Financial independence generally requires careful planning, saving, and investing. Setting clear financial goals, creating a budget, living below your means, reducing debt, and building wealth by investing in assets that generate passive income is all part of it.

“When we think about budgets, we think about something that’s super restrictive and makes our lives unfun,” says Vivan Tu, a former J.P. Morgan trader turned TikToker. 

However, being smarter with money doesn’t have to be overwhelming. “Budgeting can be really easy,” said Tu. 

Here are her top three tips for getting better with money in 2023.

The 50/30/20 Rule

According to the rule, you should spend up to 50% of your after-tax income on necessities and obligations that you must have or fulfill. The remaining half should be divided as follows: 20% for savings and debt repayment, and 30% for anything else you desire.

Tu likes the 50/30/20 method for money management because it makes budgeting simple. It only requires you to track three spending categories and can assist you in creating a budget that you can stick to.

Begin by allocating 50% of your income to necessities such as rent and groceries. Tu recommends setting aside 30% of your income for wants, such as dining out with friends. Finally, put the remaining 20% of your money toward savings, investments, and debt reduction.

It’s fine if you’re a few percentage points off when dividing your money. This guideline can help you get started, and then you can adjust the numbers based on your lifestyle, according to Tu.

Paying Debt and Investing

Borrowing can quickly become unmanageable, and it can be tempting to devote all of your resources to paying it off.

Saving for the future is also important. The earlier you begin investing, the longer your money has to earn compound interest and grow.

It may appear that you must choose between the two, but it is possible to do both, according to Tu, who is working with Citi to explain common credit card topics.

Start by chipping away at debts with high-interest rates, she says. Higher interest rates will cost you more in the long run, so it’s smart to pay those debts off first.

Next, you can turn your attention toward paying down debts with lower interest rates. Since low-interest debt tends to be less costly, you can also start putting money toward investments like your 401(k).

“If you’re planning on holding your investments and being a long-term investor for over 40 years, statistically speaking, the chances of you losing money are very low, and you’re going to be able to grow your wealth,” Tu said.

Be Accountable

Whether you’re saving for a vacation or vowing to spend less money in general, sharing your financial goals with others can help you achieve them.

“My best advice is to write it down on a piece of paper. Say it out loud to a friend. Have it be so that it’s not just you who knows about this goal,” Tu says.

It can be easy to dismiss failing to meet a goal that only you know about, but it’s a little more embarrassing when you don’t meet a goal that you’ve told others about.

“We can guilt ourselves into being a little smarter with our finances when we’re doing it with a buddy,” Tu says. If you and a friend are both trying to be more successful with money, it can be more fun to do together too, she adds.

And while it can feel taboo to talk candidly about improving your finances, there can be benefits.

“If we all talk about money, we are all better off,” she says. “Having these conversations more openly means all of us to get to be better.”

The bank claims that it would pay interest to every customer who could save the specified amount between 90 and 120 days.

Having a TTB Domiciliary account also grants you access to premium banking services, such as a Dollar card that can be used for purchases anywhere in the world.

The lender further added that “to open a domiciliary account with TTB is simple and requires the following documents; a passport photograph, two references, any valid identity card, a recent utility bill, and a resident permit for non-Nigerians.”

The campaign is open to both new and existing customers of the bank.

TTB was established to take advantage of the identified gaps in the banking sector and address the unmet needs of the retail mass market, SMEs, and corporates.

This was stated in a​​ circular headed “Review Of Interest Rate On Savings Deposits,” dated August 15, 2022, and signed by Haruna B. Mustafa, Director of Banking Supervision.

The increase in savings interest rates, which will become effective on August 1, according to the ape​​x bank, was taken in light of the complete return to normalcy after taking into account the current macroeconomic conditions.  

The circular reads, “It will be recalled that as part of the efforts to ameliorate the impact of the COVID-19 pandemic, the Central Bank of Nigeria reduced the minimum interest rates payable on local currency savings deposits from 30 percent to 10 percent of the Monetary Policy Rate (MPR).

This was aimed at stimulating growth in the larger economy following the economic slowdown occasioned by the pandemic. “

The apex bank noted that Nigeria has returned to economic normalcy, the bank said, “following the return to full normalcy and considering the prevailing macroeconomic conditions, it has become necessary to effect an upward adjustment of the interest rate payable on local currency savings deposits.”

“Accordingly, effective August 1, 2022, the negotiable minimum interest rate on local currency savings deposits shall be 30 percent of MPR. This supersedes our letter dated BSD/DIR/GEN/LAB/13/052 on the subject. September 1, 2020,” the CBN said.

The circular by the CBN reads; “It will be recalled that as part of the efforts to ameliorate the impact of the COVID 19 pandemic, the Central Bank of Nigeria reduced the minimum interest rates payable on local currency savings deposits from 30 percent to 10 percent of the Monetary Policy Rate (MPR).

“This was aimed at stimulating growth in the larger economy following the economic slowdown occasioned by the Pandemic.”

The new feature was launched weekend at the Upbeat Center, Admiralty Way, Lekki, Lagos, in commemoration of the Children’s Day celebration. Kids and their parents were there to grace the event. 

According to Sydney Aigbogun, CEO at Cashbox, the new feature on the app was made for kids to introduce them to financial responsibility. 

“We taught about a way to launch the app and celebrate cashbox kids, hence a free event for kids a day after children’s day celebration.”

He said the event helped Cashbox as a company interact with parents while receiving a lot of positive feedback about Kidsbox. 

“Most of the parents even opened accounts for their kids on the spot, including people that weren’t aware of cashbox before.”

Cashbox will also be in partnership with other critical stakeholders to ensure that more kids are exposed to saving culture. 

“We are planning to partner with different schools across the country by introducing this new feature to students and their parents.”

Benefits of KidsBox

Exposing kids to saving isn’t just a basic money habit. Saving teaches discipline and delayed gratification. Saving teaches goal-setting and planning. 

According to Aigbogun, the aim is to become the number one saving platform in Nigeria for kids and teenagers.

Although parents are the ones handling the account, KidBox is still actually for kids.

“Parents can start saving for their 12-year-old kids, maybe N1000 weakly from he/she regular allowance, and when the child is of age the child can then continue the savings account by themselves, the saving culture has already been incorporated.”

Aigbogun said the KidsBox in a way helps parents to comfortably compartmentalize what savings are for themselves and the ones for their kids.

According to him, saving for kids is essential because their needs constantly change, from fees and vacations to healthcare, and having cash somewhere either saved towards a particular expense or for whatever purpose, makes parents prepared adequately. 

How KidsBox Works

It’s just a section of the Cashbox application that can be downloaded from the Apple Store or Google Playstore. 

After downloading and installing the app, you can choose a savings plan that works for you and your goals and start saving either manually through bank transfers or automated savings when you add your debit card. Teenagers with access to bank accounts or debit cards can also sign up.

Aigbogun said the least amount that can be saved is 100 naira, and the least period for a kids’ target savings plan is 4 months. 

“For the kids’ flex, you can withdraw once in 3 months and you can run your plan for as long as you want.”

What to Know about Cashbox

CashBox is a digital savings platform owned by CashBox Global Services Limited. Cashbox focuses on making savings a habit. 

A lot of people have the desire to save but doing that in traditional banks makes those funds easily accessible and defeats the purpose. 

With cashbox, you can automate your savings and watch your money grow towards your goal.