Where Does Your Money Seem to Disappear To?
Budgeting for Students Who Hate Budgeting
Finance Series — Episode 02
By Jesutofunmi Olowoniyi • Money Africa × Ladda Student Club
Okay, so now you understand why you’re emotional about money. You know your triggers. You know your mindset matters more in your journey to finance.
Cool. Now what?
To be honest, you can’t fix what you can’t see.
If you don’t know where your money is actually going, you’re just guessing. And guessing is how you end up broke, stressed, and wondering why you never have enough.
So, before we talk about saving, investing, or building wealth, we need to answer one question:
Where does your money seem to disappear to?
Let’s find out.
But First, What Is a Budget?
A budget is a spending plan that gives every naira a job before your naira decides to leave on its own. It’s sitting down and saying: this money goes here, this money goes there, and this is what I’m keeping. That’s it.
Just a plan.
“If you fail to plan, you plan to fail”
The difference between someone who runs out of money every month and someone who doesn’t isn’t ALWAYS income, it’s whether or not they planned what to do with what came in.
Why Students Fail at Budgeting
1. They budget for the life they wish they had, not the life they actually have. You tell yourself you’ll spend N50,000 on food for the month when you know very well that one plate of rice near school is N500 and you only get satisfied buying a plate of N2,000. The budget collapses in week one and you give up entirely. The problem was dishonest budgeting.
3. They wait until they’re broke to care. A budget is not a rescue plan. It’s a prevention plan. You make it before the money arrives, not after it’s gone.
| 💡 TOFUNMI’S TIP At School, I figured that buying data in bits (N750 today, N1,000 today) totals up more at the end of the month. So buying in bulk works better. N10,000 naira data comes off more financially responsible than buying N500 today, N1,000 tomorrow and totals N16,000 by month end. |
SECTION 1: THE PAPER EXERCISE
Grab a piece of paper (or your notes app).
Here’s what you’re going to do:
Write down EVERYTHING you spent money on last month. Everything.
- Food, transport, data, etc.
- That expensive dress you wore once.
- Netflix, Spotify premium you never use.
Just write it all down.
· · ·
SECTION 2: NEEDS VS WANTS
Now look at your list and ask yourself:
Which of these is a NEED? Which is a WANT?
NEEDS = You literally can’t survive without it.
Rent/housing, food, transportation to work or school, basic utilities.
WANTS = Everything else.
That 5th pair of sneakers. The dress for your cousin’s friend’s sister’s wedding. Eating out. New phone when your old one works fine.
Mark each item with N (need) or W (want).
· · ·
SECTION 3: FIND YOUR MONEY LEAKS
Look at your WANTS list.
Which ones are bleeding you dry?
- Is it a maltina of 1k? (How many times did you take Malt when you could have just taken water or a cheaper drink?)
- Is it clothes you never wear? (When’s the last time you wore that shirt?)
- Is it subscriptions you forgot about?
Circle the biggest money leaks. These are your problems.
· · ·
SECTION 4: THE HEALTH CHECK
Now do the math:
Total Income Last Month: ___________________________
Total Expenses Last Month: ___________________________
What’s Left: ___________________________
Here’s your diagnosis:
HEALTHY ACCOUNT: You have money left over after expenses. You’re living below your means. You can save and invest.
SICK ACCOUNT: You’re spending exactly what you earn (or more). Nothing left at the end of the month. Living alert to alert. One emergency away from broke.
Which one are you?
· · ·
SECTION 5: NOW LET’S FIX IT. THE SIMPLE SYSTEM
Okay, now that you SEE where your money is going, let’s organise it.
As a beginner, you don’t need a spreadsheet with fifteen columns. You need three things: a number, three categories, and five minutes a week.
The number is your monthly income, whatever comes in from your parents, part-time work, anything.
The three categories are Needs, Wants, and Savings. Needs are the things that keep you alive and functional. Wants are everything else you enjoy but could survive without. Savings is the part you set aside before you touch anything else… not what’s left. Before. (Paying yourself first)
| 💡 TIP The Ladda app is great for savings. With interest up to 20% P.A |
The split that works for most people is 50% Needs, 30% Wants, 20% Savings. If that feels too tight right now, start with 60/30/10. The numbers matter less than the habit of separating them at all.
The five minutes a week is your check-in. Every week, look at what you spent and which category it fell into. Awareness is what changes behaviour over time.
| 💡 TOFUNMI’S TIP One habit I formed while in school was having to open two bank accounts.My income account and my spending account. At the start of every week, I look at what I spent the week before and send myself a realistic weekly allowance. I send the actual money spent to my spending account. I include a small amount for miscellaneous and a little pleasure fund (like ice-cream if I had a bad day).Then strictly spend only from that spending account for the week. My main account stays untouched except for fixed bills.This one habit alone will stop the bleeding. When the weekly account is empty, you’re done spending. Just a clear boundary you set for yourself. |
ACTIONABLE STEP
Today: Do the paper exercise. Write down everything you spent last month. Needs vs wants. Find your money leaks.
Tomorrow: Do the health check. See if your account is healthy or sick.
This week: Set up that second account and send yourself your weekly allowance. See how it changes how you spend.
Money Africa × Ladda Student Club • Finance Series • Episode 02
Name: Jesutofunmi Olowoniyi
Bio: Tofunmi is a multifaceted creative specializing in tech and design. With uncanny enthusiasm, she preaches the gospel of financial literacy, breaking down complex money topics into simple, actionable insights for Africans. Her goal is to help readers take control of their finances and achieve true financial freedom.
Twitter: https://x.com/tfortofunmi
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