March 3, 2018//-The current economic downturn has seen many Nigerians going through all manners of hardship especially in the area of financial challenges owing to loss of jobs, high rate of inflation, weakening Naira value, high foreign exchange rate, among others.
The situation, however, has made feeding a thing of survival as prices of food items kept skyrocketing, thus becoming beyond the reach of many.
Again, the bad state of the economy has also not helped the business environment as existence and sustainability have become a struggle for owners of businesses. Besides, some of them had to downsize their workforce so as not to go under for the purpose of continuity.
However, with proper financial planning, self-determination and prudent spending, financial challenges can be surmounted.
Nonetheless, the following tips will help you to spend wisely and subdue financial stress in this economic recession.
Budget
It is vital to have a budget during recession as it would guide you and help you to know how your money is spent and disbursed.
More so, a budget needs to be created for food, beverages, recharge cards, clothes and accommodation.
Creating a budget is not the issue but sticking to it is the main issue as this has made several people to live above their earnings.
Sticking to your monthly budget enables you to avoid impulse buying because certain amount of money had been fixed for items needed at the end of the month. An individual without a budget will live a life of borrowing and cannot be financially stable.
Penchant For Home Made Products
If you actually want to spend wisely and live within your earnings, you must patronise made in Nigeria products particularly if you want your money to have good value. But if you are the type that have penchant for foreign goods, you must try as much as possible to drop it because it entails huge amount of money and cannot enhance your spending habits. Craving for foreign products will leave you with no choice but to spend more since it involves foreign exchange and mind you, our Naira is no longer competitive.
Avoid Business In Foreign Currencies
It is good not to delve into businesses that involve foreign currencies especially if you do not have much capital.
It is most preferable to engage in business that is done with our local currency, grow and expand it. Delving into business with foreign currencies could be frustrating particularly if there is a fall in foreign exchange rate after your purchases.
In addition, low patronage because of the exorbitant price attach to foreign product can put you into financial dilemma.
Keep Your Children In Schools Within Nigeria
For you to really appreciate the value of your money there is need for you to keep your children in schools within Nigeria.
As doing this, especially in this present state of the economy would enable you to spend wisely by living within your earnings and also help to over overcome financial hassles. Besides, you do not need to pay their school fees in foreign currency.
Invest In Real Estate
Investing in real estate business is a good investment as you are unlikely to record losses, if you actually understand the business.
The business is quite capital intensive but with proper financial planning, you can delve in to it because it is a business of financial appreciation.
Save For The Rainy Day
Despite the economic recession, there is need to have savings because there must surely be a turn-around in the Nigeria economy but before then, it is expedient you work on your spending habits to be able to save for the rainy day.
Therefore, if you are working with a budget, then you should come up with a savings plan for the future.
A well-funded savings account can be just the extra needed to meet bills or the unavoidable emergencies that confronts us in life. So, even within the recession, it is important to save up.
Pay Up Your Debts
Debt is a financial burden and if not paid on time, can lead to stress but with the creation of a budget and adhering to it, you can successfully pay up your debts.
Besides, having a budget would help you to identify spending areas you can cut back on so that more of your money can go towards paying up your debts.
Independent.ng
