24 June 2026 · 10 min read
4 Common Money Problems and Practical Ways to Solve Them
A lot of people have different money problems that they do not know about making them to go about solving the wrong problem. For one person, the problem is not earning anything at all. For another, money comes in regularly but seems to disappear before the month ends. Someone else may have savings sitting in an account but feel too unsure to invest it.
Most financial struggles fall into a few common categories. Once you identify the real problem, you can stop guessing and start building a plan that actually works. In this article, we will look at 4 common money problems and practical ways to solve them
Income problems
Savings problems
Investment problems
Spending problems
1. The Income Problem: You Do Not Have a Reliable Source of Income
Ada had plenty of ideas for what she wanted to do with money: save, invest, support her family, and even start a small business. But there was one major issue: she did not have a steady income. Some months, she made money from small jobs. Other months, nothing came in. Every financial goal was like impossible because she was trying to build a house without a foundation.
That is what an income problem looks like.
What is an income problem?
An income problem happens when you do not have a reliable way of earning money. You may be unemployed, underemployed, relying on irregular jobs, or earning too little to cover your basic needs.
Before focusing heavily on investing or saving, your first priority should be increasing and stabilising your income.
How to overcome an income problem
1. Start with what you can offer now
You do not need to wait until you have the “perfect” skill. Think about what you can already do that people pay for or a problem you can solve.
Examples include:
Writing, proofreading, or typing documents
Teaching or tutoring younger students
Baking, cooking, or selling snacks
Hair styling, makeup, tailoring, or laundry services
Graphic design or social media management
Selling products online
Running errands or helping with deliveries
Photography, video editing, or content creation
Write down at least five skills, services, or products you could offer. Then choose one to start with.
2. Build a simple income plan
Instead of saying, “I need money,” make the goal specific.
For example:
“I will contact five potential customers this week.”
“I will post my service online three times this week.”
“I will learn one marketable skill for one hour each day.”
“I will apply for three jobs every weekday.”
Small actions repeated consistently create opportunities.
3. Learn a skill people are already paying for
Look around you. What do businesses and individuals regularly need help with?
They may need someone to design flyers, manage social media pages, edit videos, create websites, teach children, sell products, or assist with customer service. Choose one skill, learn the basics, practise it, and begin offering it. You do not need to be the best in the world. You need to be useful and reliable.
4. Avoid waiting for one big opportunity
Many people spend months waiting for a perfect job or a large business opportunity. Meanwhile, smaller income opportunities are passing by.
A small income is not a failure. It can become your starting point. The first goal is not necessarily to become wealthy overnight. The goal is to create a reliable cash flow.
Practical action step:
Create a one-page “income list” today. Write down your skills, people who may need them, and one action you will take in the next 24 hours.
2. The Savings Problem: You Earn Money but Do Not Know How to Save
Tunde had a job and earned decent money every month. Yet, whenever an emergency came up, he had nothing saved. His money was not disappearing because he was careless. He simply did not have a system. He spent first and hoped there would be something left to save later. There usually was not.
What is a savings problem?
A savings problem happens when you earn money but struggle to keep any of it. You may have good intentions, but bills, small purchases, family needs, and unexpected expenses keep taking everything. Saving is not only about earning a lot. It is also about creating a habit and a structure.
How to overcome a savings problem
1. Save before you spend
One of the easiest ways to save is to treat savings like a bill. When money comes in, move a portion immediately into a separate savings account or wallet. Do not wait until the end of the month. Even if you start with 5% or 10%, the habit matters. For example, if you earn ₦100,000:
Save 10% = ₦10,000
Use the remaining ₦90,000 for expenses, transport, food, bills, and other needs
The amount may be small at first, but consistency builds savings.
2. Give every savings goal a name
Saving is easier when the money has a purpose. Instead of having one general savings account, create categories such as:
Emergency fund
School fees
Rent
Business capital
New phone or laptop
Travel
Christmas expenses
A named goal gives you a reason not to touch the money unnecessarily.
3. Start an emergency fund
Life happens. A phone can get damaged, a family member may need help, or work may slow down unexpectedly. An emergency fund helps you handle these situations without borrowing or using money meant for important goals. Start with a small target, such as saving enough to cover one month of basic expenses. Over time, work towards three to six months of essential expenses.
4. Track where your money goes
Sometimes people believe they cannot save because they do not earn enough. Sometimes that is true. But other times, small daily expenses are quietly draining their income. Track your spending for 30 days. Write down every amount you spend, no matter how small.
You may discover that frequent snacks, subscriptions, transport choices, impulse shopping, or transfers to others are consuming more money than you realised.
Practical action step:
Set up an automatic transfer for the day you receive income. Start with an amount you can maintain, even if it is small.
3. The Investment Problem: You Earn and Save but Do Not Know What to Invest In
After saving for several months, Blessing had ₦300,000 in her account. She wanted her money to grow, but she was afraid of making a mistake. Every day, she saw people online talking about “guaranteed returns,” cryptocurrency, forex, and quick investment opportunities. She did not know who to trust. That is an investment problem: having money available but lacking the knowledge or confidence to make wise decisions.
What is an investment problem?
An investment problem happens when you want your money to grow but do not know where to put it, how much risk to take, or how to avoid scams. Investing can help build wealth, but it should not be rushed. The wrong investment can cost you money, peace of mind, and years of hard work.
How to overcome an investment problem
1. Build savings before investing
Do not invest money you may need next week for food, rent, school fees, or emergencies. Before investing, make sure you have:
A stable income source
A basic emergency fund
A plan for your essential expenses
No urgent high-interest debt
Investment money should be money you can leave alone for a while.
2. Understand your goal
Ask yourself: What am I investing for?
Your answer may be:
To grow money over several years
To start or expand a business
To prepare for retirement
To pay for education
To protect money from losing value over time
Your goal will help you choose the right investment approach.
3. Learn the basics before sending money anywhere. A good investment should be understandable. Before investing, ask:
How does this investment make money?
What are the risks?
How long will my money be locked in?
Can I withdraw when I need to?
Is the company or platform properly regulated?
What happens if the investment performs badly?
Is anyone promising unrealistic or guaranteed returns?
If you cannot explain how the investment works in simple words, do not put your money into it yet.
4. Start small and diversify
You do not need to put all your money into one opportunity. Starting small allows you to learn without risking everything. As your knowledge grows, you can spread your money across different types of investments rather than depending on one option. The goal is not to chase the fastest return. The goal is to make informed decisions and protect your capital.
5. Be careful with “quick money” promises
Any investment that promises unusually high returns with little or no risk deserves serious caution. Real investing involves risk. Anyone who says you cannot lose money may be hiding important information. Slow, steady growth may not sound exciting, but it is usually far safer than chasing the next big thing online.
Practical action step:
Before investing any money, spend one week researching the investment and writing down the answers to the questions above. Never invest because of pressure, fear of missing out, or a social media post.
4. The Spending Problem: You Earn Good Money but Cannot Control Your Spending
Chidi earned more than most of his friends. He could afford nice things, eat out often, and help people when they asked. But by the middle of every month, he was broke. His income was not the problem. His spending habits were. He bought things when he is stressed. He spent money to impress people. He said yes to every request, and he hardly check his account balance before making purchases.
What is a spending problem?
A spending problem happens when your lifestyle grows faster than your financial plan. You may earn good money, but if every increase in income leads to more spending, you can remain financially stuck for years.
How to overcome a spending problem
1. Create a realistic budget
A budget is not punishment. It is simply a plan for your money. List your monthly income, then divide it into categories such as:
Rent and utilities
Food
Transport
Savings
Investments
Family support
Personal care
Entertainment
Debt repayment
Miscellaneous expenses
When you tell your money where to go, you are less likely to wonder where it went.
2. Use the 24-hour rule for non-essential purchases
Before buying something you do not truly need, wait 24 hours. For bigger purchases, wait seven days. This gives you time to decide whether you genuinely want the item or whether it was simply an emotional or impulsive decision.
3. Identify your spending triggers
Some people spend when they are bored. Others spend after receiving salary. Some spend because they want to keep up with friends or look successful online.
Ask yourself:
When do I spend the most?
What emotions make me want to spend?
Who influences my spending?
What purchases do I regret later?
Knowing your triggers helps you build better habits.
4. Set spending limits
Give yourself a fixed amount for fun, shopping, eating out, or personal wants each month. When that amount is finished, stop spending in that category until the next month. You do not have to remove enjoyment from your life. You simply need boundaries that protect your bigger goals.
5. Learn to say no without guilt
Not every request for money is your responsibility. You can be generous without damaging your own finances. If helping someone will leave you unable to meet your needs, save, or pay your bills, it is okay to say no.
A simple response can be: “I cannot afford to help financially right now, but I hope things work out.”
Practical action step:
Choose one spending category to reduce this month. Put a clear limit on it and track every purchase in that category.
Conclusion: Fix the Right Money Problem First
You do not need to solve every money problem at once. Start by identifying the one that affects you most right now.
If you do not have income, focus on earning.
If you earn but cannot save, build a savings system.
If you save but do not know how to grow your money, learn about investing carefully.
If you earn well but spend too much, create boundaries and a realistic budget.
Financial growth is rarely about one big decision. It is built through small, repeated choices. The money habits you build today can change the options available to you tomorrow.
Frequently Asked Questions About Money Problems
What is the biggest money problem people face?
One of the biggest money problems is having no reliable income. Without income, it becomes difficult to save, invest, or manage regular expenses.
How can I save money when my income is low?
Start small and save consistently. Track your expenses, reduce unnecessary spending where possible, and save a fixed percentage or amount immediately after receiving money.
Should I invest before building an emergency fund?
It is usually better to build a basic emergency fund first. This helps you avoid withdrawing investments or borrowing money when unexpected expenses arise.
How do I stop spending money impulsively?
Use a budget, set spending limits, identify your spending triggers, and wait at least 24 hours before buying non-essential items.
What is the safest way to start investing?
Start by learning how different investments work, understand the risks, use reputable and regulated platforms, and begin with an amount you can afford to leave invested.