5 tips for surviving recession in Nigeria
As the saying goes ' when the going gets though, the tough get going', the recession in Nigeria maybe a terrible situation but here are some tips that can help you live a good life even in recession.
Identify your monthly expenses
In a recession, there’s usually tight cash flowing the economy, Categorise and track your monthly expenditures by outlining the amount of money you spend on recharge cards, extra-curricular activities and luxury items. If you spend a large chunk of money on these things, you might as well reduce it. Prepare to stick to basic and essential items only during this period.
Plan a budget and save
Now is the time to have a strict saving and budgeting routine. Although there is the universal 50/20/30 rule, which means you
should allocate 50 percent of your income for essentials (like housing and food), 20 percent as savings and the remaining 30 percent goes into your life style choices like the cable TV or
nights out. However, when preparing for a recession, one
has to be frugal. Therefore, a more appropriate approach to surviving an economic downturn would be to divide your
monthly income using the 50/30/20 rule,
where you save 30 percent of your income.
That way you can have enough to fall back on in the case of an emergency.
Boost your income
Aside from your regular 8-to-5, it is time to take on a part-time jobs in order to boost your income. You can decide to monetise your
hobby (some of which may be tax-free) by working harder on it during your down time
or on weekends, that way, you can earn some extra cash.
Don't not spend unnecessarily
It is time to cut out wastage and extras. Avoid purchasing what you don’t need, save on electricity usage. Try to cut costs in every possible way.
Pray to God
God is the only person who can help you survive in a bad situation, so you need to involve him.
These few tips can help you survive a recession in Nigeria.
Identify your monthly expenses
In a recession, there’s usually tight cash flowing the economy, Categorise and track your monthly expenditures by outlining the amount of money you spend on recharge cards, extra-curricular activities and luxury items. If you spend a large chunk of money on these things, you might as well reduce it. Prepare to stick to basic and essential items only during this period.
Plan a budget and save
Now is the time to have a strict saving and budgeting routine. Although there is the universal 50/20/30 rule, which means you
should allocate 50 percent of your income for essentials (like housing and food), 20 percent as savings and the remaining 30 percent goes into your life style choices like the cable TV or
nights out. However, when preparing for a recession, one
has to be frugal. Therefore, a more appropriate approach to surviving an economic downturn would be to divide your
monthly income using the 50/30/20 rule,
where you save 30 percent of your income.
That way you can have enough to fall back on in the case of an emergency.
Boost your income
Aside from your regular 8-to-5, it is time to take on a part-time jobs in order to boost your income. You can decide to monetise your
hobby (some of which may be tax-free) by working harder on it during your down time
or on weekends, that way, you can earn some extra cash.
Don't not spend unnecessarily
It is time to cut out wastage and extras. Avoid purchasing what you don’t need, save on electricity usage. Try to cut costs in every possible way.
Pray to God
God is the only person who can help you survive in a bad situation, so you need to involve him.
These few tips can help you survive a recession in Nigeria.
Comments