One way to achieve financial stability is to manage your bill(s) wisely and avoid errors resulting in unnecessary stress and financial strain due to oversight, lack of financial planning, or miscommunication. Here, we’ll address Nigerians’ most common mistakes and offer practical tips to help you avoid them.
1. Ignoring the benefits of prepaid utility plans
One of the prominent mistakes Nigerians make, especially in power supply utilities, is sticking to postpaid plans out of habit. With postpaid plans, you are expected to pay for your monthly power supply usage, leading to unexpectedly high bills.
Switching to a prepaid plan is highly recommended to avoid financial surprises, as it would allow you to manage your usage and costs more effectively. Prepaid electricity meters, for example, provide the flexibility to pay for electricity in advance, preventing bill shock and encouraging more efficient use of resources. Also, this approach helps with budgeting, as you’ll know how much you spend on utilities monthly. However, some countrymen fall short by not setting reminders for themselves.
2. Overlooking bill payment reminders
A discussion by Piggyvest showed how Nigerians juggle at least three jobs to stay afloat. The discourse featured a Nigerian named Wale juggling one mobile and two web developer roles simultaneously, working overtime, and sleeping less. With such a busy schedule as his, many Nigerians soon forget bill payment deadlines. And with most missed due dates come late fees, service interruptions, and sometimes reconnection charges, especially for electricity and internet services.
The best way to curb this is to use the Lifestyle App for all your bill payments. With its seamless payment process, automated payment options, and apt reminders, you can conveniently avoid late fees and service disruptions. Once your reminders are set, the next step is to budget accordingly.
3. Underestimating utility budgets
Do you know your monthly expenses for electricity, internet, and water? Therein lies the issue. Without a proper budget, many Nigerians underestimate these utilities’ monthly costs. This results in financial stress as people struggle to cover bills due to a shortfall in their budget.
An excellent solution here is to ensure that you’re intentional about creating a monthly budget that accurately reflects your utility expenses based on past bills. This involves reviewing your payments across all bills in the last six months and noting the minimum, average, and maximum amount spent monthly. This will help you make data-backed decisions regarding your budget. While this is a proactive approach, bills often contain inaccuracies that may go unnoticed.
4. Neglecting to review bills for inaccuracies
Sometimes, bills may contain errors due to system glitches or miscalculations. Please review your bills for accuracy to avoid paying more than necessary. These errors can come from duplicate charges, outdated and incorrect rates, or unapplied discounts.
Therefore, It is common sense to thoroughly review your bills before making payments. Contact the service provider for clarification or corrections if you notice any discrepancies. As a practice, keep a copy of previous bills for comparison. It’ll help identify unusual spikes in charges that might need investigation.
Finally,
5. Failing to review entertainment and data plan subscriptions regularly
Subscriptions for services like Netflix, Showmax, or music streaming platforms can add up, especially when left on automatic renewal without being fully used. Also, sticking to an outdated mobile data plan that doesn’t suit your usage leads to excess spending or data shortages when needed.
It would help if you made it a habit to review all subscriptions regularly and cancel any that you no longer use or need. And if you use these services occasionally, opt for pay-as-you-go options instead of monthly renewals. On the other end, periodically, compare mobile data plans to find one that offers the best value for your specific needs. Remember that most telecoms in Nigeria update their plans frequently, and a quick review can help you find better data deals tailored for social media, streaming, or general browsing needs.
Conclusion
By avoiding these common mistakes and taking proactive measures, Nigerians can better manage their bill payments and ensure financial peace of mind. With tools like the Lifestyle App, staying on top of bill payments becomes seamless and efficient. Remember these tips to avoid stress and maintain control over your finances. Until next time, learn how to build an emergency fund in Nigeria; you’ll surely need it for all the unexpected bills that may decide to rear their heads. Adios✌.
