• Sunday, May 26, 2024
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Nigeria’s economic challenges: Want to survive the hard times? Here’s how!

Innovating Nigerian markets: Fighting poverty – ARETE Book Club

Nigeria’s economy is facing difficulties despite not being in a recession. A weak naira and high inflation are making it hard for many Nigerians to afford basic needs. This is due in part to insecurity in food producing regions.

Robert Harold Schuller (September 16, 1926 – April 2, 2015) was an American Christian televangelist, pastor, motivational speaker and author of the bestseller ‘Tough times never last but tough people do.’

He reminds his readers that tough times come and go. Even if things look bleak today, things could be very different a few years from now. He urges one and all to be strong and persevere. This means that people who can get through tough times are good enough to handle anything.

Here are some strategies to help you cope and overcome these economic hardships:

Build an emergency fund: This is a safety net for unexpected expenses. Start by creating a budget to track your income and spending. Identify areas where you can cut back and save towards a specific goal, like 3-6 months of living expenses. Open a separate savings account for this purpose and automate regular transfers to build it steadily.
Budgeting for Financial Freedom: A budget helps you track your income and expenses, reach financial goals, and save more. Figure out your income sources, how you spend your money, and if there’s room for savings. Be flexible and adapt your budget as your circumstances change.
Cutting Expenses: Prioritise necessities like food and shelter over wants. Negotiate bills and subscriptions. Reduce energy use at home. Plan and cook meals at home instead of eating out. Avoid impulse purchases by taking time to reflect on whether you truly need something.
Saving for the Future: Savings act as a financial stabiliser and allow for investment opportunities. Inflation can erode the value of savings, so consider interest-yielding options like stocks, bonds, or microfinance. Even small contributions can add up over time.
Generating Additional Income: Explore alternative income sources if you’re struggling. Freelancing your skills, selling items online, renting out a spare room, or tutoring are all possibilities.
Investing wisely: Investment decisions are personal and depend on your age, health, and financial goals. Younger individuals with a long-time horizon may be more comfortable investing during economic downturns. Diversification, focusing on stable companies, and dollar-cost averaging can help manage risk.
By following these strategies, you can build financial resilience during tough economic times. Emergency funds, budgeting, and expense reduction help optimise your spending. Saving, generating additional income, and informed investing promote stability and long-term financial well-being.