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Withholding Tax: Beginners’ Guide For Small Businesses in Nigeria

Beginners’ Guide For Small Businesses on Withholding Tax in Nigeria

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FIRS could seal your office if you get these two notices

Whether you are opting out of a paid job to run your own business, or you are entering into business with zero employment experience; one thing is certain: you are becoming an administrator and a business leader if you scale through. As such, it is required that you perform some managerial  obligations in the best interest of your business.

This is to expertly prevent you suffering undue charges in the long run. One of such obligations is the issue of Withholding Tax that comes in various ways. Here is a comprehensive guide detailing all you need to know about Withholding Tax in Nigeria.

What is a Withholding Tax?

A withholding tax is basically an advance and indirect source of taxation deducted at source from the invoices of the tax payer. It’s main purpose is to capture as much tax payers that may have evaded tax into the tax net. Withholding tax rates are usually 10% or 5% depending on the type of transaction and collecting authority for the tax (which can be a Federal Inland Revenue or the State Inland Revenue).

[ALSO READ: A legal view of corporate taxation in Nigeria]

Withholding tax

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[ALSO READ: Taxes you need to be aware of if you are about to start a business]

How Does it work?

When a company or individual supplies goods or services to another company an invoice will usually be issued as evidence of a transaction. If for example the amount payable by the purchaser is N1million at the relevant tax rate is 10% then upon payment the purchaser will deduct N100,000 from the invoice of the supplier and then remit to the relevant tax authority.

The Purchaser is also obligated to obtain evidence of remittance in the form of a withholding tax credit note on behalf of the supplier. The Supplier can now use the tax credit not to reduce any income tax payable at the end of his year of assessment.

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How do I use a WHT Note to reduce my income taxes?

WHT is an advance payment of your income tax, therefore if at the end of a financial year your tax payable is N500,000.00 and an aggregate of all your WHT credit note is N200,000.00, the net tax you will pay to the government will be N300,000.00. That is why it is important to keep your WHT Note.

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[ALSO READ: A legal view of corporate taxation in Nigeria]

Please tell me more on the WHT Note

Okay, the WHT credit note is a document issued by a relevant tax authority to a beneficiary as evidence that withholding tax was deducted from its business. It is usually issued to the company that deducted the WHT from your invoice as such you must endeavour to always go back and request for it. This is because without it you will not be able to claim back the money that has been deducted from your invoice.

A WHT Credit note will include the following

  1. Credit Number
  2. The name of the tax payer (purchaser of your services or goods) who deducted the tax and remitted on your behalf
  3. The name of the beneficiary whose invoice was deducted (which is you I suppose)
  4. The Date of the transaction including the nature of the transaction

So what happens if my customer fails to remit my taxes on time?

Too bad, there is nothing much you can do except complain and then blacklist the customer. However, the tax authority upon noticing have penalties ranging from 200% per annum of tax not remitted for companies and N5,000 per annum for individuals. Meaning if your customer fails to remit N100k in withholding taxes already deducted from your invoice his penalty will be to pay N200k extra.

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This penalty also applies to anybody who equally fails to deduct as well. Fortunately though, the tax authority can exercise leniency and grant the default some reprieve against the penalty.

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remitter withholding tax

[ALSO READ: Taxes you need to be aware of if you are about to start a business]

As the Remitter , when Do I have to remit the taxes I deduct?

So, if you deduct taxes from your suppliers invoice you must file returns at the end of any given month. All you do, is draw up a schedule detailing the list of companies you deducted taxes from, their addresses, the value of the invoices,  the tax deducted and the rate, Your name and address as the tax payer and the relevant tax authority . You then attach a cheque(s) for the total amount deducted for the month.

You can pay directly to the bank. Banks these days have agent who collect these cheques on your behalf and promptly obtain receipt of payment on your behalf. After obtaining receipt of payments, you now take to the relevant tax authority attached to your schedule, so you can be handed the WHT credit notes on behalf of your clients. You should keep a file for all the WHT Credit note you receive on behalf of your clients for easy accessibility.

Does it mean all transactions involve WHT?

WHT is mainly for transaction involving contract of purchase. What this means is that WHT can only be deucted from your invoice if it involves supply of goods and services to a destination requested for by your client. WHT cannot be deducted in the ordinary course of your business, meaning if I you sell soaps and I come to your shop or market to buy the soap, I cannot deduct WHT from your receipt.

However, If I ask you to supply to me then that becomes a contract and as such I am obliged to deduct WHT from you.

[ALSO READ: A legal view of corporate taxation in Nigeria]

Please what do you really mean by Relevant Tax Authority?

A relevant tax authority is either the State or the Federal Government. The State Government collected WHT from Individuals or Sole Traders under the Personal Income Tax Act. The Federal Inland Revenue collects tax on behalf of the Federal Government under the Company Income Tax Act

CAVEAT: Don’t forget to always consult a tax consultant for help with your taxes. This only serves as a guide.

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[ALSO READ: Taxes you need to be aware of if you are about to start a business]

Ugo Obi-chukwu "Ugodre" is a chartered accountant with over 16 years experience in financial management, corporate finance and financial analysis. He is also a retail investor and a personal finance advocate with over a decade experience investing in the Nigerian stock market. Ugo is the founder/Publisher of Nairametrics and blogs regularly on the website.

76 Comments

76 Comments

  1. Heather

    October 26, 2013 at 5:40 am

    Precisely what really motivated you to create “A-Z Of Withholding Tax In Nigeria – Beginners Guide For Small Businesses | UGOMETRICS BLOG”?
    I personallycertainly adored the post! Thanks -Anita

  2. zoefafa

    March 22, 2014 at 10:50 pm

    thanks a lot ugometrics. stumbling upon the link that brought me to this site has been like striking a diamond mine of financial literacy. thanks a bunchy y’all.

  3. subas

    March 26, 2014 at 12:43 pm

    Very educating…

  4. Anonymous

    July 23, 2014 at 9:36 am

    I found this article on withholding tax very useful. I think that there is a high risk of double taxation with this category of tax. The other issue is the technicality involved in determining what constitutes ordinary course of business especially for service providers. I believe that if the other heads of taxes are well monitored and executed, there would be no need for withholding tax and the risk of double taxation for instance via WHT and VAT on the same service

  5. Teingo Inko-Tariah

    July 23, 2014 at 9:37 am

    I found this article on withholding tax very useful. I think that there is a high risk of double taxation with this category of tax. The other issue is the technicality involved in determining what constitutes ordinary course of business especially for service providers. I believe that if the other heads of taxes are well monitored and executed, there would be no need for withholding tax and the risk of double taxation for instance via WHT and VAT on the same service

  6. Mordi Vincent

    September 30, 2014 at 11:32 am

    Thanks for educating me in the field of Taxation.

  7. Eno

    November 13, 2014 at 9:45 pm

    Very educating. Thank u for the awareness on dis topic

  8. omolara

    November 20, 2014 at 2:51 pm

    Beautiful! Really helped

  9. Sandra

    December 3, 2014 at 3:46 pm

    Please, I need clarification on something. My employer charged a supplier WHT on his invoice, and the selling price of the goods already has VAT included. So the supplier claims that since he has charged VAT on the transaction that there was no need to pay his fees net of WHT again.
    Could you please provide explanation to clear this.

    • Nairametrics

      December 3, 2014 at 4:18 pm

      Hi Sandra, You charge 10% WHT (if it is a registered company) or 5% WHT (if its a sole trader) on his invoice.So for example, he sells you an item costing N100 and charges 5% VAT his invoice will be N105. However, before paying you deduct the WHT from the N100 and not N105. The tax base for WHT is on the supply value (excluding VAT) Cheers

      • Sullivan

        February 18, 2015 at 9:48 am

        Hi Nairametrics, the first sentence of your explanation is not quite correct. What determines the WHT tax rate is first of all the nature of the transaction and then the entity type. For example, a supply of a good or the provision of a service (contract of supply/service) will attract WHT at 5% irrespective of whether it is an incorporated entity (limited liability company, plc) or unincorporated entity (partnership, enterprises etc.

    • Dennis

      April 13, 2017 at 2:11 pm

      Since the invoice is vat inclusive, then your employer was right by deducting WHT from the invoice.

  10. Jide

    December 6, 2014 at 1:55 pm

    Nice

  11. Bola

    January 16, 2015 at 10:29 am

    Thanks… This is really helpful

  12. Osasuyi Peter

    January 26, 2015 at 12:59 pm

    WTH has been clearly explained in your post. I really like the examples and the simple language used. Thank you a lot.

  13. Osasuyi Peter

    January 26, 2015 at 1:04 pm

    I meant WHT up there.

  14. Sullivan

    February 18, 2015 at 9:55 am

    A good post…. We have setup Taxassit to provide free tax services to starters and SMEs in Lagos and Port Harcourt. All tax advices are provided by volunteers with experience from the big 4 accounting firms.

    The website is under construction and the services are completely free.

    • Anonymous

      March 9, 2016 at 5:40 pm

      Thanks for the good initiative I’m highly interested to participate you can reach me on [email protected] thanks
      Adekola Taofeek Aca

    • juciken

      March 21, 2018 at 5:56 pm

      What’s the endpoint of the free service? If free indeed, then I am interested

  15. Oby

    March 11, 2015 at 8:32 am

    Does a company in a particular state pay WHT on supplies of raw materials to the state Government where it resides.

  16. Oby

    March 11, 2015 at 8:33 am

    Does a company in a particular state pay WHT on supplies of raw materials to the state Government where it resides and if not why

    • Nairametrics

      March 11, 2015 at 9:41 am

      Companies pay WHT to the FG not state. Only Sole traders or One Man businesses or Partnerships pay to the state

    • Anonymous

      January 19, 2016 at 2:38 pm

      Please can WHT be deducted in rents?

  17. Agie

    March 17, 2015 at 10:48 am

    who can the lagos internal revenue service collect WHT from? can it be collected from a limited liability company?

  18. Emmanuel Uwaga

    July 29, 2015 at 10:54 am

    Please what will be the right WHT treatment on invoice sent iro out sourced staff salaries with all statutory deductions to be remitted by the sourcing firm?

    • Nairametrics

      July 29, 2015 at 6:50 pm

      We believe it is 10%

      • Anonymous

        May 19, 2019 at 4:00 am

        10% of the total invoice or 10% of service charged?

  19. EDAMISAN AJOSE TIKOLO

    November 19, 2015 at 12:42 pm

    This is quite rich and knowledge broadening. Kindly cite the relevant tax legislation and date for WHT legislation in Nigeria

  20. Opiughie John

    January 19, 2016 at 8:39 am

    Can WHT be deducted in retrospect?

  21. Constance Joy

    January 19, 2016 at 2:40 pm

    Please how can WHT be deducted from rent?

  22. jamiu

    January 28, 2016 at 3:11 pm

    For transactions that attract both vat and wht. I think the normal practice of deduction is to deduct vat first from the gross value and later apply appropriate wht rate on the net after vat. Some say no to this approach.they opined that the wht rate should be applied on the gross. Please which of these opinions is right

    • Anonymous

      March 2, 2017 at 7:39 am

      WHT rate should be applied on the net amount. Applying it on the gross will amount to charging WHT on VAT.

  23. Anonymous

    February 4, 2016 at 4:32 pm

    This article is wonderful. All thanks

  24. Gideon

    February 9, 2016 at 12:35 pm

    How do you handle a situation where WHT was not deducted on previous payments on a contract which occurred in previous years? Can WHT of the previous payments be deducted by the Client from the outstanding balance in the preceding year?

  25. Ada

    February 17, 2016 at 11:32 am

    Do you need to withold WHT if you have not paid the supplier?

  26. Anonymous

    April 7, 2016 at 9:58 am

    Thanks for the post….
    However, in a case of an unincorporated company (Enterprise), I understand it is not liable to pay Company Income Tax. The customers have been paying WHT on its behalf. How does an Enterprise claim back the deducted WHT from the government since it is not liable for CIT?

  27. Irene

    April 15, 2016 at 9:33 am

    This post is brilliant. The language is simple and very comprehensible. Thank you so much for this insightful piece. Can you please provide the link to the Taxassist website you spoke about?

  28. idris Olufowobi

    April 20, 2016 at 10:45 am

    Is WHT applicable on foods supplied by a fast food outlet for a function?

    Will appreciate your prompt response.

    • Nairametrics

      April 20, 2016 at 1:16 pm

      Yes it is

  29. Victor Olanrewaju

    April 25, 2016 at 3:28 pm

    Thanks so much for this piece

  30. willy

    June 9, 2016 at 9:44 am

    The text is simplified and very interesting.

  31. Maureen

    June 13, 2016 at 6:30 am

    Thanks so much you have saved me the stress of going to FIRS for enquiry.

  32. Chika

    June 17, 2016 at 10:32 am

    This has to be an all time classic! Thank you nairametrics for helping small businesses everywhere!

  33. Dayo Akande

    July 7, 2016 at 7:21 pm

    The write up on WHT is educative and insightful. Thank you

  34. Dare

    August 25, 2016 at 11:38 am

    Good write-up, but quick question pls. Supposing I gave out an Invoice with contract value of N50,000 and VAT of N2,500. Total Invoice value comes to N52,500. The client paid N47,500 (which is a deduction of 10% WHT on the contract value). My question is since the client deducted withholding tax and gave me the WHT credit note, am I still supposed to remit the VAT of N2,500 to FIRS? Thinking it will be double taxation when I remit VAT of N2,500 again from my N47,500. please help out. Thanks

    • Nairametrics

      August 25, 2016 at 1:16 pm

      Hi…it will not be double taxation. You are still expected to remit the N2,500 as vat. You only remit less if you have a corresponding input vat

    • Immanuel Silas

      March 2, 2017 at 8:35 am

      Let’s look at it this way:

      Contract value 50000
      VAT 2500
      Total 52500

      When payment is made.

      Cheque 47500
      Credit Note 5000
      Total 52,500

      Hence, when you remit VAT of N2500 from the cheque amount, You’ll still be left with your contract value of N50000 which is now made up of N45000 in bank and N5000 in form of WHT credit note.

    • Adekunle

      July 11, 2019 at 9:25 am

      Hi Dare,
      If the WHT Credit Note issued to you is valued at N5,000, (as against N2,500 at 5% as expected), it then means a 10% rate was applied to your invoice. However, you still have to remit the VAT of N2,500.
      Thank you

  35. Lanre

    November 9, 2016 at 1:41 pm

    Thanks so much for the info. Is my school’s end of year party also liable to the WHT?

  36. Philip

    December 11, 2016 at 9:39 pm

    Please if am paying withholding tax, should I pay for the tax that is called for by a local government council?

    • Nairametrics

      December 11, 2016 at 10:21 pm

      Pls explain better. What local government tax are you referring to?

  37. Peju Olufemi

    February 16, 2017 at 12:03 pm

    I appreciate your good work but I will enjoy updates on economic issues,
    thanks,

    Peju

  38. Olumide Olumorokun

    May 31, 2017 at 2:06 pm

    The A-Z of Witholding tax in Nigeria depicts the best way of explanation of the concept of Witholding tax with clarity on the part of a lay-man. thank you

  39. chima frank

    June 1, 2017 at 1:35 pm

    am in a supply firm, we have not been given WHT credit note from a particular company for some time now and the authority(government) have charged us to bring our note or to pay the bills. pls i want to know how to go through in getting all the WHT from that company we have been supplying to.

  40. John

    September 2, 2017 at 4:41 pm

    less grammar and jargons. Simply telling what it is anyone might be wanting to know. Thank you very much

  41. Onosemuode Efe

    September 14, 2017 at 11:56 am

    How do I generate a schedule, please? Thanks.

  42. Olukayode Adedayo

    September 25, 2017 at 8:51 pm

    If I am not the purchaser or supplier and WHT has been deducted from purchaser, would I still pay tax on my commission received from supplier?

  43. SANUADE OLUSEYI

    October 19, 2017 at 5:26 pm

    If a supplier of service gave a certain % of discount to a purchaser, what value will be subjected to WHT? is it the gross or the net value?

  44. Anonymous

    February 21, 2018 at 8:55 pm

    Please how do you account for WHT tax (from service provider’s perspective)? I would like to know the accounting entries.

  45. Divine

    April 4, 2018 at 10:28 pm

    My tenant, an eatery pays one million as rent, is it right for the tenant to deduct 10% from my rent as WHT even when l am a retiree. Please, l really want to be educated on this. Divine

    • Nairametrics

      April 5, 2018 at 7:07 pm

      The eatery will deduct WHT from rent payment to you if the house is not owner-occupied.

  46. Anonymous

    April 24, 2018 at 3:15 pm

    Best description, simple and straight to the point! Thank you

  47. Ife

    June 25, 2018 at 4:32 pm

    Thank you for the info. Kindly advice on what to write to a client who deducts witholding tax on total invoice instead on admin charge. Thank you

  48. Prince Oputun

    June 26, 2018 at 12:20 pm

    Thank you for the information.

  49. Caroline

    June 28, 2018 at 4:01 pm

    Thanks for this article, could you please let me know if WHT is applicable for transport services(air freight shipment from Europe to Lagos) invoiced by a foreign company

    • Adenike

      December 6, 2018 at 4:53 pm

      WHT can only be charged on transactions carried out within Nigeria. Foreign company’s will not have any means of accessing the credit notes.

  50. Anonymous

    July 10, 2018 at 12:05 pm

    Thanks, the article is educating.

  51. Anonymous

    August 1, 2018 at 10:45 am

    Good Article, please how much withholding tax is deducted from a retainership fee meant for a Law firm who offer legal services to a company?

    Remember the Law firm is an enterprise not a company.

  52. Lyn

    August 16, 2018 at 1:08 pm

    so we paid our agent the sum of 15m for rent and the contract stated that the amount was net of tax. so this means we will pay 10% of that amount to LIRS? kindly assist as i will appreciated your swift response.

  53. K7

    August 28, 2018 at 12:04 pm

    If another country ( DRC Congo) deducts WHT for an export contract from Nigeria ..can the Nigerian co. use the WHT credit note to claim Tax offset

  54. Lucky Ehigie

    August 29, 2018 at 3:12 pm

    Can WHT be deducted on a landed property trasaction? Say I sell my house to a company at an agreed sum, does the company have any power to deduct any amount in the name of WHT?

  55. Topaz

    April 12, 2019 at 5:07 am

    What are the differences between vat and wht?

  56. Today Birthday

    December 28, 2019 at 9:22 pm

    I relish, result in I found just what I used to be looking for.
    You have ended my four day long hunt! God Bless you man. Have
    a nice day. Bye

  57. Bayo

    January 25, 2020 at 11:58 am

    What can be done if my employer has been deducting my tax and pension from my salary every month and they refuse to remit it and it has been ongoing for 4 months?

  58. Toochi

    February 29, 2020 at 8:53 am

    Clear and direct. Many thanks. Thanks again.

  59. OMOLARAENY

    March 5, 2020 at 8:22 pm

    Good evening and thanks for this explantion on WHT. Do you charge WHT on the total value on the invoice or the service charge of the supplier?

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Personal Finance

Legit ways to make money with your phone

In today’s world, phones have become an asset, allowing one to do simple jobs that would have previously needed the use of computers.

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CBN begins dialogue with industry stakeholders on USSD charges , Legit Ways to Make Money With Your Phone

One of the significant strongholds of technology advancement is the emergence of smartphones, which you can basically do anything on. The quality of smartphones has dramatically reduced the use of computers for basic tasks like browsing the internet or viewing a document. More importantly, jobs that would have otherwise be done on computers can be quickly done on mobile phones. This has made phones an asset, especially with the emergence of legit ways to make money with your phone from any location.

The fantastic thing about these jobs is the fact that they still allow you to keep your 9 to 5 job. You can smoothly run them on the side and get extra cash to pay your bills.

This article unveils seven legit ways to make money with your phone. Keep reading to learn about them, and choose the one that suits you best.

  • Online tutor: Having a phone gives you direct access to the internet as well as online learning platforms that you can earn from. Are you good at something? Simply register on one of those platforms and offer your knowledge for a fee. These days, you do not even need a professional camera or studio. Instead, you can simply make a video with your phone’s camera, as far as it is decent enough. If your content is good, people will keep coming.

(READ MORE:10 side businesses to sustain your professional career)

  • Earn from YouTube: YouTube is one of the few social media platforms that pay the people using it. To benefit from this payment, all you need to do is open a channel and get people to watch your videos. Some of the videos that attract lots of views are comedy skits, fashion advice, how to do stuff, and even tutorials. Once again, as long as your phone has a good camera, you can simply make your video with it and expand as you earn. Many of these large YouTube channels started with mobile phones.
  • Own your eCommerce business: eCommerce businesses is no longer as complicated as it once was. Today, all you need to start one is your mobile phone as there are platforms that offer everything else. Websites like eBay and Jiji simply allows you to take a picture of your good, upload it, and wait for interested customers to make a bid. You can sell anything on these apps, and the better rating and review you have, the more trust people would have in your product. All you need to start earning money is your phone and whatever you intend to sell.
  • Freelance: Freelancing is basically offering your services on the internet for money. As long as you have a good internet connection and a decent phone, you are good to go. Jobs like writing, copywriting, and graphics designing can be easily done on a mobile phone. You can visit and register with popular freelance websites like fiver and Upwork to get started.
  • Watching videos: Believe it or not, there are websites that pay you to watch videos. For most of them, it’s a larger scale of digital marketing, which you do not really have to get involved in. Simply stream a video, advert or clips, and get paid for doing so. One of the most common apps that do this is Swagbucks. They pay you for watching videos, shopping, and taking surveys, and offers different means through which you can redeem your payment. Swagbucks services are, however, restricted based on locations, as tasks to earn money are not readily available compared to other areas. Fronto is another popular app that offers the same services too.

(READ MORE: Budgeting on a fluctuating income)

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  • Taking paid surveys: Paid surveys is one of the easiest ways to make money with your phone. Like watching videos, taking paid surveys is part of a broader scope investigation that companies invest in to understand customers’ perspectives. They rate this so important that they are ready to pay you to complete surveys containing different questions. All you need to get started is your phone, and then open an account with the platform. Some of the websites that offer this are InboxDollars and Opinion space. The availability of surveys is based on your geo-locations.
  • Virtual assistant: Although being a virtual assistant might hinder you from having a daily job, its pay is enough to cover your needs. As a virtual assistant, all you need to do is offer your services to individuals or companies with a lot of work to do. It could range from simple tasks using excel sheets to managing documents and compiling reports. Most of these works can be done on your phone. The difficult thing about virtual assistant jobs is that you would have to seek it like a regular job. You apply and go through recruitment processes like a regular job.

Although there are a ton of other money-making applications that you can earn from on your phone, most focus on some specific locations. The location favors those in Europe and the US and a little bit of Africa. However, the methods above are universal and work in Nigeria. You should try them out and start making money off your phone today.

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Personal Finance

Best ways to get free money with little or no effort

A good definition of free money with little or no effort is making money without a 9 to 5 job.

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Being successful has always been the goal, and would always be, and a large chunk of it is often determined by how much money you have. This is why many seek both passive and active ways to make money and hold 9 to 5 jobs while making side investments. The best and most convenient way to make money is when you do so with little or no effort. Sounds too good to be true? Read on to find out the best ways to get free money with little or no effort.

A good definition of free money with little or no effort is making money without a 9 to 5 job. Working all day to make money is stressful and not what this article focuses on. With the right combination of skills and the processes listed below, you can make money and remain lazier than you would have been with a standard job. Here are some of the best ways to do this:

  • Online sales: The emergence of e-commerce websites like Etsy means that you no longer have to go out there searching for customers. You can make a lot of money sitting at home by simply creating an account on the platform. The fantastic thing is that you do not even need to have the goods to sell stored in a warehouse somewhere. Instead, you can make a deal with store owners and put their products on your page. You can bargain commission on any product sales you make. That’s it, no much work, no investment, only profit.
  • Drive people around: Believe it or not, driving is one of the most lucrative businesses in Nigeria. This holds especially for busy areas like Lagos, and you can make a lot of money by only driving people around. You would be shocked at how many people are willing to pay double or triple the regular fee to have the car all to themselves. An excellent example of this is uber driving. This is one of the ways that require little effort, just drive!

(READ MORE:If you had $100,000 in cash, where would you invest it in US markets?)

  • Invest in high dividend stocks: To pull this off, you would need to invest a substantial sum. The plan is to invest in high dividend stocks and receive extra for it. Dividend stocks are when companies give shareholders additional stocks, which could be due to different reasons. Investing in one would see you earn more value in worth (which you can sell for profit) without literally doing anything. Simply wait and watch your investment bloom. However, understanding the stock market is very important, as a blind investment could see you lose a lot of money.
  • Sell your photography: This process is simple. Just take pictures and sell them off on the internet. Picture giants like iStock and Shutterstock are always looking to purchase new images. Simply log in and follow their guidelines, as anyone can submit a photo to be included. When anyone downloads your photo, you get a commission. That’s all, simply take pictures and make a lot of money.
  • Invest in real estate: Making money through real estate requires a large upfront investment, although it compensates with a large payout too. If you have the money, investing in real estate is one of the easiest ways to make free money with little or no effort. All you would need to do after investing is managing your property.
  • Take online surveys and play video games: Sounds like the perfect life, right? It can actually be. Some sites would pay you to complete their surveys and play videogames for feedbacks. These data, so to say, are sold to research firms that are trying to understand consumer habits.

(READ MORE: Where to invest $10,000 right now)

  • Open a high-interest savings account: This is another way to get free money by literally doing nothing order than paying a certain sum into your account. A high-interest savings account offers you greater interest compared to a regular savings account, as long as you leave your money for an agreed time. However, these accounts have a minimum opening balance that varies from one bank to another, and it’s usually not a small sum.
  • Sell your old stuff: This is kind of straight forward. Do you have things that you no longer use? Simply put them up for sale on an e-commerce website. Selling them would see you kill two birds with a stone. This is because you would both declutter your home and make money in the process while doing nothing literally.

These are some of the best ways that you can make free money with little or no effort. They all work, therefore study them, and combine the methods that work best for you. With the right dedication, you can start making money in a day or two by only doing the barest minimum.

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Personal Finance

Top 10 financial planning tips for newlyweds

Here are the basic steps to take to help you set your post-wedding finances on the right track as a couple.

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Financial problems are a major contributor of divorce by 36.7% according to Shelby B. Scott’s research. Before you work down the aisle, it is important to have a conversation around your finances. Start with the financial aspect of planning a wedding. Every female’s dream is to have a fairy tale wedding, but it is to the detriment of your finances, for those who cannot afford it.

Though your dream wedding can be achievable when planned and budgeted wisely, a lot of couples still make the mistake of spending money on extraneous things just to have a big and a fairy tale wedding, without having an upright plan for their future.

No wedding has won an Oscar award for being the biggest and no matter how glamorous your big day is, another person’s wedding will surpass it. Furthermore, taking a loan for a wedding is one of the financial mistakes some people make. They take a loan to impress people and end up starting their union on debts. It is important for one to cut down on expenses as weddings are mere events, while marriages are the main journey.

Congratulations! Your wedding was successful, you are ready to embrace each other’s outstanding qualities, unconditionally accept each other’s plight, and set plans on how to manage your finances to have a blissful union.

Here are the basic steps to take to help you set your post-wedding finances on the right track as a couple.

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Have money discussions

Before you walk down the aisle and commit to spending the rest of your lives together, you need to talk about how you will be spending your money as a couple. A lot of people are married but unhappy and the cause has to do with financial dilemmas.

Money has a huge role to play when it comes to having a happy and healthy union, so couples should dedicate time to discuss how they are going to manage their finances to avoid having money problems. An example is having a discussion around your salaries, savings, debts, spending habits and also discuss if you both want to merge your bank accounts or have a separate account.

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Be honest with your finance

Honesty has to do with having an open and honest discussion about your financials – both past and future, and it is vital to your financial success as a couple. Everyone has their own money habits, which have been shaped by their past experiences. Approaching money issues honestly and openly gives you a much better chance at having a strong, healthy financial relationship.

Make commitments to each other

No one cares more about your financial security than the two of you. Make a promise to each other to take joint responsibility and take steps to better your overall financial position by paying down debts, establishing a savings habit and investing in viable investment source for healthy long-term returns.

Have a budget

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Setting financial goals together should be your top priority. It is important that the goals are specific and achievable. Set goals that are equally rewarding, so that you both will be motivated to achieve them. Depend on each other for support and encourage one another to stay focused.

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Financial goals need budgets, as it enables you to manage your finances. Set a budget on your variables and fixed expenses. Review your budget regularly to identify problem areas. When you encounter challenges, try not to get discouraged and adjust as often as needed to ensure financial success.

Embrace your differences

The most important money move you can make for your relationship is to embrace your differences. Understand that you cannot change feelings created by a lifetime of experience; instead, try to nurture the positive aspects of each of your lifestyles. There is no one “right” way to handle your finances, so managing your money styles may be the perfect solution.

Here are 10 quick tips for planning together

  • Set priorities and specific goals and discuss them. Do not assume you both have the same goals without discussing them.
  • Discuss values. Sometimes different values make goal-setting difficult. An example is when one person wants to spend now and one wants to save for later, it can be a source of disagreement. The same is true when one spouse tends to be less risk-oriented than the other about investments.
  • Plan in five-year units. When planning for five-year blocks, you can set both intermediate and long-range goals without feeling you are being deprived forever.
  • Budget together. Set up a manageable system for your cash flow together.
  • Know where your money is going. Keep records of your spending.
  • Do not assume that because you are both working, that you have a lot more to spend.
  • Save regularly (emergency funds). Set up a savings account in both of your names and either set up an automatic transfer through your online bank app or take turns putting money into the account monthly.
  • Ensure you evaluate insurance. Getting insured is a vital part of adulthood, especially as a couple. Discuss the best insurance plan to go for.
  • Sit down together and discuss finances at least once a month.
  • Consider how many kids you want. This will help you come up with at least an early-stage financial plan.

Bottom Line

Some of the best marriage advice you can follow is to always be honest about your debts, income, and budgeting history. Marriage finances are a tricky topic, but it’s important that you discuss them regularly with your partner.

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