms.
7. Sadly, the promptness with which we have acted seemed to have been misconstrued as a sign of weakness and twisted by some for their selfish unpatriotic interests.
8. The result of this is clear to all observers: human lives have been lost; acts of sexual violence have been reported; two major correctional facilities were attacked and convicts freed; public and private properties completely destroyed or vandalised; the sanctity of the Palace of a Peace Maker, the Oba of Lagos has been violated. So-called protesters have invaded an International Airport and in the process disrupted the travel plans of fellow Nigerians and our visitors.
9. All these executed in the name of the ENDSARS protests. I am indeed deeply pained that innocent lives have been lost. These tragedies are uncalled for and unnecessary. Certainly, there is no way whatsoever to connect these bad acts to legitimate expression of grievance of the youth of our country.
10. The spreading of deliberate falsehood and misinformation through the social media in particular, that this government is oblivious to the pains and plight of its citizens is a ploy to mislead the unwary within and outside Nigeria into unfair judgement and disruptive behaviour.
11. On the contrary, both our deeds and words have shown how committed this administration has been to the wellbeing and welfare of citizens, even with the steadily dwindling revenues, and the added responsibilities and restrictions due to the Coronavirus pandemic.
12. Government has put in place measures and initiatives principally targeted at youths, women and the most vulnerable groups in our society. These included our broad plan to lift 100 million Nigerians out of poverty in the next 10 years; the creation of N75 billion National Youth Investment Fund to provide opportunities for the youths and the Micro, Small and Medium Enterprises (MSME) Survival Fund, through which government is:
a. paying three months salaries of the staff of 100,000 micro, small – and medium – enterprises,
b. paying for the registration of 250,000 businesses at the Corporate Affairs Commission,
c. giving a grant of N30,000 to 100,000 artisans; and
d. guaranteeing market for the products of traders.
13. These are in addition to many other initiatives such as;
e. N-Tech and
14. No Nigerian Government in the past has methodically and seriously approached poverty-alleviation like we have done.
15. With regard to the welfare of police personnel, the National Salaries, Income and Wages Commission has been directed to expedite action on the finalization of the new salary structure of members of the Nigeria Police Force. The emoluments of other paramilitary services are also being reviewed upwards.
16. In order to underscore the importance of education in preparing youths for the future, this administration has come up with a new salary structure and other incentives for our teachers.
17. Let me at this point reaffirm the Federal Government’s commitment to preserving the unity of this country.
18. We will continue to improve good governance and our democratic process, including through sustained engagement.
19. We shall continue to ensure that liberty and freedom, as well as the fundamental rights of all citizens are protected.
20. But remember that government also has the obligation to protect lives and properties, as well as the right of citizens to go about their daily businesses freely and protected from acts of violence.
21. To our neighbours in particular, and members of the international community, many of whom have expressed concern about the ongoing development in Nigeria, we thank you and urge you all to seek to know all the facts available before taking a position or rushing to judgment and making hasty pronouncements.
22. In the circumstances, I would like to appeal to protesters to note and take advantage of the various well-thought-out initiatives of this administration designed to make their lives better and more meaningful, and resist the temptation of being used by some subversive elements to cause chaos with the aim of truncating our nascent democracy.
23. For you to do otherwise will amount to undermining national security and the law and order situation. Under no circumstances will this be tolerated.
24. I therefore call on our youths to discontinue the street protests and constructively engage government in finding solutions. Your voice has been heard loud and clear and we are responding.
25. And I call on all Nigerians to go about their normal businesses, and enjoin security agencies to protect lives and properties of all law abiding citizens without doing harm to those they are meant to protect. Let me pay tribute to officers of the Nigeria Police Force who have tragically lost their lives in the line of duty.
26. I would like to thank those state Governors, traditional and religious leaders who have appealed for calm and restraint. I also thank youth leaders who have restrained their followers from taking the law into their hands.
27. This government respects and will continue to respect all the democratic rights and civil liberties of the people, but it will not allow anybody or groups to disrupt the peace of our nation.
Thank you all. God bless the Federal Republic of Nigeria.
That’s the full speech of President Buhari on #EndSars protest 😉
I don’t know what to say on this… But someone commented on Twitter that the President Buhari’s speech make the whole country “speechless” — Maybe that’s why I don’t know what to say.
But I know most Nigerians are disappointed.
But just in case you’re thinking of traveling out of the country and you don’t know how to start, here is how to get your international passport in Nigeria
What do you think about the 10 minutes speech? Kindly use the comment box below.
8 Effective Ways to Reduce Your Household Expenses
Are you finding it quite difficult to reduce your household expenses? Okay, don’t feel depressed, this page is what you need to get motivated and take that action!
Among all lessons we have learned during this COVID-19 “pandemic period”, one good lesson we should always stick to, is how to manage our funds and resources. Millions of people across the world became unemployed as a result of this world-renowned virus, but how do they survive? By simply cutting their expenses and wise management of their savings.
It is very important we learn how to manage our money wisely, or hence, we might end up becoming financially broke or a debtor. I know you don’t want that!
Today I’ll be showing you how to reduce your budget and lower your household expenses. These tips work for everybody, regardless of who you are, either you’re a 9-5 employee or an entrepreneur.
So, let’s check them together!
8 Ways To Reduce and Manage Your Household Expenses
Tip #1. Cut Off Your Cell Phone Plan
Having and using a cell phone is quite expensive when studied critically. No doubt they’re beneficial… but we also get charged for services, tax, etc., that we can’t even explain. This is why it’s important to choose a good cell phone plan.
According to NCC (Nigeria Communication Commission), Nigerians collectively spent about N450 Billion per month on recharge cards and data connections. That is approximately $1.17 million spent every month on cell phone plans.
You know what?
The amount of money spent on recharge cards and data connections covered about 73% of Nigerians’ expenses while the remaining 27% covered foodstuff, emergency funds, skincare, and other personal stuff.
I’m sure you’re one of those people enriching these telecommunication companies every month, I personally buy data worth N15,000 every month!
We need to learn how to reduce these expenses, and the best way we can do that is to reduce the hours we spent on social media apps (especially, Instagram and Facebook), YouTube, and online streaming sites.
Also, a prepaid plan is the most suitable option. You can get it with the major carriers at almost half the price of the regular plan. The beauty of prepaid plans are the added bonuses and incentives. Things like unlimited calls, unlimited SMSs, reduced call rates, and lots more.
If you’re looking to save some bucks, cut the regular plan and switch to a prepaid plan.
Tip #2. Do Away With Cable Subscription
One of the best ways you can reduce your household expenses is by ditching your cable plan. I know it feels good to lay on the couch after the day’s work… sipping your favorite drink… watching a good movie. I get it. But you’re on a budget and some things have to go.
Thankfully, we have digital platforms today where you can watch your favorite TV and sports shows. You can watch TV on YouTube, Netflix is a good option—it costs less per month, Showbox for Android users is great, or you could get a fire stick.
There are lots of these services out there, using any will help in maximizing your finances in the long run.
Tip #3. Get an Insurance
We live in a world where everything is risky either on land, in water, or at home. Accidents can happen anytime, you can start developing a kind of sickness any day, your car might develop faults and different unforeseen circumstances that may suddenly require you to spend money.
Sometimes, you have to borrow money from your friends, co-operative society, or take a loan from your bank, in order to take care of those issues.
But to help you manage your funds and reduce your expenses, Insurance plans are ready to cover that for you.
If you are a car owner, it is very important to have auto insurance. It comes in handy because you never know when uncertainties or accidents may occur. But the cost of these plans does take a toll on your finances.
You can always shop around for a less expensive plan. The big carriers tend to charge you higher than necessary. This may be due to you having certain covers you don’t need at the moment, or you’re probably in a wrong plan.
Take out time to review your current insurance plan, do away with covers you don’t need. Or better still, check out smaller firms with similar benefits but at a lower cost.
Tip #4. Cancel Memberships
Membership plans do get you exclusive features and other juicy benefits. This could be membership plans from your gym, Netflix, Amazon, or Audible. Whatever it is. If it’s not necessary at the moment, cancel it.
You wouldn’t miss much. There are alternatives you could check out: YouTube for Netflix, visit a local library in place of Audible, and work out at home instead of going to the gym. Remember, you’re trying to cut costs.
Tip #5. Consider Reducing Your Rent
It’s time to do away with luxurious living if you stay in a rented apartment. Take for instance you live in a 3 bedroom apartment…you could switch to a 2 bedroom or 1 bedroom to reduce household expenses.
Also, if you can, assuming this wouldn’t affect your work: try switching locations if possible. Certain areas are characterized by huge housing costs but you can change to less expensive areas if possible.
I know a guy who spent up to $2,500 (N800,000) on his new rented apartment, he had enough money in his savings to take care of feeding and other necessary stuff for the few months. But as an entrepreneur, he invested the savings on a business which went against him!
Dude is broke, and the next thing for him is to relocate to a small apartment which will cost N40,000 per year ($100/yr) instead of his previous N90,000 per year ($220/yr).
So, don’t be afraid to reduce your rent, change the location, and start looking for the bigger picture (stabilizing your business and getting your own house).
Tip #6. Cook in Your House, Stop Eating Outside!
Yes, you read right. And you’re asking if it’s possible? Of course, it is possible. We don’t tend to keep records of how much we spend on food and restaurants. I don’t do that.
And so we go ahead without knowing because we think the amount we spend per meal or snack is little. No, it’s not. When summed up, we could see how much we’ve spent and how big the amount is.
I was a regular fan of a restaurant close to my house. I spent up to N1500 on every meal. To me, I thought that’s cool and not too much to satisfy my belly. But at the end of the first 30 days, I realized that N45,000 has left my pocket on just a 1-square meal per day. And that doesn’t include the transport fare to buy the food, the tips, and money spent on food for another 2-square meal.
Averagely, I spent up to N60,000 in that month on food.
Again, you may think it’s very small when you’re spending it, but when you calculate the total money spent at the end of the month, you’ll see how much you’ve spent.
So, I decided to start buying foodstuffs and cooking at home (I have kitchen utensils already). I spent an average of N15,000 per month on foodstuff, and like N200 per day on other things I need to buy, that is N6,000.
It means I spend N21,000 on food I prepare myself instead of the previous N60,000 on outside food (saving N39,000)!
So please… stop eating out. Start cooking at home and see how much of an impact it makes. Yes, it might be difficult but you need to stop.
Tip #7. Reduce Your Grocery Bill
Staying with our previous tip, I asked you to cook at home. But wait! What if you’ve been spending more than you should on groceries? If you’re guilty of this (maybe you’re not) here’s how you can reduce your grocery bill.
You can start patronizing stores that offer discounts. Others may have deals like “By One, Get One Free”, or you could shop online using coupons. Don’t tell me you don’t love those deals…those discounts. You do, right? So go ahead and change your grocery store or supermarket.
Buy your groceries in bulk instead of buying at a very expensive price per one or two.
Also, notice those things you don’t really use and stop buying them or maybe, reduce the quantity.
Tip #8. Fancy Grooming… Are They Even Necessary?
Sure they are! I know we all crave those fancy stuff such as good shoes, chains, clothes, coffees with milk, cream, sugar, or whatever. But there comes a time when we need to sit back and ask: Do I really need this? Especially if you’re like me who is grinding to save some money.
Go get yourself a coffee maker and start making yours at home. If you’re not going to any occasion that demands you for new clothes, don’t buy it, if your shoe leather is getting worn-off, fix it by giving it to a professional shoemaker instead of disposing of it.
I know it’s convenient to get out there and fix your nails, make your hair, or do some makeup. Right now you need to consider doing these things yourself.
Are they difficult?
Not at all. Unless you’re too busy. If you’re not, pick up your phone and head over to YouTube to start learning these things and start saving money.
CONCLUSION – These Tips Will Help You Manage Your Funds and Reduce Your Expenses
There you have it: 8 Ways to Reduce your household expenses. I know we love to do all these things: we love to eat out, live in luxurious homes, have some fancy coffee daily, then come home to watch our cable TV.
But right now, you need to implement these tips above. If you can’t do it all, no problem. But make sure you implement the ones you can.
So over to you, which of these things will you be cutting? Let’s hear from you.
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