Expert unveils plan to stop lifestyle inflation early

The Director of Enterprise Sales, FairMoney Business, FairMoney Microfinance Bank, Gloria Onosode. PHOTO: FairMoney MfB

A financial leader at FairMoney Microfinance Bank, Gloria Onosode, has introduced a strategic approach to curb early spending growth, helping individuals safeguard their financial futures before higher earnings are absorbed by rising living costs.

Onosode, the Director of Enterprise Sales at FairMoney Business, said that the strategic plan was aimed at stopping lifestyle inflation early.

She outlined a clear roadmap to combat lifestyle creep, warning that the traditional habit of waiting to build wealth only after securing a raise or a better-paying job is a major trap.

 She noted that relying on future earnings to start saving often fails because the threshold for “enough” continuously moves as expectations, responsibilities, and living standards escalate alongside income.

In an economic environment where households face substantial essential costs across food, housing, transportation, and education, Onosode emphasised that wealth building cannot be treated as an afterthought reserved solely for when excess funds exist. Instead, she urged consumers to adopt a proactive mindset structured around their current earnings.

“Wealth creation does not begin with having a lot of money,” Onosode explained, adding, “It begins with having a plan for the money you have.” She pointed out that establishing baseline financial resilience, by tracking cash flow, managing recurring expenses, and setting up an emergency buffer, must come well before considering complex investment vehicles.

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To illustrate how financial habits can be cultivated early to stop lifestyle creep before a pay bump arrives, Onosode emphasised that consistency outweighs the initial amount saved. “Saving N5,000 or N10,000 regularly may not feel like wealth creation today,” she observed, “but it can represent the beginning of a financial habit that can be sustained and increased as income grows.”

She added that modern financial infrastructure, including automated savings products, helps individuals maintain this discipline by physically separating daily spending cash from long-term reserves, observing that “money intended for tomorrow should not always sit in the same place as money available for today’s spending.”

Beyond saving habits, Onosode identified responsible credit management as a critical component of defeating lifestyle inflation, particularly as digital credit becomes more frictionless. “Credit can play an important role in helping individuals manage legitimate financial needs,” she stated, “but borrowing should never be treated as an extension of income.”

Aligning her advice with the Central Bank of Nigeria’s consumer protection framework, which defends consumer rights and emphasises financial literacy, Onosode cautioned borrowers against using new loans to settle old debts. She advised consumers to evaluate loan terms carefully, ensuring repayments fit comfortably within their existing income without compromising basic living necessities.

Addressing the core challenge of lifestyle inflation directly, Onosode warned against letting increased pay automatically translate into pricier meals, upgraded devices, or higher subscriptions.

“There is nothing wrong with improving your quality of life. The challenge is allowing every increase in income to become an increase in spending. A better approach is to divide income growth between today and tomorrow,” Onosode clarified. Ultimately, she urged individuals to redefine their concept of financial success, concluding, “You do not need to feel rich to start building wealth. You need to start building the habits that make wealth possible.”