If you constantly wonder where your money went at the end of the month, even just days after payday, you’re not alone. The truth is, if you don't have a Payday Routine, you'll continue working hard year after year without making real financial progress. You may even end up enriching others while remaining financially stagnant.

In this blog post, I’ll walk you through 7 essential places your money should go as soon as you're paid and in what order. This strategy would help you get the most out of this income, whether it's large or small.

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1. Start With Your Needs

The very first place your money should go is to your needs—the essentials required for daily living:

Feeding
Housing
Tithes
Transportation (to work, not leisure)
Basic clothing
Kids’ education

Important: Don’t confuse your needs with wants. For example, you need a home, but it doesn’t have to be in the most expensive area. You need to eat, but not every meal has to be fancy seafood. Your kids need to go to school, but it doesn’t have to be the most elite institution.

Recommended Rule: Keep your needs below 50% of your income.

Exception: If you're earning very little, you may stretch to 70%, but never exceed that.

If your entire income is going into meeting your needs, you’ll remain financially stagnant, no matter how much you earn.

2. Save Before You Spend

Once your needs are covered, prioritize saving. Without a plan, any leftover cash will likely disappear. So it is vital that you;

Open a high-yield savings account.
Build an emergency fund that covers 3–6 months of living expenses.

Your emergency fund gives you peace of mind and shields you from unnecessary debt during emergencies.

3. Clear Your Debts

Debt is expensive, especially in Nigeria. Commercial banks charge 25–30% per annum as interest, and loan apps can charge as high as 50% or more.

There’s no investment that gives this kind of return. So, paying off debt should be a top priority.

If you're debt-free, congratulations—keep it that way! But if you have existing debt, tackle it fast. Two effective strategies are:

Avalanche Method – Pay off high-interest debts first.
Snowball Method – Pay off the smallest debts first for momentum.

4. Invest Wisely After needs, savings, and debt, it’s time to make your money work for you.

There's a common saying that: “If you don’t learn how to make money in your sleep, you’ll work until you die.”

Investment is how you build wealth long-term. Top billionaires make money from investments. Even with as little as ₦10,000, you can begin your investment journey. Start today, not tomorrow.

5. Invest in Yourself

This is one of the highest-yielding investments you'll ever make. When you invest in yourself, you’ll be more valuable and you’ll be able to charge more.

Here’s how you can invest in yourself:

Take professional courses
Get a mentor or coach
Read powerful books
Earn an additional degree or certification
Learn high-income skills

Free resources are great, but don’t hesitate to pay for quality education and mentorship that will help you grow. As you become more valuable, your income will increase. (as you grow, your money grows).

6. Set Aside Money for Other Financial Goals

After investing in yourself, allocate some of your income to other big goals: These include

Buying a house
Getting a car
Funding your kids' future education
Growing your investment portfolio

This step helps you build the life you dream of, strategically and intentionally.

7. Finally, Enjoy Your Wants

Yes, you should absolutely enjoy your money too!

Once your needs, savings, debts, investments and future goals are covered, you can spend on:

Hobbies
Treats
Entertainment
Travel
Gadgets

Because you followed your Payday Routine, you can now enjoy your wants guilt-free.

Your paycheck is a powerful tool when used with intention. By following this 7-step Payday Routine, you’ll stop living from paycheck to paycheck and start making real financial progress. Whether you’re earning a little or a lot, the key is to assign purpose to every naira.

Remember: financial freedom doesn’t come from how much you earn, but from how well you manage what you earn. So, start today. Take control. Build wealth.

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