Food price, fuel price, fees and just about the price of every other thing has doubled in the last one year, yet salaries have remained the same (in most cases). “Are we on the brink of an economic collapse? Or, has the economy collapsed already?” some are wont to ask.
The truth is that the economy has not collapsed. Different countries around the world have experienced recession and come out of it at some point. With the right policy implementation, the current economic situation will one day be a thing of the past. But, how does one begin to prepare, plan and strategize so as to not to drown in the deep sea of the recession?
In this article, we are not only offering tips that will ensure you are kept afloat, we are offering tips that will help you turn the recession to a stepping stone for good fortunes.
Here are 9 helpful tips that will both serve as a life jacket and turn your fortunes around.
Stay Out of Debt:
A recession will not clean out the slate for debts that might have been incurred in the past. You will probably be under more pressure to pay your debts, as people might be more desperate to collect all they are owed.
Try and get out of debts now and work towards not going back to it. No one can tell the angle to which the wind of life would blow. It is just safe to stay out of financial pressure.
With the uncertainty that currently cloaks the exchange rate in Nigeria, you should consider making smart investments in precious stones, real estate etc. Items with good market value hardly depreciate. They will keep appreciating in value.
Though investments may pose risks, when it goes right, it can be incredibly rewarding.
You can use profits or money gotten from cut-down expenses for investments. Don’t forget to test the water. Be sure the business you want to invest in is genuine and has good prospects.
Reduce your expenses:
Reducing expenses often seems like a big task to people as everything always seems too important to do without. A little deeper look into our daily expenses may provide one or two grey areas that could be adjusted. You should take a second look at your expenses today.
Start living frugally:
Just because you have money, doesn’t mean you should blow it all. Live frugally and save more. This is an important step to staying on top of your finances.
Always put a list of things you need to get before you go shopping. Items that are not so needed at the moment can be left for a later date.
Sell things you don’t need:
Sell that extra car, personal effects or appliances you don’t really need. There is no point having something, if you hardly get to use it.
Do away with the habit of purchasing things you don’t need. Also, avoid buying things on credit. Such an act gradually creates a debt trap that might be difficult to get out of.
Create multiple streams of income:
If you don’t have much money, the best way to increase your income is to come up with an alternate source of income, no matter how small.
In a struggling economy, where there is no job security anywhere, it will be to your own advantage to be less dependent on your job.
Live on a budget:
The trick to being financially stable is to live within a budget and not above it. If your income is steered towards maintaining an extravagant lifestyle, you will find it hard to survive in a tough economy.
You must become an expert at budgeting your finances and learning to never spend beyond it. You will reap the reward in the long run.
Only buy things you need. You can also search for deals that help you pay less. If you are a compulsive shopper, avoid having so much cash at hand. Be very disciplined with e-commerce sites so that you don’t spend beyond your limit.
You can request for your partner or spouse to help with keeping records of your financial activities, if you consider yourself overly compulsive.
Rainy Day fund:
Save! Save! Keep Saving! In your budget, make room for saving at least 10% of your income, despite the size of your income. If you can’t save when you earn little, saving when you have a lot of money still won’t be easy.
Though following these steps would require great discipline and consistency, it would ensure that you are fluid enough to seize different profitable opportunities that would arise from time to time.