Nigeria’s inflation rate of 17.72 percent as of May 2022 is at its highest level in 11 months. This has increased the cost of living for cash-strapped Nigerians.
Households and individuals have to deal with the increasing prices of food, wear, fuel, and transportation among others. The middle- class is fast eroding and people are forced to make difficult decisions in order to sustain their families.
This rise is caused by a few factors such as the increase in the global price of energy worsened by the Russia-Ukraine crisis which started early this year. It has led to supply problems and labour shortages which extend the extra cost incurred by businesses to consumers.
Domestically insecurity, political instability, and bad road network also fuel this increase.
In more developed societies, the government gives its citizens stimulus to cushion the effect of this increase but in a developing economy like Nigeria you are left to adapt to the changes. And with this, it is necessary to make the most of your income to maintain your standard of living.
Here are a few things to do to make the most of your money.
Modify your budget
With the change in prices of goods and services, the starting point is to change your budget allocation to a sustainable one, and adjust what goes into savings, wants, and needs.
Read also: World Bank predicts Nigeria’s inflation rate may be among world’s highest in 2022
Check your bank statements for the last three months to track your spending habits and know things to cut off such as irrelevant subscriptions. Also, break down your budgets into monthly and weekly budgets to closely monitor you’re spending.
Evaluate your income and expenditure
Having multiple streams of income is fast becoming a necessity. So it is important to get a second job or start a business to increase your income. Requesting for a salary raise can also increase your earnings.
Whatever the case is, balance it with spending below your means by sticking to your budget and also cutting off unnecessary expenses.
Make your savings automated
Automate your savings such that it is removed immediately your income is paid. You can use Fintech apps, or join thrifts to build discipline and avoid spending all of your money.
Thrift unused items
Sell off items you do not need or use, such as home appliances, clothes, gadgets, etc. Funds gotten from the selloffs can be directed towards better use.
Get the best deal on everything
Now is the time to cut costs on everything and anything. Start doing this by paying less and earning more.
Renegotiate every deal, your wages, things you buy, services you pay for, interest on loans and benefits. Participate in sales, black Fridays.
Plan your meals
The prices of food items keep increasing so save by buying in bulk and portioning it over a period of time. You can also swap unhealthy and pricy snacks for cheap and healthy fruit options. Reducing eat-out could also help save money. Shop for your food items at big markets where you can get them cheap
Take public transport
Private car owners can commute more with public transport now to save the cost of buying fuel or diesel for their vehicles. For people with more than two cars, they can actively use just one or two. Sharing car-hailing services with commuters going to the same location will reduce your transport expense.
Have a transport budget, to properly monitor your transport expenses, cut down on unnecessary car trips, share trips with friends and colleagues to work. Spend less on fuelling generators by reducing the period of time it runs, and put fewer appliances on it.
Invest
Invest in your financial knowledge so your money can work for you. Learn more on how to multiply your income through investment and practice it.
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