Financial experts have attributed the growing number of employees and other income earners living from pay cheque to pay cheque to poor money management, lifestyle inflation, and inadequate financial planning, warning that higher salaries do not automatically translate into financial freedom.
The experts spoke in Ibadan on Sunday during the review and presentation of Broke After Payday?, a book authored by Dr. Yemisi Adepoju. They noted that many workers continue to grapple with debt and financial instability because their spending habits rise in tandem with their earnings, leaving little room for savings, investments, and long-term wealth creation.
Speaking at the event, Dr. Adepoju challenged the widespread belief that earning more money inevitably leads to financial security, observing that many professionals with substantial incomes still experience persistent financial difficulties.
“I know people who earn over a million naira monthly and are still heavily indebted. Increasing income alone does not solve financial problems if there is no discipline in managing money,” she said.
According to the author, financial challenges are often rooted in spending habits rather than income levels. She explained that many employees move from one salary bracket to another without experiencing any meaningful improvement in their financial circumstances because their expenses increase in proportion to their earnings.
Dr. Adepoju urged Nigerians to prioritise asset building, generational wealth creation, and legacy planning, rather than focusing exclusively on consumption and status symbols.
Reviewing the book, Dr. Dolapo Muyiwa-Koku, Business Manager at First Bank Nigeria Ltd, identified lifestyle inflation as one of the major causes of financial distress among employees and entrepreneurs.
She said many people fail to monitor their spending patterns or appreciate the impact of their lifestyle choices on their overall financial wellbeing.
“A lack of self-awareness often leaves individuals wondering where their salaries or business income have gone shortly after receiving them,” Dr. Muyiwa-Koku said.
Also speaking, Chief Olaleye Armstrong, Principal Partner at Dewkon Harvest Field, said attaining financial freedom requires honesty, discipline, and a commitment to continuous learning.
He stressed that borrowing, in itself, is not problematic, provided individuals borrow for appropriate purposes and manage financial resources responsibly.
Chief Armstrong further underscored the importance of mentorship, noting that financial literacy is cultivated through learning, guidance, and continuous personal development.
“Financial knowledge is acquired through learning, guidance and continuous personal development,” he said.
According to him, many financially successful individuals attained stability by seeking mentors, participating in training programmes, and exposing themselves to opportunities for growth rather than relying solely on increases in income.
Similarly, Olamide Alao-Akala, a financial expert, identified social pressure and unrealistic lifestyle expectations as major contributors to financial hardship among professionals.
She noted that many people strive to maintain appearances that do not reflect their economic realities, thereby undermining their long-term financial goals.
Alao-Akala urged Nigerians to establish clear financial objectives, develop realistic plans, and remain focused on their individual journeys instead of comparing themselves with others.
“People are not starting from the same point in life. Financial decisions should be based on personal realities and long-term objectives, not social pressure,” she said.
Also contributing, Aderonke Adegbami, a Holistic Health Practitioner, said financial literacy, prudent spending, mentorship, and long-term planning remain critical to achieving financial security, irrespective of income levels.
The event attracted professionals, entrepreneurs, business owners, and other stakeholders interested in personal finance, wealth creation, and financial literacy, highlighting the growing recognition of financial wellbeing as an essential component of personal and professional success.
