Do you dream of becoming a millionaire? Are you tired of struggling to make ends meet? Do you want to defeat sapa permanently, become a baller and live the good life you were always meant to live? Yes? Good. We’ll show you how to become rich.
You can become rich in Nigeria by saving early and consistently, reducing your expenses and increasing your income. Of course, you’ll also have to invest in profitable opportunities, diversify your portfolio and consult a professional.
In this article, we’ll walk you through the steps to becoming wealthy in Nigeria — no jokes, no memes, just facts. But since being “rich” can mean many things to many people, we’ll focus on how you can become a millionaire. Ready? Great. Let’s start by going over some prerequisites.
What does it take to be a millionaire in Nigeria?
Let’s be clear: this article is for Nigerians who want to hit ₦1,000,000 in savings and then break into earning millions from their salaries and investments — proper rich kid doings. Still, it’s easy to fall for the myth that rich folks in Nigeria are simply lucky people who came across life-changing opportunities or that being wealthy is only for a select few. This could not be further from the truth — especially in today’s technology-driven global village.
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While luck and opportunity certainly play a role, it’s important to remember that you need the following to build wealth — in Nigeria and abroad:
- Hard work
- Patience
- Discipline
- Smart financial decisions
At the core, you must be willing to work hard and do great work that stands out — whether you’re a tech bro or a crochet creator. The road to wealth is long, and you’ll need discipline (financial and mental) to stay the course. Of course, you cannot go big if you aren’t financially savvy.
Smart money decisions today equal millions in your account tomorrow.
Networking and building strong relationships are also crucial to becoming a millionaire. In fact, you’ll need to establish valuable connections with key stakeholders, industry leaders and even government officials if you want to become rich. A simple conversation could open you to markets and opportunities you never knew existed.
But let’s be honest: these relationships won’t do you any good if you lose sight of the three core tools to building riches. Remember: it’s not just about who you know but how well you do what you do.
That’s enough advice, let’s get into the main reason for this article.
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9 steps to becoming a millionaire in Nigeria
Anyone can become wealthy, even if they’re from a poor background. However, it takes time to build wealth that lasts generations. So, while there are many methods and strategies out there, we’ve compiled a 9-step plan that should work for you.
Here’s a step-by-step guide you can follow to become a millionaire in Nigeria:
- Develop a realistic financial plan
- Find a way to make money
- Start saving as early as possible
- Avoid overspending
- Build an emergency fund
- Increase your income
- Stay away from lifestyle inflation and avoid debt
- Invest in profitable opportunities and avoid schemes
- Talk to a professional
Nine steps might seem excessive — maybe it is. However, we want to ensure anyone can follow this guide — whether you’re a student, a business owner, or a salary earner. Let’s dive in!
1. Develop a realistic financial plan
You need a well-defined plan to achieve financial success and become rich. You have to be intentional about the process. Take some time to set clear financial goals, create a budget, and track your expenses.
Decide what you want, when you want it and what you need to get it. Be honest and realistic. Use others as inspiration, but don’t blindly copy anyone’s process.
2. Find a way to make money
You need a reliable source of income to become a millionaire. You’re not a trust fund kid, so you must find something good that matches your skills and experience level. Whether it’s starting your own business, working a 9-to-5 job or investing in income-generating ventures (like agriculture) — you need to find a way to make money.
This step is crucial to your journey to making it out of the hood, so ensure you find a legal option that can cover your expenses.
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3. Start saving as early as possible
Now, it’s time to save. Saving money is the cornerstone of wealth accumulation and the trick to making the most of your savings is to save early and consistently using PiggyVest. You don’t need to save all of your income, just ensure you put down a significant amount every time you get paid.
You can use the 50/30/20 rule (50% of your income for needs, 30% for wants and save 20%) or settle on a plan that suits you. Just save.
PiggyVest is your surest wealth-building partner, so it comes with lots of amazing features you can use. We recommend starting out with PiggyBank since we’re optimising for millions and you want to save consistently. This feature allows you to enjoy up to 12% yearly interest and has an automatic saving option to ensure you stay consistent.
4. Avoid overspending
Having an income is amazing, and depending on what you earn you might be able to afford so many wants. Here’s where you need to be careful. While it’s tempting to splurge on lavish purchases, avoid falling into the trap of overspending.
Live within your means and prioritise saving and investing over excessive consumption. It’s hard, but it’s necessary.
Of course, this doesn’t mean you should starve yourself or become a real life Mr Krabs. Stick to your budget — focus on essentials, save money and get yourself some of your wants as often as possible.
5. Build an emergency fund
Life is unpredictable, and unexpected expenses can derail your financial progress. Therefore, you must build an emergency fund to cover unforeseen circ*mstances (like medical emergencies or job loss).
We recommend you have at least six months’ worth of living expenses saved. So, you’ll want to save ₦600,000 if your monthly expenses are ₦100,000. You can go above that, of course, but it’s up to you.
Fortunately, PiggyVest has a perfect plan for building emergency funds — Flex Naira. This flexible savings plan allows you to enjoy up to 8% annual returns, free transfers and easy withdrawals — so you can access your money whenever you need it.
We recommend prioritising your emergency funds early on in your wealth-building journey. Focus on building it first before spending on anything else — especially big purchases.
6. Increase your income
In addition to saving money, it’s essential to increase your income over time. Look for opportunities to advance in your career or start a side business. Take some time to learn high-income skills or ask for a raise at work — just get your bag up.
Now, while having multiple streams of income can accelerate your path to millionaire status, it’s not the only path to success. Don’t let anyone pressure you. You’ll be fine if you can double your salary, increase production capacity (if you own a business) or do whatever you need to get more Naira into your pocket.
Still, having multiple income streams can be a great way to protect yourself from unforeseen circ*mstances. You don’t want to go all the way back to step 2 because your company shut down, do you?
Focus on a strategy that moves the needle. Remember: legal ventures only. You risk losing everything (including your freedom and integrity) if you become a criminal on the path to wealth.
7. Stay away from lifestyle inflation and avoid debt
As your income increases, it’s important to resist the urge to inflate your lifestyle. Avoid unnecessary expenses and minimise debt. High-interest debt can hinder your wealth-building journey, so focus on paying off debts as soon as possible.
This is where you need to embrace discipline. Don’t spend for spending sake. Focus on your goal.
8. Invest in profitable opportunities and avoid schemes
You’re ready to invest if you’ve increased your income significantly and built an emergency fund. Investing wisely is a key component of building wealth, so it’s important you educate yourself about different investment options and seek professional advice when needed.
You can check out our comprehensive guide on how to invest money in Nigeria if you’re unsure of where to start. You can also just try out Investify and invest in bits and pieces till you get a hang of more complicated options. This way, you can enjoy up to 35% per annum interest and learn more about the world of investing through our low-risk opportunities.
Now, remember: investing can be fun and a financial gamechanger, but it can also be dangerous. There’s a chance you might lose everything if you’re not careful. Avoid get-rich-quick schemes that promise unrealistic returns.
If it’s too good to be true, it probably is.
9. Talk to a professional
Saving is great and investing is the secret sauce, but you probably won’t hit millionaire status without some help. That’s why the final step on your wealth-building journey is to speak to a professional.
Don’t underestimate the value of seeking advice from financial professionals. A qualified financial advisor can guide you in making informed decisions and help you stay on track towards your millionaire goals.
Not sure where to get millionaire-making advice? Don’t worry. We’re here for you.
If you subscribe to the Money Matters by PiggyVest newsletter today, you can talk to Odunayo Eweniyi, PiggyTech’s COO and co-founder, for free. Ready to get life-changing advice? Ask Odun!
Is it hard to get rich?
While becoming a millionaire requires effort and discipline, it is certainly achievable. With the right mindset, strategic planning and dedication, you can pave your way towards financial prosperity.
One key aspect to consider when aiming for wealth is the importance of financial education.
Understanding how money works — including concepts like investing, saving and budgeting — can significantly impact your journey to becoming rich. By continuously learning and improving your financial literacy, you can make informed decisions that will help you grow your wealth over time.
Tips for building long-term wealth in Nigeria
As we mentioned, you’ll need to work hard, embrace discipline and be financially savvy to build long-term wealth in Nigeria. However, you’ll surely face some challenges on your path to success. And while we might not know what these challenges might be, we have some tips that’ll help.
Here’s how to overcome common obstacles on the path to wealth:
- Continue educating yourself about personal finance and investment strategies.
- Stay updated on the latest trends and opportunities in the Nigerian market.
- Network with successful individuals who can provide guidance and mentorship.
- Take calculated risks and be prepared to learn from failures.
- Stay focused on your goals and avoid distractions.
Keep building!
How do you know you will be rich in future?
It’s almost impossible to predict the future (except you’re Paul Muad’dib Atriedes and have access to Spice Melange). However, there are telltale signs that can help you know if you’re on the right path to wealth creation.
Some signs you’ll be rich in the future include:
- Consistently increasing your income.
- Growing your investment portfolio.
- Strong financial discipline.
- A PiggyVest account.
- The ability to adapt to changing economic landscapes.
- A mindset of abundance and gratitude.
The last one might seem like something you’ll hear from a motivational speaker, but mindset does matter. When you approach financial decisions with a positive outlook and a focus on growth, you invite prosperity to flow towards you. You also make better decisions, spend smarter and invest in solid opportunities that others might miss.
Final thoughts
Remember, becoming a millionaire is not an overnight journey. It requires patience, perseverance and a commitment to financial responsibility. By following the steps we outlined in this guide and maintaining a positive mindset, you can pave your way towards financial abundance in Nigeria.
Good luck on your path to becoming rich!
