The economic recession is full blown in Nigeria and many are panicking. Truly, there may be reasons to panic, as practically everyone is feeling the bite of the skyrocketing cost of consumables, and salaries are becoming grossly insufficient to meet household needs. Nevertheless, rather than panic, the question you should be asking is: what can I do to ameliorate this situation?
The first thing to do is to understand that you are not the only one in this shoes – almost everyone is facing the situation, except probably for some who might have stowed away foreign currencies. You also need to understand that the value of our money has been diminished by a third, when compared to this time in 2015. Considering these variables, the following steps will help you become recession-proof.
- Cut out the entertainment
Sitting back and looking at a screen will not get you anywhere fast. This is not saying that you should not have times to relax and unwind but, in times of recession, you need to work harder to earn as much as you did before the recession. If you want to earn more, then those times largely devoted to just watching ‘some people make money’ should be converted to times when you can earn money.
- Do a forensic on your home and sell unneeded items
There are so many things we keep at home that are no longer useful to us, but could be useful to some other persons. So, you need to audit what you have and decide on the things you really need. The excess can be given away for some token or even sold for some needed Naira.
- Make a budget and keep to it
Having a budget and keeping to it could be the single most important decision in a recession. It allows one to maintain a level of consistency in what is spent and what is saved, even though it seems there can’t be any savings. Human nature is more desirous of things that are not readily available. As such, a budget restricts those cravings for things that are not practical or expedient.
- Get a second job/weekend job
The Internet is a veritable ground to get work done for other people for some money. Explore this today! There are also some jobs that may be considered as odd or embarrassing to some people, but still needs to be done. Look out for some of those. You can also look out for things that you can do around your neighbourhood and how you can use your experience to make some extra income. Consider picking up new skills so that your net can become wider.
- Borrow money from the bank
The value of money is falling. So, this is actually a good time to borrow money, especially when it comes at a favourable rate. In times of recession, a lot of valuables would come into the market as people look for ways to convert assets into cash for everyday living. If you can get money at this time, you can actually acquire valuable assets that would pay off in some few years. Recession always ends and, when it does, you can re-convert these assets into more money.
There are other things you can do during a recession, but these simple steps will go a long way to protect you from the adverse effects of the recession.