How to budget on 200000 salary Nigeria (2026 Guide)
You’re earning ₦200,000 monthly and somehow it still disappears before the next payday. Sound familiar?
You’re not alone. Most young professionals in Nigeria earning between ₦150,000-₦250,000 face the same puzzle: decent income, zero savings, and bills that seem to multiply when you’re not looking.
The problem isn’t your salary. It’s that nobody taught you how to make ₦200,000 work properly in today’s Nigeria where transport alone can eat ₦30,000 monthly.
In this guide, you’ll learn:
- How to allocate ₦200,000 across 8 essential categories
- Which expenses to automate (and which ones to control manually)
- How to save ₦20,000 monthly even with Lagos prices
Plus, grab our free ₦200K budget calculator at the end to skip the math.
Table of Contents
2. The 50/30/20 Rule (Nigerian Edition)
3. Step 1: Lock Down Your Fixed Expenses
4. Step 2: Budget Your Variable Costs
5. Step 3: Automate Bills to Stop Overspending
6. Step 4: Track Every Naira for 30 Days
7. Step 5: Build Your ₦20,000 Emergency Fund
9. FAQs
The ₦200,000 Reality Check
Let’s be honest about what ₦200,000 can and can’t do in 2026 Nigeria.
After tax, you’re taking home roughly ₦185,000. If you’re in Lagos, rent alone might claim ₦60,000-₦80,000. Add transport, food, and data, and you’re already at ₦150,000 before touching anything else.
This isn’t a “you’re bad with money” problem. This is a “your money needs better management” problem.
Here’s what a realistic ₦200,000 budget looks like:
Fixed Expenses (60% = ₦120,000):
- Rent: ₦70,000
- Transport: ₦25,000
- Data/Airtime: ₦8,000
- Electricity: ₦12,000
- Basic groceries: ₦5,000
Variable Expenses (30% = ₦60,000):
- Food/eating out: ₦35,000
- Clothing: ₦10,000
- Entertainment: ₦8,000
- Personal care: ₦7,000
Savings (₦20,000 monthly):
- Emergency fund: ₦20,000
Notice something? This budget assumes you’re splitting rent with flatmates and cooking most meals at home. If you’re living alone in Victoria Island, we need a different conversation.
How to budget on 200000 salary Nigeria: The 60/30/10 Rule
The classic budget allocation rule suggests different percentages for needs, wants, and savings. In Nigeria, let’s adjust this to 60/30/10 because our infrastructure costs eat more of our income.
Your ₦200,000 breakdown:
- ₦120,000 (60%) – Needs: Rent, transport, utilities, basic food
- ₦60,000 (30%) – Wants: Dining out, clothes, entertainment, hobbies
- ₦20,000 (10%) – Savings: Emergency fund first, then investments
“But wait,” you’re thinking, “₦20,000 monthly savings seems low compared to what financial experts recommend.”
Here’s my take: ₦20,000 consistently beats ₦40,000 sporadically. Start with ₦20,000 monthly. Once you nail that for 6 months, bump it to ₦30,000.
Step 1: Lock Down Your Fixed Expenses
Your fixed expenses should stay under ₦120,000. These are bills that hit every month regardless of your behavior.
Essential fixed costs:
1. Rent: ₦60,000-₦80,000 (max 40% of income)
2. Transport: ₦20,000-₦30,000 (work commute only)
3. Utilities: ₦15,000-₦20,000 (electricity, water, waste)
4. Phone/Data: ₦6,000-₦10,000 (basic connectivity)
If your fixed expenses exceed ₦120,000, you have three choices:
- Find cheaper rent (get flatmates, move closer to work)
- Negotiate a salary increase
- Take on side income
Don’t touch the other categories to fund bloated fixed costs. That’s how you end up with zero savings and credit card debt.
Imaginary conversation with skeptical reader:
“₦60,000 rent in Lagos? Are you serious? I can’t find anything decent under ₦100,000.”
Fair point. But here’s the math: ₦100,000 rent on ₦200,000 salary leaves you ₦85,000 for everything else. After transport, food, and data, you’re saving ₦0.
The solution isn’t a bigger salary (though that helps). It’s making housing work within your means. Get a flatmate. Live in Mainland and work on the Island. Move closer to work to cut transport costs.
High rent doesn’t make you look successful. It makes you broke.
Step 2: Budget Your Variable Costs
Variable expenses are where most budgets die. You plan ₦30,000 for food, then spend ₦40,000 because “it was just one extra restaurant week.”
Here’s how to allocate your ₦60,000 variable budget:
Food & Dining: ₦35,000
- Groceries/cooking: ₦20,000
- Eating out: ₦15,000 (max 2-3 times per week)
Personal & Lifestyle: ₦25,000
- Clothing: ₦8,000
- Entertainment: ₦8,000
- Personal care: ₦5,000
- Miscellaneous: ₦4,000
The trick with variable expenses? Give every Naira a job before the month starts. Don’t just say “₦35,000 for food.” Say “₦20,000 groceries, ₦15,000 eating out, done.”
Step 3: Automate Bills to Stop Overspending
Manual bill payment is where budgets go to die. You forget DSTV, pay late fees, then overspend on food to compensate for feeling broke.
Automate these payments:
- DSTV/Cable: ₦3,000-₦6,000 monthly
- Electricity: ₦10,000-₦15,000 monthly
- MTN/Airtel Data: ₦3,000-₦5,000 monthly
With Lint, you can automate bill payments for ₦100 per transaction (plus we earn commissions from providers, so airtime and data are free to automate). Set it once, forget it forever.
“Why pay ₦100 to automate a ₦3,000 DSTV payment?”
Because manual bill payment costs more than ₦100 in:
- Late fees when you forget
- Mental energy tracking due dates
- Overspending because you lost track of your budget
₦100 automation fee pays for itself in avoided late charges and mental peace.
Step 4: Track Every Naira for 30 Days
You cannot manage what you don’t measure. For the next 30 days, track every expense above ₦100.
Don’t guess where your money goes. Know exactly.
Simple tracking method:
- Link your bank account (₦500 for additional accounts beyond the first free one)
- Sync transactions automatically (₦50 minimum for 10 syncs)
- Review weekly spending by category
After 30 days, you’ll discover your money leaks. Maybe it’s ₦500 daily on snacks (₦15,000 monthly). Maybe it’s Uber rides when Keke would work fine (₦8,000 extra monthly).
These insights are worth more than any budget template.
Step 5: Build Your ₦20,000 Emergency Fund
Start with one month of expenses. On ₦200,000 salary, that’s ₦180,000 emergency fund.
Sounds impossible? Break it down:
- Month 1-9: ₦20,000 monthly = ₦180,000
Keep emergency funds in a separate savings account you don’t touch. Not investments, not crypto, not “I’ll pay it back” loans to friends.
Boring cash in a savings account earning 8-12% annually.
Common Budgeting Mistakes
Mistake 1: Budgeting for Perfect Months
You budget ₦25,000 for transport assuming zero extra trips. Then your friend’s wedding happens, or you have a job interview across town.
Solution: Add 15% buffer to variable categories. Budget ₦28,750 instead of ₦25,000 for transport.
Mistake 2: Ignoring Small Daily Expenses
₦300 for gala and Coke doesn’t seem like much. Do it daily for a month: ₦9,000.
Solution: Budget ₦10,000 monthly for snacks and miscellaneous small purchases.
Mistake 3: Using Round Numbers Only
“₦50,000 for food, ₦30,000 for transport.” Real life isn’t round numbers.
Solution: Use specific amounts based on actual tracking. ₦34,500 for food, ₦28,200 for transport.
Mistake 4: Not Planning for Irregular Expenses
Car maintenance, medical checkups, birthday gifts — these aren’t monthly but they happen.
Solution: Budget ₦5,000 monthly for “irregular but predictable” expenses.
Mistake 5: Treating Salary Increases as Fun Money
Got promoted from ₦200,000 to ₦250,000? Don’t increase lifestyle by ₦50,000.
Solution: Increase lifestyle by ₦25,000, savings by ₦25,000.
FAQs
How much should I save from ₦200,000 salary?
Start with ₦20,000 monthly. This builds a ₦180,000 emergency fund in 9 months. After that, increase to ₦30,000-₦40,000 monthly for longer-term goals.
Can I budget on ₦200,000 if I live alone in Lagos?
Possible but tight. You’d need rent under ₦70,000 and minimal eating out. Consider flatmates to reduce housing costs from 40% to 25% of income.
Should I invest or save first on this salary?
Emergency fund first, then investments. Build ₦180,000 in savings, then start investing additional amounts. Don’t invest money you might need in 6 months.
How do I handle irregular income on this budget?
Use your lowest monthly earning (maybe ₦180,000) as your budget base. Treat higher months as bonuses for emergency fund and debt payment.
What percentage should go to rent on ₦200,000?
Maximum 40% (₦80,000). Ideally 30-35% (₦60,000-₦70,000) to leave room for savings and lifestyle. If rent exceeds 40%, your housing is too expensive for your income.
—
Ready to automate your budget? Lint handles bill payments, tracks expenses, and helps you stick to spending limits without the willpower struggle.
Get our free ₦200K budget calculator — we send practical money guides like this every week to help you build wealth, not just survive paycheck to paycheck.
—
Last updated: March 23, 2026
Sources: [NEEDS SOURCE] for average rent costs Lagos 2026, [NEEDS SOURCE] for transport costs data
