SEVEN WAYS NIGERIANS CAN COPE WITH THIS RECESSION
The news in Nigeria of late has been filled with many words, but one that scares everyone most is the word: Recession. There have been rumors that the Nigerian economy was facing a rapid downturn over a long time, but right now, those rumors have graduated into fact.
Recession in Nigeria has affected foodstuff prices
The prices of foodstuff, of staples and other things Nigerians use from day to day have skyrocketed. The panic is spreading slowly as people are finding it difficult to afford food and other important things.
How though can families and individuals pull through this economic recession successfully?
During this recession, it is vital to spend wisely. One key way to do that is to have a budget. Whether as a family or an individual that lives alone, a budget needs to be created for food, drinks, clothes, internet, recharge cards and so on.
The budget should not only be created, but should be adhered to. Setting a fixed amount for each need will help you cut down on impulsive spending and help you stay on track. Living without a budget, might make you start borrowing money just a few days into the new month.
Reduce drastically the amount of times you eat out. Even if you have to eat out once in a while, you might need to cut down on what you spend. One way to do this is to get a lot of foodstuff. Stocking up the house with the basic things you eat daily like rice, beans, garri and so on will help reduce spending.
Also, you have to be willing to cook. Laziness, when it comes to cooking, is one big problem that most people face, especially single people. However, it has been proven that eating out eats deeper into your budget than having home-cooked food. So you might have to bring out those cooking skills.
3. Save up
The economic recession might take a while before the turn-around comes. So it is important that you save up for the days when the rain falls harder than it is now.
So if you are working with a budget, then you should come up with a savings plan for the future. A well-funded savings account can be just the extra needed to meet bills and/or the inevitable emergencies that life throws at us. So even within the recession, it is important to save up.
4. Cut Back
The recession is a time to cut back, not borrow more money. So it is important that you cut away as many extras as possible. Money spent on entertainment, time at the mall, cinemas and other things you can do without should be cut back on.
It might be tempting to borrow, to keep up a certain lifestyle, but the recession is not the best time for that. So the best move is to cut back on all the frills.
For businesses, the following steps should be taken to keep them afloat during a recession:
Downsizing maybe inevitable at this point for many businesses. So it is important that you do a headcount, decide who you can do without and then take the very painful decision to let some people go.
You might have to change schedules and do other things to increase productivity of your business, even with less the amount of staff.
6. Reduce your overheard cost
it is important to reduce inventories and overhead at any cost. You should monitor your inventory for items that do not move frequently.
Note that that is where your cash is locked up, in your cost of materials, labor, and so on, waiting to be turned into cash after it’s sold and the receivables collected. This can cause loss of cash that is not good for a business during this recession.
On a final note:
7. Watch out for sales
Once in a while,online sales companies have sales, when you can get fashion items and home appliances at a far cheaper price. So be on the watch for this sales, they are great times to save money.
You can also buy in markets, instead of boutiques and malls.
Hopefully, the recession will pass soon, but meanwhile, Nigerians should start learning to how to cope.
Source: Kenneth Akazua