6 Budgeting Myths That Are Keeping Nigerians Broke in 2025

Budgeting sounds like one of those adult things everyone talks about but few enjoy. If you’ve ever tried tracking your spending and given up halfway through the month, you’re not alone. A lot of Nigerians avoid budgeting because it feels too stressful, too complicated, or just plain useless when money always seems tight.

But here’s the truth: most of what we believe about budgeting isn’t even accurate. In fact, some of those ideas are myths passed around so often, we take them as fact.

In Nigeria today, personal finance conversations are everywhere from WhatsApp groups to money TikTok and radio shows. But amidst the buzz, many Nigerians still fall for budgeting myths that quietly sabotage their finances. Whether you earn ₦50k or ₦500k monthly, these myths can keep you broke, anxious, and confused about where your money goes.

Let’s debunk some of the most common budgeting myths Nigerians need to unlearn in 2025 based on data, financial experts, and real-life experiences.

1. “Budgeting is only for the rich.”

This myth is one of the most damaging. Many Nigerians believe you need to be wealthy to budget, but it’s actually the reverse. Budgeting is a tool that helps you manage limited resources, not abundance.

Arese Ugwu often stresses that budgeting works best when money is tight it brings structure and clarity to your finances.

Even people on minimum wage can benefit from budgeting by prioritising needs, avoiding debt, and building small savings.

2. “I can’t budget because I don’t earn a fixed income.”

This is common among freelancers, side hustlers, and traders. However, budgeting isn’t about perfection it’s about planning based on patterns

According to the 2023 EFInA A2F Survey , 64% of Nigerian adults used formal financial services, while 10% relied on informal services, and roughly 26% had no access at all. Meanwhile, many Nigerians depend on irregular income sources, suggesting that sticking to a monthly spending plan can be the lifeline between survival and chaos. Use average earnings over 3 months to build a flexible budget that reflects your real cash flow.

3. “Budgeting means no fun or enjoyment.”

Many think budgeting equals punishment but it actually gives you freedom to enjoy your money guilt-free. If you plan for it, you can eat out, go on a trip, or buy that new shoe without touching your rent.

Tosin Olaseinde the founder of money africa often stresses that a good budget should include room for joy because if it doesn’t, you’re less likely to stick with it.

4. “Once I make a budget, it’s set in stone.”

A common frustration with budgeting is unexpected expenses. But real-life budgeting is dynamic. Your rent might stay the same, but food prices or transport costs change.

In a country like Nigeria where inflation reached 28.92% in December 2024 (NBS), your budget must be flexible enough to adjust monthly. Review and tweak it often to stay in control.

5. “Budgeting apps are too complicated.”

Many people avoid digital tools thinking they’re confusing. But apps like Expensure, Money Manager, and Cowrywise are built for the Nigerian context. They track spending in naira and even allow offline input.

You don’t even need an app. A notebook or Google Sheet can do the job what matters is consistency.

6. “If I budget, I’ll suddenly have money left.”

Budgeting doesn’t magically increase your income. It helps you manage what you have wisely. It won’t stop you from being broke if you’re under-earning or overspending.

What it does is help you identify leaks, make better decisions, and build habits like saving or investing.

Budgeting in 2025 is no longer about restrictions it’s about taking control. Whether you earn daily, weekly, or monthly, your money will stretch further when you give it a plan. As Nigeria’s economic climate evolves, so should our money mindset.