Financial tips to navigate new tax regime

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A new tax law unveiled by the Federal Government of Nigeria is set to take effect on January 1, 2026. This has necessitated financial discipline among citizens.

Financial discipline is the practice of making smart, consistent decisions about money to achieve long-term goals by aligning spending, saving, and investing habits with your financial objectives.

It involves having self-control to live within your means, avoid unnecessary debt, and regularly track your income and expenses through practices like budgeting.

However, maintaining financial discipline is essential as the new tax regime will reduce take-home pay and raise living costs.

According to the Brown Miller Wealth Management company, key components of financial discipline include setting clear goals, creating a budget, paying down debt, automating savings, and being mindful of spending.

It noted that these simple yet effective practices help you stay on track, plan, and protect your long-term financial well-being.

The company emphasised that staying on track under this new tax regime without incurring unnecessary debts in 2026 is a matter of financial discipline, a status that guarantees stability and financial independence.

“A disciplined person will always be able to manage their finances in such a way that they will not fall into debt or suffer from unexpected expenses,” it added.

Financial experts have said that in this new tax environment, financial discipline will not only be about cutting expenses but also making smarter choices with clear priorities.

“From understanding revised take-home pay to restructuring investment habits, the new regime urges a mindset shift toward active money management. If you want to practice self-discipline, start with these small steps first and build on them as you gain experience.

“Tracking monthly spending, automating savings, and choosing tax-efficient investment options become required practices rather than optional habits,” an economist, Able Ndukwe, advised.

He, however, added that these habits will further fortify your financial structure and keep it in tune with your goals despite the change in the tax environment, insisting that these key tips could help someone move into the new tax framework with ease and confidence.

These are ways to cultivate smart financial habits during the tax regime:

Create a detailed budget

“Start by creating a detailed budget that outlines your income and expenses. Track your spending to identify areas where you can cut back and allocate more towards savings. Create an emergency fund, a dedicated pool of money set aside to handle unexpected expenses or financial emergencies such as medical bills, job loss, urgent home repairs, or sudden travel needs.

“Its purpose is to protect you from going into debt or disrupting your regular financial plans when life throws surprises your way. By budgeting wisely, cutting unnecessary expenses, and adopting smart saving habits, individuals can stay financially stable,” Ndukwe noted.

Increase your side hustle

Investment counsellor and public analyst, Dr Charles Apoki, harped on the need to increase one’s income, suggesting that taking on a side hustle or freelance work would help while leveraging one’s skills and expertise to generate additional streams of income.

“Try as much as you can to increase your income. Get down to business, farming and learning skills that would help you make more money. Have something of sales value, that is, when you raise more income. Look for what the uneducated are doing and do it better.

“Go into food making, packaging, distribution, and selling. Having a steady income will prevent you from becoming frustrated. Bend down and see what you can do to produce a steady income. Come down from your high tower and find something doing to ease off your life,” Apoki advised.

Pay yourself first

According to Brown Miller Wealth Management, there is a simple rule: pay yourself first, meaning that if you are going to save money, you need to pay yourself the first chunk before anything else.

In other words, if your total take-home salary is N3,000 per month and your bills amount to N1,500 per month, then you need to set aside N500 as savings in order for yourself to have any money left over to pay off debt or invest later.

“This does not mean that all of your income should go toward paying off debt or investing; rather, it means that for every money earned by working hard at work each day, some portion can be set aside through automatic withdrawals from checking accounts into savings accounts so that there will be enough cash available when taxes are due or when emergencies arise,” it stated.

Avoid unnecessary debts

Avoiding unnecessary debt and saving consistently are two of the most powerful habits for building long-term financial stability.

According to a financial blog, NewswireNGR, in a world filled with easy credit and constant spending temptations, it’s essential to make intentional choices about where your money goes. “Limiting debt not only reduces financial stress but also frees up more income for meaningful goals. At the same time, developing a steady saving routine, whether through small daily amounts or automated transfers, helps you build security and prepares you for emergencies or future opportunities,” it said.

Paying off each debt

The next rule to follow in order to become a more disciplined spender is to know exactly what you owe and how much it’s costing you.

“Start by making a list of all of your debts. Include credit card debt, student loans, personal loans, car loans, and mortgages. Then add interest rates, minimum monthly payments, and total balances for each account.

“Finally, add in the minimum monthly payment that goes towards these debts each month – this can be found on statements or by asking the lender directly. Once you have an accurate picture of where your money is going right now, and where it could be going if only there were no such thing as debt, you can start working toward building financial discipline through paying off each debt one at a time,” added Brown Miller Wealth Management.

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