Money questions, answered

Do I need a spreadsheet to track my money?

No. A spreadsheet works, but it isn't required, and many people find it slow and fiddly on a phone. What you need is a consistent record of money in and money out, which a notebook, a spreadsheet, or a tracking app can all provide. Choose the one you'll actually use every day.

How do I track cash payments and sales?

Record every cash sale when it happens, with the amount and what was sold, and count your cash at the end of each day to check it matches your records. Keep business cash apart from personal cash, even if that's just a different pouch. A daily count is what catches missing money before it becomes a mystery.

How do I track income I receive in dollars and naira?

Keep your dollar income and naira income in separate records, each in its own currency, instead of converting everything into one total. Convert only when you actually exchange the money, and record the rate you got. Mixing currencies into one number makes your totals wrong every time the exchange rate moves.

How do I track multiple streams of income?

Give every income stream its own label and record each payment the day it arrives, with the date, the amount, and which stream it came from. Then check each stream's total once a week to see which ones are growing and which are fading. A tracker that keeps streams separate, instead of one combined total, makes this take seconds.

How do I track my income and expenses?

Record every amount that comes in and goes out, with the date, the amount, and what it was for, as soon as it happens. Group expenses into a few categories and total everything up each week and month. The method matters less than the habit: a simple tool you use daily beats a detailed system you abandon.

How often should I record my income and expenses?

Record each transaction the same day it happens, ideally right away, and review your totals once a week. Save a deeper review for the end of each month, when you compare categories and decide what to change. Daily logging keeps your records accurate; weekly and monthly reviews turn them into decisions.

What is the easiest way to track my spending?

Log each expense on your phone the moment you pay, using a handful of broad categories instead of dozens of detailed ones. Keeping each entry to a few seconds is what makes the habit stick. Then look at your category totals once a week to see where your money actually went.

How do I calculate profit for my small business?

Profit equals your total income minus your total costs for the same period. To get your profit margin, divide profit by income and multiply by 100. For example, ₦500,000 in sales with ₦350,000 in costs gives ₦150,000 profit and a 30% margin.

How do I know if my side hustle is profitable?

Your side hustle is profitable if the money it brings in is more than everything it costs, including stock, transport, data, fees, and tools. Add up one full month of income and one full month of costs for that hustle alone; if income minus costs is positive, it's profitable. Then divide the profit by the hours you spent to see if it's worth your time.

How do I know which side hustle is making me the most money?

Track each side hustle's income and expenses separately for at least one full month, then compare their profits, not their sales. The hustle with the highest profit, and ideally the highest profit per hour, is the one making you the most money. The busiest hustle often isn't the most profitable one.

How do I separate business and personal money?

Give your business money its own home, ideally a separate account or wallet, and pay all business income into it and all business costs out of it. When you need money for personal use, move a set amount across as a deliberate payment to yourself. Even without a second account, recording business and personal money separately keeps the two from blurring.

How much should I pay myself from my business?

Pay yourself from profit, not from sales, and start with a fixed amount you can afford even in a slow month. A common approach is to take a set share of each month's profit, often around half, and leave the rest in the business for stock, emergencies, and growth. Pay yourself on a regular schedule so personal spending doesn't drain the business.

What is the difference between revenue and profit?

Revenue is all the money your business brings in from sales. Profit is what's left after you subtract every cost of running the business. A business can have high revenue and little or no profit, which is why profit is the number that shows whether you're actually making money.

How do I budget with irregular income?

Budget from your lowest typical month, not your best one, so your essentials are always covered. In good months, put the extra into a buffer that tops up the lean months. Think in percentages of what actually comes in rather than fixed amounts, and review every month.

How do I make a budget?

Start with how much money you realistically expect this month, list your essential costs first, then decide how much goes to savings and how much is left for everything else. Track your spending against those amounts during the month. Review at the end of the month and adjust, because the first budget is rarely perfect.

How do I set a spending limit for a category?

Look at what you spent in that category over the last one to three months, then set a monthly limit slightly below your average, so it's a real target but still achievable. Track spending in that category as you go and get a warning when you're close. Review the limit each month and adjust it.

How do I stop overspending?

Start by tracking every expense for a few weeks to see where your money actually goes, then set a firm limit for your biggest problem category. Add small speed bumps like a waiting period before non-essential purchases, and move savings out on payday before you can spend them. Overspending is much easier to fix once it's visible.

How much should I have in an emergency fund?

A common guideline is three to six months of essential expenses, meaning what you need for rent, food, transport, and bills, not your total spending. If your income is irregular or comes from a side hustle, aim for the higher end, around six months or more. Start with a smaller first goal, like one month, and build from there.

What is the 50/30/20 rule?

The 50/30/20 rule is a simple budget that splits your after-tax income into three parts: 50% for needs, 30% for wants, and 20% for savings or paying off debt. It's popular because it only needs three categories. The exact split can be adjusted to fit your situation.

What is zero-based budgeting?

Zero-based budgeting means giving every unit of your income a specific job, so that your income minus your planned spending, saving, and debt payments equals zero. It doesn't mean spending everything, because savings is one of the jobs. It gives you tight control over your money but takes more time than simpler methods.

How do I follow up on an unpaid invoice?

Send a friendly reminder a day or two after the due date with the invoice attached, then follow up again after about a week if you haven't heard back, more directly and with a phone call if you can. Keep every message polite and factual, and note each follow-up. Most late payments are forgotten invoices, not refusals.

How do I keep track of who owes me money?

Keep one list of every debt owed to you, with the person's name, the amount, what it's for, and when they said they'd pay. Update it the moment anyone pays, and check it weekly so you can follow up on anything overdue. Money you're owed but not tracking is money you're likely to lose.

How do I write an invoice?

An invoice should include your name or business name, your customer's name, a unique invoice number, the date, a clear list of what you're charging for with prices, the total, the due date, and how to pay you. Send it as soon as the work is done, and keep a copy so you can track whether it's been paid.

How much should I charge for my services?

Work backwards from what you need to earn: add up your monthly income goal and business costs, divide by the hours you can realistically bill, and that's your minimum hourly rate. Then check what others in your field charge and adjust for your experience and results. Many new freelancers undercharge by forgetting unpaid admin time, tools, and tax.

What is the difference between a quote and an invoice?

A quote is an offer sent before the work starts, telling a customer what a job will cost so they can agree to it. An invoice is a request for payment sent after the work is agreed or done. A quote isn't a bill; an invoice is.

Do I pay tax on side hustle income in Nigeria?

Yes. Under the tax laws that took effect in Nigeria on 1 January 2026, income from a side hustle counts as part of your personal income and is taxable, together with any salary you earn. However, the first ₦800,000 of annual taxable income is taxed at 0%, and business income is taxed on profit after allowable expenses, so good records directly lower what you owe.

How do I prove my income without a payslip?

Use bank statements showing regular deposits, invoices and receipts you've issued, contracts or letters from clients, and a clear summary of your income over the last six to twelve months. The more consistent and organized your records, the more convincing they are. Keeping records from the start makes this easy when a landlord, embassy, or lender asks.

How much tax will I pay under Nigeria's new tax law?

From 1 January 2026, Nigerian personal income tax is charged in bands: 0% on the first ₦800,000 of annual taxable income, 15% on the next ₦2.2 million, 18% on the next ₦9 million, 21% on the next ₦13 million, 23% on the next ₦25 million, and 25% on anything above ₦50 million. Each rate applies only to the income within its band.

What records should I keep for tax?

Keep a record of all the income you receive, all the business expenses you pay, and the evidence behind them, such as receipts, invoices, and bank statements. Note the date, amount, and purpose of each. Good records let you claim every legitimate expense and prove your income if you're ever asked.